The Future of Energy 2025

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AN OFFICIAL WORLD FUTURE ENERGY SUMMIT PUBLICATION

PIONEERING ENERGY اﻟﺮﻳﺎدة ﻓﻲ ﻣﺠﺎل اﻟﻄﺎﻗﺔ

masdar.ae

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A warm welcome to the 17th Edition of the World Future Energy Summit Dear readers, 2024 has been another year highlighting the need for a faster, more ambitious transition to a clean energy future. While every industry and sector is important when it comes to decarbonisation, energy is still the central battleground for humanity’s collective response to climate change, and the gateway to unlocking a truly sustainable climate future for all. Despite unforeseen climate challenges, 2024 still provided plenty of positive, tangible progress ranging from renewables adoption to the widespread integration of smart, sustaina- bility-based systems into crucial sectors such as agriculture, water management and smart cities. There is also hope for faster progress in the latter half of this decade. As you will see for yourself, across the various sections of this lovingly crafted yearbook, adoption rates of sustainability-based technologies are advancing in crucial areas. From the water we collect, consume and recapture, to our urban spaces and agricultural systems, and, of course, the energy we produce worldwide, the technical means to lighten their environmental impact are gaining prominence. The World Future Energy Summit 2025 yearbook is split into five sections: Energy, Water, Solar and Clean Energy, Smart Cities, and Climate Change. The insights and observations of each section informs and supports the others, highlighting the interconnected nature of the sustainability struggle we face, and how progress in one area can quickly spread to others. Providing those considered insights, we are exceptionally fortunate to call upon the expertise of thought leaders from both the public and private spheres. The UAE Department of Energy,

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DISCLAIMER The Future of Energy, an official World Future Energy Summit publication, is published by GT Media . The publisher, editor and contributors re- serve their rights in regards to copyright of their work. No part of this work covered by the copyright may be reproduced or copied in any form or by any means without writ- ten consent of the publisher. No person, organisation or party should rely or on any way act upon any part of the contents of this publication without first obtaining the advice of a fully qualified person. This publication and related products are sold and distributed on the terms and condition that: • The publisher, contributors, editors and related parties are not responsible in any

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Masdar, TADWEER, the G20 and G7, the IEA, IRENA, Sustainable Energy for All, The Economist Intelligence Unit, and the Technology Innovation Institute – these are just a handful of the globally recognised and respected institutions who have generously contributed their time and knowledge. The breadth of their experience, bolstered by their ongoing work in each of the five sections covered in the following pages, makes this yearbook a timelier and more relevant snapshot of the broader strategic landscape. We are immensely grateful for their efforts. In each section, however, you can expect much more than just a status update. While providing accurate analysis of where we currently stand on the more critical sustainability issues, challenges and implementation of solutions, our contributors also look at where we are headed. Referencing key projects that they and their peers are undertaking, these contributors are able to make viable predictions on what steps must be taken next, how feasible they are to implement, how quickly they can be scaled up. Whatever the technical brilliance of new and emerging solutions, these logistical realities cannot be ignored. Time and again in this yearbook, you will read about the importance of two factors: ambition and scalability. Both are needed to turn technologically impressive concepts into genuinely world-shaping solutions. Alongside the expert commentary from our contributors, you’ll also find two articles written by the World Future Energy Summit’s own team. Together, they both explore the evolving role of the summit itself in the ongoing climate struggle. They highlight its continuing importance as a platform for fostering collaboration, showcase technology and prompting concrete action at a time when instability can derail even the most tepid climate response. Together, these complementary sections of the yearbook represent a much-needed reminder of the size and scale of the task we face. While there are stark realities to manage, we hope that the strategies and projects outlined in these pages serve as a source of inspiration. As you will read for yourself, there are organisations and individuals

LEEN AL SEBAI GENERAL MANAGER RX GLOBAL – MIDDLE EAST / HEAD OF THE WORLD FUTURE ENERGY SUMMIT Leen Joined RX Global in 2014 as their CFO in the Middle East and Board Member of RX UAE. Her role currently expands to General Manager of RX Global in the Middle East overseeing the company’s operations, including managing day-today operations, managing budgets, resources and employees and driving performance towards business goals. Leen is also the Head of the World Future Energy Summit, where she is responsible for developing and driving the strategy, overseeing planning and operational management of the event, while leading the team to deliver on the event strategy. Leen is an accomplished C-level executive

KROGLQJD&3$DQGDQ0%$ZLWK\HDUVH[SHULHQFHLQFRUSRUDWHƓQDQFHDQG hands-on management working in challenging, goal-oriented environments. 6KHVWDUWHGKHUFDUHHULQWKH$XGLWƓHOGLQ(UQVWDQG<RXQJDIWHUZKLFKVKHVKLIWHG her career to academia at a Business faculty in the Higher Colleges of Technology LQ8$(WHDFKLQJJXLGLQJDQGGLUHFWLQJWKH(PLUDWL<RXWKWKURXJKRXWWKHLU journey to be ready to enter the business world. She then worked for the Alliance Française in Abu Dhabi, a cultural division of the French Embassy that aims to promote French culture in Abu Dhabi, where she held the post of Finance Director and Board member.

