Basic Features of the Electricity Generation Industry in the UAE - Research Paper

Introduction to the Study

Four years ago, the United Arab Emirates (UAE) committed itself to make itself "...[t]o develop and boost its rich resources and expertise in the international energy markets and enhance its leading role as a world center for renewable energy and development."After its creation in 1971, economic development financed by the international sale of Oil and gas has changed the UAE from a sparsely populated desert nation to one of the world wealthiest with an ethnically diverse population that is always growing. The large influx of unskilled migrant workers and foreign skilled professionals has increased the demand for energy. This resulted in the UAE using its oil wealth to undertake large-scale urbanization projects in Dubai and Abu Dhabi which are two of the most densely populated places in the nation.

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By 2015, the UAE, just like the other Gulf States with oil-dependent economies, had a big carbon footprint per capita.The country's oil economy had it food insecure threatening its long-term political stability.The budget deficits which followed is pushing the UAE into large-scale economic diversification programs which have an emphasis on renewable energy sources.

The UAE developed a comprehensive framework for a comprehensive action plan on climate change and environmental protection. Building on the UAE Green Agenda 2030, approved by the UAE Cabinet in January 2015, the Ministry developed the National Climate Change Plan 2017-2050. The plan outlines concrete steps to mainstream climate change mitigation and adaptation actions based on robust scientific evidence and predictions of long-term impact. 2016 also marked the first year of implementation of the Green Agenda.

Background of the Study

The study adopts the definition of the term 'energy' as the capacity to do work or "...[t]he ability to cause matter to move or change." Early humans depended on energy that their physical bodies and domesticated animals can produce to do basic things like traveling. The migration towards artificial sources of energy was driven by the Industrial Revolution. This period in human history was a time of big socio-economic changes in Western Europe and America. Post-industrial revolution, most human activities, and products rely on the deliberate manufacturing, storage, and use of artificial sources of energy. As modern science develops new ways of meeting the energy needs of modern life, their civilizations have become more advanced. This process of 'advancement' has come with an increase in the demand for energy. And it is this ever-increasing demand for energy that plays a key role in the energy-related questions and issues of the world today.

There is a distinction between renewable and non-renewable sources of energy.Renewable resources of energy such as water, wind, and biomass are classified as such because they are unlimited in supply as well as capable of being replenished faster than they are consumed. On the other hand, non-renewable energy sources have opposite characteristics. They may be derived from the natural environment but they are limited in supply and can't be replenished faster than they are consumed. Oil and gas are sources of non-renewable energy. They are usually referred to as fossil fuels because scientists propose that they are created by the decomposition by plants and animals over millions of years in the Earth's crust.

The unresolved question in the field of energy management today is how to manage existing sources of fossil fuels so as not to exhaust them. This has meant that contemporary conversations about energy management usually revolve around estimating just how long the world's oil supply will last; how energy crisis which follow an immediate drop in supply of fossil fuels or an abrupt increase in its cost can be avoided ; establishing if fossil fuels are the only way the long-term energy needs of developing nations can be met; investigating the extent to which oil production and use has impacted the natural environment; and to what extent renewable energy sources could reduce the level of global petroleum dependency. These conversations have led the UAE to adopt policies that aim at enhancing energy security by reducing dependency on fossil fuels, through adopting renewable energy technologies to generate electricity.

Objectives of the Study

The main objective of the study is to explain what the basic features of the electricity generation industry in the UAE are. The minor objectives of the study are namely:

• To explain what renewable energy technologies are;
• To explain why the UAE needs to migrate to renewable energy sources;
• To explain what features of the electricity sector in the UAE make the transition to renewable energy difficult.

Statement of the Problem

The migration to renewable energy sources in the UAE needs privatization and decentralization. However, the government does not favor decentralization and the complete privatization of the energy industry.

Conceptual Frameworks

Environmentalism

Environmentalism is a political and ethical movement which wants to protect the natural environment from human activities through political, economic, and social initiatives.The basic assumption which underpins the concept of environmentalism is that the world's problems of pollution, resource depletion, and environmental degradation are because of exploitative attitudes towards nature promoted by global capitalism.

