{"id":142570,"date":"2026-06-11T09:33:32","date_gmt":"2026-06-11T09:33:32","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=142570"},"modified":"2026-06-11T11:50:45","modified_gmt":"2026-06-11T11:50:45","slug":"uae-renewable-energy","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/uae-renewable-energy\/","title":{"rendered":"United Arab Emirates: Renewable Energy"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-142570","comparative_guide","type-comparative_guide","status-publish","hentry","guides-renewable-energy","jurisdictions-uae"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">King &amp; Spalding LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/05\/Logo_standard_RGB_Brown.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">King &amp; Spalding LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/05\/Logo_standard_RGB_Brown.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Renewable Energy laws and regulations applicable in United Arab Emirates<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE\u2019s renewable energy sector has grown significantly in recent years, although the electricity generation mix remains weighted towards fossil fuel-fired plants. As of 2025, renewables made up nearly 18% of the country\u2019s electricity generation. However, the UAE\u2019s renewable energy industry has been growing at a rapid pace over the last few years and is expected to play a much larger role in the country\u2019s energy generation landscape in the coming years to help the UAE meet its target of 30% energy generation from clean sources by 2030.<\/p>\n<p>The vast majority of the UAE\u2019s renewable energy is generated through solar photovoltaic (PV) projects. The UAE currently has approximately 7.8GW of installed solar PV capacity, with numerous large-scale solar developments financed and underway. These include Masdar\u2019s and Emirates Water and Energy Company\u2019s (EWEC\u2019s) landmark 5.2GW solar plant in Abu Dhabi (which, coupled with the 19GWh battery energy storage system (BESS), is set to be the world\u2019s largest Solar PV and BESS system) and Phase 6 of the Mohammed bin Rashid Al Maktoum Solar Park on the outskirts of Dubai. This latter project is the world\u2019s largest single-site solar park, expected to add 1.8GW of solar generation by the end of 2026 as part of the park\u2019s anticipated 5GW of generation capacity by 2030.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are your country's net zero\/carbon reduction targets? Are they law or an aspiration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE has enshrined net-zero\/carbon reduction commitments into law via its National Energy Strategy 2050, which targets, amongst other things, net-zero emissions by 2050 and a 47% reduction in greenhouse gases by 2035.<\/p>\n<p>Recent legislation has been passed to help support these objectives. Federal Decree-Law No. 11\/2024, which came into force in May 2025, established a mandatory framework for all public and private sector entities to measure, report, and plan for the reduction of their greenhouse gas emissions.<\/p>\n<p>As the UAE has federal and Emirate-level regulations and policies, it should be noted that there are also a variety of Emirate-level policies in respect of renewable energy. For example, Abu Dhabi\u2019s Clean Energy Strategic Target 2035 and Dubai\u2019s Clean Energy Strategy 2050 call for goals of 60% and 75% of electricity production form clean sources, respectively, although this is not limited solely to renewables. Ras Al-Khaimah and Umm Al Quwain have also instituted various policies which set aspirational renewable energy\/emission reduction targets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of 'renewable energy' in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no federal statutory definition of \u2018renewable energy\u2019 that is of general application in the UAE. In practice, \u2018renewable energy\u2019 is understood to include non-fossil fuel, naturally replenishing sources such as solar, wind, hydro, geothermal, and biomass (including biogas and landfill gas).<\/p>\n<p>Many Emirate-level initiatives and regulations also include the concept of \u2018clean energy sources\u2019 which include renewables, nuclear and other low-carbon sources.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are both federal and Emirate-level bodies which play some role in driving and implementing energy policy in the UAE: at the national level, the most prominent are the Ministry of Climate Change &amp; Environment (responsible for implementing strategies to assist with meeting the goals set by the National Energy Strategy 2050) and the Ministry of Energy and Infrastructure, responsible for overseeing the sustainable development and regulation of the UAE\u2019s energy industries.<\/p>\n<p>In Abu Dhabi, the Abu Dhabi Department of Energy regulates the Emirate\u2019s energy sector and its functions include granting energy generation licences, while EWEC manages the procurement of generation capacity, which includes purchasing power capacity from generating companies under power purchase agreements (PPAs), which are based on a precedent that has been in place for almost 30 years. TAQA Transmission is responsible for Abu Dhabi\u2019s transmission network and enters into connection agreements with generating companies and TAQA Distribution is responsible for the distribution of energy to end-users.