Smart Grids: Powering the Middle East’s Renewable Energy Future

Dr. Mutasim Nour, Director of MSc Energy, School of Engineering and Physical Sciences, Heriot- Watt University Dubai 

The usage of green energy has soared in the Middle East in recent years, highlighting the region’s futuristic and sustainable approach to socio-economic growth. According to a report by Rystad Energy, by 2050 renewable energy sources, including hydro, solar, and wind are expected to constitute a staggering 70 percent of the region’s power generation mix – a massive jump from the five percent recorded at the end of 2023.  The UAE stands out in particular, ranking 10th globally in per capita solar capacity in 2023, with an impressive 708 watts per capita as per the World Future Energy Summit 2025 report. From a modest 12 MW in 2012 to an ambitious 6.1 GW in 2023, the UAE’s solar capacity has grown rapidly.  Saudi Arabia is also making significant progress in this domain, with over 17 major renewable projects producing 41.2 million MWh annually that are aimed at fulfilling nearly 66 percent of residential energy needs.

These diversification efforts are accelerators of economic development as well as environmental well-being. However, green energy relies on variables that often fluctuate such as temperature, season, and wind intensity. This makes balancing supply and demand a complicated task requiring innovative solutions. The most promising one has been found in Smart Grids, which are an upgraded version of the traditional power network. These grids use digital technologies to monitor, predict, and respond to energy demand in real time, and enable two-way interactions where consumers can also produce energy (through solar panels, for example) and feed it back into the system. Their components include an Advanced Metering Infrastructure (AMI), grid automation and control, energy storage, and demand response programs that help them deliver superior results.

Smart grids are more flexible, efficient, and reliable compared to traditional grids and have helped significantly strengthen the renewable energy infrastructure in the Middle East. Saudi Arabia, for instance, has been developing AI-powered smart grids to integrate renewable energy and modernise infrastructure as part of its Vision 2030 initiative.  It has already automated 32% of its electricity distribution network and installed more than 11 million smart meters to further meet its goal of achieving net-zero emissions by 2060.

The UAE has also emerged as a pioneer in renewable energy innovation. Under the UAE Energy Strategy 2050, the nation aims to triple its renewable energy contributions by 2030 and achieve a 50 percent clean energy mix by 2050, aided by a substantial investment of AED150-200 billion.   The Department of Energy in Abu Dhabi also recently announced the first legally binding clean and renewable energy target in the Middle East called the Clean Energy Strategic Target 2035. This regulatory framework dictates that 60 per cent of the emirate’s electricity will be generated from clean and renewable sources by 2035, and there will be up to 75 per cent reduction in carbon emissions per MWh produced by the electricity sector. Energy storage solutions to achieve this goal, due to which the Department of Energy has signed a Memorandum of Understanding with the State Grid Corporation of China to build a strong and highly efficient smart energy and power system.

 In Dubai, progress in green energy is being led by the Dubai Electricity and Water Authority (DEWA), which has executed a $1.9 billion smart-grid initiative to deliver high standards of reliability and energy management. The smart grid initiative has helped DEWA achieve some remarkable outcomes: in 2023, line losses in electricity transmission and distribution networks were reduced to 2 percent, compared to 6-7 percent in Europe and the US. Additionally, water network losses dropped to 4.6 percent, significantly lower than approximately 15 percent reported in North America.

Even as smart grids transform the energy landscape, there are challenges that hinder the ability to effectively scale them up. These include:

• Technical interoperability: Smart Grids run on a complex mix of sensors, meters, and communication devices that are often made by different manufacturers. Ensuring that all data between these components is compatible and integrated correctly is often a difficult feat.    
• Cybersecurity: The reliance on digital communications and internet-based technologies in Smart Grids bring a new set of challenges with them. There is increased vulnerability to cyber-attacks that can lead to power outages, data breaches, and even structural damage to grid infrastructure.
• Regulatory barriers: Current regulations and policies often need to be adapted for the dynamism of smart grids. A clear and streamlined framework makes adoption easier and attracts investments into this technology.
•  Consumer awareness: Consumers can be skeptical of the advantages a smart grid presents, especially due to data privacy concerns and doubts regarding wireless communication. Initiatives like community education and incentivisation can go a long way in increasing consumer acceptance and support.

Smart grids also depend on a high initial investment and regular infrastructure upgrades to function properly. To address these challenges, governments across the world must formulate a comprehensive strategy that outlines the investment, infrastructure, and education required for smart grid networks in their region. A streamlined approach and clear objectives can revolutionise green energy integration and help mitigate climate change. With smart grids, consumers are empowered to become a part of the energy ecosystem and foster a culture of conservation and sustainability.