Regulatory framework for ESCOs launched in Dubai
Dubai plans to reduce its energy demand by 30% by 2030
Dubai’s Regulatory and Supervisory Bureau for Electricity and Water has launched a regulatory framework for energy service companies (ESCOs) in Dubai.
The move marks the first step in the Emirate’s plan to have 30,000 of its buildings retrofitted to become more energy efficient.
The regulatory framework aims to provide a system of approving ESCOs, to standardise methods of measuring and documenting energy savings, provide standards of energy performance contracts, and provide a clear and transparent mechanism for settling disputes.
H.E. 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), said that the new framework is in line with the Dubai Integrated Energy Strategy 2030 objective to reduce energy demand by 30% by 2030.
“This step emphasises the commitment of the Government of Dubai to provide the proper regulatory environment that supports the growth, expansion and sustainability of business,” Al Tayer said.
“Another testimony of this is the establishment of Etihad Energy Services Company (Etihad ESCO) to lay the foundations for energy service companies, and adopt a crystal-clear vision that can develop the sector of ESCOs in the emirate of Dubai,” he added.
As the executive authority on the strategy of energy demand side management, Etihad ESCO has been established by DEWA to develop the ESCO sector in Dubai, using the energy performance contracting guidelines outlined by the RSB for Electricity and Water. The company has just launched a project to retrofit some existing DEWA buildings.
“ESCOs will be invited for bids in this project, which aims to present a model to follow in terms of minimising energy consumption and carbon emissions through procedures that will improve and develop infrastructure, as well as the common areas and offices,” said Stephane Le Gentil, CEO, Etihad ESCO.
“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,” Le Gentil said.