Abu Dhabi unveils seven per cent renewables target

It may be sitting on one of the world's largest oil reserves, but Abu Dhabi yesterday announced it aims to generate at least seven per cent of its energy from renewable sources by 2020 as it seeks to bolster its credentials as a global hub for clean technology.

Leaders of the oil-rich emirate said they aimed to create a market of $6-8bn for clean tech products over the next 12 years, driven primarily by its high profile Masdar investment fund.

Dr Sultan Ahmed al Jaber, chief executive of Masdar, said that the fund's ability to invest in the Abu Dhabi's renewables programme would not be overtly effected by the global financial crisis and recent collapse in oil prices.

"The fundamental reasons for doing this are as compelling as they were a year ago," he said.

The Abu Dhabi government is expected to announce a comprehensive energy policy in the next few weeks, but observers are predicting that almost all of the planned renewable capacity will come from solar power.

A recent study for Masdar found that the region's wind conditions were too unreliable to support large scale wind farms, while in contrast solar panels deployed in the desert state are almost twice as productive as they are in Europe, thanks to the high temperatures and minimal cloud cover.

Thin film solar, mono-crystalline solar and solar thermal technologies are all expected to contribute to the seven per cent target.

Dr Sultan Ahmed al Jaber said that Masdar would not be alone in investing in renewables projects in the region, adding that overseas backers would also be sought.

"The seven per cent will be incubated by Masdar, but we will encourage local and international companies to help Abu Dhabi achieve its targets," he explained.