Economic Viability of Renewable Energy: The UAE

Abstract

Investment in renewable energy resources (RERs) has been made attractive worldwide with the objective of increasing sustainability targets in the energy sector. This study presents the economic viability of independent power producers stemming from RER implementation in the Middle East. The study is developed in the context of the United Arab Emirates (UAE). One of the emirates of the UAE, namely Shariah, has been chosen to validate this developed model built on the most population RERs, solar photovoltaic (PV). Four types of PV installation are assessed. It has been observed that investing in the solar power market in the framework of PV systems is attractive in the UAE within the current energy market scheme. This energy market scheme offers attractive economic performance and a suitable energy payback period of less than one year. Therefore, this study serves as a hub for various stakeholders involved in RERs in the Middle East and globally.