United Arab Emirates to Raise Renewable Energy Share to 7% Through 2020

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Researched by Industrial Info Resources (Sugar Land, Texas)--United Arab Emirates (UAE) considers the development of electricity and water production as one of the cornerstones of the development plan for the country. Abu Dhabi Water and Electricity Company (ADWEC) is a wholly owned subsidiary of the Abu Dhabi Water and Electricity Authority (ADWEA), established to be the single buyer and seller of water and electricity in Abu Dhabi.

ADWEC performed a study in fiscal year 2009-10 titled "Electricity Demand Forecasting Study to 2030" to forecast the UAE's peak demand of electricity and water by 2030. The study concluded that the estimated peak demand for both electricity and water will be 30,000 MW, which is triple the peak demand of 2009-10. At 1,420 gross million imperial gallons per day, peak water demand will double from 2009-10.

According to study, the UAE is struggling to cope with the 10% annual growth in domestic water and power demand. The UAE has adapted its electricity sector plan to strengthen electricity generation capacity by raising renewable energy (mostly solar energy projects) to 7% of the country's needs through 2020.

Abu Dhabi, which holds almost all of the UAE's oil reserves, is expanding its use of solar and wind power in an effort to become a regional hub for renewable energy. The emirate is building Masdar City, a business and residential complex designed to emit minimal carbon emissions, and to serve as headquarters for the International Renewable Energy Agency.

Abu Dhabi Future Energy Company (Masdar), the Abu Dhabi government-backed renewable energy company, also plans to build a 100-megawatt (MW) photovoltaic plant called Noor. Masdar plans to award construction contracts for the venture by the end of the year. The Shams-1 solar plant is another project that will be constructed in a joint venture between Masdar, Total SA (NYSE:TOT) (Paris, France) and Abengoa Solar (Madrid, Spain). The project has an estimated cost of $600 million and will have a total generating capacity of 100 MW.

Shams-1 will use concentrated solar thermal technology and is expected to be completed in 2012. The project will be located in Abu Dhabi, the largest emirate in the UAE.

According to unofficial information, Masdar will develop a wind energy project in Abu Dhabi with the expectation that both Shams-1 and the wind project will feed electricity to national grid 2012.

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