ABU DHABI, UAE – Mohamed Al Ramahi, Chief Executive Officer of Masdar, the state-backed renewable energy group from Abu Dhabi, warns of UK bureaucracy and slow grid connections hindering the development of renewable energy projects not only in the UK, but globally.
Al Ramahi voiced his concerns in light of the company’s strategic ambitions to accelerate its portfolio of clean energy projects from 20GW as of last year, to a target of 100GW by 2030. This increased capacity could potentially power as many as 100 million homes worldwide.
“Our challenge lies in executing as rapidly as we aspire to,” said Al Ramahi. “We are facing practical and bureaucratic obstacles, including slow grid connections and permit delays. These hurdles are not specific to the UK, but it’s a global issue we must address if we’re serious about achieving our decarbonization goals and renewable energy targets.”
Established by the UAE government in 2006, Masdar is a key part of the country’s efforts to diversify from oil. Today, it’s owned by Abu Dhabi’s Taqa, Mubadala, and Adnoc (Abu Dhabi National Oil Company).
The group’s global portfolio includes wind, solar, and waste energy projects in various locations, including the US, Egypt, and Australia. In the UK, its investments include a 20% stake in the London Array wind farm off the Kent coast. Masdar also acquired UK battery developer Arlington Energy in 2022, announcing plans to invest £1bn in British battery storage technology.
Al Ramahi made these comments in an interview with the Financial Times, following the signing of a deal with the UK’s Octopus Energy. The deal licenses Octopus’ Kraken technology, which will aid Masdar in managing its portfolio of batteries in the UK by identifying optimal times to store or discharge power from the batteries, according to electricity grid supply and demand.
Despite the challenges, Al Ramahi reassured that Masdar remains “very committed” to the UK, emphasizing that their presence in the country is growing. He expressed hopes that the licensing deal with Octopus could be the beginning of a broader partnership between the two entities.
The CEO’s sentiments were echoed by Greg Jackson, chief executive of Octopus Energy, who spoke about the barriers to renewable energy across Europe, particularly in the UK.
“If we are serious about decarbonization and hitting our renewable energy targets, we need to rethink our infrastructure, procedures, and workflows,” Jackson added.
The UK’s Department for Energy Security and Net Zero responded by stating their intent to go further in their plans to power up Britain with cleaner, cheaper, and more secure domestic energy.
Masdar is poised to further its global influence on renewable energy as it has signed up for or invested in $30bn worth of clean energy projects so far.
In the evolving discourse surrounding renewable energy investments, it is clear that infrastructural and bureaucratic challenges remain significant hurdles. With major players like Masdar experiencing these challenges, it underscores the necessity of systemic change in order to accelerate the global shift towards a greener future.
While the road may be fraught with obstacles, the commitment shown by companies like Masdar to persevere despite these issues offers a ray of hope. As the world seeks to achieve ambitious decarbonization goals, it will be crucial to create supportive infrastructure, streamline procedures, and foster an environment conducive to fast-paced renewable energy development.
We would love to hear your thoughts on the issues raised in this article. Do you believe bureaucratic barriers could significantly delay the global transition to renewable energy? What solutions might there be to expedite this process? Share your insights in the comments section below.
View our latest articles here.
