Ministry wants to remove all forms of subsidies in gas and electricity to reflect real price, says energy minister
Abu Dhabi: The UAE is considering removing all forms of gas and electricity subsidies in the future, the energy minister said on Monday.
Speaking during a panel discussion on the Global Energy Transformation at the Abu Dhabi Sustainability Week conference in the capital, Suhail Mohammad Faraj Al Mazroui, Minister of Energy and Industry, said: “We are trying to remove all forms of subsidy from the gas and to any forms of electricity.”
In fact, the ministry wants consumers to pay the right price of energy consumption. Similarly as the ministry had done with petrol and diesel prices and fixed as per the international market rates.
He asserted that we need to remove all forms of subsidies from both gas and electricity because the current pricing doesn’t reflect the real price.
“I think with the efficient improvement in the turbines, we believe that we can achieve the self-sufficiency by 2030 and beyond,” the minister said.
The UAE also mulls exporting electricity to western and African countries in the future.
Al Mazroui said: “With the linkage with Egypt, we can even send power to the Western countries and power up African nations in future.”
“We are in the UAE working very hard to start an energy market and we believe that with the modernisation and cheaper forms of renewable energy, we will be able to cut the cost down in future,” he said.
With risk of gas price fluctuations, the UAE can and will supply others with reasonable and cost effective energy. So there is potential for expanding it today, Al Mazroui said.
Saudi Arabia, Bahrain, Kuwait and other GCC countries are doing plenty of renewable projects, so soon we all have so many gigawatts of renewable energy, the minister said.
Saeed Mohammad Al Tayer, managing director and CEO of Dubai Electricity and Water Authority, said that for achieving sustainable goals external networking with African and European countries is very important.
He asserted on improving the trading of electricity and further enhance the existing power networks in the region.