Energy management systems top of agenda

The payback period for investing in intelligent energy and water saving solutions that can substantially cut electricity consumption for major buildings has reduced by as much as 40% as a direct result of new electricity tariffs introduced in Dubai.

An energy saving module will save 457
An energy saving module will save 457

The payback period for investing in intelligent energy and water saving solutions that can substantially cut electricity consumption for major buildings has reduced by as much as 40% as a direct result of new electricity tariffs introduced in Dubai.

The new tariff structure introduced on 1 March by Dubai Electricity and Water Authority (DEWA) is aimed at encouraging a reduction in energy consumption by raising prices for large users.

Under the tariff, residential and commercial consumers will pay 20 fils/kWh for 0-2,000 kWh; 24 fils/kWh for 2,001-4,000kWh; 28 fils per kWh for 4,001-6,000kWh; and 33 fils/kWh for 6,001 and above. For industrial users, the rates will be 20 fils/kWh for 0-10,000kWh and 33 fils/kWh for 10,001 and above. A similar pricing structure is being introduced for water charges.

By implementing energy management measures the overall usage will be reduced. Previously the payback period for such technologies has been cited as a reason for not using them, but with the higher energy costs now implemented, these payback times will be directly reduced.

Total facilities management company Farnek Avireal cites City Tower 2 on Dubai's Sheikh Zayed Road as an example of these increased savings. The firm has won a contract to reduce the electricity consumption of the building's refrigeration and air conditioning systems.

It calculated that after its Energy Saving Module is introduced for the 22-floor tower, the building's electricity demand will fall by 457,667kW/year, leading to annual CO2 emissions falling by 198,628kg.

Based on the old electricity tariff in Dubai, this would have amounted to substantial annual monetary savings of US $24,934 (AED91,533). Under the new tariff annual savings will be $41,141. The payback period has reduced from 23.1 to 14 months.

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