58 J. KRANE
Oil-rich Abu Dhabi has spent huge sums on clean power from nuclear
and renewables, while investing in domestic natural gas production to
replace imports from rival Qatar. Neighboring Dubai seeks to avoid
dependence on Abu Dhabi with a cost-driven pairing of cheap and
dirty Chinese coal with even cheaper photovoltaic solar. Sharjah, like
Dubai, pursues autonomy from the national grid, while the four northern
emirates move in the opposite direction, reinforcing dependence on
power supplied by Abu Dhabi.
The inconsistent power sector strategy is reflected in the UAE’s
disunity in foreign relations, with Dubai’s long-held neutrality and associations with Iran and Qatar coming under challenge from Abu Dhabi’s
increasingly interventionist role in the region. Energy policy in Abu Dhabi
aims to increase freedom of maneuver in foreign policy through US-style
‘energy independence’ aspirations, which protect unfettered nationalist
policies from being restrained by dependence on imports.
Further factors are coloring negative views of gas:
• The UAE has enjoined—or, arguably, instigated—regional political
disputes with Iran and Qatar, the two countries holding the largest
gas reserves in the region. Ongoing imports from Qatar are exposed
to risk of cutoff or changes in contractual terms. Imports from Iran
would be similarly exposed, had they started.
• Cost of solar power and battery storage continues to fall. Reduced
costs, along with geographical advantages, have encouraged the
UAE to leverage renewables for an increasing role in current generation and future plans.
• The UAE’s natural gas imports have exposed it to fluctuating market
prices on fuels that it sells domestically at low, fixed prices. Increases
in domestic supply, until recently, were made more difficult by
complex geology. Recent discoveries and increasing production of
associated gas have moderated these factors. 1
To mitigate the uncertainties associated with natural gas, utility planners
have designated coal, nuclear, and solar to assume more than half of
gas’ current share in the national generation mix. If plans in Abu Dhabi
and Dubai are followed through to fruition, utility planners forecast that
Oil-rich Abu Dhabi has spent huge sums on clean power from nuclear
and renewables, while investing in domestic natural gas production to
replace imports from rival Qatar. Neighboring Dubai seeks to avoid
dependence on Abu Dhabi with a cost-driven pairing of cheap and
dirty Chinese coal with even cheaper photovoltaic solar. Sharjah, like
Dubai, pursues autonomy from the national grid, while the four northern
emirates move in the opposite direction, reinforcing dependence on
power supplied by Abu Dhabi.
The inconsistent power sector strategy is reflected in the UAE’s
disunity in foreign relations, with Dubai’s long-held neutrality and associations with Iran and Qatar coming under challenge from Abu Dhabi’s
increasingly interventionist role in the region. Energy policy in Abu Dhabi
aims to increase freedom of maneuver in foreign policy through US-style
‘energy independence’ aspirations, which protect unfettered nationalist
policies from being restrained by dependence on imports.
Further factors are coloring negative views of gas:
• The UAE has enjoined—or, arguably, instigated—regional political
disputes with Iran and Qatar, the two countries holding the largest
gas reserves in the region. Ongoing imports from Qatar are exposed
to risk of cutoff or changes in contractual terms. Imports from Iran
would be similarly exposed, had they started.
• Cost of solar power and battery storage continues to fall. Reduced
costs, along with geographical advantages, have encouraged the
UAE to leverage renewables for an increasing role in current generation and future plans.
• The UAE’s natural gas imports have exposed it to fluctuating market
prices on fuels that it sells domestically at low, fixed prices. Increases
in domestic supply, until recently, were made more difficult by
complex geology. Recent discoveries and increasing production of
associated gas have moderated these factors. 1
To mitigate the uncertainties associated with natural gas, utility planners
have designated coal, nuclear, and solar to assume more than half of
gas’ current share in the national generation mix. If plans in Abu Dhabi
and Dubai are followed through to fruition, utility planners forecast that