<\/p>\n<p>In Dubai, the Dubai Electricity and Water Authority (DEWA) has a similar procurement role to EWEC (although it is also worth noting that in Dubai, DEWA is an integrated monopoly provider that also manages transmission and distribution) and the Dubai Regulatory and Supervisory Bureau acts as the regulator for the electricity and water sources. In the Northern Emirates, EtihadWE plays a similar procurer role to EWEC and DEWA.<\/p>\n<p>In relation to the entities driving green energy project development in the UAE, this can be split between well-established private sector power developers (e.g. ACWA Power, Engie and EDF) and state-owned power developers, such as Abu Dhabi Future Energy Company (Masdar). Masdar is the local 60% shareholder on all greenfield solar IPPs in Abu Dhabi and is a prolific regional and international renewable energy project developer, with a portfolio of projects under construction or operating in excess of 65GW.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Businesses in the UAE primarily access renewable energy by purchasing power from state-owned distributors, such as TAQA Distribution (Abu Dhabi), DEWA (Dubai) and EithadWE (Northern Emirates). Some industrial consumers (e.g. Abu Dhabi National Oil Company (ADNOC) and Emirates Global Aluminium (EGA)) are known to have more bespoke supply arrangements with EWEC and\/or TAQA Distribution and in the past have obtained \u2018self-supply\u2019 licences entitling them to develop captive power plants for their industrial facilities.<\/p>\n<p>Smaller scale initiatives, such as the Shams Dubai rooftop solar programme, also present an efficient option for private individuals and small-medium sized businesses due to their long lifespan and relatively low up-front cost and maintenance.<\/p>\n<p>An emerging example is the growth of corporate PPAs and the development of initiatives that would allow businesses to purchase renewable electricity directly from off-site generators. Given the current regulatory framework (e.g. in Abu Dhabi, the only authorised distributor of energy to end-users is TAQA Distribution), this model is still not widely seen but is expected to gain traction as the regulatory frameworks evolve in the Emirates.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)? What are the key developments in renewable energy in your country over the last 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, business engagement has noticeably increased, driven primarily by corporate tax incentives, ESG reporting requirements (particularly for companies listed on the ADX and DFM markets), sustainability-linked financing conditions, and the reputational impetus from Dubai\u2019s hosting of COP28 in 2023, which heightened corporate awareness of the UAE\u2019s decarbonisation initiatives and targets.<\/p>\n<p>EGA\u2019s sale of its captive, gas-fired generation plant at Al Taweelah in Abu Dhabi is a practical example of how big business in the UAE is becoming more focused on decarbonisation and the substitution of \u2018grey\u2019 electrons for \u2018green\u2019 electrons. By powering its operations with green electricity, EGA is able to produce and market \u2018green aluminium\u2019 \u2013 giving it a competitive edge in the crowded global aluminium supply market.<\/p>\n<p>Rising energy costs and supply chain disruptions (exacerbated in early 2026 by the conflict in Iran) have also prompted more businesses to explore on-site \u2018captive\u2019 solar generation and energy efficiency measures as a hedge against electricity price fluctuations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Like many other GCC states, the UAE\u2019s long-term economic strategy seeks to diversify away from a reliance on fossil fuels. The UAE\u2019s economic plans recognise the role that decarbonising the economy will play in both meeting domestic emissions targets and complying with emissions-reduction regulations in its target markets (particularly the EU). The UAE has positioned itself as a regional leader in facilitating dialogue around the reduction of carbon emissions, and hosted the COP28 conference in Dubai in November 2023.<\/p>\n<p>There is considerable political and regulatory support for businesses seeking to reduce carbon emissions, both at the federal and Emirate level. One is the federal National Energy Efficiency Programme, comprising 34 national initiatives aimed at supporting businesses in the effort to decarbonise and stimulate long-term sustainable economic growth. At the individual Emirate level, Abu Dhabi has established the ACX exchange as a platform for investors to trade carbon credits.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore\/set up, interconnect or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Large-scale renewable energy projects in the UAE are predominantly procured through competitive government-led bidding processes (e.g., EWEC&#8217;s Independent Power Producer (IPP) programme in Abu Dhabi and DEWA\u2019s IPP programme in Dubai). Given the climate and conditions in the UAE, solar is the most viable source of renewable energy \u2013 wind remains under consideration and projects have been developed on smaller scales but wind resources in the UAE are relatively limited when compared with solar.