Most ESCO activity is happening in Dubai, however this is beginning to change as more of the UAE expands interest in energy savings. As can be seen from the energy savings achieved by a typical project in Dubai there is an opportunity to drastically decrease energy consumption through retrofitting an existing building stock that was not constructed with energy efficiency as a priority. Projects where the largest energy savings occur is improvement of spacing cooling systems and sealing of the building envelope.
The majority of the ESCOs operating in the UAE are a subsidiary of a larger organisation with very few operating as a standalone company.
70% of projects include renewables – mainly solar PV and solar water heaters.Average duration of Contract
- Government contracts (public sector): 5-7 years
- Private sector: 2-4
- Private sector contracts are generally shorter due to smaller balance sheets, and seeking quick returns.
- Public projects in comparison have longer contracts and larger budgets than private projects.
The Etihad SuperESCO is the sole government run SuperESCO which operates on government funds with Islamic financing scheme. There is no interest rate but there is a profit rate (typically of 6%).