The UAE Minister of Energy, Suhail Al Mazrouei, confirmed that the global oil market faces several challenges during the current year (2023), most notably the lack of investment.
And he stressed, in press statements on the sidelines of the World Government Summit – hosted by the UAE – the need to pump new investments in the oil and gas sector in order to secure the growing demand in the long term.
The UAE Minister of Energy attributed the state of equilibrium witnessed by the global oil sector in 2022 to the efforts made by the OPEC + coalition, the pre-calculated decisions, and dealing with variables with high professionalism, which contributed to the stability of the markets.
And he ruled out that the energy sector would witness any challenges in the short term that might affect the global scene, according to his statements, which were monitored by the specialized energy platform, quoting the Emirates News Agency.
electricity market
Suhail Al Mazrouei said that his ministry is working on the completion of the electricity market project in the UAE, which is one of the priority strategic projects, which is in line with the vision and directions of the sustainable state.
He pointed out that the World Government Summit is an international platform to explore the future of energy, in which the UAE leads a group of global initiatives, which coincide with the hosting of the Climate Summit COP 28, to constitute an important opportunity to highlight the country’s efforts in the field of energy transition.
He added that the electricity market project aims to create a market for electricity trading at the level of the Emirates, with the possibility of expanding outside the country and enhancing opportunities for exporting electricity abroad.
Clean energy in the UAE
Suhail Al Mazrouei indicated that the National Energy Strategy 2050 launched by the Ministry of Energy and Infrastructure is the first unified energy strategy in the UAE that aims to reach clean energy by 50% of the future energy mix, and raise consumption efficiency by 40%, in various consumption sectors.
He said, “The electricity market is one of the important economic paths emanating from the strategy, which contributes to raising the sector’s economies and creating new job opportunities.”
He added, “In line with the UAE’s declaration of the carbon neutrality initiative by 2050, and the launch of a road map for hydrogen production to support carbon neutrality at the COP26 climate summit in Glasgow, the energy sector in the UAE is compatible with the new global trend towards energy transition and reducing the carbon footprint.”
The UAE Minister of Energy expected that production efficiency in the electricity sector would contribute to reducing costs and carbon emissions until 2030, and benefiting from clean technology to achieve sustainable development.
He stressed that the electricity market is one of the important economic paths for the energy sector’s contribution to economic diversification and the consolidation of the UAE’s global position in the energy sector within the next fifty-year plan.
future plans
The UAE Minister of Energy affirmed that his ministry is working to develop the electricity market in a way that allows for gradual expansion to allow more market products and commodities and increase the percentage of market participation and the amount of trading, as it is expected that the electricity market, when completed, will contribute to enhancing the efficiency of the electricity network in the UAE, to ensure energy security and sustainability.
He explained that after the UAE announced the initiative to reach carbon neutrality by 2050, the first review of the National Energy Strategy 2050, which was launched by the Ministry of Energy and Infrastructure, began.
The objectives of the future energy mix and raising the efficiency of consumption in the various consumption sectors are being discussed and approved with the strategic partners. Important economic paths emanating from the strategy have been identified, which contribute to raising the sector’s economies and creating new job opportunities.
Suhail Al Mazrouei indicated that dispensing with 12% of clean coal as an energy source within the energy mix in 2050 is one of the most important modifications to the strategy, as well as working to increase the contribution of renewable and clean energy, which will play a major role in reducing carbon emissions, in addition to working on The national strategy is hydrogen, which will play a major role in heavy industries, which consume a large part of production capacity.
He added that the targets for reducing carbon emissions from 70% to 100% by 2050, and increasing energy efficiency, have been updated, according to statements seen by the specialized energy platform.
Energy security in the UAE
The UAE Minister of Energy said that his country enjoys huge potential of solar energy, and the low costs of solar energy contribute to enhancing energy security in the country and its competitiveness in an economical and affordable way.
“The increase in renewables requires transportation upgrades and investments in storage technologies to meet energy requirements reliably, with lower storage costs, as well as the commercialization of long-term storage technologies,” he added.
He noted that long-term storage technologies will play a major role in decarbonizing the grid in a reliable and affordable way.
He stressed that the Ministry of Energy and Infrastructure is working to develop laws and policies that will play a major role in the next stage by enhancing energy security, its sustainability and the reasonableness of energy prices for the next stage.
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