DEMAND SIDE MANAGEMENT STRATEGYIntroduction and Progress To Date

May 29, 2014

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

1

Electricity consumption

savings:

30% by 2030 vs. BAU

Water consumption savings:

40%+ by 2030 vs. BAU

Demand Side

Management Targets

Solar share:

5%by 2030

Clean coal share

12% by 2030

Nuclear share

12% by 2030

Supply Side Targets

(Energy Mix)

The Dubai Integrated Energy Strategy 2030DSM is part of the Dubai Integrated Energy Strategy 2030

DIES 2030

2

Context for the DSM strategyThe strategy fits with a series of initiatives in Dubai and UAE

National

agenda 2021

vision

• Promoting

sustainable

environment and

information

Green Growth

Strategy

• Unifying building

codes and other

sustainable

regulations

Smart Dubai

• Making Dubai one of

the smartest cities in

the world

EXPO 2020

• Preparing for a new

wave of growth

DIES 2030 & DSM

strategy

• Making Dubai a role

model in energy

efficiency and security

How the DSM Strategy fits UAE and

Dubai strategy

• Promotes energy conservation by

affecting consumption behaviours

• Creates additional jobs and

capabilities through efficiency

initiatives (e.g. energy efficiency

services)

• Supports energy security by inducing

lower dependency on external

supply and lower exposure to price

volatility

• Supports safety and environment, by

introducing modern equipment and

best practices (e.g. xeriscaping,

TSE)

• Promotes the creation of a smart city

by introducing/extending the use of

new technologies (e.g., remote load

control, BMS, control sensors, smart

grid…)

3

Recap of DSM scope and objectivesThe DSM strategy is one of the main areas of focus for the Supreme Council of Energy and the involved government entities

DSM Goal

8 DSM

Programmes

8 DSM

Implementation

Mechanisms

Dubai to become a role model in energy efficiency by implementing cost-effective electricity and water

demand saving measures and developing of a green service market

3.

District

cooling

6.

Outdoor

lighting

8.

Demand

response

4.

Standards

and

labels for

appliances

&

equipment

7.

Power and

water tariff

rates

5.

Water

reuse and

efficient

irrigation

1.

Building

regulations

2.

Building

retrofits

Institutional setting

and capability building

Policies and regulations

Information systems

Public awareness

Governing by example

Technologies and studies

Financing mechanisms

Measurement and verification

Background

4

Program scope and objectivesThe DSM strategy comprises 8 programs, including an ambitious outdoor lighting program

Programs Scope

1. Building

regulations

• Implement the existing green building code and introduce updates to enforce more

stringent energy efficiency regulations, resulting in savings between 18% and 36% for

power and between 20% and 40% for water

2. Building

Retrofits

• Execute a building retrofitting program that targets the main components of a building in

an integrated manner (cooling, lighting, water, industrial process, building envelope,

other). Ambition to retrofit about 30,000 buildings by 2030

3. District Cooling

(DC)

• Increase penetration of district cooling from 16% of refrigeration capacity in 2011 to

40% in 2030 by regulating the district cooling industry and supporting connection of

existing buildings to district cooling

4. Standards and

labels

for appliances

• Introduce minimum energy efficiency standards and labels for major power and water

end-uses in Dubai, and manage periodic updates of the same

5. Water reuse and

efficient

irrigation

• Reduce use of desalinated water for irrigation by promoting efficient landscaping

practices and irrigation technologies (80% green areas to be efficiently irrigated) and

maximizing the use of treated sewage effluent (100% of public areas irrigated with TSE)

6. Outdoor

lighting

• Use more efficient lighting fixtures (retrofitting 75% of existing lights with LED) and

implement a switch off program (addressing 100% of residential streets)

7. Power and

water

tariff rates

• Adjust tariff rates to promote energy conservation and economic efficiency of

consumption decisions

8. Demand

response

• Gradually introduce time-of-use tariffs, curtailable load management and direct load

control measures to reduce future capacity needs and environmental impacts

Program Owner

• DM

• Etihad Energy

Services

• Etihad Energy

Services (retrofits)

