Energy Management & ESCO
Energy Management is a term that has a number of meanings but is mainly concerned with the one that relates to saving Energy in business, commercial/residential buildings, public/private organization and industries. Energy Management is the process of monitoring, controlling and conserving energy in a building or organisation. It is the key to save energy in your organization. Much of the importance of energy saving stems from the global need to save energy.
Globally we need to save energy in order to:
- Reduce the damage that we are doing to our planet, Earth.
- Reduce our dependence on the fossil fuels that are becoming increasingly limited in supply.
- Reduce energy cost.
- Reduce carbon emissions.
Energy Billing Service
People’s consumption of cooling and water is as varied as people themselves. Therefore, the principle of consumption-dependent billing is conclusive: everyone pays only for what he consumed. To meet this objective, ista Middle East FZE offers a broad range of services centering on consumption-dependent reading and billing of utility costs as a one stop service provider.
Our wide span of know-how and our many years of global and local experience in the field of energy service provision have made us a strong and reliable partner. We liaise with our customers to provide the ideal service packages to suit their individual needs.
Consultancy Service & Energy Management Solutions
ista Middle East FZE employs certified energy managers who share their knowledge with our customers. According to the individual property conditions, we advise you regarding hardware solutions and tips to save energy, including the following:
- Tariff calculation
- Establishing the best billing methodology
- Common area cost allocation
- Customised bill layout
- Setting up the billing infrastructure
- Bulk meter verification
- Dispute resolution
- Compliance, status and handing-over reports
- Conducting read-outs including necessary checks, analysis, evaluation and validation
- Highlight and clear irregularities and troubleshooting including physical investigation if needed
- Process data and prepare for issuing invoices
Dubai is a strongly growing economy and this is posing numerous problems to ensure that the growth is made in a sustainable manner. One important aspect is related to Energy. A growing economy generally means more demand for core services such as Electricity and Water supply. To tackle these topics at high level, the Dubai Supreme Council of Energy (DSCE) was formed in August 2009 under Law 19 of 2009, The new Governing body seeks to ensure that the Emirate's growing economy will have sustainable energy while preserving the environment.
The Dubai Supreme Council of Energy (DSCE) is the governing body tasked with policy development, planning and coordinating with concerned authorities & energy bodies to deliver new energy sources while employing a balanced approach to protecting the environment. One of the major initiatives that the DSCE has taken recently is to develop in 2010 the Dubai Integrated Energy Strategy 2030 also named DIES 2030. The DIES 2030 started to be deployed in 2011 to set the strategic direction of Dubai towards securing sustainable supply of energy and enhancing demand efficiency (water, power & transportation fuel). An important element of the DIES 2030 is Energy Efficiency and Demand Reduction. To address this particular domain, the DSCE has then developed a comprehensive Demand Side Management (DSM) Strategy associated with a detailed implementation plan. The DSM Strategy is addressing the ways that Dubai intends to reduce its demand for energy from today up to 2030 to improve the energy efficiency of the Emirate. The DSM Strategy has been developed around eight programs that all have clear objectives, defined goals and owners. For buildings, there are two separate programs under the DSM Strategy.
· Program 1 does target the new buildings to be constructed and is about defining the regulations and building code that new buildings have to follow. This program is owned and administered by the Dubai Municipality.
· Program 2 does target the existing buildings of Dubai and is about retrofitting the energy inefficient buildings so that electricity and water used by these buildings can be saved. This program is owned and administered by Etihad Energy Services Company or Etihad ESCO.
In February 2014, the Dubai ESCO framework was officially released and published. It is composed of four main elements that were developed during 2013 in cooperation with the market stakeholders:
· An ESCO Accreditation Scheme
· Standard Contracts for Energy Performance Contracting
· Measurement & Verification Guidelines
· A dispute resolution mechanism
Al Etihad Energy Services Company (abbreviated as Etihad ESCO) was established in 2013 as an initiative by the Dubai Electricity and Water Authority (DEWA) under the leadership of the Dubai Supreme Council of Energy (DSCE) to create a viable market in Dubai for building energy efficiency services.
Etihad ESCO is the official Dubai “Super ESCO’’. A Super ESCO is not competing with ESCOs but on the contrary is mandated to organize and establish a market for ESCOs.
Etihad ESCO owns the Dubai buildings retrofit program from the DSM Strategy and has clear goals and objectives. An estimation was made as part of the DSM Strategy study revealing that out of the 120 000+ buildings that are in existence in Dubai, 30 000 of them would be suitable for an energy retrofit. These 30 000 buildings are of all sort and size. They comprise residential and non-residential buildings as well as government and other privately owned facilities. By 2030 the DSM Strategy has further estimated that 1.7GWh of Electricity and 5.6Billion of Imperial Gallons (IG) of Water can be saved each year. These savings would result in a carbon dioxide abatement of 1 million tons per year. These figures have been set as the 2030 targets for Etihad ESCO to achieve and are summarized in Figure 3. These targets are ambitious but they can be reached. To not miss the target, annual objectives up to 2030 have also been defined for Etihad ESCO.
The basic principle of EPC is that the initial investment that needs to be made in a building to generate energy savings will itself be financed through the generated savings over the years. A loan will initially be contracted through a Financial Institution or a Green fund in order to finance the initial investment. An ESCO will then use that investment to implement Energy Conservation Measures (ECMs) into the building. The savings generated by these ECMs will then be used to repay the loan over a certain number of years. During the repayment period, the owner will have no share of the savings or only a small share so that the rest of the savings are used to repay the loan. At the end of the repayment period, the owner will then benefit from all the savings that are generated. The EPC model works because the ESCO that will perform the work is guaranteeing the energy savings. This guarantee is key as it secures the repayment streams for the lender. The ESCO should be carefully selected and be able to provide that guarantee during many years.
After completion of the work and commissioning of all the ECMs, the ESCO will regularly perform measurement and verifications (M&V) in order to check that the energy savings do materialize. This M&V operation has to be made during the whole contract duration and is the tool to evaluate the performance of the ESCO and the guarantee that was initially committed.
ista Middle East became a RSB accredited ESCO company on 20th April 2017.