Stephane le Gentil – CEO Etihad ESCO – 26 March 2015

a DEWA venture

Dubai’s Energy Efficiency Policy for Buildings

Dubai Integrated Energy

Strategy 2030 (DIES2030)

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Governance &

Policies

Energy Efficiency &

Demand Reduction

Energy Security

Financial Mechanism

& Capacity Building

• Policy Framework

• Streamlined Energy Sector

• Energy Efficiency

• Abatement Measures

• Solar Power

• Gas Supply Strategy

• Clean Coal

• Energy Fund

• National Capacity

• Technology & Market Dynamics

DSM

Plan

2030

Why Demand Side Management (DSM)?

Dubai GDP growth: ~5% (2013, 2014, 2015)

Growing Increased

economy energy demand

• In 2013 peak load grew 3.3% from 6,637MW to 6,857MW

• System requirement grew 3.2% from 36,299GWh to 37,478GWh

• Peak demand for water grew 3.9% from 285MIG to 296MIG

Two possible options:

Invest more to meet demand

Invest smartly to manage demand

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DSM Plan 2030

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Directive #1 of 2015

1. Impacts Dubai’s government entities

2. Sets a goal to achieve 20% reduction

of energy consumption by 2021

3. Mandatory audits and retrofit plans

on all buildings over 1000m2

4. Etihad ESCO mandated to help

execution of the Directive and to

execute the audits & retrofits

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Directive number 1 of 2015, issued by HH Sheikh Ahmed

bin Saeed Al Maktoum, Chairman of the Dubai

Supreme Council of Energy

Etihad ESCO - Purpose

Etihad Energy Services Co. (Etihad ESCO) was

established in 2013 as an initiative by DEWA

under the leadership of the Dubai Supreme

Council of Energy to create a viable market in

Dubai for building retrofits using Energy

Services Companies (ESCOs)

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Etihad ESCO - Mandate

Create a market for Energy Services Companies (ESCOs)

using the Energy Performance Contracting model

Initial focus on Government buildings (lead by example)

Portfolio approach vs. single building approach

Pursue projects on a commercial basis (attractive ROI)

Secure financing for projects when needed

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Etihad ESCO - Role in projects

1. Prequalify buildings from Owners’ portfolio

Data analysis & benchmarking

Site survey

Establish project feasibility

2. Organize the tendering on behalf of Owners

Manage the tender process as per applicable regulations/rules

Negotiate with ESCOs

Select the best offer and Award the project

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Etihad ESCO - Role in projects

3. Secure financing if outside of Owner’s budget Negotiations with Financial Institutions

Credit risk

4. Follow-up project execution with the ESCO Ease relation with Owners

Verify commissioning

5. Follow-up during the guarantee phase Verify savings provided by ESCOs

Liaise with Owners in case of issues

Manage Contracts

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Etihad ESCO - Projects

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DEWA Lighting

-Replacement of 8,500 lights in 2 Power Stations

-Savings 14GWh each year, a 68% decrease from

current consumption - 6,286 Tons of CO2 avoided

-AED 21M investment paid back in 3.5 years

DEWA Buildings

-Refurbishment of 7 DEWA buildings – 55 energy

conservation measures being installed

-Savings 5GWh each year, a 31% decrease from

current consumption – 2,245 Tons of CO2 avoided

-AED 16M investment paid back in 6 years

Etihad ESCO - Projects

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Jebel Ali Free Zone Authority

264 buildings to be improved

Tenders in progress

Dubai International Financial Centre

14 buildings to be improved including 27,000

lights

Lighting tender in progress

a DEWA venture

THANK YOU

Stephane le Gentil CEO

Email: stephane.legentil@etihadesco.com

T: +971 (0) 4 322 0383

F: +971 (0) 4 307 2164

Follow our news: twitter.com/EtihadESCO

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