across the Middle East and the rest of the world who are straining every commercial, logistical, technological and intellectual muscle to deliver tangible progress on combatting climate change. They are forging ahead with solutions that not only impact their locality, but may pave the way for broader problem-solving, prompted by a deepening desire for cooperation and collective solutions to a series of collective challenges. Building momentum, however small at the start, is what takes a novel idea and allows it to deliver change on an industrial scale. So, please read, absorb and reflect on the following insights held within this yearbook. Remember that every disappointment and failed objective from past climate conferences still pushes the conversation forward, as we strive to find solutions that are both economically and technologically feasible. The groundswell of support for building a more sustainable world is inevitably rising, and the ‘hard no’ voices of previous years are steadily

softening as the severity of the threat to our very existence increases. Finally, remember that collaboration is the cornerstone of climate progress. No single person or institution, not even the most advanced of nations, possesses the influence and resources needed to tackle this threat alone. Crowd wisdom, cooperative solutions and collaborative action – these are the forces necessary to bring the collective will of our species to bear at this critical time. All that’s left for me to do is to wish you the best of luck in your current projects and climate efforts. As we look ahead to 2025, starting with the 17th edition of The World Future Energy Summit in January, there is every reason to be hopeful for our future, and every reason to strive to secure it. Warmest regards, Leen Alsebai Head of the World Future Energy Summit General Manager, RX Middle East

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CONTENTS 50 WATER

02 :RUOG)XWXUH(QHUJ\6XPPLW<HDUERRN – Event Foreword 06 WLPHOLQH$3LYRWDO<HDU,Q6KDSLQJ The Future Of Energy Innovation 10 ENERGY 12 Masdar: Redefining Renewable Energy Leadership 14 Masdar City: A Greenprint For Sustainable Urban Innovation 22 Renewables Rise: Forecasts For A Transformative <HDU,Q(QHUJ\ 26 Why Battery Energy Storage Is Key To A Clean Energy Future 32 How Will Artificial Intelligence Transform Energy Innovation? 36 Unleashing the EU’s Circular Economy Potential 38 Building Resilient Grids: The Backbone Of A Sustainable Energy Future 41 TADWEER Q&A: Turning Waste Into A Valuable Resource 46 Insights From IRENA’s 2024 Outlook Report

52 Profiling Desalination Start-ups 54 Solving the Water-Energy Nexus 58 Exploring the Relationship Between Water, Rural Development, and Food Security 62 Optimising Water in Cities 66 SOLAR & CLEAN FUELS 68 Trends Reshaping Solar, Wind and Hydrogen 72 The Energy Trilemma: Balancing Transition, Sustainability And Security 74 A Clearer Flight Plan for Tackling Aviation’s Climate Impact 76 Bold Steps in Green Hydrogen 80 Promoting A Circular Economy In The US Renewable Energy Sector 84 The Power of Solar in Taking Us Closer to Net-Zero

86 Net Zero Through Clean Fusion 88 Strengthening Solar and Clean Energy at COP29 92 How Can We Secure a Sustainable Climate Future?

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96 SUSTAINABLE CITIES 98 History Of Smart Cities 102 The Smart Blueprint: How Emerging Technologies Are Shaping Cities of the Future 104 Driving the Future: How the UAE is Leading the Charge in E-Mobility and Smart Transportation

108 CLIMATE CHANGE 110 Balancing Needs in a Changing Climate 112 Empowering Consumers: The Human Catalyst For The Energy Transition 114 Carbon Capture at a Crossroads 118 Shaping the World’s Energy Future 121 The First Fuel: Why Energy Efficiency Should Be the First Stop on Our Path to Net Zero 124 What Is The Role Of Capital Markets In Alleviating The Climate Crisis? 127 Three Leaders Showing Business How To Build A Sustainable World 130 Unlocking Green Finance: Transparency As The Key To Climate Action 134 The Gender-Energy Nexus in the AI Era 138 Boards As Architects Of A Sustainable Future: A Visionary Call To Action

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A PIVOTAL YEAR IN SHAPING THE FUTURE OF ENERGY INNOVATION As the global energy landscape evolves, 2024 emerged as a milestone year marked by record-breaking investments in renewables, breakthroughs in clean energy technologies, and ambitious international commitments. From solar and wind surging ahead to green hydrogen and carbon capture gaining momentum, this timeline highlights the pivotal developments shaping the transition to a sustainable energy future.

FEB

MAR Solar Power Generation Breaks Records Worldwide This month, global solar power generation accounted for approximately 6% of total electricity production, according to the International Energy Agency (IEA). This represents an increase from previous years, driven by record installations in key markets such as India, China, and the United States. Falling panel costs and increased demand for renewables contributed to this growth. For instance, India installed over 6.2 GW of new solar capacity in March 2024 alone. Coal Plant Closures Accelerate Globally Germany decommissioned 15 coal-fired power plants, totalling approximately 4.4 GW in capacity, as part of its commitment to phase out coal by 2030. Meanwhile, South Korea announced plans to phase out over 75% of its coal-fired power plants by 2039, reflecting its efforts to reduce greenhouse gas emissions. These actions align with international climate agreements and aim to significantly lower carbon emissions. Green hydrogen gains new investment Green hydrogen saw significant investments globally in March 2024. Europe led the way with major projects in Germany and the Netherlands, while Australia announced infrastructure to export hydrogen to Asia. The Netherlands has allocated approximately €250 million in subsidies to seven green hydrogen projects, totalling a combined capacity of 101 MW.

