An Economic Analysis of Solar Energy Generation Policies in the UAE

Abstract

Despite global efforts to reduce greenhouse gas emissions, the energy sector remains a major contributor, with hydrocarbon-based resources fulfilling around 80% of energy needs. As such, there is a growing focus on identifying effective and economically feasible policy mechanisms to promote renewable energy adoption. This study focuses on the theoretical problems surrounding the adoption of renewable energy policies. The study aims to highlight the potential for sustainable growth using renewable energy in the UAE and identify the most viable policy mechanisms for enhancing grid-tied solar energy adoption using qualitative and quantitative data collection methods and the HOMER Grid software. Compared to previous research, this study contributes by identifying a unified renewable energy policy mechanism that could significantly enhance the adoption of grid-tied solar energy generation in the UAE. The study’s main findings show that a unified renewable policy mechanism could enhance grid-tied solar energy adoption throughout the UAE’s electricity authorities. Net metering emerges as the most efficient and economically viable policy for customers and electricity utilities.