• RSB (new dev’t)

• ESMA

• DM

• RTA (streets)

• DM (parks)

• DEWA

• DEWA

5

Outdoor lighting program scope and objectivesThe outdoor lighting program aims at saving over 50% of consumption through switch-off measures and LED technology

Street lights

Switch off program

• 100% residential streets by 2030

• Partial switch-off or dimming

LED

• 75% of street lights replaced with

LED by 2030

Lights for parks and walkways

Expected savings

Switch off program

• 100% public parks by 2030

• Reduced time of operations

(6 hours)

LED

• 100% main lights replaced

with LED (or other efficient

technologies) by 2030

2030 BAU 2030 DSM

50%+

Consumption (GWh)

6

Organization set-up for implementationEach program has a responsible government organization, and the DSCE provides project management support, through a PMO

Building

regulations

Building

Retrofits

District

Cooling (DC)

Standards

for

appliances

and equip.t

Water reuse

and efficient

irrigation

Outdoor

lighting

Power and

water tariff

rates

Demand

response

PMO

DSCE Board

• HH Sheikh Ahmed Bin

Saeed Al Maktoum,

Chairman

DSCE DSM PM

DSM Executive Committee

• DSCE

• DEWA

• DM

• RTA

• RSB

• ENOC

• DM • Etihad

• RSB

• Etihad

• RSB

• ESMA • DM • RTA

• DM

• DEWA • DEWAResp.

Organizations

(Stakeholders)

1 2 3 4 5 6 7 8

DSM Programs

Temporary project structure within DSCE,

to be replaced in the long run by a

permanent DSM Agency

7

What it is

Main

content Recipients

Objectives

DSM

POLICY

DOCUMENT

The DSM policy documentStakeholder entities are strongly committed to implementing the DSM strategy, as formalized in a joint DSM policy document

• Provide a common

understanding of scope

and objectives of the DSM

strategy

• Formalize commitments

from participating

government entities

• Provide a platform for

consistent internal and

external communication

related to DSM strategy

• A position paper,

whereby the main

government entities

driving the 8 DSM

programs commit to

pursuing targets and

initiatives

• Benefits, objectives and

targets of the DSM

programs

• Scope of the DSM

programs and initiatives

• Institutional set-up

• Implementation roadmap

• Executives and project

teams engaged in

implementing DSM

programs

• In simplified versions, a

broader audience

comprising all public

and private institutions

as well as the entire

population of Dubai

8

Roadmap and key milestonesWe have a well defined roadmap in front of us, built on some first important achievements

• Approval of the

DSM strategy

• Establishment of

the Super-

ESCO

• Nomination of

the DSM

Executive Com-

mittee and first

meeting held

• Implementation

of switch-off

programs

• Mandatory application

of the Dubai Green

Building Code to all

new buildings

• Appointment of

external PMO

• Policy document

approved

• Gap assessment and

mitigation plan

developed

• Development of

regulatory

frameworks (retrofits,

DC)

• First government

retrofits projects

• Introduction of star

rating standards for

appliances

• Pilots/first imple-

mentations with LED

lighting

• Launch of the

DSM agency

• First pilots on

new tariff

structures (Time

of Use)

• Intensity

mapping

capability

developed

• First large

building retrofit

projects

• Introduction of

building labelling

scheme

• Progressive

deployment of

tariff and

demand

response

programs

• Implementation

of water reuse

and efficient

irrigation

program

• Roll-out of street

lighting

replacements

• Building code

and tariffs

revisited

• Progressive

update of

standards for

appliances

• Periodic review

of the strategy

• Approval of

DIES 2030

• Introduction of

new tariffs for

electricity and

water

• Introduction of

the Dubai Green

Building Code,

mandatory

application for

government

buildings and

voluntary (grace

period) for the

private sector

• First switch-off

initiatives

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