Dubai’s Demand Side Management Strategy

2013-2030

ESMA Conference20 May 2014

كفاءة الطاقة

الحوكمة

إدارة المصادر

CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of DSCE is strictly prohibited

"We recognize that preserving our energy resources will be one of the greatest challenges in our drive towards sustainable development. This, however, will not materialize unless the different facets of our society adopt energy conservation principles in their core values.

The future generations will be the chief beneficiary of our achievements and the best judge of what we accomplish in this field."

His Highness Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

Dubai’s Leadership Vision

May 2014 DSCE Demand Side Management 2

Dubai Integrated Energy Strategy 2030Platform for Dubai’s sustainability & clean energy

ambition

• Developing local know-how and adequate funding options

• Ensuring security of energy supply and promoting renewable energy sources

• Driving energy efficiency and carbon-reduction based projects

• Providing overall policy and regulatory framework

Governance & Policies

Energy Efficiency & Demand Reduction

Financial Mechanisms & Capacity Building

Energy Security & Sustainable Cost of Gas

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3

Strategic Direction &

Decision Making

DEWA Dubal Dusup ENOC DPEDubai

MunicipalityDPA DNEC

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↓ E

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↑ Regulatory Framework ↑

DSCE drives Dubai’s transformation into sustainable energy hub

Regulatory Supervisory Bureau 4May 20144

VisionDubai to become a role model tothe world in Energy Security and

Efficiency.

MissionTo support Dubai’s economic

growth through secure energysupply and efficient energy use

while continuing to meet itsenvironmental and sustainability

objectives.

- Demand management initiatives would reduce energy

demand by 29% in 2030.

- Coordination in generation between

DEWA and Dubal would reduce demand further by 1% in 2030.

DIES 2030 MISSION & VISION

Energy efficiency and electricity & water rationalization is a fundamental driver for achieving DIES 2030 objectives.

TARGETS

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2009: Dubai Supreme Council of Energy established

2010: DIES 2030 sets the objective of 30% energy demand reduction by 2030

2011: Quick Win measures mandated in DSCE & Government Entities.

June 2013: DSCE Board chaired by H.H. Sheikh Ahmed bin Saeed Al Maktoum approves Dubai’s DSM Strategy for the period 2013 - 2030.DSM Executive Committee was established to lead the implementation phase.

January 2014DSM Project Management Office was established to mobilized stakeholder entities and manage transition toward a DSM agency to be established in the Emirate of Dubai.

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Demand Side Management & Dubai Integrated Energy Strategy 2030

Dubai’s DSM Strategy is driven by concrete Objectives, Targets & Results

STRATEGIC OBJECTIVE• To contribute in achieving the DIES 2030 objectives by maximizing

savings from cost-effective electricity and water DSM initiatives and stimulating the development of a green services market in Dubai.

TARGETS• Power savings of 29% compared to the DIES medium scenario forecast (2010 baseline) in 2030. • Water savings of 42% compared to the DIES medium scenario forecast (2010 baseline) in 2030. • CO2 emissions abatement of 710.7 Mns tons of CO2 in 2030.

RESULTS• The DSM plan could reduce:• power consumption per capita by 18 to 24% in 2030 compared to the BAU forecast.• water consumption per capita by 22 to 31% in 2030 compared to the BAU forecast.

Dubai as a hub for clean energy and efficiency services 7May 2014

The DSM Strategy is founded on 8 programs, supported by 8 key implementation mechanisms.

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DSM programs cover technical and pricing demand management measures

and aim to achieve ambitious targets by 2030.

Program Objective by 2030

Building Regulations The Dubai Green Building Regulations 2010 is enforced in 2014 and updated in 2022 to increase its power and water savings by 100% (double current savings)

Building Retrofits 30,000 buildings are retrofitted by 2030

District Cooling DC penetration increases from 16% of refrigeration capacity in 2011 to 40% in 2030

Standards for Appliances And Equipment

Standards for A/C, lighting, large appliances, electronics, electric motors, water fixtures and water heaters are gradually introduced

Water Reuse and Efficient Irrigation

80% of green areas are efficiently irrigated and all public areas use treated sewage effluent with extra capacity for other uses by 2030

Outdoor Lighting A switch-off program covers 30% of residential streets by 2030 and 75% of existing street lights are energy efficient

Tariff Rates Power and water fixed tariffs are addressed to align Dubai with global benchmarks

Demand Response Time-of-use tariffs complemented by curtailable load and direct load control measures are implemented

May 2014

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Building regulations, tariff changes, appliance standards, districtcooling and building retrofits account for most power savings.

