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Home / ANALYSIS / UAE and Qatar governments drive energy savings

UAE and Qatar governments drive energy savings

by CW Staff on Jun 1, 2017




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Energy management is rapidly emerging as a lucrative and busy segment within the GCC’s FM sector, especially the UAE and Qatar.

Technavio, in a report titled Building Energy Management Services Market in Middle East 2016-2020 – released last November – stated that the region’s building energy management services (BEMS) industry would record compound annual growth rate (CAGR) “of more than 19% by 2020”.

The report adds: “Owing to various infrastructure development activities, the Middle East is witnessing a rapid increase in energy consumption.

“It has been observed that energy consumption in the Middle East was about 770 million tons of oil equivalent (MTOE) during 2015, and is expected to witness a growth rate of more than 4% year-over-year during the forecast period.

“This will induce governments and enterprises in the region to optimise their energy usage. Moreover, depleting oil resources will compel businesses to invest in alternate energy sources such as solar, wind, and bioenergy, which, in turn, will propel the need for energy management services,” Technavio’s analysis adds.

According to the report, the UAE – due to a high number of residential and commercial, as well as institutional buildings – is expected to be the largest market within the sector between 2016 and 2020.

“During 2015, the maintenance and support services segment accounted for major market shares and dominated [the BEMS] sector,” the report finds.

“The maintenance segment includes services such as predictive and corrective maintenance of electro-mechanical equipment, and support services include remote assistance [...] to diagnose faults in the system.

“Though the segment will witness a slight decline in its market share due to innovations in energy management systems, it will continue to dominate the market during the next four years.”
Government-led initiatives are also making a difference in the UAE.

Savings on electricity and water achieved in Dubai between 2009 and 2016 amount to $263.2m (AED967m), it was revealed this March.  Customers of Dubai Electricity and Water Authority (DEWA) saved more than 1.5 terawatt-hours (TW/h) of electricity and 6.2 billion gallons of water during the period.

The generated savings resulted in offsetting around 831,000 tonnes of carbon emissions, which equates to planting 944,000 trees.

DEWA programmes, initiatives, and awareness campaigns helped reduce electricity and water consumption by 19% and 28% respectively in the residential sector between 2009 and 2016.

Consumption of electricity and water in the commercial sector reduced by 10% and 30% respectively, and by 15% and 21% in the industrial sector.

Electricity and water consumption was reduced by 9% and 24% respectively in the educational institutions sector, and government and semi-government organisations achieved savings of 12% on electricity consumption and 21% on water consumption.

According to Dubai Media Office, HE Saeed Mohammed Al Tayer, managing director and CEO of DEWA, said the agency will continue its plans to drive up the emirate’s sustainability quotient: “Despite the big savings achieved in electricity and water, [our] goal is to consolidate a culture of energy conservation amongst all members of society.”

Qatar is also on an energy-consciousness drive, recent announcements show.

The first phase of Tarsheed, an energy conservation programme implemented by Qatar General Electricity and Water Corporation (Kahramaa) has resulted in savings worth $1.1bn (QAR4bn), officials confirmed last month.

Tarsheed was launched in 2012 and as of December 2016, had reduced the per capita consumption of electricity and water in Qatar by 18% and 20% respectively. Under its second phase – set to span between 2017 and 2022 – Tarsheed will work to further reduce the per capita consumption of electricity and water by 8% and 15% respectively.

Qatar is also reported to have penalised errant consumers of its resources last year. In 2015, the country doubled the maximum penalties for water and electricity wastage and as a result, residents that use drinking water for anything other purpose may be fined up to $5,500 (QAR20,000), a Doha News report stated last November.

Indeed, the future for energy management looks bright in the GCC.



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