JAN

Global Renewable Energy Investments to Reach Record High? According to the International Energy Agency (IEA), global energy investment is projected to exceed USD 3 trillion for the first time in 2024, with USD 2 trillion allocated to clean energy technologies and infrastructure. This marks a significant increase from previous years, reflecting a strong commitment to renewable energy development. January temperature breaks records January 2024 was the warmest January on record globally, with an average ERA5 surface air temperature of 13.14°C, 0.70°C above the 1991-2020 average for January and 0.12°C above the temperature of the previous warmest January, in 2020. Major Corporations Commit to Net-Zero Emissions Several multinational companies underlined accelerated plans to achieve net-zero emissions by 2030, increasing investments in renewable energy and energy efficiency. For example, Microsoft has committed to becoming carbon negative by 2030, and Unilever is doubling its investments in green energy solutions to achieve its 1.5-degree climate target.

Wind Energy Faces Challenges This month, some of the world’s leading wind power companies—Siemens Energy, Ørsted, and Vestas—reported ongoing challenges, including project delays, equipment issues, and inflationary pressures. These factors have adversely affected the wind energy sector’s growth and profitability. Challenges include rising costs for raw materials, supply chain disruptions, and delays in government permitting processes, which have slowed project timelines and squeezed profit margins for major wind power companies. Natural Gas Prices Plummet Due to Oversupply In February 2024, natural gas prices declined due to mild winter weather and high storage levels, leading to decreased demand. This oversupply resulted in lower prices, with European gas prices falling below €25 per megawatt-hour. Energy companies are increasingly focusing on hydrogen and carbon capture technologies to mitigate future market volatility. Electric Vehicle Sales Growth In February 2024, electric vehicle (EV) sales in Europe increased by approximately 10% year-over-year, aligning with the general market growth. Battery electric vehicles (BEVs) accounted for about 13% of the market, while plug-in hybrid electric vehicles (PHEVs) made up about 7%.

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APR

MAY

JUN

California fuelled 100% by renewables This month, the US state of California achieved a significant milestone by generating over 100% of its electricity demand from renewable sources, including solar, wind, geothermal, and hydropower. This accomplishment underscores the state’s commitment to transitioning away from fossil fuels and demonstrates the feasibility of large-scale renewable energy adoption. Battery Storage crucial to renewable energy success In April, the International Energy Agency (IEA) reported that achieving a tripling of renewable energy capacity by 2030 would necessitate a sixfold increase in global energy storage, equating to 1,500 GW. This underscores the critical role of battery storage in stabilizing renewable energy supply and ensuring grid reliability amid the energy transition. Carbon Pricing Policies Expand Globally As of April 1, 2024, there were 75 carbon pricing mechanisms in operation worldwide. The number of carbon pricing mechanisms has increased considerably since 1990 - the year Finland became the world’s first country to introduce a carbon tax. Carbon pricing instruments such as carbon taxes and emission trading systems (ETS) now cover almost a quarter of global emissions. TotalEnergies commits to solar in Iraq In April 2024, TotalEnergies announced plans to complete the initial phases of a solar and gas project in Iraq by 2025. The project includes a 1 GW solar power plant and a 600 million cubic feet per day gas processing facility, aiming to boost Iraq’s energy production and reduce reliance on imports.

Offshore Wind Projects Surge In May 2024, the global offshore wind energy sector marked a significant milestone, with over 15 gigawatts (GW) of new capacity under construction across various countries, including the UK, China, and the US. These projects are anticipated to substantially reduce global carbon emissions upon completion. As of May 31, 2024, the US had 4,097 megawatts (MW) of offshore wind energy under construction, a more than 300% increase from the previous year’s 938 MW. &DQDGDōV%URRNƓHOGH[SDQGV renewable energy portfolio In May 2024, Canada’s Brookfield, alongside Brookfield Renewable Partners and Singapore’s Temasek Holdings, entered exclusive talks to acquire a 53.32% stake in French renewable energy producer Neoen for approximately $6.6 billion. This acquisition underscores growing investor appetite for renewable energy assets, highlighting a global trend toward the energy transition. (QHUJ\(IƓFLHQF\6WDQGDUGV Strengthened The European Union enacted the revised Energy Performance of Buildings Directive (EU/2024/1275), effective from May 28. This legislation aims to accelerate the renovation of the EU’s least efficient buildings, enhance indoor air quality, support digitalisation of energy systems, and promote sustainable mobility infrastructure. Member States are required to transpose the directive into national law by May 29, 2026. Saudi Arabia Eyes Solar Investment Saudi Arabia’s Ministry of Energy initiated the sixth round of its National Renewable Energy Program, issuing a request for qualifications for 4,500 megawatts of solar and wind projects. The move aligns with the Kingdom’s Vision 2030 goal to generate 50% of its electricity from renewable sources. The projects are expected to attract significant investment and contribute to sustainable energy development.

