New policy initiatives to speed the rollout of charging infrastructure and faster adoption of electric vehicles could enable the UAE to achieve and even exceed its eMobility goals. Here's the first of our regional series that explores the challenges and opportunities in this sector for a sustainable Contact online >>
New policy initiatives to speed the rollout of charging infrastructure and faster adoption of electric vehicles could enable the UAE to achieve and even exceed its eMobility goals. Here''s the first of our regional series that explores the challenges and opportunities in this sector for a sustainable and seamless future of mobility
The UAE has identified the electrification of mobility (eMobility) as a priority policy area and is now seven years into an ambitious plan to decarbonise its infrastructure and energy production. Under the Energy Strategy 2050, the country is pursuing a combination of renewable and nuclear energy sources to achieve carbon neutrality by the middle of this century. The adoption of electric vehicles is a critical element in this transition to a low carbon economy, and is the focus of this report.
Public policy is a vital element in the UAE''s transition to eMobility. The country has already converted 20% of its federal government agency vehicles to EV powertrains and initially set a target for at least 30% of public sector vehicles and 10% of all vehicles on the road to be electric (EV or hybrid) by 2030. That was supported by government incentives such as free registration, free parking and reduced charging and toll fees for EVs.1
This target was updated in 2023 when the UAE Minister of Energy and Infrastructure announced during COP28 that the UAE aimed to have electric and hybrid vehicles accounting for 50% of all vehicles on its roads by 2050, alongside the tripling of power generation capacity from renewables.2
Dubai in particular already has a rapidly growing number of EVs on the road. According to the Dubai Water and Electricity Authority (DEWA), there were 25,929 electric vehicles (EVs) in Dubai by the end of December 2023, a sharp increase from the 15,100 EVs reported at the end of 20223. Creating a sustainable environment and infrastructure is one of the six UAE policy priorities originally set out in 2014, with the release of UAE Vision 2021.
Clean power generation targets under the UAE Energy Strategy 2050 include increasing the share of renewables, gas, clean coal and nuclear sources in electricity generation, with renewable sources to be tripled to 14 gigawatts (GW), clean energy capacity to be increased from 14.2GW to 19.8GW, and the share of clean energy generation to rise to 32%, all by 2030.
Since 2015, Dubai''s Green Chargers have already provided electricity sufficient to power a cumulative electric vehicle distance of over 66.3 million kilometres. In a longer-term target, the Dubai Roads and Transport Authority (RTA) has committed to achieving emissions-free public transport by 20506.
Abu Dhabi has witnessed a notable growth in its electric vehicle (EV) fleet, with 2,441 EVs, 4,138 hybrid vehicles, and 9,412 natural gas vehicles on its roads as of late 2023. However, EVs still represent less than 1.3% of the total vehicles in the region.
Currently there are around 250 public EV charging stations in Abu Dhabi. To address the growing demand for E charging infrastructure, the Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) and the Abu Dhabi National Energy Company (TAQA) have established a mobility joint venture, E2GO. This aims to build and operate electric vehicle charging infrastructure in Abu Dhabi and the wider UAE.
The Abu Dhabi Department of Energy (DoE) introduced EV charging tariffs in 2021. The Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC) are entities responsible for registering chargers, tariff implementation and billing based on actual consumption.
Furthermore, to support the transition to electric mobility, the Abu Dhabi National Oil Company (ADNOC) and TAQA have set an ambitious target of installing 70,000 EV charging points in the emirate by 2030.
The targets that the UAE has set for decarbonisation require a large-scale transition in the mobility economy that will reorient transportation away from internal combustion engine (ICE) vehicles and towards the adoption of EVs.
Across the UAE, PwC estimates that by 2030, EVs will have a market share of more than 15% (around 58,000 vehicles) of new passenger car and light commercial vehicle sales, while by 2035, the share will have increased to 25%, the equivalent of around 110,500 vehicles.
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