Heading Towards Energy Efficiency in the UAE
The world’s demand for energy is expected to double by 2050. A 50% reduction in atmospheric carbon emissions is needed by 2050 to mitigate the potential effects of climate change. Buildings contribute to our energy dilemma both globally and locally in the United Arab Emirates (UAE). Buildings lead electric consumption in the UAE emirates of Abu Dhabi and Dubai accounting for over 80% of the total annual electricity consumption.
The market analysis shows that 1 billion AED (United Arab Emirates dirham) in savings could be achieved with a mere 10% energy consumption reduction in the buildings sector; this would generate a market potential of over 2 billion AED for all the stakeholders involved in the energy efficiency services and solutions industry by targeting quick return energy efficiency measures. Energy efficiency is a strategy with three essential elements that are needed to be successful: focus, measurements and accountability.
This purpose of this article is to discuss how monitoring based commissioning is a viable methodology for achieving quick results by helping to verify energy savings. With commissioning, risks from other energy efficiency initiatives can be reduced.
There are considerable challenges when using energy savings performance contracting (ESPC). These take the form of performance guarantees, financing schemes, legal frameworks, documenting savings and verifying performance. Financing options can be a bottleneck limiting the success of the energy services company (ESCO) business model. Other expenses include high transaction costs, insurance, guarantee and performance bonds which typically amount to 12% to 16% of a project’s revenue.
Lawrence Berkeley National Laboratory (2009, July 21). A golden opportunity for
reducing energy costs and greenhouse gas emissions. Prepared for the California
[ Etihad Energy Services (2017). About Etihad ESCO. http://www.etihadesco.ae/
about-etihad-esco, accessed March 14, 2017