When it comes to sustainability, the UAE has introduced countless initiatives. In Abu Dhabi, eco-friendly incentives are becoming more prevalent in daily life, be it cars, homes or workplaces. To promote sustainability in the capital’s industrial sector, TAQA Distribution has introduced the Electricity Tariff Incentive Program (ETIP).
First launched in 2019, the program is now called ETIP 2.0. It covers gas and electricity tariffs for industrial sectors at reduced operational costs. In addition, the Industrial Development Bureau (IDB) of the Abu Dhabi Department of Economic Development (ADDED) regulates this incentive.
Energy Tariff Incentive Program 2.0 in Abu Dhabi
TAQA Distribution oversees the electricity and water supply in the capital. The company has introduced ETIP in Abu Dhabi to promote efficiency in the industry and manufacturing sectors. In addition, the program offers incentives and lower rates for gas and electricity, helping businesses in the private sector.
This helps businesses save money on energy bills, making them more competitive in the industry. By reducing energy costs, they can increase their productivity and profitability, while contributing to sustainable distribution networks in Abu Dhabi. In addition, there are five main stakeholders of ETIP in Abu Dhabi: IDB, DC, AD Ports (ADPC), Certifying Bodies (CB) and manufacturing entities.
Key Objectives
The main objective of the Energy Tariff Incentive Program 2.0 is to contribute to the Abu Dhabi Industrial Strategy 2031 and the UAE Net Zero by 2050 initiative. The program encourages the expansion of the manufacturing sectors and offers discounts on industrial tariffs, provided that the applicant companies fulfil the given criteria.
The key objectives of the current ETIP in Abu Dhabi are:
- Creating a positive and sustainable impact on the industrial sector in Abu Dhabi and boosting its competitiveness.
- Encourage the use of efficient energy.
- Reduce the operational costs of factories and elevate the company’s production.
- Promote demand-side management practices.
- Offer reduced tariff rates for electricity and gas.
Eligibility Criteria For Energy Tariff Incentive Program 2.0
The qualifying criteria for the upgraded ETIP 2.0 in Abu Dhabi are as follows:
- All the ADDED-licenced industrial companies in Abu Dhabi can apply for this program.
- Existing industrial entities that have received their ADDED production licence and have been operating and producing goods for more than six months are eligible for the program.
- New industrial entities, including those with ‘under construction’ licences from ADDED, are eligible to apply for the program.
- Companies in operation for less than six months after receiving their production licence can also apply.
- Industrial entities located in the free zones of Abu Dhabi cannot apply for this program.
In addition, TAQA Distribution has set the qualifying criteria for companies to avail reduced tariffs. It is evaluated through a scoring process that employs the following economic tests:
- The test for Abu Dhabi’s economic contribution makes up half of the total score.
- The economic test for productivity accounts for 30% of the total score.
- The test for energy management test contributes to 20% of the total score. It is an Electricity Management System for electricity tariffs and Demand Side Management for gas tariffs.
The ETIP scores are distributed as per the test scores. The scores are divided into different categories that offer various tariff discounts. Moreover, the scoring method varies based on the site’s electrical supply capacity, called the “Connected Load.”
- For sites with a supply transformer capacity above 5MVA, the energy management test score consists of 10% for the connected load and 10% for the Energy Management System (EMS).
- Additionally, for sites with a supply transformer capacity below 5MVA, the EMS score contributes 20% to the overall score.
Procedure To Apply for ETIP in Abu Dhabi
The industrial facilities can apply for ETIP 2.0 via the TAMM portal. The basic steps are as follows:
- Log in to TAMM using your username and password.
- On the main dashboard, find and select ‘Request to Join Energy Tariff Incentive Program’. Proceed using your UAE Pass.
- Choose the industrial licence number you want to apply with.
- Review the displayed information carefully and also pick the type of energy you want to apply for (Electricity, Gas or both).
- Update your corporate bank account details as required.
- Pick at least 3 Certifying Bodies from the list provided to receive quotes from.
- Upload the necessary documents. They include:
- Audited Financial Statements / Management Accounts, as applicable;
- ADDED- addressed Bank Account Confirmation Letter
- Certified Labour List from MOHRE
- Agreement for Sale and Purchase of Natural Gas
- Provide updated contact information for the company representative who will manage the application process.
- Once everything is in order, hit ‘Submit’ to proceed with the application.
After that, the CB will review the requirements and submit the scorecard to the system. If the manufacturing entity scores 50 points or more after review, IDB will give them an enrollment certificate. It will have details about the energy type, final score and approved category.
On the other hand, if the score is below 50 points, IDB will send a regret letter and the entity will be billed at the Standard Industrial Tariff rate. Remember, the enrollment certificate is valid for one year from the date of issue.
It is also crucial for the applicant companies to submit an updated and approved Single Line Diagram that explains their electricity supply. If they don’t have one, they can request TAQA Distribution to provide them with a copy.
Required Fees
There are no required fees to apply for ETIP in Abu Dhabi via the TAMM portal. However, the certifying bodies have varying charges.
FAQs
How Long Does it Take to Issue the ETIP 2.0 Certificate?
The processing time for evaluating and verifying documents is 2-5 weeks. Afterwards, the IDB will issue the final enrollment certificate within 4-5 business days.
What is the ETIP Program in Abu Dhabi?
The Energy Tariff Incentive Program in Abu Dhabi reduces electricity and gas expenditures for industrial sectors to enhance their competitiveness and foster sustainability efforts within the region.
What is the evaluation process for ETIP Applications for new companies?
The new companies are assessed under the following criteria:
- Abu Dhabi logistics
- Economic impact
- Energy Management System or demand-side management
- Connectivity load
This is all on the ETIP in Abu Dhabi. The incentive will boost the efficiency and productivity of the industrial sector in the capital. Besides, it is among the other initiatives like the use of solar energy for homes in the UAE that promote sustainable alternative energy.
In addition, if you are on the property hunt in the emirate, consider these options:
For more information on different projects in the Emirates, keep reading dubizzle’s real estate blog.
