Sun shines in Dubai with Shams: A journey of renewable energy space in the United Arab Emirates

Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), has a dream for the future of the United Arab Emirates (UAE) that involves renewable energy significantly contributing to the energy mix of the country. Shams Dubai was launched as a smart initiative to connect solar energy to buildings, a part of the Distributed Renewable Resources Generation programme. The case encourages students to analyze the business process, innovation, and value chain of Shams Dubai. It highlights the viability of the process of expanding renewable energy in the context of the UAE and discusses the current and long-term effectiveness of Shams Dubai. The business question deals with the scalability of Shams Dubai and addresses the concern of the strategic planning head, Mr. Ahmad, in meeting the Demand Side Management targets of 2030. Another business question involves the feasibility of Shams Dubai meeting the objectives of individuals and organizations in the installation of solar rooftops.

Shams Dubai was launched in 2014 in response to Executive Council Resolution 46 that called for the connection of solar energy to the distribution grid of Dubai. Dubai Government’s Supreme Council of Energy had set a target of renewable energy supplying 1% of Dubai’s energy mix by 2020 and 5% by 2030 under the Dubai Integrated Energy Strategy 2030 plan. Initial results are encouraging and suggest that this project will be successful. It will be interesting to see if sustainable growth of Shams Dubai and the Demand Side Management strategy is realized. Will the targets of 2030 and 2050 be met? Will the policy mechanisms and stakeholder structures that have been put in place be sufficiently robust to drive this in the future? Is Shams Dubai viable, and will it meet the objectives of a sustainable future for the UAE?