Home Opinion Optimising the UAE’s Energy System: Flexibility, Integration, and Intelligence

Optimising the UAE’s Energy System: Flexibility, Integration, and Intelligence

by Hadeer Elhadary

By 2030, the global energy landscape will be vastly different from what we see today. The rapid growth of clean energy technologies, combined with shifts in the global economy, is altering the role of fossil fuels and accelerating the rise of renewable energy sources. To meet this moment, countries must develop diversified energy systems that can power economies sustainably while adapting to changing conditions.

The UAE has already taken significant steps in this direction. Guided by the UAE Energy Strategy 2050, the nation’s energy mix includes natural gas, solar, nuclear, and regional interconnections, with battery storage becoming an increasingly important part of the system. The goal is to create a clean energy network that is reliable, resilient, and prepared for the future.  

The UAE has taken decisive action to diversify both its energy mix and its economy. Oil and gas exports still account for about 30 percent of economic activity, but the share of alternative energy sources is growing quickly to meet rising demand. Abu Dhabi’s major clean-energy assets—most notably the Al Dhafra Solar PV project, among the world’s largest solar facilities, and the Barakah Nuclear Energy Plant—underscore the UAE’s leadership in secure, low-carbon generation. Supported by robust GCC grid interconnections, these projects enhance system stability and enable flexible energy exchange across the region.

The next stage of the UAE’s energy journey is about making the system more flexible and intelligent. This requires optimising existing assets, integrating new technologies and ensuring the grid can respond to fluctuations in supply and demand without compromising reliability. Open-cycle and combined-cycle gas turbines remain essential for balancing renewable output and providing firm capacity when solar or wind generation declines. However, future tenders for new OCGT and CCGT units will need to incorporate clear requirements to ensure they can transition over time. Rather than assuming that modern turbines are inherently hydrogen-ready or compatible with carbon capture, these capabilities must be embedded in the design brief from the outset. With the right specifications and transmission-network integration, upcoming plants can be engineered to accept low-carbon fuels or link to CCUS systems when the technology and market conditions mature—supporting long-term flexibility without locking in high-carbon infrastructure.

Large-scale battery energy storage systems are another critical piece of the puzzle. They can respond within seconds to stabilise the grid, store excess renewable energy, and release it when needed, reducing reliance on peaking plants. While batteries do not generate energy themselves, they.enhance and valorize the full potential of renewable power by making it steadier and better aligned with demand.

Digital tools can also transform grid management. Advanced analytics can forecast demand, anticipate outages, and coordinate supply across generation, storage, and interconnections. This level of visibility and control will make the UAE’s energy system more efficient and better able to handle fluctuations.

Hydrogen and carbon capture technologies will be important for deeper decarbonisation, but they are still developing. Ensuring that the current infrastructure can work with these solutions will make future integration smoother when the technology and markets are ready.

Regional integration remains a strategic advantage. GCC interconnections already act as a backup, allowing energy to move to where it is needed most. Improving the way these flows are managed can strengthen resilience more effectively than temporary or mobile solutions, which are not suited to the UAE’s scale.

The UAE is building an energy system that can adapt to changing demand, integrate more renewables, and remain dependable under any conditions. By improving dispatchable gas capacity, expanding battery storage, and using smarter grid management, the nation can maintain round-the-clock reliability while moving towards its low-carbon goals.

By: Niko Cornelis, Country Manager, GCC ENGIE

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