British bureaucracy is holding back renewable investment, says Abu Dhabi energy chief

Featured Sponsor

Store	Link	Sample Product
UK Artful Impressions	Premiere Etsy Store

Slow grid connections and delays in issuing permits risk holding back the development of renewable energy in the UK and beyond, the head of Abu Dhabi-based renewable energy group Masdar has warned.

Mohamed Al Ramahi, chief executive of the state-backed company, said the group faced a struggle to “run as fast as possible” as it looks at new wind, solar and battery projects around the world.

His comments echo other developers, such as National Grid, who have warned of the practical and bureaucratic hurdles standing in the way of new infrastructure such as power cables and wind turbines.

Masdar has set a goal to expand its portfolio of clean energy projects from 20GW late last year to 100GW by 2030, potentially enough to power up to 100 million homes.

The group was established by the UAE government in 2006 as part of efforts to diversify from oil. As of December 2022, it is owned by of Abu Dhabi Taqa, Mubadala and Adnoc (Abu Dhabi National Oil Company).

He has developed a global portfolio of projects such as wind, solar and waste power plants, in areas including the United States, Egypt and Australia.

In the UK, his investments include the London Array wind farm off the Kent coast, in which he holds a 20% stake.

Masdar bought UK battery developer Arlington Energy in 2022 and says it plans to invest £1 billion in battery storage technology in Britain.

“We have the right solutions and technologies. . . The real issue we face is the ability to execute as fast as we want, in the UK and elsewhere,” said Al Ramahi.

He was speaking to the Financial Times from Abu Dhabi after signing a deal with the UK’s Octopus Energy to license its Kraken technology to help manage its battery portfolio in the UK.

Kraken will help Masdar choose the best times to discharge or store energy from batteries, depending on supply and demand on the power grid. There is a growing demand for batteries to help smooth out intermittent supplies of wind and solar energy.

“The infrastructure, the ability to connect to networks and procedures that were designed a long time ago. I think these are issues we need to focus on,” Al Ramahi added.

“It’s not specific to the UK. It is a challenge we all face. If we are serious about decarbonization, about meeting our renewable energy goals, we need to really think about how we can create the infrastructure, procedures and workflows to enable people like us to move.”

Al Ramahi stressed that Masdar is “very busy” in the UK, which “will never change”, and is growing its presence in the country.

He added that he hoped the licensing deal with Octopus would be the start of a larger partnership between the two companies.

Greg Jackson, chief executive officer of Octopus Energy, echoed Al Ramahi’s comments on the barriers to renewable energy.

“Across Europe, including the UK, barriers in permitting and grid connections mean that even if the capital is there, even if the money and technologies are ready, we are unable to distribute them to benefit citizens. ”

The UK’s Department for Energy Security and Net Zero said: “We want to go further as part of our plans to power Britain with cleaner, cheaper and safer home-grown energy.”

The UAE will host the COP28 climate summit in Abu Dhabi this year. Climate activists have criticized the decision to appoint Sultan al-Jaber, chief executive of state oil company Adnoc, as chairman of the talks.

Al Ramahi noted Jaber’s role as the founding chief executive officer and current chairman of Masdar, arguing that the UAE has been “at the forefront of decarbonisation and clean energy investment”. He added, “It’s top-down activated. We are committed”.

Masdar has so far invested or signed up to $30 billion in clean energy projects. But ADNOC’s board last year accelerated its oil production anticipating expansion of its capacity from 2030 to 2027 and signed off on a $150 billion capital spending over five years to 2027. ADNOC’s capital expenditure earmarked for “low-carbon solutions” was just $15 billion for the years to 2030.