Dubai Building Retrofit Program

Progress Update

Stephane le Gentil - RetrofitTech 2016 1

 Agenda

1 About Etihad ESCO, the Building Retrofit Program

2 Progress of the Program

3 Program evolutions for 2016 and 2017

2
1 About Etihad ESCO and the Program

3
 About Etihad ESCO

Etihad Energy Services Co. LLC (Etihad ESCO)

was established in 2013 as an initiative by
DEWA to create a viable market in Dubai for
building retrofits using Energy Services
Companies (ESCOs)

4
Building Retrofit Program

5
 Building Retrofit Program Goals

1.7 TWh These goals are broken down

into yearly progress goals
of Electricity to be saved annually by 2030

The yearly goals constitutes

5.6 Billion IG the KPIs measuring the
success of the program
of Water to be saved annually by 2030

1 Million Tons
of CO2 to be abated annually by 2030

30,000
Buildings estimated potential for Dubai

6
2 Progress of the Program

7
 General market evolution

Private Sector
• Market is picking up led by a better awareness
and the need to make cost savings in a context of
rising electricity & water prices (real or perceived)
• Several ESCOs reported to us good successes
with retrofits in the private sector
• Retrofit projects include schools, hospitals, malls,
banks and hotels…
• Residential sector appears to be challenging

8
 General market evolution

Public Sector (Dubai)

• Market is mostly driven by some visionary
entities that have the willingness to act. The
energy prices & costs have less of an effect
• Several government entities have been
proactively retrofitting their buildings which are
already highly energy efficient
• Retrofits are still not considered as priorities
leading to a lengthy decision process (teams
focused on core business or new construction)

9
 Progress summary for Etihad ESCO

• ~500 buildings were audited (physical & desktop audits)

• 7 RFPs were launched covering 2,250 buildings

• 1 project in savings guarantee phase
• 3 projects in execution
• 2 projects in award phase
• 1 project in RFP evaluation phase

• 2 RFPs in preparation covering ~240 buildings

• 3 projects in feasibility stage

• 25 government entities are in contacts with Etihad ESCO

10
 Progress summary for Etihad ESCO

On 2,250 buildings:

• Total electricity baseline addressed: 255 GWh/year

• Electricity savings identified: 69 GWh/year (AED31m)
• Average savings for Electricity: 27%

• Total water baseline addressed: 944 MIG/year

• Water savings identified: 200 MIG/year (AED10m)
• Average savings for Water: 21%

11
 Savings forecast vs. DSM targets

Electricity Water
80.0 300.0
ETIHAD SAVINGS (GWh)
70.0 ETIHAD SAVINGS (MIG)
250.0
DSM target (GWh)
60.0 DSM target (MIG)

200.0
50.0

40.0 150.0

30.0
100.0
20.0

50.0
10.0

- -
2015 2016 2017 2015 2016 2017

With current committed projects, the savings targets will be achieved in 2016 and will
contribute to 80% of the 2017 targets
New projects (not included here) will allow us to exceed the 2017 DSM targets
12
Progress summary for Etihad ESCO

PROJECTS

13
 World’s First ! JAFZA Retrofit

World’s first building retrofit project with

Shari’a compliant structure

Largest guaranteed energy savings project

in Middle East

First Free Zone in the Middle East

launching such a project

14
 Project Summary

• Energy retrofit of 157 staff accommodation buildings of JAFZA

• Fully financed by National Bonds Corporation using a Shari’a

compliant structure
• Replacing ACs, lights and water fixtures
o Replacement of 5,000 old AC units by high efficiency Split Units
o Replacement of 85,000 old light fixtures by high efficiency LEDs
o Replacement of 31,000 old water fixtures with highly efficient fixtures

• Contract duration: 7 year (1 year construction + 6 year guarantee)

• Investment value: AED 64 million

15
 Savings

Over 6 year, guaranteed savings will reach

158 GWh 1.2 billion IG AED 132m

28% savings 36% savings 31% savings

Avoiding 73 thousand tons of CO2

16
 Project in guarantee phase

DEWA Lighting Retrofit Project

Replacement of 8,500 lights by LEDs in 2 Power Stations

• Street Lights
• Outdoor Lights ESCO selected:
• Industrial Lights
• Indoor Lights

Investment of AED 21 million paid back in 3.5 years

17
Project in guarantee phase

18
Project in guarantee phase

19
 Project in guarantee phase

DEWA Lighting Retrofit Project

ESCO Contractual Measurement after

Guarantee Execution
13.7 GWh savings 14.9 GWh savings
68% reduction 75% reduction

7% more savings than the contractual guarantee

20
3 Program evolutions for 2016

21
 Evolutions for 2016 and 2017

• ESCO accreditation becoming mandatory for all

Etihad ESCO projects - from today with a 6 month
compliance period
• Acceleration of the tendering process
• Piloting alternative tendering options
• Piloting pure Street Lighting retrofits
• Projects on large privately owned real-estate
• Focus on the Hospitality sector
• First projects with Federal Government
• Plans to address the Residential sector

22
THANK YOU