Heatwaves Boost Renewable Energy Demand Unprecedented heatwaves across Europe and North America in June 2024 drove a record surge in electricity demand as air conditioning use surged. In the US, grid stability was maintained through demand response programmes, while parts of Europe, including the Balkans, faced power outages due to overloaded systems. Solar and wind energy contributed significantly, with renewables generating over 30% of Europe’s power in early 2024. US offers methane reduction grants under IRA In June 2024, the U.S. Environmental Protection Agency (EPA) and the Department of Energy announced the availability of $850 million in grants to assist small oil and gas producers in monitoring and reducing methane emissions. This initiative, funded by the Inflation Reduction Act, aims to mitigate climate change impacts by providing access to advanced methane detection and reduction technologies. The grants are available to industry players, academia, NGOs, Native American tribes, and state and local government bodies. Corporates commit to sustainable energy PPAs In June 2024, corporate procurement of renewable energy continued its upward trajectory, with significant power purchase agreements (PPAs) announced globally. Notably, EDP Renewables secured a multi-geography PPA with a major U.S.-based tech company, supplying solar energy across Germany, France, and Italy. Additionally, ReNew signed a 437.6 MW green energy deal with Microsoft in India, marking one of the country’s largest corporate renewable agreements. These developments underscore the growing commitment of corporations to sustainable energy sourcing. Germany and Morocco plan future energy alliance Germany and Morocco established a climate and energy alliance to enhance renewable energy and green hydrogen production in Morocco. This partnership aims to support Germany’s goal of climate neutrality by 2045, addressing its need to import up to 70% of future hydrogen demand. The agreement includes cooperation on electricity trade between Morocco and the EU, and German involvement in advancing Morocco’s hydrogen economy.

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JUL

AUG

SEP Jobs in renewables sector increase by 18% According to the “Renewable Energy and Jobs – Annual Review 2024” by the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO), renewable energy employment reached 16.2 million jobs in 2023, up from 13.7 million in 2022. This 18% increase reflects strong growth in renewable energy capacity and equipment manufacturing. Carbon Emissions Grow Analysis indicates that global carbon dioxide (CO₂) emissions from fossil fuels are projected to reach a record 37.4 billion metric tons in 2024, marking a 0.8% increase from the previous year. This rise is primarily attributed to increased coal and oil consumption, particularly in China and India. Despite significant investments in renewable energy and improvements in energy efficiency, these efforts have not yet resulted in a decline in overall emissions. Eurozone Corporate Renewable Deals Soar In September 2024, the European corporate power purchase agreement (PPA) market was on track to set a new record, with contracted capacity reaching 10.7 GW, nearing the previous year’s total of 10.8 GW. This growth reflects the increasing commitment of European corporations to secure renewable energy sources, driven by sustainability goals and favourable market conditions. The trend indicates a robust expansion in corporate renewable energy procurement across Europe. Green hydrogen deal helps Spain’s journey to net zero In September 2024, bp and Iberdrola approved the construction of a 25 MW green hydrogen plant at bp’s Castellón refinery in Spain, expected to be operational by late 2026. This joint venture, Castellón Green Hydrogen S.L., marks a significant step in decarbonising industrial processes and advancing Spain’s renewable energy goals. The project will utilise proton exchange membrane (PEM) technology supplied by Plug Power.

China dominates renewable energy growth In July 2024, global renewable energy capacity reached approximately 3,865 GW, marking a 13.9% increase from the previous year. This growth was primarily driven by substantial solar and wind power installations, with China contributing 64% of new projects under development, totalling 339 GW. These developments underscore the accelerating global shift from fossil fuels toward sustainable energy systems. Oil Exploration Projects Cancelled Amid Green Transition In July 2024, TotalEnergies announced its withdrawal from offshore Blocks 11B/12B and 5/6/7 off South Africa’s southern coast, citing challenges in economically developing the Brulpadda and Luiperd gas discoveries. This decision reflects the growing trend of energy companies reassessing fossil fuel projects amid increasing investor pressure to prioritise low-carbon energy investments. China’s bold lithium plans In July 2024, China’s Shandong province announced plans to develop a lithium battery industry valued at approximately $13.8 billion by 2025. The initiative aims to establish a comprehensive industrial chain encompassing electrode materials, electrolytes, battery cells and assembly processes. This strategic move is designed to bolster the region’s capacity to meet the growing demand for energy storage solutions, thereby wsupporting the global transition to renewable energy sources. Saudi Arabia increases renewable energy targets Saudi Arabia has significantly increased its renewable energy targets, aiming for 130 GW of renewable capacity by 2030, up from the previous goal of 58.7 GW. This ambitious plan includes substantial solar energy projects, such as the recent agreements for three solar photovoltaic projects totalling 5.5 GW, involving ACWA Power, Badeel, and Aramco Power. These initiatives align with the Kingdom’s Vision 2030 strategy to diversify its energy sources.

