The UAE is not only rich in fossil fuels, but receives vast amounts of solar power every day. Today, the country is leading efforts to develop the technology necessary for it to exploit this resource and remain a major energy producer, long after the world’s oil reserves run dry or companies and countries choose to use more sustainable sources of power. This will be confirmed with the inauguration of the 100 megawatt Shams-1, the world’s largest operational solar power plant, built by Masdar near Abu Dhabi at a cost of $600 million.
The plant will allow Masdar to prove that the solar power technology and operations it has developed are ready for use in the UAE and to export to the rest of the world. It has already helped increase the diversification of the UAE economy. More than 70 local businesses were involved in building the plant. The plant is an investment in a technology and power source for which there is growing demand. Not only are companies facing growing pressure to ensure that their operations are environmentally sustainable, but the cost of energy from renewable sources is dropping with improvements in technology.
By some reports, demand for oil from the Middle East will wane because of increased production from other parts of the world and lower global economic growth in the foreseeable future. But, demand for renewable energy is set to grow because of popular environmental concerns. Shams-1 will help ensure the energy security and revenue of the UAE.
