Empowering Sustainability: Understanding Determinants of Consumer Investment in Microgrid Technology in the UAE

Abstract

This study aims to analyze the determinants that influence the consumers’ disposition to invest in microgrid technology in the United Arab Emirates (UAE). This research offers valuable insights for policymakers on investors’ motivations to develop strategies to foster microgrid technology adoption through end-user investments leading to a reduction in microgrid high capital cost. The study employed descriptive statistics, correlation, and regression analyses to analyze the responses of a sample of property owners to a quantitative survey. The study examines such variables as strategic alignment, profitability, digitization, renewable energy utilization, CO2 emission reduction, and disaster recovery readiness. The data collected reveal a moderate level of understanding and cost-awareness of microgrid technology among the respondents, with a mean of 2.46 out of 5. Notably, the data highlight the significant influence of strategic alignment with the UAE’s national energy goals on the respondents’ inclination to invest in microgrids, with a strong positive correlation of 0.942 at the 0.01 level (two-tailed). By comparison, profitability and disaster recovery have a comparatively weaker correlation. Furthermore, based on the data collected during this study, it has been determined that there is a strong value added by the microgrid initiatives considering the UAE’s strategic direction and the positive influence of reduced CO2. The regression models used were highly significant at F = 85.690. There is an acceptable level of multicollinearity with VIF values ranging from 1.087 to 2.155. UAE Strategy has low collinearity. UAE Strategy emerges as the only significant predictor of willingness to invest (p < 0.001) in the stepwise regression analysis. The analysis shows that villa and townhouse owners are willing to invest in community microgrid given that it is aligned with UAE strategy and leads to CO2 emissions reduction.