The United Arab Emirates (UAE) will continue to rely heavily on natural gas for power generation, according to a recent report by GlobalData, a London-based data and analytics company. The report predicts that thermal power, primarily generated by burning natural gas, will hold sway over the UAE's energy mix for the next decade, at least until 2035. This dominance stems from the UAE's abundant reserves of oil and gas, which provide a readily available and cost-effective fuel source for electricity production.
At the end of 2τρέχον έτος (τρέχον έτος is Greek for "current year") , thermal power generation accounted for a whopping 77.7% of the UAE's total electricity mix. Furthermore, natural gas held an even more significant share, contributing 99.8% of the thermal power capacity. This dependence on natural gas is expected to continue, with gas-fired plants projected to make up the bulk of any additional thermal capacity installed by 2035.
The UAE's natural gas reliance is further bolstered by its goal of achieving self-sufficiency in gas supply by 2030. The discovery of new onshore hydrocarbon reserves strengthens this objective, potentially lessening the need to import gas to meet the country's energy demands. This self-sufficiency, if achieved, would provide the UAE with greater control over its energy security and pricing.
While natural gas reigns supreme, other sources like oil and coal play a marginal role in the UAE's power generation sector. In 2023, oil and coal each only contributed a measly 0.1% to the thermal capacity. This minimal reliance is likely to hold steady throughout the forecast period, with oil capacity expected to remain relatively flat.
The UAE's continued dependence on natural gas has both advantages and disadvantages. On the plus side, natural gas burns cleaner than other fossil fuels like coal, emitting less air pollution. Additionally, the UAE's vast natural gas reserves ensure a steady supply of fuel for power generation. However, natural gas is still a fossil fuel, and its combustion releases greenhouse gasses that contribute to climate change.
Looking ahead, the UAE is exploring ways to diversify its energy mix and reduce its reliance on fossil fuels. The country is actively investing in renewable energy sources such as solar and nuclear power. However, natural gas is expected to bridge the gap as the UAE transitions towards a more sustainable energy future. While renewable energy sources are gaining traction, natural gas is likely to remain the dominant player in the UAE's power sector for the foreseeable future.