<\/p>\n<p>BESS is playing an increasingly important role in the energy mix \u2013 for example, EWEC\u2019s next wave of solar PV IPPs will integrate a BESS component to help address the inherent intermittency limitation of renewable energy. Addressing intermittency is becoming more important for grid stability as renewable energy becomes a larger portion of the UAE\u2019s energy generation mix and the number of larger industrial users (e.g. data centre owners) who require a reliable 24 hours a day supply of energy increases.<\/p>\n<p>For nuclear energy, which tends to be underpinned by \u2018government-to-government\u2019 arrangements, Emirates Nuclear Energy Company (the owner of Abu Dhabi\u2019s Barakah plant) holds the exclusive federal licence. Permits for smaller distributed projects (e.g. rooftop solar) are granted by local distribution companies. Wind and green hydrogen are at earlier stages, with frameworks still developing under respective Emirate authorities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The governments of individual Emirates are heavily involved in the renewables industry, both in the UAE and internationally, via state-owned renewable energy companies (like Masdar, one of the world\u2019s largest renewable energy developers), and direct investment in independent power producer companies and projects (generally through sovereign wealth funds). Entities like DEWA also directly own and operate some renewable energy infrastructure and assets, although this is less common.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE National Energy Strategy 2050 (last updated in 2023) sets the country\u2019s net-zero emissions target and targets for the energy-generation. Other key legislation includes Federal Decree-Law No. 11\/2024, which establishes a comprehensive framework for managing greenhouse gas emissions, the Distributed Renewable Energy Generation Law (2022), governing the connection of small-scale renewable projects to the main grid, and the Energy Supply Regulations 2020, which established the Department of Energy in Abu Dhabi, responsible for regulating the energy sector (including promoting energy efficiency).<\/p>\n<p>&nbsp;<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As already noted, procurement of renewable energy is, by law, within the responsibility of specific state-owned entities who oversee competitive bidding processes with the private sector. This means that incentives do not serve the same purpose as in other jurisdictions where the public sector does not drive the scope and size of new renewable energy projects. Contracts for Difference (CfDs) are not seen as necessary given that the cost of producing renewable energy is among the lowest in the world, with the UAE having set the world record lowest tariff on solar PV projects on several occasions.<\/p>\n<p>However, some incentive schemes have been implemented in the UAE aimed at promoting investment in renewable energy projects which are worth mentioning. Generally speaking, these schemes\/initiatives have fallen within the government\u2019s Energy Strategy 2050, and include exemptions from customs duties and import charges for renewable energy projects and preferential green tariffs for renewable energy to be supplied in certain areas. Additionally, the government has set up various special economic zones specifically aimed at stimulating investment in renewable energy \u2013 such as Masdar City, where renewable energy projects attract additional incentives like tax holidays and reduced corporate tax rates.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices? Are there plans in your jurisdiction to keep open coal plants originally scheduled for retirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE\u2019s electricity generation has historically relied on domestically produced and imported natural gas and regulated electricity tariffs are set by Emirate-level authorities. However, the underlying cost of gas supply influences the economic case for renewables, with recent solar power purchasing agreements achieving record-low prices. There is also no formal mechanism linking renewable electricity prices to gas prices in the UAE, as renewable PPAs are structured with fixed prices (subject to agreed escalation adjustments) for their duration, which enables power developers to fund the projects with limited recourse finance, enabling the developers to maximise their economic return and maintain the attractiveness of IPPs to the private sector.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes\/challenges?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Some of the main procedural barriers have already been addressed above. For example, the regulatory frameworks in the UAE electricity market, which currently limit direct corporate power purchasing agreements and third-party access, grid connection constraints for distributed generation, and the dominance of single-buyer models which restrict market entry for independent generators.<\/p>\n<p>Permitting processes can be lengthy for novel technologies, such as offshore wind or green hydrogen, and there are also restrictions on foreign ownership in certain sectors, although given the role of EWEC, DEWA and EtihadWE, they are able to mitigate the risks associated with permitting through contractual provisions and by virtue of their existing relationships with the competent authorities, such as the Department of Energy and Environmental Agency in Abu Dhabi.