The UAE government has planned to invest over $163 billion in renewable energy by 2050. The sector is clearly expanding quickly, with major government support. UAE renewable energy firms, whether locally or foreign owned, have to invest in renewable energy accounting to make sure they have the right expertise to manage their finances.
What is Renewable Energy?
Advantages of Renewable Energy for the UAE
1. Major Environmental Benefits
- The UAE is investing heavily in clean energy to reduce greenhouse gas emissions and combat climate change.
- The Mohammed bin Rashid Solar Park in Dubai is set to reach 5 GW capacity by 2030, making it the world’s largest single-site solar installation.
- The Barakah Nuclear Plant already supplies 25% of the nation’s electricity from a carbon-free source.
- These projects directly decrease the UAE’s carbon footprint, which is a major goal for the country.
2. Provides Energy Security
- The UAE is shifting from relying on oil and gas to a more diversified energy mix, mostly from clean energy sources.
- The country has set a target of 14.2 GW renewable capacity by 2030.
- By 2050, the UAE aims for 50% of its total energy mix to come from clean energy sources.
- These initiatives aim to reduce dependence on imported fuels.
- With year-round sunshine and the launch of new wind energy projects in 2023, the UAE is focused on building long-term energy independence.
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3. Contributes to Economic Growth
- Mega-projects fueling growth include Al Dhafra Solar Plant (2 GW, Abu Dhabi), Abu Dhabi PV3 (1.5 GW), and the Dubai Waste-to-Energy Facility ($1 billion, 200 MW)
- These projects are creating thousands of jobs in engineering, construction, and research.
- Masdar’s international hydrogen partnerships are leading to billions of dollars in investment.
4. Opportunities for Innovation
- Under the National Hydrogen Strategy 2050, the country aims to produce 14–22 million tons of hydrogen annually by 2050.
- Masdar is targeting 1 million tons of green hydrogen per year by 2030.
- Other projects include Sharjah’s landfill-to-solar initiative (120 MW solar farm) and Abu Dhabi’s green hydrogen-to-ammonia projects worth billions of dollars.
5. Cost Efficiency
- The UAE has some of the best solar conditions in the world, making renewable energy highly cost-effective.
- The Mohammed bin Rashid Solar Park has set world records for the lowest solar electricity prices.
- The cost of wind and hydrogen technology are falling, making renewable energy even more affordable.
- Renewable energy in the UAE is not only environmentally sustainable but also one of the most affordable options for long-term power generation.
Renewable Energy Accounting
Renewable energy firms have to prioritize sustainability into their operations and procedures. This requires professionals who possess niche, specialized knowledge. Hiring accounting experts who are experienced in the renewable energy sector can majorly benefit your business. This is what they can do for you:
1. Help you stay tax compliant: Renewable energy accountants can assist with tax planning, preparing tax forms, and find tax deductions that your business can claim. They can also help you stay updated with the UAE’s tax laws.
2. Offer advisory services: As renewable energy projects are usually complex, accountants can help you assess risk, create special dashboards to track the relevant financial information, establish internal controls, and devise strategies to prevent errors and manage environmental impact.
3. Implement accounting software: If you hire expert accounting services in Dubai, they can help you set up an accounting software that is customized to your business needs. This software can be integrated to your CRM, create a chart of accounts, and used to track financial information like depreciation and cash flow.
4. Prepare financial reports: Renewable energy firms will need to provide financial reports for their stakeholders and management teams to assist with decision-making. Accountants can prepare revenue forecasts for project planning and investor pitches and create dashboards to track business progress.
5. Conduct risk audits: Accountants can assess your firm’s financial statements for risk of fraud, tax avoidance, or reporting and tracking inconsistencies. They can also make sure your operations are on track to meet your corporate goals.
6. Support fundraising endeavours: Renewable energy accountants can help you raise capital and scale your business by providing advice on financing strategies, offering valuation services, and preparing financial documents for investor meetings.
Work With A&A Associate’s Expert Accountants
A&A Associate offers expert accounting services for businesses all across the UAE. We also provide internal and external auditing services that help our clients stay compliant and keep their books in order. Our accountants and auditors are seasoned professionals who possess deep, local knowledge of the country’s financial and tax regulations.
