Renewable technology has come of age in Abu Dhabi

Global markets are responding to the falling cost of solar energy with a wave of new projects. In 2014, for the first time, investments in renewable energy exceeded that of fossil-fuel power plants. Just last week, Bill Gates announced he plans to double his personal investment in innovative green technologies to $2 billion over the next five years. With further cost and technology optimisation expected – in addition to the fact that renewable technologies have little price volatility – the global energy mix is steadily diversifying, ushering in a more sustainable future.

But renewables have reached another milestone in their evolution – the establishment of a global capital in which to debate, unite communities and cooperate in advancing the goal of deploying clean energy worldwide.

This month Irena moved into its official headquarters in Abu Dhabi. What New York is to the UN, Abu Dhabi is to Irena. And Abu Dhabi couldn’t be more proud and prepared for the responsibilities of being the permanent capital of such an essential organisation.

When Abu Dhabi was selected in 2009 as the home for Irena, it marked the end of a competitive bidding process, during which the UAE rallied in common cause and worked together to achieve a significant diplomatic success. But some were surprised by the decision, asking: why would one of the world’s largest oil and gas exporters be a suitable host for an agency promoting clean energy?

The answer is simple: because we can and because we should.

The UAE is a committed global partner – actively contributing to the diversification of the world’s energy mix with reliable, clean power. And our rich history, coupled with the expertise and knowledge we’ve gained from decades of delivering energy, is an asset as we transition into a low-carbon, new-energy future.

With projects spanning the shores of the UK to the remote islands of the South Pacific, the UAE has quickly become a market leader, expanding the range and penetration of renewables, bringing sustainable energy to homes, communities and cities all over the world. And we do this through both commercial investments and international development assistance programmes.

In addition, increased competition in our region is driving down the cost of photovoltaics even further, causing rapid adoption throughout the Middle East. Case in point: Dubai recently received a world-record low bid of less than $0.06 per kilowatt hour.

The Irena headquarters building is also a reflection – a global symbol – of the power and benefits of renewable energy technology. Today, the solar-powered building is the most sustainable headquarters of any international organisation in the world – setting a new benchmark for how design and technology can economically enhance energy efficiency and water conservation.

The significance of the Irena headquarters extends far beyond its energy performance.

The establishment of Irena is an indicator of the transformational shift we’re witnessing, as we combine innovation and technology – reducing the reliance on precious, finite resources – to power societies and economies worldwide. And it comes at the right time, as we’re confronted with the realities of climate change and a pressing need for sustainable development.

Renewable energy is a viable solution, and like any technology, its cost will continue to drop and its performance will only increase. Therefore, renewable energy must be viewed as a significant commercial opportunity, as its advancement spurs growth, while creating a 21st century workforce able to compete in a profoundly evolving global economy.

The discovery of oil was the foundation of the UAE’s economic development, as well as for many other cities, states and countries around the world. While it will remain a vital asset, it must be protected and preserved. New sources of power will flourish and further diversify the economy while the speed of technology will continue to disrupt the models of yesterday to create more efficient systems of tomorrow.

The UAE launched its journey to host Irena because energy leadership requires an ability to adapt, and most importantly, to act.

We’re doing that every day – as we innovate to rebalance the world’s energy mix, between hydrocarbons and renewables, to safeguard a prosperous future and to ensure energy security for generations to follow.

Dr Sultan Ahmed Al Jaber is Minister of State and Chairman of Masdar