Khalid Bin Hadi, Managing Director at Siemens Energy UAE (Image Courtesy: Siemens Energy)
Energy

Opinion: Accelerating Decarbonization - The Urgent Need for Energy Efficiency

By Khalid Bin Hadi, Managing Director at Siemens Energy UAE, and Member of the Board of Directors at the Abu Dhabi Chamber of Commerce and Industry

SME News Service

Last year’s COP28 Summit marked a pivotal moment in the global effort to combat climate change. The UAE Consensus reached at the conference, calling for a transition away from fossil fuels and the pursuit of net-zero emissions by 2050, underscores the risk urgency of addressing the climate crisis.

Central to this agreement are ambitious targets of tripling renewable energy capacity and doubling energy efficiency by 2030.

However, the path to a net-zero future is fraught with challenges. Global energy-related emissions of carbon dioxide (CO2) hit record high last year.

At the same time, we live in an energy-thirsty world. Energy demand is projected to grow by up to 18 percent through 2050, according to a recent McKinsey report.

The driving factors are population growth, electrification, and technological advancements among others. To stay on course, we must fundamentally rethink how we produce and consume energy.

The Role of Partnerships

Joint decarbonization efforts, coupled with significant efficiency gains, can help reduce final energy demand. Public-private partnerships and the deployment of innovative technologies are indispensable for a successful energy transition.

A prime example is our collaboration with Emirates Global Aluminium (EGA), Mubadala and Dubal Holding. Together, we have built the most efficient combined-cycle power plant in the country and wider Gulf region.

Our H-Class gas turbine is used to power EGA’s smelter in Jebel Ali in Dubai, reducing emissions per ton of aluminium produced by up to 10%, which is the equivalent of planting more than 17 million trees each year.

Another notable example is the Maximizing Ethane Recovery and Monetization (MERAM) project, where Siemens Energy supplies highly efficient compressors to ADNOC, enabling the company to produce some of the world’s lowest carbon natural gas.

This electrification project is an outstanding example of many collaborations with ADNOC in Abu Dhabi showing how innovation can drive decarbonization through increased efficiency, support with emission reduction goalsand ensure operations reliability.

AI and the Energy Trilemma

Artificial Intelligence (AI) and Machine Learning (ML) offer additional immense potential for the energy sector to become more efficient and ultimately decarbonize. They can be a game-changer in helping us achieve the ambitious goals set at COP28.

One of the most significant ways AI has been revolutionizing the energy market is by predicting supply and demand. Accurately forecasting power availability can be particularly challenging for renewable energy sources, as their output fluctuates based on weather conditions.

Machine Learning algorithms can help address this issue by analyzing vast amounts of data to anticipate changes in supply and demand. This enables more efficient grid management, maximizing the financial value of renewables and facilitating their seamless integration into the energy landscape.

Abu Dhabi DED Partners with Siemens Energy to Decarbonise Industrial Sector

One Siemens Energy project where I see immense potential for decarbonization and efficiency gains is our collaboration with DEWA, Dubai’s Electricity and Water Authority, on the Gas Turbine Intelligent Controller at the UAE's largest power station in Jebel Ali in Dubai.

This groundbreaking project leverages AI to optimize gas turbine performance. Think of it as a virtual brain, providing real-time insights to operators for peak efficiency and safety. But the benefits go beyond operational excellence.

The controller optimizes turbine performance, leading to increased power generation, reduced fuel consumption, and ultimately, minimized harmful emissions – a significant win for sustainability.

By driving innovation in clean energy technologies, optimizing renewable energy projects, and managing complex systems, AI can significantly contribute to reducing greenhouse gas emissions.

Boston Consulting Group (BCG) suggests that AI could help mitigate between 5 and 10 percent of greenhouse gas (GHG) emissions by 2030. However, it's essential to acknowledge that AI is a double-edged sword.

While it can enhance energy efficiency, AI technologies themselves consume significant energy, particularly through data centers. This development exacerbates the energy trilemma, requiring us to balance sustainability with affordability and reliability.

Reports suggest that data centers could account for up to 4% of global electricity consumption. 

The convergence of energy and Artificial Intelligence offers both substantial challenges and promising opportunities. By strategically navigating this complex terrain and adopting a comprehensive approach, the region can forge a more resilient, sustainable, and prosperous future. 

A Way Forward

The journey towards a decarbonized energy future is a complex one, but its acceleration is imperative for a sustainable future and the prosperity of our societies. As the UAE demonstrated at COP28, ambitious targets and international cooperation are essential to drive progress.

Looking ahead, the challenges are significant, but the opportunities are equally vast. By focusing on energy efficiency, renewable energy integration, and the implementation of innovative solutions such as AI, we have the chance to create a more sustainable and resilient energy landscape.

At Siemens Energy, we are committed to being at the forefront of this transition. We help our partners to increase efficiencies and to decarbonize their processes through leveraging cutting-edge technologies and innovative approaches across the entire energy value chain.

I look forward to engaging with industry leaders during ADIPEC and hearing the insights that will drive us forward towards a resilient and decarbonized future as envisioned at COP28 and to be further discussed and developed during the upcoming COP29.

Read More: Ministry of Energy and Infrastructure and Siemens Energy Collaborate on Driving the Future of Green Energy

Dubai Customs Launches ‘Dubai Logistics Academy’ to Enhance Competencies in Key Economic Sectors

UAE Engages in Comprehensive Talks at COP29 in Preparation for UN Water Conference 2026

RAKEZ to Showcase Business Solutions for Sustainable Automotive Investors at London EV Show

Life Unboxed – The Evolution of the Kibsons Blue Box

Mashreq and Landmark Retail Launch Qatar’s First Private Sector Sustainability-Linked Finance Partnership