Impact of UK Renewable Energy Policies on UAE Energy Policy

This study examines the impact of renewable energy policies in the UK on the energy policy of the UAE, focusing on the political, economic, socio-cultural, technological, environmental, and legal factors. The analysis shows that the renewable policies of the UK have positively influenced the UAE's energy supplies and plans for reducing the consumption of fossil fuels.

International Energy Policies
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INTRODUCTION
Energy policies are formed by the government of nations for addressing problems related to
the energy development which consists of energy production, distribution and consumption. The
attributes related to the energy policies includes various legislations, regulations, international
treaties, incentives, guidelines, taxation and many more. Each and every country has its own energy
policies which helps in preventing environment and surrounding. International energy policies are
facing challenges in delivering energy efficiency in effective manner (United Kingdom renewable
energy policy framework summary, 2016). Cost-effective approaches are used by several nations for
increasing the share of renewable with reference to the energy systems.
The proposed study is based on the impact of renewable energy policies of developed economy on
an OPEC member state energy policy. In context to this, UK is taken as developed economy and
United Arab Emirates (UAE) is considered as OPEC member state.
Renewable Energy
It is referred as energy gathered from various natural resource which includes sunlight,
wind, rain, tides, waves and geothermal heat. This energy is used by countries in four essential
fields: electricity generation, air and worker cooling/heating, transportation and rural energy
services (40 iea International Energy Agency, 2013). Renewable energy includes biofuel, biomass,
Geothermal, Hydro-power, Solar energy, Tidal Power, Wave power and wind power. Countries like
Canada, Germany, Netherlands, Czech Republic, United States are developing general energy
policies for reviewing projects for the development of natural resources, to facilitating
transformation of the ageing energy sector, for implementing national-interest energy projects and
many more. On the other hand Marszal and et.al., (2011), has found that nations like Australia,
Denmark, Ireland, Italy, Japan, UK, etc are creating renewable energy policies for identifying
attractive opportunities for energy saving, energy utilisation of cost effectiveness, etc.
With respect to the subject, one of the developed economic nation in the world is UK. It is
also developing various renewable energy policies for proper and effective use of natural resources.
As per the view of Bunse and Ernst, (2011), UK is blessed with many and various energy resources.
It is using coal, oil and gas supplies to the homes, businesses and transportation. In contrast to it
Popp, Hascic and Medhi, (2011), has argued that While using renewable energy, UK needs to
ensure that its future will not affect excessive use. With respect to these statements, UK have
developed various renewable policies for balancing the utilization of natural resources. These
policies help in using all the renewable resource in adequate amount so that, future generation can
also use them for their daily activities.
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Renewable Energy policies of UK
According to the Dincer, (2011), increasing use of domestic fossil fuels reserves, connected
with the projected growth in international energy demand is putting the security and safety of
energy supply at risk. On the other hand Murray and King, (2012), has said that use of renewable
sources are not only securing the energy supplies of the world but also increasing the opportunities
for investing in new industries and technologies. With respect to this, creation of renewable energy
sources with nuclear power and development of carbon capture and storage is reducing the
production of harmful greenhouse gases.
Chu and Majumdar, (2012), has identified that National Renewable Energy Action Plan of
UK is providing detailed information with respect to the measures which it wants to achieve in the
year of 2020. It is for securing the energy supplies and providing a strong framework for developing
new businesses or industries. With respect to this, UK government is analysing range of different
renewable energy resources so that, it can achieve its target of 2020 in effective and efficient
manner.
Different Renewable policies which are used by the UK government is as follows:
Contract for Difference (CFD):
According to the Lind and Stockfisch, (2013), CFD was developed by UK government in
2014 for handling and replacing renewable obligations system. This policy supports the
development of renewable projects on large scale. With reference to this policy Kaygusuz, (2012),
has concluded that the technologies which are eligible for using in the CFD scheme includes
onshore and offshore wind, solar PV, geothermal parts, ocean power, sewage gas, biomass, biogas
and many more. In context to this policy, UK government use it for identifying the gap between
renewable generator and Low Carbon Contracts Company.
Energy Deal:
As per the view of Solangi and Fayaz, (2011), Green Deal offers framework related to the
market participants with the help of individuals like to pay for some of the cost for enhancing their
homes and businesses in effective manner. In addition Dincer, (2011), has found that at the time of
signing the policy, an assessor recommends the area of improvements which are necessary and
appropriate for the property and explains whether individual can be expected to pay for
himself/herself with the help og reduced energy bills. With reference to these statements, Energy
Company Obligation (ECO) works with the Green Deal for offering additional support for viable
packages regarding energy efficiency measures.
Energy Act 2010:
Peters and Edenhofer, (2011), has demonstrated that Energy act 2010 is for monitoring and
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controlling the usage of energy in market. It is divided into four parts which consists of carbon
capture storage and regulations, schemes for minimising fuel poverty, regulations of gas and
electricity markets and final provisions. In context to this, government needs to prepare reports on
the progress of decabonisation of electricity generation in Britain. Along with this Kear, Shah and
Walsh, (2012), has found that Energy act is beneficial for keeping all the information about the use
of energy within the nation. It helps in handling and decreasing the excessive use of gas, electricity,
fuel, etc. With reference to this, UK is able to tackle the market power exploitation, reduce carbon
emissions by delivering secure energy supplies as per the interest of consumers.