<\/p>\n<p>The region\u2019s climate, particularly extreme heat and dust, can also affect the performance of crucial equipment and increase maintenance costs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key contracts you typically expect to see in a new-build renewable energy project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The key contracts which one would expect to see in such projects and are often included in the Request for Proposals (RFP) package distributed to qualified bidders, are:<\/p>\n<p>a. a power purchase agreement between the generator and the relevant procurer (e.g. DEWA or EWEC);<\/p>\n<p>b. an engineering, procurement, and construction (EPC) contract for the construction of the plant between the generator and an EPC contractor;<\/p>\n<p>c. depending upon the jurisdiction (e.g. in Abu Dhabi, there is no O&amp;M contract), an operation and maintenance (O&amp;M) contract for the ongoing operations of the plant between the generator and an O&amp;M contractor;<\/p>\n<p>d. a lease, usufruct or musataha agreement relating to the project site, although it is worth noting that in Abu Dhabi, it is now typical for the land rights to be licensed to the generator under the PPA, with a land lease no longer entered into;<\/p>\n<p>e. shareholders\u2019 agreements between the shareholders, which are critical when the ownership structure of the generator comprises a local shareholder (e.g. Masdar) and the private sector developer shareholder; and<\/p>\n<p>f. relevant financing agreements between the generator and its lenders.<\/p>\n<p>Other critical agreements found on greenfield renewable energy projects include connection agreements, module supply agreements and services agreements under which the private sector power developer may provide certain O&amp;M-type services to the generator.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) in your jurisdiction of the implementation of the Net Zero Industry Act (EU) Regulation 2024\/1735 or the \u201cforeign entity of concern\u201d regulations in the U.S.?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Standard form IPP power purchase agreements (used by both EWEC in Abu Dhabi and DEWA in Dubai for utility-scale renewables projects) typically contain Emiratisation provisions requiring a developer to give preference to labour, materials and equipment procured from within the UAE. There is also a national In-Country Value (ICV) program, which measures companies\u2019 contributions to the UAE economy through the procurement of local labour, materials and equipment, and it is becoming increasingly common to see UAE lenders requiring evidence of compliance with local content requirements and high ICV scores. These initiatives prioritise the localisation of supply chains and the development of local industries and services, with the objective being that the benefits of industrial projects (including renewable energy projects) are principally felt within the UAE.<\/p>\n<p>In the same vein, whilst there are no explicit restrictions on exporting renewable energy, projects which will generate greater ICV contributions are favoured by government entities. It is worth noting that the interconnection of the GCC\u2019s transmission infrastructure is an ongoing project but we expect that ultimately, there will be a more integrated GCC grid network facilitating the import and export of electricity to and from GCC member-states and potentially into neighbouring countries such as Jordan, Iraq and Egypt.<\/p>\n<p>The EU\u2019s Net Zero Industry Act has a direct impact on UAE-based manufacturers that export to the EU (particularly companies like Emirates Global Aluminium) and there is increased interest in decarbonisation of operations in order to meet the requirements of European customers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has deployment of renewables been impacted in the last year by geopolitical uncertainties and other non-country specific factors: For example, the conflict in the Middle East, financing costs, changing tariff regimes, supply chain or taxes or subsidies (e.g. the impact of the One, Big, Beautiful Bill on the tax credits and other incentives created by the Inflation Reduction Act in the U.S.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Iran conflict, which began at the end of February 2026 has blocked crucial shipping lanes in the straits of Hormuz, increased logistics costs and caused delays in the delivery of renewable energy equipment (solar panels, inverters, transformers) to the UAE, as a significant proportion of imports transit through affected maritime routes. However, the UAE\u2019s strong credit rating and government-backed offtake structures have substantially insulated domestic projects from the higher financing costs experienced globally.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The major renewable energy projects in the UAE include the expansion of the Mohammed bin Rashid Al Maktoum Solar Park, which is currently in Phase 6 of development \u2013 with the aim of this phase alone being to reduce carbon emissions by a further 2.4 million tonnes per year. Masdar has also recently broken ground on two large solar projects; the Al Wathba solar and BESS plant (discussed above), and a 1.5GW solar PV plant at Al Khazna forecast to power approximately 160,000 homes and displace 2.4 million metric tonnes of carbon emissions annually.