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Water savings are realized by building regulations, tariff changes,efficient irrigation, water reuse, appliance standards and retrofits.

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Demand Side Management will achieve emissions abatement of 10.7 Mns tons of CO2 in 2030

contributing to reducing Dubai’s CO2 footprint

May 2014

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BUILDINGS RETROFIT PROGRAM (30,000 buildings by 2030)*- 8.7% of electricity savings (1.7 TWh, 378 MW)- 12.2% of water savings (5.6 BIG)- 1 Million ton of CO2 emissions

BUILDING REGULATIONS PROGRAM*- 26.7% of electricity savings (5.1 TWh, 1.1 GW)- 32.3% of water savings (14.9 BIG) - 2.9 Million tons of CO2 emissions

Building Regulations and Retrofit Programs represent 35% of the overall power and 44% of the overall water savings

resulting from DSM Strategy Implementation.

DSM RELATED SAVINGS (2013-2030)*Power: 19 Terawatt-hoursWater: 47.2 Billion imperial gallons CO2: 7.8 Million tons of emissions

Savings at Building LevelPower: 15-23%Water: 12-30%

(depending on building type)

* Savings are cumulative. May 2014 DSCE Demand Side Management

DSCE Demand Side Management 14May 2014

The proposed institutional setting is conducive to an effectiveimplementation of the DSM strategy.

DEWA

Dubai Municipality

ESMA

Dubai Carbon Center of

Excellence

Etihad Energy Services

(Super-ESCO)

RTA

Regulatory & Supervisory

Bureau

DSCE-

DSM Agency

Dubai Entity

Federal Entity

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Inline with the DIES 2030 and best practices, a DSM Agency is planned to beset up to manage the overall implementation of the DSM plan.

DSM Agency

DIES 2030 Recommendation

“To support the implementation of the Dubai energystrategy and drive demand management, a dedicatedorganization should be established”

DSM Institutional Setting Best Practices

Trend away from broad-based entities and Government departments towards specialized and independent Agencies Private sector input is being recognized as important in managing DSM agencies DSM body can play the role of manager for

institutionalized energy efficiency funds

Benchmarks of Countries with a DSM Agency

Plan for Dubai and Main Benefits

Establish a dedicated DSM Body to manage the implementation of the DSM Plan

The DSM Agency shall be an independent statutory entity. Its creation could bring multiple benefits for Dubai:

– Higher focus on DSM– Better sector governance through a clearsegregation of roles– More agility and faster decision-making– Higher flexibility for public-private funding

May 2014

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Super-ESCO

A Super ESCO (“Etihad Energy Services”) was established to drive the implementation of retrofits in Dubai and grow the energy services market.

Grow the energy services market by mitigating financial and legal barriersReduce the costs of energy efficiency projects

Increase awareness about energy services

Ownership Government-owned corporation established by a public entity (DEWA)

Potential Funding Sources Public funds, DSM fund, financial institutions, and possibly NGOsRevenues from operations (leases, performance contracts)

Main Focus Building energy efficiency retrofits (power and water)District cooling retrofits

Role Conduct projects to reduce energy use by public sector facilitiesBundle projects to reduce transaction costs and subcontract other ESCOs on a competitive basisFacilitate access to project financing through backing commercial loans and acting as a leasing or financing company for other ESCOsSupport the capacity development of other ESCOs and the creation of an ESCO market in Dubai

Benefits for Dubai

May 2014

Timeline for DSM Strategy Implementation

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SELECTED KEY MILESTONES*PHASING OF DSM STRATEGY

June 2013 Dubai Super-ESCO “Etihad Energy Services” creation

March 2014 Dubai Green Building Code compulsory application

January 2014 DSM Project Management Office established.ESCO regulations issued & Buildings Retrofit program launched.

2014 Water Reuse & Efficient Irrigation initiatives launched

2014 onwards Progressive issuance of Standards for Appliances and Equipment

2015 Dubai Building Labeling Scheme introduction

2015 Launch of Street Lighting Retrofits

2016 DSM Agency launch

2016-2021 Progressive deployment of Tariff & Demand Response Programs

2017 Expansion of Street Lighting Switch-off Program

May 2014

* All dates are preliminary and subject to change.

For more information: http://www.dubaisce.gov.ae/

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