Assessment of the Residential Demand Side Management role in the UAE 2050 Energy Strategy

Abstract

The UAE has grown rapidly over the last couple of decades in terms of economy and population and is expected to continue this rapid growth into the next few decades. Energy demand had to grow as well to keep up with this growth across all sectors, from industry to residential. However, although the UAE is a major energy producer in the world and a resource-rich country, it had sought to transform its energy system through the UAE 2050 Energy Strategy, that, among other goals, aims to improve energy efficiency by 40%. Despite these ambitious goals, a clear, systematic, plan is not yet developed, especially for the residential sector. This study aims to assess the contribution of Demand Side Management (DSM) to the national strategy. DSM tools were selected based on three factors, being readily available, easy and quick to implement, and have a low implementation cost. First, a comprehensive policy development framework was proposed based on 4 key steps, strategy selection, policy development, implementation agent, and DSM dimension. Then, tools were selected from existing literature based on the selection criteria and their suitability to the UAE and its energy system. These tools were, (i) informing consumers, (ii) smart water heater controller, (iii) smart thermostat, (iv) improved AC maintenance, and (v) retrofitting.

Residential and consumption data was collected from national databases, and a cost benefit analysis was done. Selected tools whose benefits outweigh costs were selected and recommended. These were, (i) informing consumers, (ii) smart water heater controller, (iii) smart thermostat, and (iv) retrofitting villas only, and not residential buildings. The analysis relied on the tool’s Net Present Value (NPV), and those who had a positive NPV were selected. The project life was until 2050, which is the due year for the national energy strategy. Thus, it is recommended that these tools be implemented, with the support of the government, as their savings are significant for the consumer and the government, in the form of subsidies saved.

Date of Award	Apr 2023
Original language	American English