Solar panel cost drops In August 2024, the cost of solar panels continued to decline, driven by advancements in manufacturing and economies of scale. Notably, the Inflation Reduction Act extended the 30% federal solar tax credit through 2032, enhancing affordability for consumers. Additionally, the price of polysilicon, a key material in solar panel production, decreased, contributing to lower overall costs. These factors are expected to accelerate solar adoption, particularly in developing regions. Coal usage persists Global coal consumption remains at record levels, with approximately 8.7 billion tonnes used in 2024, marking a 10% increase from 2014. This sustained demand is primarily driven by developing countries, notably China and India, which are the largest consumers and producers of coal. In 2023, more coal-fired power generation capacity was commissioned than decommissioned, particularly in Asian nations. Despite efforts to phase out coal, its global usage persists. Wind capacity expands In August 2024, global offshore wind capacity continued to expand, with significant contributions from the UK and Taiwan. Notably, the U.S. Department of Energy reports that global offshore wind installations in 2023 added 6,326 MW of new capacity, marking the fourth-largest annual increase to date. This growth underscores the ongoing efforts to boost renewable energy capacity worldwide. First methane—sensing satellite launches In August 2024, the Carbon Mapper Coalition launched its first methane-sensing satellite, Tanager-1, from Vandenberg Space Force Base. This satellite enhances the detection of methane and carbon dioxide emissions, providing precise data to identify and monitor significant emission sources. The initiative aims to make greenhouse gas data publicly accessible, supporting global efforts to mitigate climate change by enabling targeted emission reduction strategies.

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ENERGY A 2024 TIMELINE

OCT

NOV

DEC Emissions hit record highs in 2024 Recent analyses indicate that global carbon dioxide (CO₂) emissions have reached record highs in 2024, with no significant decline observed. The Global Carbon Budget report, published during the UN COP29 climate summit in Azerbaijan, said global CO2 emissions are set to total 41.6 billion metric tons in 2024, up from 40.6 billion tons last year. The rise is attributed to factors such as increased coal combustion in India and a rebound in airline flights. Consequently, the goal of limiting global warming to 1.5°C remains at risk, as emissions continue to climb. Water gains attention at COP29 At COP29, the Declaration on Water for Climate Action, supported by UNECE, UNEP, and WMO, was endorsed by over 50 countries. It emphasises integrating water management into climate policies and launched the Baku Dialogue to foster international cooperation on water-related climate actions. The initiative highlights the critical need to address water and climate challenges together, promoting sustainable practices and collaborative efforts to enhance resilience against climate impacts globally. Corporate world needs to catch up on net zero goals Accenture’s “Destination Net Zero” report reveals that only 16% of the world’s 2,000 largest companies are on track to achieve net-zero emissions by 2050, with 45% experiencing increased carbon emissions. The report emphasises the need for responsible AI deployment to aid decarbonisation efforts. &OLPDWHƓQDQFHJURZVEXWQRWWR LDCs or SIDS Latest data from the UNFCCC shows that global climate finance flows in 2021 and 2022 rose 63 percent compared to 2019 and 2020 to reach an annual average of $1.3 trillion, but only 2.6% of that flow went to LDCs, and just one percent to Small Island Developing States.

IEA Reports $2trillion investment in clean energies In October 2024, the International Energy Agency (IEA) reported that global energy investment is set to exceed $3 trillion for the first time, with $2 trillion allocated to clean energy technologies such as renewables, electric vehicles, and nuclear power. This surge reflects a significant shift towards sustainable energy solutions, driven by policy support and declining technology costs, marking a pivotal moment in the global energy transition. Nuclear Power Gains Momentum in Energy Transition Several countries announced new nuclear power initiatives in October 2024. France and South Korea committed to expanding their nuclear energy capacity to support baseload demand as renewables grow. This marks a resurgence in nuclear as a critical low-carbon energy source. Australia moves towards green hydrogen In October 2024, the South Australian Government initiated efforts to develop a comprehensive evidence base for its renewable hydrogen strategy, focusing on Whyalla as a hydrogen and net-zero manufacturing hub. This move comes more than three years after announcing the Whyalla-focused Hydrogen Jobs Plan with an estimated cost of $590 million. The Government plans to proceed with this market approach by mid-February 2025, as outlined in the Department for Energy and Mining’s Procurement Activity Report “South Australia’s Hydrogen Strategy 2025-2030”. Scotland begins providing 450MW of clean wind energy In October 2024, Scotland’s Neart na Gaoithe (NnG) offshore wind farm, situated 15.5km off the Fife coast, began generating electricity for the UK national grid. Once fully operational, NnG’s 54 turbines will produce up to 450MW of clean energy, sufficient to power approximately 375,000 homes and offset over 400,000 tonnes of CO₂ emissions annually. This milestone significantly advances Scotland’s renewable energy objectives.

