UAE offers $100bn alternative energy projects
Abu Dhabi, July 12, 2011
The United Arab Emirates sees private sector investment opportunities in alternative energy projects reaching $100 billion by 2020, the economy ministry said on Monday.
'Investment opportunities in the market for alternative and sustainable energy projects that can be invested by the private sector in the UAE will be around $100 billion until 2020,' the economy ministry said in a statement distributed at a news conference.
International firms are gearing up to tap opportunities in the Middle East and North Africa (Mena) solar power sector but the lack of a regulatory framework will hinder growth, industry executives said.
Abu Dhabi green energy company Masdar said in January its 60-40 hydrogen power venture with BP would be delayed, without giving reasons other than it was awaiting government approvals.
'The production of bio-fuels and alternative energy from multiple sources will be accounted for 50 percent of the available opportunities at the state level,' it said, adding water recycling would make up 20 percent of investment opportunities while urban development projects 30 percent.
The UAE is the world's third largest oil exporter, now pumping 2.5 million barrels per day, and its petrol consumption is estimated to be around five million litres per day.
State-owned utility Dubai Electricity and Water Authority (Dewa) said in March it expected energy use in Dubai to increase by six to seven percent in 2011 over last year, adding Dewa will meet all energy demands.
The UAE has seen a petrol shortage in recent months, with petrol stations of fuel retailer Emarat drying up in April after a payment problem with suppliers, prompting customers in the country to fill up at rival sites.
The UAE enjoys one of the world's highest per capita incomes at nearly $49,000. - Reuters