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The UAE diversifies energy resources

The UAE plans to diversify its energy resources to greener source, up to 50 per cent by 2050. And this policy initiative is going to offer investment options worth up to $160 billion over the next 30 years or so, like said Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry.

It worths of investment opportunities to global investors in the energy sector over the next 30 years as the country looks to diversify its economy.

This initiative will provide partnership potential with foreign investors. In the industrial sector, we are promoting Fourth Industrial Revolution technologies including machine learning, artificial intelligence, robotics, digitisation of economy and 3D printing.

While oil and gas have historically been the dominant fuels powering the UAE’s economy, the UAE’s energy sector is undergoing a transformation targeting the diversification of the UAE’s energy mix (https://u.ae/en/information-and-services/environment-and-energy/water-and-energy/energy-#:~:text=While%20oil%20and%20gas%20have,using%20natural%20gas%2Dfired%20generation).

The UAE generates most of its electricity (110 billion kilowatt-hours in 2013) using natural gas-fired generation. It is planning to integrate the natural gas distribution networks of all the emirates; this should help alleviate some of the peak-demand shortfalls experienced in the past.

In 2012, the total installed capacity of electricity generation was 27.2 gigawatts (GW). To meet the rising demand in a sustainable manner, the UAE is focusing on coming up with a balanced energy mix.

The UAE efforts in the field of energy aims to ensure access to affordable, reliable and modern energy services, increase substantially the share of renewable energy in the global energy mix and double the global rate of improvement in energy efficiency.

Last month, Abu Dhabi National Oil Company (Adnoc) signed $20.7 billion (Dh76 billion) worth of deals with world’s leading infrastructure investors, sovereign wealth funds and pension funds to invest in Abu Dhabi’s gas pipelines to as part of emirates’ diversification strategy.

Analysts said that the deal reflected strong ability of the UAE energy firm to attract capital, which can then be invested in projects linked to Adnoc’s medium-term growth plans. About the response from the investors on Adnoc’s investment opportunities, Al Mazrouei said Adnoc has managed to bring together large interest from quality investors to offer them prime quality assets.

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