Market design for successful implementation of UAE 2050 energy strategy

Abstract

In order to implement a renewable energy (RE) strategy in any country, there is a need for a good market design in order to have successful outcomes. Market design depends of several factors such as Infrastructure, Human Capacity and Institutions. This paper explores the literature on RE market design factors and sub-factors and selects the most acceptable framework for market design analysis. UAE (United Arab Emirate) 2050 Energy strategy calls for reduction on carbon dioxide emissions by 70%, increasing clean energy use by 50% (RE 44% and Nuclear 6%), and improve energy efficiency by 40% by the middle of the century. The paper analyses the current RE market design in UAE and proposes improved policies and mechanisms in order to achieve the proposed targets. In addition, it will look at the transition strategies needed from all relevant stakeholders especially the main UAE utilities, ADWEA (Abu Dhabi Water and Energy Agency) and DEWA (Dubai Water and Energy Agency). The paper will show the business models of these utility companies that will help in the transition of UAE from fossil fuel economy to a harmonic fuel mix with cleaner sources of energy.