Renewable Energy Strategy 2009:
As per the view of Marszal and et.al., (2011), The policy of renewable energy strategy 2009
was developed for ensuring and meeting the target of 15% of energy consumption from renewable
energy sources by 2020. This policy includes achievement of three targets 30% generation of
electricity, 12% generation of heat and 10% use of energy in transport by natural energy sources. In
favour to this Murray and King, (2012), has found that the aim of this act for accomplishing the
objectives is to improve planning processes, strengthen the renewable energy industries,
improvement and investment in the electricity grid and commitments for sustainable bioenergy
development and use. With reference to these statements, this policy will improve the consumption
and generation of energy in UK.
OPEC (Organisation of the petroleum exporting countries) member states:
OPEC is referred as intergovernmental organisation whose aim is to coordinate and unify the
petroleum policies of member states and ensuring the stabilisation of the oil market. This is for
providing efficient, economic and regular supply of petroleum to the customers. Its memebers are
Algeria, Angola, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, UAE
and Venezuela. For the present study, UAE is taken into the consideration.
Renewable Energy policies of UAE
As per the views of Apergis and Payne, (2012), In UAE, renewable energy is economically
attractive with respect to the oil. The nation is getting annual saving os USD 1billion in health and
environmental sector by using renewable sources of energies. On the other hand Popp, Hascic and
Medhi, (2011), has stated that government of UAE is giving emphasis to the use of renewable
resources in cost effective manner. For handling the increasing fuel prices, government has found
the effective diversification of its energy mix away from the gas and towards the clean energy
which includes renewable and nuclear (Renewable Energy Review: United Arab Emirates, 2012).
Along with this Kaygusuz, (2012), has demonstrated that UAE is enjoying reasonable
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renewable energy resources in efficient manner with average monthly wind speed of 4.2 to 5.3 m/s
in coastal regions. In context to this, nation has also developed a policy for reducing the emission of
CO2 by 30% till the end of 2030.
Impact of renewable energy policies of UK on UAE energy policy
For understanding the impact of energy policies of UK on UAE energy policy, PESTLE is as
follows:
Political Factor: According to the Chu and Majumdar, (2012), government of UK is focusing on
the proper and effective consumption of energy with the help of renewable sources. It is working
from last many years to use cost effective manner in expenditure and use of energy. In context to
this, government of UAE is now also focusing on the renewable resources. The Green Building
Code has been approved by the government for developing buildings compatible with the
environmental needs like efficient use of energy and water, waste management, etc. On the other
hand Apergis and Payne, (2012), has said that by watching the involvement of UK government
towards the clean and safe environment, UAE governmental bodies has also started contributing in
such activities.
Economical Factor: Bunse and Ernst, (2011) has demonstrated that enhancing prices of the fuel
and gases are affecting the economy of nations. UK renewable policies are helping government in
handling and controlling their economic factor. With reference to this, UAE which has high GDP
per capita started focusing on handling the prices and supply of petroleum. Now it has planned to
generate annual savings of USD 1.9 billion by 2030 with the help of fossil-fuel consumption.
Socio-cultural Factor: WaIde and Brunner, (2011) has asserted that UK government is giving
preference to use of renewable energies for improving and enhancing the energy supplies to the
homes which will provide better quality of living for individuals. With respect to this, UAE is also
focusing on its socio-cultural factor by developing building Gulf's first geothermal energy facility in
Masdar city. This will develop the nation and society as well.
Technological Factor: As per the view of Lind and Stockfisch, (2013), the UK renewable energy
policy 2009 is giving emphasis to the use of emerging technologies for developing renewable
energy technologies. It includes technologies regarding wave and tidal generation, offshore wind
and advanced biofuel. As per this, UAE government is using latest and advanced techniques for
enhancing the renewable energy resources in the field of hydro-kinetic energy, hydroelectric power,
Geothermal energy, etc.
Environmental Factor: According to Nanda and Pring, (2012), renewable energy plays essential
role in making environment pollution free and safe for the people. UK is using renewable energy
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policies for improving the surrounding and preventing individuals from various health issues. For
example, the Green Deal policy encourages people to invest in the energy saving measures. In
context to this, UAE is also working for developing such policies for saving energy and preventing
environment.
Legal Factor: Sartori, Napolitano and Voss, (2012), has found that UK government is facing legal
issues in the field of offshore renewable energy. For handling this, Marine policies and plans are
formed by the government which includes high level overarching marine policy framework. In
context to this, UAE is developing proper laws and regulations with respect to the renewable
energies.
Thus, from the above analysis it is clear that renewable policies of UK are influencing UAE
to improve its energy supplies. There is positive impact of all the policies which are developed by
the UK government on the functioning and working of UAE. The nation is planning to use
renewable energies for reducing the consumption of gases and petroleum.
CONCLUSION
From the above, it is concluded that as per the present situation it is necessary for nations to
use renewable energy. For balancing utilisation of resource so future generation can also take
advantages of them, renewable energy policies are being developed by the nations. Poor or
developing nations are improving their energy policies by getting influence from the developed
economies. In context to this, UK is following effective policies and have many targets to achieve
till the end of 2020. By understanding all the policies, government of UAE is also making changes
in its. It is important for developing nations to learn from the developed countries for improving
their present condition.
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REFERENCES
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Dincer, F., 2011. The analysis on photovoltaic electricity generation status, potential and policies of
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WaIde, P. and Brunner, C.U., 2011. Energy-efficiency policy opportunities for electric motor-driven
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