Electric vehicle sales grow by 26% In November 2024, global electric vehicle (EV) sales continued their robust growth, with projections indicating approximately 16.7 million units sold by year’s end—a 26% increase from 2023’s 14 million units. China remains the dominant market, accounting for nearly 60% of global EV sales, translating to about 10 million units. This sustained expansion underscores the accelerating shift towards sustainable transportation worldwide. Global wind power generation set to achieve record share of electricity output In November 2024, the International Energy Agency (IEA) reported that global wind power generation is set to achieve a record share of electricity output, potentially surpassing 10% in the final months of the year. This increase is attributed to enhanced wind conditions and substantial capacity additions, particularly in China, the United States, and Germany, which collectively account for 64% of global wind generation capacity. Australia faces power outages In November 2024, Australia’s energy grid faced significant strain due to the rapid transition from coal to renewable energy sources. Maintenance shutdowns of coal-fired generators in New South Wales during extreme heat nearly led to widespread blackouts, averted only by urgent power-saving measures from residents and businesses. Energy experts criticised the swift move away from coal, citing under-investment in coal plant maintenance and insufficient readiness of renewable sources to meet demand. COP 29 concludes with new FOLPDWHƓQDQFHJRDO In November 2024, the COP29 climate summit in Baku concluded with a $300 billion annual climate finance agreement to assist developing nations in combating climate change. However, many recipient countries criticised the amount as insufficient, highlighting ongoing challenges in global climate finance efforts.

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ENE Masdar: 5HGHƓQLQJ Renewable Energy Leadership p12 Masdar City: Renewables Rise: Forecasts For A Transformative Year In Energy Why Battery Energy Storage Is Key To A Clean Energy Future Battery Energy Storage Systems (BESS) are transforming the renewable energy How Will $UWLƓFLDO Intelligence Transform Energy

Innovation? Simon Bennett and Thomas Spencer of the IEA explore how AI technology could reshape energy innovation and drive global progress toward sustainability p32

Nicolas Daher, Lead Energy Analyst at The Economist Intelligence Unit, shares insights and predictions for the year ahead p22

landscape, addressing critical challenges like grid reliability, price volatility and energy HIƓFLHQF\ p26

A Greenprint For Sustainable Urban Innovation p14

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RGY Unleashing the EU’s Circular Building Resilient Grids: The Backbone Of A Sustainable Energy Future TADWEER Q&A: Turning Waste Into A Valuable Resource Ali Al Dhaheri, Insights From IRENA’s 2024 Outlook Report A new report from IRENA suggests how the world can achieve the 1.5°c climate target p46

Economy Potential Anum Sheikh, policy analyst at Cambridge Institute for Sustainability Leadership, explains why the EU is far from its ambition of doubling its circularity rate by 2030.

Meeting climate targets while ensuring energy security requires bold action to add or replace 80 million kilometres of grids globally by 2040 p38

Tadweer CEO, takes us through the capital city’s advanced waste management programme p41

p36

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ENERGY RE-SHAPING CLEAN ENERGY

MASDAR’S REMARKABLE 2024: REDEFINING RENEWABLE ENERGY LEADERSHIP

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M asdar has solidified its in a world that increasingly demands sustainable solutions. In 2024, the company achieved significant milestones, cementing its role as a leader in the global energy transformation and setting new benchmarks for growth, innovation and impact. With a bold vision, Masdar continues to demonstrate what is possible when ambition meets action. In its Annual Sustainability Report position as a global leader in renewable energy, driving transformative progress published in mid-2024, Masdar highlighted that its capacity had increased significantly. This milestone is a testament to Masdar’s ability to scale solutions that meet the growing global demand for clean energy. At a time when the world is grappling with the impacts of climate change, this achievement underscores Masdar’s commitment to driving meaningful change on a global scale. This growth has been driven by strategic investments in key markets worldwide. In the United States, Masdar acquired a 50 percent stake in Terra-Gen, one of the country’s largest independent renewable energy producers. This landmark acquisition has not only strengthened

From record-breaking green bonds to landmark hydrogen innovations and global wind projects, Masdar’s 2024 milestones highlight its pivotal role in the global energy systems transformation. Discover how this UAE leader is driving sustainability, creating impact, and reshaping the future of clean energy.

Mohamed Jameel Al Ramahi , Chief Executive !ؗ -Β.-

clean energy in 2023—enough to power millions of homes. Just as importantly, its projects avoided 14 million tonnes of CO2 emissions. These accomplishments are not just the result of financial investment but also the outcome of innovative strategies in sustainable financing. This year, Masdar issued its second Green Bond, valued at USD$1 billion. The proceeds from this issuance are being directed towards meeting its equity funding commitments for new greenfield projects. It comes a year after its first $750 million Green Bond issuance, where proceeds of a total $653 million were allocated towards fulfilling renewable energy projects in the UAE, Uzbekistan and Azerbaijan.

