1. Demand Side Management Strategy
Dubai’s
Demand Side Management Strategy
ESMA Conference
20 May 2014
كفاءة الطاقة
الحوكمة
إدارة المصادر
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of DSCE is strictly prohibited

2. Dubai’s Leadership Vision
"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
May 2014
DSCE Demand Side Management

3. Dubai Integrated Energy Strategy 2030
Platform 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 3

4. ↓Policy Development & Governance ↓
DSCE drives Dubai’s transformation
into sustainable energy hub
Strategic Direction & Decision Making
DEWA
Dubal
Dusup
ENOC
DPE
Dubai
Municipality
DPA
DNEC
↓Policy Development & Governance ↓
↓ Execution ↓
↑ Regulatory Framework ↑
May 2014
Regulatory Supervisory Bureau 4

5. Energy efficiency and electricity & water rationalization
is a fundamental driver for achieving DIES 2030 objectives.
DIES 2030 MISSION & VISION
TARGETS
Vision
Dubai to become a role model to
the world in Energy Security and
Efficiency.
Mission
To support Dubai’s economic
growth through secure energy
supply and efficient energy use
while continuing to meet its
environmental 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.
May 2014
DSCE Demand Side Management

6. Demand Side Management & Dubai Integrated Energy Strategy 2030
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
DSM Executive Committee was established to lead the implementation phase.
January 2014
DSM Project Management Office was established to mobilized stakeholder entities and manage transition toward a DSM agency to be established in the Emirate of Dubai.
May 2014
DSCE Demand Side Management

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

8. The DSM Strategy is founded on 8 programs,
supported by 8 key implementation mechanisms.
May 2014
DSCE Demand Side Management

9. 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 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
DSCE Demand Side Management

10. Building regulations, tariff changes, appliance standards, district
cooling and building retrofits account for most power savings.
May 2014
DSCE Demand Side Management

11. Water savings are realized by building regulations, tariff changes,
efficient irrigation, water reuse, appliance standards and retrofits.
May 2014
DSCE Demand Side Management

12. 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
DSCE Demand Side Management

13. DSM RELATED SAVINGS (2013-2030)* Savings at Building Level
Building Regulations and Retrofit Programs
represent 35% of the overall power and 44% of the overall water savings
resulting from DSM Strategy Implementation.
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
DSM RELATED SAVINGS ( )*
Power: 19 Terawatt-hours
Water: Billion imperial gallons
CO2: 7.8 Million tons of emissions
Savings at Building Level
Power: 15-23%
Water: 12-30%
(depending on building type)
May 2014
DSCE Demand Side Management
* Savings are cumulative.

14. The proposed institutional setting is conducive to an effective
implementation 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
May 2014
DSCE Demand Side Management

15. DSM Agency
Inline with the DIES 2030 and best practices, a DSM Agency is planned to be
set up to manage the overall implementation of the DSM plan.
DIES 2030 Recommendation
“To support the implementation of the Dubai energy
strategy and drive demand management, a dedicated
organization 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 clear
segregation of roles
– More agility and faster decision-making
– Higher flexibility for public-private funding
May 2014
DSCE Demand Side Management

16. Super-ESCO Benefits for Dubai
A Super ESCO (“Etihad Energy Services”) was established to drive the implementation of retrofits in Dubai and grow the energy services market.
Ownership
Government-owned corporation established by a public entity (DEWA)
Potential Funding Sources
Public funds, DSM fund, financial institutions, and possibly NGOs
Revenues 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 facilities
Bundle projects to reduce transaction costs and subcontract other ESCOs on a competitive basis
Facilitate access to project financing through backing commercial loans and acting as a leasing or financing company for other ESCOs
Support the capacity development of other ESCOs and the creation of an ESCO market in Dubai
Benefits for Dubai
Grow the energy services market by mitigating financial and legal barriers
Reduce the costs of energy efficiency projects
Increase awareness about energy services
May 2014
DSCE Demand Side Management

17. PHASING OF DSM STRATEGY SELECTED KEY MILESTONES*
Timeline for DSM Strategy Implementation
PHASING OF DSM STRATEGY
SELECTED KEY MILESTONES*
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
Launch of Street Lighting Retrofits
2016
DSM Agency launch
Progressive deployment of Tariff & Demand Response Programs
2017
Expansion of Street Lighting Switch-off Program
* All dates are preliminary and subject to change.
May 2014
DSCE Demand Side Management

18. شكراً
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