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Urbanisation, economic diversification to drive power demand in the UAE

Rising global temperatures significantly increase global electricity demand, expert says

Power demand in the UAE is expected to grow considerably in the coming decades, driven by urbanisation, economic diversification, and the UAE’s ambition to be a global leader in sustainable energy, an industry expert said.

The UAE Energy Strategy 2050 aims to reduce the carbon footprint of power generation by 70 per cent while increasing the clean energy contribution. “As electricity demand continues to rise, there is a critical need to deploy advanced grid infrastructure that supports both traditional and renewable energy sources,” Dr Mostafa AlGuezeri, managing director for the Gulf and Maghreb at Hitachi Energy, told Khaleej Times in an interview.

Rising global temperatures significantly increase global electricity demand, especially for cooling systems like air conditioning. According to the International Energy Agency (IEA), the demand for cooling energy could triple by 2050 due to climate change, with the Middle East, including the UAE, among the most impacted regions . In the UAE, electricity demand spikes during the summer months due to extreme heat, placing immense strain on the power grid. “At Hitachi Energy, we believe electricity will be the backbone of the entire energy system. Together with stakeholders across sectors and geographies, we enable the digital transformation required to accelerate the energy transition toward a carbon-neutral future,” AlGuezeri said.

Hitachi Energy’s Gulf Interconnection Project, which links the GCC’s electricity grids, has enhanced energy security by enabling the sharing of power across borders , reducing dependence on individual national grids.

Reducing the strain on electricity systems requires a multifaceted approach, AlGuezeri noted. “First, energy efficiency must be improved on the demand side and on the consumption side. This can be achieved with the adoption of solutions that enhance flexibility of the grid and solutions that help manage the loads on the consumption side more dynamically. Secondly, integrating renewables into the energy mix is essential. In the UAE, solar power offers significant potential to offset the high demand for electricity during daylight hours. Hitachi Energy supports these efforts with the help of digital grid management solutions, power electronics and advanced control systems that help stabilise the grid during fluctuations in renewable energy supply,” AlGuezeri said.

The outlook for renewables in the UAE is very favourable, with investments being planned in renewable energy projects, such as the Mohammed bin Rashid Al Maktoum Solar Park, one of the world’s largest solar power facilities. By 2050, the UAE aims to generate 50 percent of its electricity from clean energy sources . “At Hitachi Energy, we are proud to contribute to this ambitious goal. Our grid edge solutions and digital substation technologies are helping to integrate renewable energy into the national grid more efficiently . As the UAE transitions to a sustainable energy future, we are committed to being a key partner. Together with customers and partners, we enable a sustainable energy future for all, ensuring that electricity will be the backbone of the entire energy system,” AlGuezeri said.