Dubai launches first ESCOs’ regulatory framework in Middle East | Dubai launches first ESCOs’ regulatory framework in Middle East -
HH Sheikh Ahmed bin Saeed Al Maktoum

Dubai launches first ESCOs’ regulatory framework in Middle East

: Sunday, February 02 - 2014 @ 12:18

HE Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy (DSCE) and MD and CEO of Dubai Electricity and Water Authority (DEWA) stated that due to the initiatives and directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and in line with the strategies of the Government Of Dubai, we support partnerships and innovation in energy sector to reach the best global standards in terms of efficiency of use, demand side management and diversification of energy resources, DEWA made several achievements that promote transformation to green economy in the Emirate of Dubai and contribute achieving the objectives of the UAE Vision 2021 under the umbrella of the Dubai Supreme Council of Energy, chaired by HH Sheikh Ahmed bin Saeed Al Maktoum, to push forward the march of sustainable development and make Dubai a global model to follow in the fields of energy security and efficiency.

His Excellency gave his speech on the occasion of launching the regulatory framework of energy service companies – the first of its kind in the Middle East – by the Regulatory and Supervisory Bureau for Electricity and Water Sector. “It is important to put into effect the regulatory frameworks that reflect the commitment of the Government Of Dubai and the Dubai Supreme Council of Energy to promote the leadership and competitive of Dubai at global level as well as encouraging and supporting partnerships with private sector through Etihad ESCO that aim to create new business and investment opportunities to contribute to transforming Dubai into a smart and sustainable city.”

“At Dubai Electricity and Water Authority (DEWA), we have made several achievements that contribute to realizing the objectives of the UAE Vision 2021, and the initiative of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, under the theme “Green Economy For Sustainable Development”. We are also in relentless pursuit to achieve the objectives of Dubai Integrated Energy Strategy 2030 developed by the Dubai Supreme Council of Energy (DSCE) chaired by HH Sheikh Ahmed bin Saeed Al Maktoum, to push forward the march of sustainable development and make Dubai an example to follow at a global level in the fields of energy security and efficiency, investment in renewable and low-carbon energy, and achieve the objectives of Dubai Integrated Energy Strategy 2030,” said His Excellency.

“Today, as we are about to establish a promising market of energy performance contracting in Dubai by launching a regulatory framework of energy service companies, I would like to draw your attention to the remarkable instances of partnership among different sectors in Dubai. One of these prominent instances is Mohammed Bin Rashid Al Maktoum Solar Park, launched by HH Sheikh Mohammed bin Rashid Al Maktoum in January 2013 at a cost exceeding Dhs12bn to produce 1000 Megawatt upon completing all its phases and projects. This pioneering project is based on PPP model between Dubai Electricity & Water Authority and the private sector and is considered the first of its kind in the Middle East region.

“By launching the regulatory framework of market of energy performance contracting in the Emirate of Dubai, the importance of the declared objective of Dubai Integrated Energy Strategy aiming to reduce energy demand by 30% by 2030 can be obviously seen. This step emphasizes the commitment of the Government Of Dubai to provide the proper regulatory environment that support the growth, expansion and sustainability of business. Another testimony of this is the establishment of Etihad Energy Service Company (Etihad ESCO) by Dubai Electricity and Water Authority to lay the foundations for energy service companies and adopt a crystal-clear vision that can develop the sector of energy service companies (ESCOs) in the Emirate of Dubai,” said His Excellency.

“In line with the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into a smart city, DEWA proceeded with carrying out an ambitious plan to transform Dubai’s power grid into a smart grid. DEWA’s efforts are part of its relentless pursuit to develop its services, enhance the efficiency of its operations at a cost of Dhs7bn. Through this project, DEWA is seeking to automate systems of control and monitoring of power transmission and distribution as well as transforming into the smart generation of electricity meters within the coming five years. The greater data available from such meters will also assist the ESCOs to enhance the energy efficiency of Dubai’s buildings,” said His Excellency.

This project will contribute to providing an outline of the future of energy efficiency in Dubai. We think that energy service companies have an important role as they effectively contribute to achieving one basic objective of Dubai Integrated Energy Strategy 2030 to reduce energy consumption by 30% by 2030 by enhancing energy efficiency in more than 30,000 buildings in Dubai.

The programme of the ceremony included a presentation of the strategy of energy demand side management by HE Ahmed Buti Al Muhairbi, Secretary General of the Dubai Supreme Council of Energy, who emphasized that improving energy efficiency in Dubai’s existing buildings is a key factor to make successful the strategy of the DSCE of energy demand side management. “Launching this regulatory framework with the help of Etihad ESCO is the first step to retrofit around 30,000 existing building to save energy,” said HE Al Muhairbi.

The programme also included a general hint about organizing the market of energy performance contracting as well as a presentation of the overall regulatory framework of ESCOs which combines the best global practices in addition to the steps to adopt the initial retrofit of companies and standard contracts that were especially designed for this new sector in Dubai with the purpose of harnessing the obstacles and encouraging companies to join the market through Etihad ESCO, authorized to make effective these regulatory frameworks. This regulatory framework aims to provide a system of approving energy service companies, to standardize methods of measuring and documenting energy savings, provide standards of energy performance contracts, and provide a clear and transparent mechanism for settling disputes.

“It gives us pleasure to launch the regulatory framework of ESCOs, which will retrofit the existing buildings to become green, echo-friendly and saving buildings. This will support Dubai Integrated Energy Strategy 2030. Retrofitting the existing buildings will not incur the owners any financial costs as ESCOs will cover the costs from the amounts saved from reducing energy consumption as per the period of time agreed between building owners and ESCOs,” said HE Ali bin Abdullah Al Oweis, Chairman of the Dubai Regulatory and Supervisory Bureau for Electricity and Water Sector.

Stephan Le Gentil, CEO of Etihad ESCO, presented the projects that are being prepared to be launched in the market to develop the ESCOs sector as well as a series of investment opportunities, new businesses in the energy performance contracts, the financial institutions, manufacturers and suppliers of equipment and green technology throughout the different stages of developing, financing, managing and carrying out the projects. Mr. Stephan also announced the launch of a project to retrofit some DEWA buildings. “ESCOs will be invited for bids in this project, which aims to present a model to follow in terms of minimizing energy consumption and carbon emissions through procedures that will improve and develop infrastructure as well as the common areas and offices. This project will prove right the feasibility of investing in energy efficiency and render remarkable revenues to owners by reducing energy consumption rates and operation costs.”

Etihad ESCO, which was established last year by Dubai Electricity and Water Authority, adopts a clear vision aiming to promote Dubai’s positions as one of the most global sustainable cities and seeks also to make Dubai’s buildings a model to follow in terms of energy efficiency both at regional and global levels. This company is a the executive authority of the strategy of energy demand side management and is committed to developing the sector of ESCOs, and enhance energy efficiency in more than 30,000 building in the Emirate of Dubai as per energy performance contracting set by the Dubai Regulatory and Supervisory Bureau for Electricity and Water Sector.

For more information, please contact:
Hany Ayesh
Etihad ESCO
Tel: +971501582555

Hassan Mohalal
Inveniomena
Tel: +971504515041

Veronika Loessl
Inveniomena
Tel: +971558716250

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Sunday, February 2- 2014 @ 12:18 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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