UAE ENERGY TREND

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In UAE, from 2005 to 2015 population (Emiratis + Expatriates) has grown from 3.7 million to 8.5 million and Energy consumption has grown from 45 Mtoe to 76 Mtoe and it is steadily going up. This is apart from floating population due to tourists and business visitors.

While it can be seen that the world population has doubled in 50 years, UAE population has doubled in 10 years, a 5 times higher rate. The increase in population has increased Direct and Indirect Energy Demand. The increase in Energy Demand has increased GHG Emissions by 70% in the last 10 years. UAE’s CO2 emission per capita remains 23.60 which is very high and in Paris Agreement, UAE has agreed to reduce this by various measures.

UAE government has started reducing the subsidy which results in increased Energy Price. This would result in losses for industries and commercials who had set their businesses based on the current Energy Consumption Pattern.

UAE has been dependent on Fossil Fuel Energy and in 2014 the contribution of renewable energy was mere 0.2%. UAE Government plans to increase the renewable energy to 24% by 2021 and ultimately to 44% by 2050. The dependence on fossil fuel still remains for 50% of the energy share and 3% on nuclear energy.

The highly subsidised Energy and Water pricing is leading to a culture of wasteful usage of Energy and Water resulting in higher emission of CO2. It is also evident that such a practice leads to lesser productivity of the existing process.

In order to comply with Paris Agreement to keep the global warming below 2°C, UAE Government is slowly reducing the subsidy resulting in the higher cost of Energy and soon Industries and Commercial Establishments would face difficulties in commercial operations.

It is a high time, every energy consumer in UAE improves Energy Efficiency which can be easily achieved by improving the process and productivity.