A federal energy plan is required

The UAE's population is set to double in the foreseeable future, to maybe 11 or 12 million people. The country aims to develop a more substantial and varied economy, which will offer employment to the large number of today'schildren and teenagers. Long term, the UAE does not have enough gas to generate the power that this larger society will require.

Therefore, the UAE is right to look at alternatives to oil and gas as sources of power, and nuclear energy is one option. Each emirate needs to plan for its future, and Abu Dhabi has commissioned four nuclear reactors. Dubai in turn has just announced plans for larger energy-generating capacity, which will include nuclear- and coal-sourced power.

But each emirate cannot operate on its own, and there has to be greater federal cooperation. The power plans for each emirate need to be part of a broader federal strategy that should include a federal power grid. In addition, any hope of attracting the private sector to become involved in power generation will require the governments in the UAE to be totally transparent about their subsidy policies; both on the cost of production, and the cost to the consumer.