BATOOL GHAITH (ABU DHABI)

Abu Dhabi is preparing its electricity system for a sharp rise in demand driven by industrial expansion, economic diversification, data centres and emerging technologies, while increasing clean generation and strengthening the infrastructure needed to keep supply reliable.

Electricity demand in the emirate is projected to reach around 197 TWh by 2035 and approximately 240 TWh by 2050, according to Abdulaziz Mohammed Al Obaidli, Director General of Regulatory Affairs at the Abu Dhabi Department of Energy.

To meet that growth, Abu Dhabi plans to invest Dh250 billion in energy and water infrastructure between 2025 and 2035, expanding generation capacity, strengthening networks and improving system efficiency, Al Obaidli said.

He noted that electricity planners now need to understand not only how much electricity consumers use, but also where new demand will emerge, how quickly it may grow and what infrastructure will be required to support it.

“Alongside population and industrial growth, we are seeing new requirements from data centres, advanced manufacturing and other emerging industries,” Al Obaidli told Aletihad.

Flexible Electricity Consumption 

Binu Parthan, Deputy Director, Country Engagement and Partnerships (CEP) at the International Renewable Energy Agency (IRENA), said data-centre growth presents a particular challenge because it differs from more traditional increases in electricity demand.

“Data centre demand related challenges are primarily an energy planning problem as they require large and continuous supplies of electricity concentrated in specific locations, often near urban centres, where electrical networks already are congested,” Parthan told Aletihad.

According to IRENA, this differs from electricity-demand growth in sectors such as buildings, transport and industry.

According to Parthan, industrial electrification is also changing the shape of demand, with technologies such as industrial heat pumps and electric boilers affecting both total electricity consumption and hourly load patterns.

At the same time, he said industrial electrification can create opportunities for more flexible consumption by managing production schedules.

“AI helps energy planners to understand actual facility-level electricity demand based on individual data centre commissioning schedules, cooling demand, server efficiency and expansion potential,” Parthan noted.

AI-assisted spatial and network analysis can also help identify areas where grid capacity may already be available to accommodate new data-centre clusters, he added.

Planning Generation and Networks Together

Al Obaidli said data and advanced modelling are becoming increasingly important in identifying where future infrastructure may come under pressure.

By analysing consumption patterns and modelling different growth scenarios, operators can assess how developments such as a new industrial zone or data centre could affect electricity demand in a particular area.

“That information can then guide decisions about network capacity and infrastructure investment before constraints arise,” he said.

Through AD.WE, an AI-enabled digital platform developed in collaboration with Presight, the Department of Energy is bringing billions of operational records together into a unified system, according to Al Obaidli.

The platform supports applications across consumption intelligence, network planning, predictive operations and infrastructure management, he explained.

“By improving visibility across interconnected infrastructure, these technologies support more coordinated decision-making and help operators identify emerging operational issues earlier,” Al Obaidli said.

Expanding Clean Power without Compromising Reliability

Growth in electricity demand is taking place alongside a shift in Abu Dhabi’s generation mix.

Al Obaidli said the Barakah Nuclear Energy Plant, with approximately 5.6 GW of generation capacity, supplies around 25% of the UAE’s electricity requirements.

“What makes nuclear particularly valuable is its ability to provide a continuous supply of low-carbon electricity. That matters for a growing economy where homes, hospitals, factories and other essential services need dependable power throughout the day,” he said.

Al Obaidli indicated that nuclear provides a stable foundation, while battery storage and flexible conventional generation help the system respond to changing demand. He notecd that solar is also becoming an increasingly important part of the system, but its output varies throughout the day.

With Abu Dhabi targeting 60% clean electricity generation by 2035, Al Obaidli said: “Reaching that target while maintaining reliability requires us to consider how these different technologies work together.”

Battery storage is expected to play a growing role by storing electricity when it is available and releasing it when required, particularly as solar generation increases, he explained.

Managing Variable Renewable Energy

Parthan said AI and digital technologies are already being used to improve forecasts for both electricity demand and renewable generation.  AI can combine historical consumption patterns, weather conditions and industrial production schedules to improve projections of hourly electricity demand and peak load.

It can also predict changes in wind and solar generation caused by shifting weather conditions, which allows system operators to schedule generation, grid-scale storage and other flexible resources more efficiently, he added.

Parthan also indicated that AI is being used to improve grid management by identifying where transmission and distribution networks are under-utilised, predicting potential congestion and redirecting electricity flows.

“This optimal utilisation of existing grid capacity is particularly important to integrate more solar and wind generation as new transmission and distribution capacity in many parts of the world may take several years to build,” he noted.

In countries with high solar generation, electricity can also be curtailed during periods of surplus production. Parthan said AI can help forecast expected daytime surpluses and evening shortfalls, allowing batteries and other flexible resources to be charged and discharged more effectively.

For Abu Dhabi, Al Obaidli said the priority is ensuring that new generation, networks, storage and future demand remain aligned as the system grows.

“Our aim is to expand clean electricity without introducing new constraints into the system, so that Abu Dhabi can continue growing with confidence,” he noted.