Heading Towards Energy Efficiency in the UAE

Abstract

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 Emir-
ates (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 Emir-
ates 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 limit-
ing 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