Development

The UNDP sees the term 'development' as denoting three different things. These are human, economic and sustainable development. Human development means individuals increase their skill, freedom, creativity, self-discipline, responsibility and material well-being. Economic development means poverty alleviation through wealth creation. Sustainable development means economic development that reduces poverty and improves the quality of life for a nation's population by exploiting natural resources in a manner that doesn't damage the environment so that those same resources can be useful to the people in the future.

Literature Review

According to Pepper, environmentalism originates from a recognition that capitalism sees the natural world as something to be used for endless material gain. The author reports that wasteful consumerism is now how society measures individual and social 'progress'. From this cold materialism, leads to the false conclusion that if something is good, more of it is necessarily better. The modern 'industrial' society founded on the narrow objective of profit maximization and encouraging overconsumption erroneously treats resources as limitless.

According to Chitonge, the term 'development' means three different things. These are human, economic and sustainable development. Human development means individuals increase their skill, freedom, creativity, self-discipline, responsibility and material well-being. Economic development means poverty alleviation through wealth creation. Sustainable development means economic development that reduces poverty and improves the quality of life for a nation's population by exploiting natural resources in a manner that doesn't damage the environment so that those same resources can be useful to the people in the future.

According to Du Pisani, the first attempt to give a standard definition for the term 'sustainability' was done by the World Council of Environment and Development (WCED). The writer reports that WCED defines sustainability as "...[t]he development that meets the needs of the present generation without compromising the ability of the future generations to meet their own needs." This definition is anchored on the fundamental belief that today's human activities have corresponding effects on future generations. Consequently, according to the writer, the concept of sustainability is a tool to ensure the current exploitation of non-renewable natural resources in a way that does not exhaust them or damage the environment.

According to Little,after the discovery of oil in the Middle East, Gulf States became very wealthy overnight. This oil wealth then became a curse because its revenues were used to build a strong and diverse economy. Consequently, as Dubai entered the twenty-first century, it was decided that steps must be taken to make their economy less oil dependent. By the time Little wrote their article, only 6% of Dubai's GDP was derived from oil revenues. According to Little, Dubai took steps to incorporate trade, financial services, and continuous growth of its non-oil sector such as tourism. The writer reports that after witnessing Dubai's success, their oil-producing have tried to follow the Dubai model. According to Little, the Dubai model has had limited success.

According to Bingjie et al,the prevailing view is that sustained economic growth from the exploitation of natural resources must not be at the expense of the environment.Thus today, governments must strike a balance between natural resource consumption which generates revenues needed for social progress with environmental protection concerns. The writers conclude that when this is not done, the environment will deteriorate. They examined the relationship between economic growth and energy consumption in China compared to Japan.

The research done by Bingjie et al established that generally, Chinese economic growth has severely depleted of natural resources, led to environmental pollution, and damaged air quality in a way that endangers public health. The writers specifically highlight how energy consumption has drastically increased as the Chinese economy grew in strength. They observed that when such increases in energy consumption happen because of rapid economic development, the state must prioritize putting in place energy protection policies.From this perspective, they conclude that having ways to estimate energy consumption levels and supplementing traditional energy sources with modern renewable energy sources is how a nation can protect the environment while meeting its energy needs.

Research Hypothesis

Renewable resources of energy such as water, wind, and biomass are classified as such because they are unlimited in supply as well as capable of being replenished faster than they are consumed. On the other hand, non-renewable energy sources have opposite characteristics. They may be derived from the natural environment but they are limited in supply and can't be replenished faster than they are consumed. The UAE needs to migrate to renewable energy sources of electricity to protect the environment while meeting the nation's energy needs. The UAE government needs to ensure that the electricity sector is completely private and decentralized.

Research Methodology

Research methodology is the general approach taken in the investigation of a research topic. It is always shaped by limitations and ethical considerations. Research may be qualitative or quantitative. While the former investigates people's attitudes, behaviors and experiences in relation to social phenomena being examined quantitative research generate statistical data using questionnaires or structured interviews. Each methodology has its weaknesses and strengths. None is superior to the other, however, the research question(s) determines research hypothesis which in turn decide the appropriate methodology for the study. Qualitative approach investigates attitudes, behaviors, and experiences using interviews or focus groups where participants are questioned. Qualitative research may be on different research subjects however, it has basic assumptions namely that : (1) theoretical reference point...