Comprehensive Review of Socio-Economic Costs and Benefits, Policy Frameworks, Market Dynamics, and Environmental Implications of Microgrid Development in the UAE

Abstract

This research paper presents a comprehensive review of the literature on microgrid development in the UAE, focusing on the socio-economic costs and benefits, policy frameworks, market dynamics, and environmental implications. The analysis encompasses publications from 2011 to 2021, with a particular emphasis on the United Arab Emirates (UAE) and the Gulf Cooperation Council (GCC) countries. A total of 33 papers were identified and classified, revealing gaps in comprehensive valuation models, consideration of environmental and social governance factors, and research informing policy and investment decisions. The findings highlight the significance of microgrid technology in the UAE, its limited adoption and commercialization, and its predominant usage in remote areas and academic testbeds. The paper underscores the UAE’s vision for net-zero emissions by 2050 and the potential of microgrids in supporting its realization. Recommendations include the development of a comprehensive valuation framework to drive effective investments in microgrid technology, aligning with the UAE’s sustainable energy goals. The study contributes to the understanding of microgrid development in the UAE, offering insights into its socio-economic, policy, market, and environmental dimensions.