DEMAND SIDE MANAGEMENT STRATEGY 2030 Introduction and overview

Presentation to Refrigerants Symposium, October 2014

1

Electricity consumption

savings:

30% by 2030 vs. BAU

Water consumption savings:

30% (40% potential) 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 2030 DSM is part of the Dubai Integrated Energy Strategy 2030

DIES 2030

2

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

National

agenda 2021

vision

• Promoting

sustainable

growth

Green growth

strategy

• Unifying building

codes and other

sustainable

regulations

Smart Dubai

• Making Dubai the

smartest city 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 objectives The 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 objectives The DSM strategy comprises 8 programs, organized in 24 initiatives (1/2)

Programs Scope Initiatives Program Owner

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

• Green building regulation

• Updates to green building

regulation

• Labelling scheme

• DM

2. Building

Retrofits

• Execute a building retrofitting program that

targets the main components of a building in an

integrated manner:

– Cooling retrofits

– Lighting retrofits

– Water retrofits

– Industrial processes retrofits

– Building envelope and other retrofits

• First focus on buildings permitted prior 2003, with

the ambition to retrofit about 30,000 buildings by

2030

• Government retrofits

• Commercial/industrial

retrofits

• Residential retrofits

• Etihad Energy

Services

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

• District cooling for new

developments

• District cooling for existing

buildings (DC retrofits)

• Etihad Energy

Services (retrofits)

• RSB (new

developments)

5

Program scope and objectives The strategy comprises 8 programs, organized in 24 initiatives (2/2)

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

• Air conditioners

• Lamps

• Large appliances

• Water heaters

• Electronics

• Electric motors

• Water fixtures

• ESMA

5. Water reuse

and efficient

irrigation

• Reduce use of desalinated water for irrigation by

promoting efficient landscaping practices and

irrigation technologies (80% of green public areas

to be efficiently irrigated) and maximizing the use

of treated sewage effluent (100% of public areas

irrigated with TSE)

• Efficient irrigation

techniques (hardscaping,

efficient plantation, efficient

irrigation practices and

technologies)

• Promotion of reuse water

• DM

6. Outdoor

lighting

• Use more efficient lighting fixtures (retrofitting

75% of existing lights) and expand the ongoing

switch-off initiative (targeting 30% of

consumption)

• Switch-off

• Lighting retrofits

• RTA (streets)

• DM (parks)

7. Power and

water

tariff rates

• Tariff rates to promote energy conservation and

economic efficiency of consumption decisions

• Power tariff rates

• Water tariff rates

• DEWA

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

• Time of use tariff

• Curtailable load

• Direct load control

• DEWA

Programs Scope Initiatives Program Owner

6

Benefits from DSM strategy We expect 19 TWh and 47 BIG of savings from DSM programs in 2030

Targeted power savings from DSM programs

2030F, TWh

Targeted water savings from DSM programs

2030F, BIG

Aggressive

DSM 2030

-19.0

(100%)

Outdoor

Lighting

-0.3

(1%)

Building

Retrofits

-1.7

(9%)

District

Cooling

-2.7

(14%)

Standards

and Labels

for

Appliances

-4.1

(22%)

Chane of

Tarriffs

Rates

-4.9

(26%)

Building

regulations

-5.3

(28%)

Aggressive

DSM 2030

-47.2

(100%)

Building

Retrofits

-5.8

(12%)

Standards

and Labels

for

Appliances

-8.2

(18%)

Water reuse

and efficient

irrigation

-8.9

(19%)

Change of

Tarriffs Rates

-9.1

(19%)

Building

regulations

-15.2

(32%)

Other benefits: 10.7 Mn Tons of CO2 emission reduction, 4.6 GW peak load reduction in 2030

7

Team organization: structure There is already a large project team managing implementation: each program has a responsible organization, and the DSCE provides PMO support

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

DSM Programs/Execution Teams

DSCE DSM Office

Coordination team (dedicated resources)

PMO Consulting Support

DSCE Board

DSM Executive Committee

• DSCE

• DEWA

• DM

• RTA

• RSB

• ENOC

• DM • Etihad

• RSB

• Etihad

• RSB

• ESMA • DM • RTA

• DM

• DEWA • DEWA

Resp. Organizations (Stakeholders)

1 2 3 4 5 6 7 8

8

1. Building regulations

• Mandatory application of Dubai Green

Building Code since March 2014

• Free zones to be addressed

• 44 government building designs approved in pilot

period, 6 government buildings completed

• 159 permits issued (June 2014) since March 2014

2. Building Retrofits

• Etihad ESCO launched

• Contractual framework and ESCO

accreditation in place

• Regulatory framework under development

• Super-ESCO: – 2 ongoing projects on 7 buildings

– Pipeline for 120 buildings

• Private ESCOs: – 4 accredited ESCOs

– Retrofit progress to be assessed

3. District Cooling (DC) • Preparatory work for regulation underway

by RSB (stakeholder consultation process)

• In progress

4. Standards and labels

for appliances

• Standards for split/window AC and large

appliances, indoor lamps developed 2

• Preparation for ducted AC, water heaters,

electric motors ongoing

• In progress

5. Water reuse and

efficient irrigation

• Landscaping/water treat. policy under develop.t

• Status on areas outside DM direct supervision,

including Free Zones to be evaluated

• Areas under DM resp. :100% irrigated with TSE

(85% usage)

• Other areas (e.g., Free Zones): N/A

7. Power and water

tariff rates

• Preparatory work (analyses, studies) underway

in DEWA – Not relevant for the short term

• In progress

6. Outdoor lighting

• Switch-off program complete

• Efficient lighting (LED) implementation started in

DM, and pilot planned in RTA in 2014-15

• Free zones to be addressed (pilots ongoing)

• Switch-off : 100% implemented (residential, parks)

• LED1: 0% penetration (RTA), 12% penetration (DM)

• Free zones status: N/A

Programs Status (as of June 30, 2014) Remarks

8. Demand response • Smart grid implementation ongoing in DEWA

(alignment with DSM strategy in progress)

• Studies on TOU in progress

• In progress

Status of the DSM programs Collaboration from stakeholders has already brought some important progress

Source: Stakeholder entities

1) LED or other efficient lighting technologies

2) Split/Window AC and Washing Machine standards are also implemented

9

Roadmap and key milestones We have a well defined roadmap in front of us

• Approval of the

DSM strategy

• Establishment of

the Super-

ESCO (Etihad

Energy Services)

• Establishment of

of the DSM

Executive Com-

mittee

• 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

initiated

• Introduction of star

rating standards for

appliances ongoing

• Pilots/first imple-

mentations with LED

lighting

• First pilots on

new tariff

structures (Time

of Use)

• Intensity

mapping

capability

developed

• First large

building retrofit

projects

• Launch of the

DSM agency

• Introduction of

building labelling

scheme

• Progressive

deployment of

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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