A Q&A guide to electricity regulation in the United Arab Emirates. . The Abu Dhabi Water and Electricity Authority (ADWEA) is the single buyer. (Adwea) into the emirate’s newly established department of energy as The Regulation & Supervision Bureau (RSB), which oversees water. 3. Abu Dhabi Water and Electricity Authority (ADWEA). 4. Regulation and Supervision Bureau (RSB). 5. Town Planning Department (TPD). 6.

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The UAE started to take serious steps towards the promotion of diversity in the energy sector, through the adoption of the UAE nuclear programme for the production of electricity at the Barakah nuclear power plant in the western region of Abu Dhabi. The Office is mainly responsible for regulating, licensing and rebulation the electricity generating service providers, facilities and properties.

Oil companies must continue to be disciplined, allocating scarce capital only to their best prospects, and shelving less promising projects for future years. The Life Sciences Law Review. In revulation, UAE nationals benefit from even greater subsidies than those given to expatriate workers. However, there are signs that these challenges could be substantially mitigated through a rrgulation of cost-effective technology and policy, especially through the recent creation of several energy authorities and strategy processes that can take a holistic view of investment and policy choices.

Electricity distribution Authorisation and operating requirements. UAE nationals are subject to tariff rates equal to roughly one-third of the rate applied to other residential consumers.

This authority is tasked with the regulation, management, operation and maintenance of power stations, water desalination plants, electricity distribution and transport networks in the emirate. Furthermore, the state-owned authorities in the emirates of Dubai and Abu Dhabi have sufficient capacity to meet present and anticipated future needs, and this has therefore not necessitated private investment in the sector in the adwew zones.

Power plants are required to stock diesel oil and crude oil as backup fuel. In addition to the construction and expansion of power stations, the UAE rgeulation involved in other projects such as replacing street lights with LED lights, renovating cables and meters, and retrofitting existing buildings.

All activities connected to the generation, transmission and distribution of electricity in the UAE are regulated and require specific licences from the relevant regulatory authorities. The RSB sets their revenue target on the basis of which the control prices are determined.

United Arab Emirates

DEWA is an regulatiom supplier owning and operating in all segments of the electricity market in Dubai. The DSCE is addea authorised to approve fees and tariffs on the services offered to the public by ‘energy service providers’ meaning the power generation, transmission and regulaton companies. Although the Ministry of Energy is the federal entity overseeing the electricity sector, a legislative gap remains.


At the federal level, while FEWA has since recently been inviting bids from private entities, private sector participation has yet to gather speed in the northern emirates. The UAE aims to produce a significant part approximately 9 per cent of its electricity from nuclear technology. To date, this is the first landfill in the region to run its entire operation with electricity generated from landfill gas.

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The UAE has seen double-digit increase in the demand for electricity in recent years and is expected to continue seeing rapid growth in the coming years. These developments, however, currently remain restricted to the government sector despite the various initiatives that were launched to permit private zdwea participation. Noor 1, a MW PV array is adwwa under construction. Known as Shams 1, it is one the largest parabolic trough power stations in the world.

The project has, however, been deferred indefinitely. SEWA has commissioned and inaugurated the Al Khan power transmission and distribution station worth This change in attitudes is driven principally by the increased demand in electricity on account adqea population and economic growth, as well as the current low oil prices, which have reduced the availability of government funds compared with previous years.

SEWA is authorised to determine electricity prices and connection fees, which are subject to approval by the Ruler of Sharjah. The exploitation of lower-cost regupation energy faces the following five key challenges in the UAE:. The present fuel surcharge rate applicable in the emirate of Dubai is 6. The project companies are usually structured as joint stock companies incorporated in Abu Dhabi.

Furthermore, the state-owned authorities in the emirates of Dubai and Abu Dhabi have sufficient capacity to meet present and anticipated future needs, and degulation has therefore not necessitated private investment in the sector in the free zones. The calculation of BST requires the estimation of the costs for procuring and dispatching electricity generation to meet the forecasted demand.

A plan to integrate the seven emirates’ natural gas distribution networks should help alleviate some of the peak-demand shortfalls experienced in the adwwa. The Asset Management Review.

There is growing recognition that the energy demand cannot be met only through investment on the supply side, and that demand-side management programmes and energy conservation measures are equally important in matching demand with supply.


As with the other emirates, SEWA is responsible for the generation, transmission and distribution of electricity in Sharjah. Electricity transmission and distribution networks within the northern emirates are also primarily owned and operated by FEWA. Under the Abu Dhabi Electricity Law, ADWEC is required to contract with power producers for the purchase of all production capacity from licensed operators in the emirate.

Some in the industry have already started to worry that by reducing capital expenditures the seeds of a future adweaa shock are being sown. The state authorities in each emirate are reglation responsible for the supply of electricity to awdea users. To date, several independent power projects IPPs have been launched in Dubai. What are the authorisation and the main ongoing requirements to operate electricity distribution systems? Whereas the private adwex has been allowed to participate in the generation of electricity, transmission and distribution is performed exclusively by state-owned authorities.

Electricity regulation in the United Arab Emirates: overview | Practical Law

Construction of the plant is proposed to begin mid and be completed in time for Expo Both projects have been deferred indefinitely. Renewable energy sources such as solar and nuclear power will increasingly contribute to the ENG.

SEWA intends to reduce power and water use by at least 30 per cent over the next five years. The RSB has been responsible for implementing the legal framework and its authority includes the power to:. Work was also carried out to improve the transparency and accuracy of reporting and ensure that the requirements under the Incident Reporting Regulations are well understood. Together, Dubai and Abu Dhabi account for about two-thirds of the country’s population and form the core of its economy.

ADWEA is authorised to allow ‘by-pass sales’ from power producers directly to eligible consumers provided that:. In Dubai, existing buildings are currently being retrofitted by Etihad ESCO while Sharjah is replacing and renovating its cables and meters. The DEWA and the Sharjah Electricity and Water Authority are responsible for the generation, transportation and distribution of water and electricity within Dubai and Sharjah, respectively.

The world economy continues to expand, albeit at a deliberate pace.