Renewable energy – our remit and work to date
The Emirate of Abu Dhabi aims to considerably increase its low carbon electricity capacity with up to 7 per cent of installed capacity in 2020 targeted to be from renewable energy sources. The Bureau is actively working to support the sector to achieve these targets by facilitating the licensing process, monitoring the performance of the existing renewable projects, supporting the testing and evaluation of performance and operating costs of new energy technologies, and introducing amendments to current regulatory policies to accommodate the projected low carbon generation mix efficiently and effectively.
One of the key roles of the Bureau is to ensure all power and water facilities within the sector can demonstrate an economic procurement process and appropriate tariff for a given technology. In respect of renewables projects, the Bureau is actively involved in the due diligence review of project costs – both CAPEX and OPEX over the lifetime of a project to determine an agreed levelised cost of electricity (LOCE) and thereon in an appropriate tariff for a particular project / technology in line with our legal obligations.
One of the key challenges to the renewable programme roll-out globally at present, and in particular in Abu Dhabi, is the relatively high cost of renewable generation when compared to conventional power sources. To address this issue, and help promote the transition towards low carbon technology, the Sector and Government have facilitated an arrangement for an element of the approved tariff to be assigned what is known as ‘green payments’. In order to provide governance around this process, developments are considered on a project by project basis to assess suitability of schemes and allocate the appropriate tariff split.
As a result, the renewable energy sector is witnessing considerable activity in the Emirate, and is able to maintain significant progress towards achieving the Government’s targets.