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the business models in the renewable energy sector in your jurisdiction adapting to the increasingly significant pace of deployment of BESS? What percentage of deals are standalone, co-located or hybrid? How is the implementation of these business models impacting financing structures?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE\u2019s renewable energy sector is in the early-to-mid stages of integrating BESS, with the market evolving rapidly. As noted above, in Abu Dhabi, it is likely that a BESS component will be integrated into all solar PV IPPs going forward. The predominant model to date has been co-located BESS paired with solar. DEWA has been a pioneer in this regard, incorporating storage requirements into recent solar park phases. In addition, Masdar\u2019s Al Wathba solar and BESS plant spearheaded by Masdar will integrate BESS and is set to be the world\u2019s largest project of its kind, and may prove to be a model for future large scale BESS projects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is required in your jurisdiction to facilitate confidence in new development and financing in newer areas like offshore wind or hydrogen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE is well positioned to become a leader in green hydrogen given its abundant solar resources (enabling low-cost green hydrogen production), significant government investment through entities like Masdar, and strategic geographic location for export to Europe and Asia. The National Hydrogen Strategy 2050 targets regional green hydrogen leadership.<\/p>\n<p>As for offshore wind, prospects are more limited due to relatively low wind speeds in the Arabian Gulf and shallow, ecologically sensitive marine environments. Coastal and offshore wind assessments are underway for several sites in the Arabian Gulf. Based on past performance, but extensive modelling and exceptional conditions would be required to encourage the adoption of offshore wind at scale. Based on its past performance, the UAE is more likely to prioritise the development of technologies like solar and hydrogen rather than wind to meet its renewable energy needs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are renewables projects commonly financed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Project debt financing (up to 80% of development cost) by generators is the most common approach on the back of well-established, bankable PPAs.<\/p>\n<p>Official government entities, state-owned companies, and sovereign wealth funds are also investing in financial initiatives to support renewable energy projects. For example, Masdar has issued close to USD 3 billion in green bonds for the funding of exclusively renewable energy projects. Sharia-compliant sukuk bonds are also becoming increasingly common in the renewable energy sector.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the rising demand for data centres impacting the grid and electricity prices for consumers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE, particularly Dubai and Abu Dhabi, is experiencing rapid growth in data centre development. The country is currently investing in the development of some of world\u2019s leading AI Infrastructure, such as \u2018Stargate\u2019 in Abu Dhabi &#8211; a 1.5GW AI campus currently under construction in Abu Dhabi being developed by G42 in collaboration with Khazna Data Centres, OpenAI, Oracle, NVIDIA, Cisco and Softbank. Large assets like this will require substantial power, fully dispatchable energy supplies and will not be able to be sustained by intermittent energy supplies (i.e. renewable energy) alone. This is why BESS is viewed as increasingly crucial to meeting sustainable data centres\u2019 energy requirements. Captive energy supply solutions for data centres are also under consideration.<\/p>\n<p>It is also worth noting that given the exceptional growth of AI and digital infrastructure in the UAE and its strategic importance to the UAE, it is accepted that gas-fired and nuclear power generation, which each have the crucial benefit of being fully dispatchable, have a critical role to play in meeting power demand for the foreseeable future. For example, EWEC and TAQA have recently signed agreements for a greenfield 1GW gas-fired power project at Al Dhafra specifically intended to meet the power requirements of AI and digital infrastructure.<\/p>\n<p>DEWA and Abu Dhabi&#8217;s transmission and distribution companies have been investing in grid reinforcement and capacity expansion to accommodate this increased demand.<\/p>\n<p>Although regulated electricity tariffs have not yet seen significant consumer-facing price increases directly attributable to data centre demand, such increased demand is expected to influence future infrastructure investment costs, which may ultimately be reflected in tariff reviews.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4074<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/142570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=142570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}