DEMAND SIDE MANAGEMENT STRATEGY 2030 Introduction and overview. Presentation to Refrigerants Symposium, October 2014
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1 DEMAND SIDE MANAGEMENT STRATEGY 2030 Introduction and overview Presentation to Refrigerants Symposium, October 2014
2 The Dubai Integrated Energy Strategy 2030 DSM is part of the Dubai Integrated Energy Strategy 2030 Demand Side Management Targets Electricity consumption savings: 30% by 2030 vs. BAU Water consumption savings: 30% (40% potential) by 2030 vs. BAU DIES 2030 Supply Side Targets (Energy Mix) Solar share: 5% by 2030 Clean coal share 12% by 2030 Nuclear share 12% by
3 Context for the DSM strategy The DSM strategy fits with a series of initiatives in Dubai and UAE How the DSM Strategy fits UAE and Dubai strategy National agenda 2021 vision Promoting sustainable growth Green growth strategy Unifying building codes and other sustainable EXPO 2020 Preparing for a new wave of growth DIES 2030 & DSM strategy Making Dubai a role model in energy efficiency and security Smart Dubai Making Dubai the smartest city in the world 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 ) 2
4 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 Background DSM Goal 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 8 DSM Programmes retrofits 3. District cooling 4. Standards and labels for appliances & equipment 5. Water reuse and efficient irrigation 6. Outdoor lighting 7. Power and water tariff rates 8. Demand response 8 DSM Implementation Mechanisms Institutional setting and capability building Policies and Information systems Governing by example Technologies and studies Financing mechanisms Public awareness Measurement and verification 3
5 Program scope and objectives The DSM strategy comprises 8 programs, organized in 24 initiatives (1/2) Programs Program Owner Scope Initiatives 1. DM Implement the existing green building code and introduce updates to enforce more stringent energy efficiency, 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 2. Retrofits Etihad Energy Services 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 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 3. District Cooling (DC) Etihad Energy Services (retrofits) RSB (new developments) 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) 4
6 Program scope and objectives The strategy comprises 8 programs, organized in 24 initiatives (2/2) Programs Program Owner Scope Initiatives 4. Standards and labels for appliances 5. Water reuse and efficient irrigation 6. Outdoor lighting 7. Power and water tariff rates 8. Demand response ESMA DM RTA (streets) DM (parks) DEWA DEWA Introduce minimum energy efficiency standards and labels for major power and water end-uses in Dubai, and manage periodic updates of the same 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) Use more efficient lighting fixtures (retrofitting 75% of existing lights) and expand the ongoing switch-off initiative (targeting 30% of consumption) Tariff rates to promote energy conservation and economic efficiency of consumption decisions Gradually introduce time-of-use tariffs, curtailable load management and direct load control measures to reduce future capacity needs and environmental impacts Air conditioners Lamps Large appliances Water heaters Electronics Electric motors Water fixtures Efficient irrigation techniques (hardscaping, efficient plantation, efficient irrigation practices and technologies) Promotion of reuse water Switch-off Lighting retrofits Power tariff rates Water tariff rates Time of use tariff Curtailable load Direct load control 5
7 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 -5.3 (28%) (32%) -4.9 (26%) -9.1 (19%) -4.1 (22%) -8.9 (19%) -2.7 (14%) -1.7 (9%) -0.3 (1%) (100%) -8.2 (18%) -5.8 (12%) (100%) Chane of Tarriffs Rates Standards and Labels for Appliances District Cooling Retrofits Outdoor Lighting Aggressive DSM 2030 Change of Tarriffs Rates Water reuse and efficient irrigation Standards and Labels for Appliances Retrofits Aggressive DSM 2030 Other benefits: 10.7 Mn Tons of CO 2 emission reduction, 4.6 GW peak load reduction in
8 Team organization: structure There is already a large project team managing implementation: each program has a responsible organization, and the DSCE provides PMO support DSCE Board DSM Executive Committee DSCE DEWA DM RTA RSB ENOC Coordination team (dedicated resources) DSCE DSM Office PMO Consulting Support DSM Programs/Execution Teams Retrofits District Cooling (DC) Resp. Organizations (Stakeholders) Standards for appliances and equip.t Water reuse and efficient irrigation Outdoor lighting Power and water tariff rates Demand response DM Etihad RSB Etihad RSB ESMA DM RTA DM DEWA DEWA 7
9 Status of the DSM programs Collaboration from stakeholders has already brought some important progress Programs Status (as of June 30, 2014) Remarks Retrofits 3. District Cooling (DC) 4. Standards and labels for appliances 5. Water reuse and efficient irrigation 6. Outdoor lighting 7. Power and water tariff rates 8. Demand response Mandatory application of Dubai Green Code since March 2014 Free zones to be addressed Etihad ESCO launched Contractual framework and ESCO accreditation in place Regulatory framework under development Preparatory work for regulation underway by RSB (stakeholder consultation process) Standards for split/window AC and large appliances, indoor lamps developed 2 Preparation for ducted AC, water heaters, electric motors ongoing Source: Stakeholder entities 1) LED or other efficient lighting technologies 2) Split/Window AC and Washing Machine standards are also implemented Landscaping/water treat. policy under develop.t Status on areas outside DM direct supervision, including Free Zones to be evaluated Switch-off program complete Efficient lighting (LED) implementation started in DM, and pilot planned in RTA in Free zones to be addressed (pilots ongoing) Preparatory work (analyses, studies) underway in DEWA Not relevant for the short term Smart grid implementation ongoing in DEWA (alignment with DSM strategy in progress) Studies on TOU in progress 44 government building designs approved in pilot period, 6 government buildings completed 159 permits issued (June 2014) since March 2014 Super-ESCO: 2 ongoing projects on 7 buildings Pipeline for 120 buildings Private ESCOs: 4 accredited ESCOs Retrofit progress to be assessed In progress In progress Areas under DM resp. :100% irrigated with TSE (85% usage) Other areas (e.g., Free Zones): N/A Switch-off : 100% implemented (residential, parks) LED 1 : 0% penetration (RTA), 12% penetration (DM) Free zones status: N/A In progress In progress 8
10 Roadmap and key milestones We have a well defined roadmap in front of us Today onward Approval of DIES 2030 Introduction of new tariffs for electricity and water Introduction of the Dubai Green Code, mandatory application for government buildings and voluntary (grace period) for the private sector First switch-off initiatives Approval of the DSM strategy Establishment of the Super- ESCO (Etihad Energy Services) Establishment of of the DSM Executive Committee Implementation of switch-off programs Mandatory application of the Dubai Green 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 implementations 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 code and tariffs revisited Progressive update of standards for appliances Periodic review of the strategy 9
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