ESCO PR
21/02/2017

Under Tarsheed Program of Department Of Energy (DOE)
Abu Dhabi DED starts ESCO Registration
Al Mansoori; aimed at achieving water and electricity conservation in line with Abu Dhabi Plan
Al Seiari; part of our strategy to decrease 20% of our consumption by 2030

Abu Dhabi; 21 February 2017
Department Of Energy (DOE), in association with the Department of Economic Development (DED) and Ministry of Economy, announced the initiation of registration of Energy Services Companies (ESCO) for operation in Abu Dhabi.   This registration is being conducted to support the implementation of Energy Performance Contracting to enable the reduction of energy consumption by government, commercial and institutional buildings.  As the Estidama program sets efficiency standards for new buildings, this program will enable existing non-residential buildings to reduce energy consumed for cooling, lighting and other essential functions through the incorporation of efficient technologies.

H.E. Khalifa Bin Salem Al Mansouri, Acting Undersecretary of the Department of Economic Development - Abu Dhabi, said that the new activity has been initiated in line with the directives of our leadership aimed at decreasing water and electricity consumption, promoting sustainable use of natural resources and reducing environment footprint. It will also help public and private entities to reduce their capital and operational expenditure (CAPEX and OPEX) thus bolstering the competitiveness of their products in the local and international markets, he added. 

H.E. Dr. Saif Al Seiari, Acting - Director General, ADWEA, said the new category has been launched under Kafa'ati initiative of the Demand Side Management (DSM) (Tarsheed) program we unveiled during the Abu Dhabi Sustainability Week (ADSW) 2017, in association with our subsidiary TAQA Distribution. It is intended for helping our customers, through specialized companies, to reduce their consumption of water and electricity; a matter that falls under the emirate's strategic objective of reducing consumption by 20% by the year 2030, he added. 

Tarsheed's Commercial/Governmental/Institutional Cooling and Lighting Replacement Initiative, is an integrated program soon to be launched to help building owners obtain competitive bids 

from ESCOs and make these energy improvements without upfront capital investment.  For more information, please visit www.tarsheedAD.com.

Kafa'ati initiative can save over 445,000 MWh/year in consumption of electricity and the equivalent of a medium-sized power plant in demand.  The initiative will also form a work plan for replacing all electric devices, such as ACs, ventilation systems, lighting systems, elevators, and water pumps, etc. with energy efficient ones that comply with the standards and specifications put by the competent authorities like Emirates Authority For Standardization and Metrology (ESMA), Estidama program of Abu Dhabi UPC, Abu Dhabi Quality and Conformity Council (QCC) and the Department of Municipal Affairs and Transport.
 
Performance Contracting is a concept, which has been successfully used worldwide for over 25 years and has recently been adopted in the region to facilitate the rapid achievement of energy reduction in existing buildings.   Unlike a conventional construction contract where the contractor builds in accordance with designs provided by a third party engineer after which the building owner pays for the construction and engineering costs, under performance contracting the ESCO coordinates both the efficiency designs and the construction, as well as provides the capital costs required for the improvements. The ESCO recovers this investment over the performance contract life (typically 4 to 5 years) through the difference between the cost of prior electricity consumed and the cost of the reduced energy consumption achieved through the efficient technologies.  Under an energy performance contract, the building owner is not required to make any upfront capital expenditure, rather they continue to pay the annual electric, operation and maintenance costs as in the past.  The ESCO is incentivized to achieve the targeted consumption reduction in order to recover its investment over the contract life.  At the end of the performance contract the building owner assumes the reduced energy and maintenance costs associated with the new energy efficient equipment.

DOE organized on Sunday, March 12, a workshop with interested companies to share with them the details of the requirements sought and the process to become registered to participate in the tendering process for building retrofits using the performance contracting approach, registration process and administrative procedures to create a healthy competitive market in this field to provide the best services for Abu Dhabi building owners and the Emirate's resources.

To get the ESCO license applicant should obtain the approval of the ESCO Committee, formed by ADWEA and its two distribution subsidiaries, in writing.

For further enquiries, please call;

Department Of Energy (DOE)
   www.doe.gov.ae

TAQA Distribution;
   Call toll-free on: 8002332
   www.taqadistribution.com
   Visit any of our Customer Service Centers

Department of Economic Development (DED)
   Call toll-free on: 800555
   https://ded.abudhabi.ae/ar/business-center/
   Visit any of our Customer Service Centers 

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