UAE invests $22 billion to boost solar power share to 40%

The UAE Ministry of Energy and Infrastructure announced a new plan to raise the share of solar energy in the electricity generation mix to 40 percent by 2032, up from around 17 percent currently, through investments estimated at $22 billion.

The plan involves constructing four major solar plants with a combined capacity of 9 gigawatts, alongside battery energy storage projects with a capacity of 3 gigawatts to ensure grid stability during nighttime hours, according to a ministry statement. The ministry also explained that the plan will generate about 12,000 direct job opportunities during the construction phase and cut carbon emissions by around 18 million tonnes annually once completed.

The UAE Minister of Energy stated in press remarks that the cost of producing electricity from solar power in the country has dropped below 1.4 US cents per kilowatt-hour, representing one of the lowest costs globally. He added that expanding in this sector is an economic decision before being an environmental one. The statement noted that tenders for the first two plants are scheduled for launch to international and local developers in the first quarter of 2027.

In this context, analysts believe the plan reinforces the UAE's position as a regional hub for renewable energy and may prompt other Gulf states to accelerate similar plans for expanding clean energy.

What do these terms mean?

Electricity generation mix: The variety of different energy sources used to produce electricity, such as natural gas, renewable, and clean sources.

Gigawatt: A unit used to measure high electrical power output, equal to one billion watts or one thousand megawatts.

Kilowatt-hour: A unit measuring the amount of electrical energy supplied or consumed over the duration of one hour.