Masdar’s presence in North America but also reinforced its commitment to solidifying its operations across geographies. In Greece, Masdar secured a majority share in TERNA ENERGY, a clean energy leader, in a transaction that marked the largest energy deal ever on the Athens Stock Exchange. In Spain, Masdar continued its European expansion through a strategic partnership with Endesa and the acquisition of Saeta Yield, adding 2.5GW of renewable energy assets to its portfolio. Masdar has developed and partnered in projects in more than 40 countries across six continents, those of which generated an impressive 26,702GWh of

THE FUTURE OF ENERGY

In the United States, Masdar acquired a 50 percent stake in Terra-Gen, one of the country’s largest independent renewable energy producers “

Sustainability and profitability are not mutually exclusive Masdar’s leadership in sustainable financing is setting an important example for the global financial community. By demonstrating how green bonds can drive both environmental and economic returns, the company is showing that sustainability and profitability are not mutually exclusive. This approach is particularly critical as investors increasingly prioritize ESG (environmental, social, and governance) principles in their decision-making processes. Beyond financing, Masdar is breaking new ground in the realm of innovation. In 2024, the company successfully inaugurated the first project in the MENA region to produce green steel using green hydrogen. This groundbreaking initiative, developed in collaboration with EMSTEEL, underscores the transformative potential of hydrogen in decarbonizing industries such as steel manufacturing. Re-shaping the energy landscape By demonstrating the possibilities of the emerging green hydrogen sector, Masdar is not only helping to reshape the energy landscape but is addressing the broader challenge of reducing emissions across carbon-intensive industries. This year, Masdar was also elected to the Board of the Hydrogen Council, where the company will play an active role in helping to define the trajectory of this nascent industry. Offshore wind energy also continues to be a key technology focus area for Masdar in 2024. The company achieved major milestones, including the installation of all 50 turbines at Baltic Eagle in Germany, one of Europe’s most iconic offshore wind projects. In Azerbaijan, Masdar signed agreements at COP29 in Baku to develop up to 3.5GW of offshore wind capacity in the Caspian Sea, further diversifying

its portfolio and showcasing its ability to introduce advanced renewable energy technologies in new markets. These achievements highlight Masdar’s commitment to advancing renewable energy in all its forms, from solar and wind to emerging technologies like hydrogen. However, Masdar’s impact reaches beyond its core business operations, creating ripple effects that extend into communities and ecosystems. While focused on delivering profitable, scalable renewable energy solutions, the company recognizes the broader value its projects bring. From creating jobs and supporting local economies to reducing environmental footprints and enabling sustainable development, Masdar’s initiatives are designed to generate lasting benefits. In Indonesia, for example, training programs equip local communities with skills for growing the green economy, fostering resilience and unlocking opportunities for individuals and families. These efforts reflect Masdar’s belief that sustainability is not just about clean energy – it’s about empowering people and enhancing the environments Masdar’s influence is also felt on the global stage. This year, the company played a leading role at COP29, where it represented the UAE and advanced discussions on key renewable energy initiatives. Among the highlights was the milestone agreement to develop a 1GW wind farm in Uzbekistan, as well in which they live. Global influence

as an agreement to forge ahead with its inaugural wind farm in Kazakhstan. Both projects are poised to significantly contribute to regional energy security and decarbonization efforts. Through its active participation in such global forums, Masdar continues to drive the global energy agenda and foster collaboration among key stakeholders to accelerate impactful action. The company’s success is deeply rooted in the vision of the UAE, a nation that has positioned itself as a global leader in transforming energy systems. The UAE’s ambitious initiatives, such as the Energy Strategy 2050 and the Net Zero by 2050 Strategic Initiative, demonstrate how economic growth and environmental stewardship can coexist. As the UAE’s flagship renewable energy company, Masdar plays a crucial role in delivering these national commitments while exporting the UAE’s vision to the world. Masdar’s achievements in 2024 mark a pivotal step forward in the company’s ambitious journey to redefine the future of energy. With a target of achieving 100GW of renewable energy capacity by 2030, Masdar is positioned to play a central role in shaping the next phase of the global energy transformation. Meeting this goal will require not only continued innovation but also unprecedented levels of collaboration across governments, businesses, and other stakeholders. Platforms like Abu Dhabi Sustainability Week (ADSW) and the World Future Energy Summit (WFES) provide valuable opportunities to foster these partnerships and accelerate progress. The story of Masdar is one of ambition and progress. In a year of global challenges, Masdar’s achievements provide invaluable insights into overcoming obstacles and driving forward energy transformation. By blending visionary leadership with cutting-edge innovation and a commitment to global collaboration, Masdar is shaping a future where clean energy drives progress, prosperity and benefits communities worldwide.

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THE FUTURE OF ENERGY

ENERGY SUSTAINABLE URBAN INNOVATION

MASDAR CITY: A GREENPRINT FOR SUSTAINABLE URBAN INNOVATION

THE FUTURE OF ENERGY

A Q&A with Ahmed Baghoum, Β.-$/4

Since its inception in 2008, Masdar City has evolved into a thriving hub of sustainability DQGLQQRYDWLRQUHGHƓQLQJ urban living with cutting-edge technologies and eco-friendly practices. As a global model, it demonstrates how cities can harmonize economic growth, environmental stewardship, and social well-being while aligning with global net-zero goals.

