UAE Announce The Approval Of A Federal Law Regulating The Linkage Of Renewable Energy Production Units To The Electrical Grid

The Ministry of Energy and Infrastructure of UAE has announced the approval of the federal law regulating the linkage of distributed renewable energy production units to the electrical grid, which aims to enable people to produce electrical energy from renewable energy sources and achieve the state’s objectives. It is a step towards the diversification of renewable energy sources within the state and the optimal utilization of natural resources, in a manner that ensures the reduction of emissions and climate neutrality.

HE Suhail bin Mohamed Al Mazrouei, Minister of Energy and Infrastructure, stated that the new law aims to contribute to environment conservation by reducing the carbon footprint, cutting down the demand for electricity at peak times from distribution networks, and setting clear foundations in line with the UAE Net Zero 2050 strategic initiative and the National Energy Strategy 2050. This strategy aims to boost the contribution of clean energy to the total energy mix produced in the country to 50% by 2050.

Al Mazrouei explained that the law seeks to unify efforts and benefit from areas of integration among various federal and local government agencies, as well as the private sector, in a way that contributes to strengthening the UAE’s leading role in keeping pace with the transformation taking place across the energy sector and its efforts towards achieving the “Net Zero” strategic initiative by 2050. The law is in line with the goals of the “Paris Climate Agreement,” which the UAE was among the first countries to ratify.

The Minister pointed out that the deployment and use of clean energy solutions is one of the main underpinnings of the UAE model of work for the climate, reducing greenhouse gas emissions, and diversifying energy sources. This is done to keep pace with the increasing demand for it, as a result of the increase in population, and industrial and commercial development. The UAE continues to consolidate its capabilities and its leading role in the clean energy sector, and in transforming challenges into real opportunities, capable of developing innovative solutions to achieve climate neutrality and guarantee a low-carbon future, thus making the UAE one of the world’s leading countries and a role model in this field.

HE the Minister of Energy and Infrastructure said, “The UAE continues to develop the legislative and legal system that guarantees a low-carbon future, in a manner that bolsters the course of successive achievements and gains achieved by the country in the climate neutrality issue, the country’s global leadership, and its position in that industry prior to hosting the COP28 in 2023.”

The Minister added, “We are working on developing the energy strategy, especially clean energy, as part of the vision and directives of the judicious leadership which aim to promote sustainability, innovation, and transformation towards a green economy, by increasing the percentage of clean and renewable energy to achieve the goals of the National Energy Strategy 2050 and the UAE Net Zero by 2050 strategic initiative, as well as other national targets.”

HE Eng. Sherif Al Olama, Undersecretary of the Ministry of Energy and Infrastructure for the Energy and Petroleum Sector, explained that the promulgation of the law is a proactive step towards achieving the energy strategy in the UAE, and the Ministry of Energy and Infrastructure will put the law into force in cooperation with the relevant federal and local authorities which undertake the distribution and supply of electricity for consumers. The provisions of the Decree-Law apply to the operations of electricity distribution production units’ linkage to the distribution network, and to all producers and service providers, including the economic, free, and investment zones.

Al Olama indicated that the law draws up the roles and responsibilities of the Ministry of Energy and Infrastructure, stipulating that any person wishing to connect a distributed production unit to the distribution network must obtain prior approval from the relevant authority, and conclude the linkage agreement with the service provider in accordance with the legislation in force at the relevant authority.