This study examines the policy, regulatory, financial and capacity-related challenges that the country has to address to meet targets for renewables to make up 42% of the country’s electricity mix by 2035.

Renewable energy has become economically attractive in the oil-rich United Arab Emirates (UAE). Ramping up renewables to 10% of the country’s total energy mix, and 25% of total power generation, could generate annual savings of USD 1.9 billion by 2030 through avoidance of fossil-fuel consumption and lower energy costs. With health and environmental benefits factored in, the transition to renewables could generate additional net annual savings of USD 1 billion to as much as USD 3.7 billion by 2030.