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Dubais Demand Side Management Strategy 2013-2030 ESMA Conference 20 May 2014 كفاءة الطاقة الحوكمة إدارة المصادر CONFIDENTIAL AND PROPRIETARY Any use of.

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Presentation on theme: "Dubais Demand Side Management Strategy 2013-2030 ESMA Conference 20 May 2014 كفاءة الطاقة الحوكمة إدارة المصادر CONFIDENTIAL AND PROPRIETARY Any use of."— Presentation transcript:

1 Dubais 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 "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 Dubais Leadership Vision May 2014DSCE Demand Side Management 2

3 Dubai Integrated Energy Strategy 2030 Platform for Dubais 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 3

4 Policy Development & Governance Execution Regulatory Framework DSCE drives Dubais transformation into sustainable energy hub Regulatory Supervisory Bureau 4 May

5 Vision Dubai to become a role model to the world in Energy Security and Efficiency. Mission To support Dubais 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 Coordination in generation between DEWA and Dubal would reduce demand further by 1% in DIES 2030 MISSION & VISION Energy efficiency and electricity & water rationalization is a fundamental driver for achieving DIES 2030 objectives. TARGETS 5 May 2014DSCE Demand Side Management

6 2009: Dubai Supreme Council of Energy established 2010: DIES 2030 sets the objective of 30% energy demand reduction by : Quick Win measures mandated in DSCE & Government Entities. June 2013: DSCE Board chaired by H.H. Sheikh Ahmed bin Saeed Al Maktoum approves Dubais 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 2014DSCE Demand Side Management 6 Demand Side Management & Dubai Integrated Energy Strategy 2030

7 Dubais 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 Water savings of 42% compared to the DIES medium scenario forecast (2010 baseline) in CO2 emissions abatement of Mns tons of CO2 in 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 7 May 2014

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

9 9 DSM programs cover technical and pricing demand management measures and aim to achieve ambitious targets by ProgramObjective 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

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

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

12 DSCE Demand Side Management 12 Demand Side Management will achieve emissions abatement of 10.7 Mns tons of CO2 in 2030 contributing to reducing Dubais CO2 footprint May 2014

13 13 BUILDINGS RETROFIT PROGRAM (30,000 buildings by 2030)* - 8.7% of electricity savings (1.7 TWh, 378 MW) % of water savings (5.6 BIG) - 1 Million ton of CO2 emissions BUILDING REGULATIONS PROGRAM* % of electricity savings (5.1 TWh, 1.1 GW) % of water savings (14.9 BIG) 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 ( )* Power:19 Terawatt-hours Water: 47.2 Billion imperial gallons CO2:7.8 Million tons of emissions DSM RELATED SAVINGS ( )* Power:19 Terawatt-hours Water: 47.2 Billion imperial gallons CO2:7.8 Million tons of emissions Savings at Building Level Power: 15-23% Water: 12-30% (depending on building type) Savings at Building Level Power: 15-23% Water: 12-30% (depending on building type) * Savings are cumulative. May 2014 DSCE Demand Side Management

14 14 May 2014 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

15 DSCE Demand Side Management 15 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. DSM Agency 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

16 DSCE Demand Side Management 16 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 barriers Reduce the costs of energy efficiency projects Increase awareness about energy services OwnershipGovernment-owned corporation established by a public entity (DEWA) Potential Funding SourcesPublic funds, DSM fund, financial institutions, and possibly NGOs Revenues from operations (leases, performance contracts) Main FocusBuilding energy efficiency retrofits (power and water) District cooling retrofits RoleConduct 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 May 2014

17 Timeline for DSM Strategy Implementation 17 DSCE Demand Side Management SELECTED KEY MILESTONES* PHASING OF DSM STRATEGY June 2013Dubai Super-ESCO Etihad Energy Services creation March 2014Dubai Green Building Code compulsory application January 2014 DSM Project Management Office established. ESCO regulations issued & Buildings Retrofit program launched. 2014Water Reuse & Efficient Irrigation initiatives launched 2014 onwards Progressive issuance of Standards for Appliances and Equipment 2015Dubai Building Labeling Scheme introduction 2015Launch of Street Lighting Retrofits 2016DSM Agency launch Progressive deployment of Tariff & Demand Response Programs 2017Expansion of Street Lighting Switch-off Program May 2014 * All dates are preliminary and subject to change.

18 For more information: شكراً


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