Could you provide an overview of Masdar City’s journey so far and how it has evolved since its inception? In 2008, Masdar City was conceived as an ambitious vision to create a sustainable, energy-efficient urban space. Over the years, it has evolved into a thriving hub for businesses, innovation and cutting-edge sustainability solutions. As a pioneering sustainable urban community, Masdar City is at the forefront of changing the way people live, work, learn and play. Masdar City has developed a thriving ecosystem of leading global organisations that are working to create a greener future. Masdar City Free Zone provides a seamless environment for diverse business activities, while its high-impact industry clusters promote collaboration and innovation across various sectors. Today, we stand as a global model, or ‘greenprint,’ demonstrating to cities worldwide that sustainability is not only essential for the planet but also a cornerstone for enduring economic success. What are the most significant sustainability milestones Masdar City has achieved, and how do these align with the UAE’s broader climate goals? Masdar City continues to set global benchmarks in sustainable urban development, aligning seamlessly with the UAE’s ambitious climate goals. From pioneering the region’s first utility-scale solar farm to launching NZ1, the UAE’s first net-zero energy commercial office building design, Masdar City exemplifies leadership in the transition to a low-carbon future. With a 99% occupancy rate for its sustainable spaces, the city has proven that environmental progress and economic success are not only compatible but mutually reinforcing. Our buildings consume 40% less energy and water compared to conventional designs, meeting globally recognized standards such as LEED and Estidama Pearl Ratings. Beyond energy efficiency, we’ve prioritized waste management, achieving impressive landfill diversion rates through recycling initiatives. These efforts directly align with the UAE’s Circular Economy Policy 2021-2031, which emphasizes the shift from a linear to a circular economy maximizing resource efficiency,

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THE FUTURE OF ENERGY

reducing environmental impact and fostering innovation to ensure sustainable economic growth. Sustainable mobility is another cornerstone of Masdar City’s approach. Our Personal Rapid Transit (PRT) system and electric vehicle infrastructure provide zero-emission transport solutions, reducing dependency on fossil fuels while offering residents efficient and comfortable travel options, even during the harsh summer months. These advancements are part of a broader commitment to decarbonizing urban transport and supporting the UAE’s Net Zero by 2050 initiative. Masdar City generates up to 37% of its energy needs through on-site photovoltaic systems, significantly reducing its carbon footprint. These efforts are complemented by walkable neighbourhoods, green spaces and state-of-the-art amenities that enhance the quality of life for residents and visitors alike. By integrating economic growth, environmental sustainability, and social well-being, Masdar City demonstrates that the cities of the future can achieve a harmonious balance between these critical pillars. Looking ahead, we remain steadfast in our commitment to fostering innovation and scaling our solutions, ensuring that Masdar City continues to play a pivotal role in achieving the UAE’s broader climate ambition Could you elaborate on the innovative technologies currently in use and how they contribute to energy efficiency and sustainability?

Technology is at the heart of Masdar City’s sustainability strategy, enabling us to achieve remarkable energy efficiency and environmental impact. Solar PV systems generate clean energy to some of the buildings and parks in the city, while solar thermal collectors provide efficient water heating, significantly reducing reliance on conventional energy sources. Smart energy systems continuously monitor electricity usage, ensuring optimized consumption and minimizing waste. Our buildings integrate advanced passive

THE FUTURE OF ENERGY

ENERGY SUSTAINABLE URBAN INNOVATION

Today, we stand as a global model, or ‘greenprint,’ demonstrating to cities worldwide that sustainability is not only essential for the planet but also a cornerstone for enduring economic success “

design strategies to reduce the heat gain and the electricity consumption of the cooling system. For example, optimizing the ratio of windows to facade area, employing airtight building envelopes, and integrating high-performance insulation. Masdar City employs innovative technologies like condensate water collection from air conditioning systems, which, combined with greywater recycling, support water efficiency efforts. Our Personal Rapid Transit (PRT) system offers zero-emission mobility, further reducing dependency on fossil-fuel-based transport. These technologies, combined with rigorous sustainability standards such as LEED and Estidama Pearl Ratings, exemplify how innovation drives our journey toward net-zero emissions while creating a vibrant and sustainable urban environment How does Masdar City foster global collaboration in sustainability and clean energy innovation? Masdar City is a global platform where

innovation and sustainability converge, fostering collaboration among businesses, research institutions, and governments to shape the future of clean energy and urban living. Central to this vision is the Masdar City Free Zone, which attracts a diverse mix of global players with benefits such as 100% foreign ownership, tax exemptions, and strategic access to regional markets. This dynamic ecosystem facilitates partnerships and the exchange of ideas, creating fertile ground for transformative projects. One prominent example of Masdar City’s collaborative approach is hosting the International Renewable Energy Agency (IRENA), symbolizing its role as a global hub for advancing clean energy policies. Strategic partnerships with industry have driven groundbreaking pilot projects in energy storage, hydrogen technology, and smart urban infrastructure, demonstrating scalable solutions for a low-carbon future. In the academic sphere, Masdar City collaborates with institutions like the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), advancing research in AI applications for energy efficiency and urban planning. These efforts are complemented by initiatives like The Catalyst, a joint venture that supports clean-tech startups, fuelling innovation in renewable energy and sustainability. By integrating global expertise, fostering local innovation and promoting an open culture of collaboration, Masdar City has evolved into a meeting point for stakeholders worldwide. It is not just a sustainable urban environment— it is a global laboratory for pioneering solutions that redefine the way cities live, work and grow sustainably. What makes Masdar City an attractive community for residents, balancing sustainability with liveability? From the outset, Masdar City was envisioned as a thriving, walkable community that balances

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THE FUTURE OF ENERGY

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