Abu Dhabi moves to ease peak power demand after electricity-saving trial

Dubai: Abu Dhabi has issued new rules for licensing energy aggregator companies to help manage electricity use during peak periods, following a trial that reduced power demand by up to 401 megawatts (MW). The move supports efforts to meet electricity needs by enabling consumers to adjust their consumption when demand is high.

The Abu Dhabi Department of Energy (DoE) said its 2025 Demand Response Pilot Project achieved an average load reduction of 251MW, compared with 106MW in 2024. More than 30 entities across the emirate’s economic sectors participated.

DoE said adjusting electricity use during peak periods reduces the need to operate additional generation capacity that costs more and produces higher emissions. It also allows the emirate to make better use of existing power infrastructure.

The project reduced electricity consumption during peak periods by approximately 27 gigawatt-hours (GWh) and avoided an estimated 4,000 tonnes of carbon dioxide equivalent emissions, according to the department. Participants received financial incentives through credits applied to electricity bills issued by TAQA Distribution.

New licensing rules

The new framework enables the licensing and operation of energy aggregator companies. Ahmed Al Falasi, Executive Director of the Energy Efficiency Sector at DoE, described the programme as the first comprehensive, regulated energy aggregator licensing programme in the region.

“Abu Dhabi is developing an integrated energy system capable of supporting economic growth and rising electricity demand while maintaining reliability of supply and resource efficiency,” he said.

Participants came from sectors including metals, refining, cement, industrial gases, logistics, commercial buildings and district cooling. Across the pilot and final rollout phases, they provided more than 408MW of flexible capacity — electricity demand that could be adjusted when needed.

The project also included what DoE described as the region’s first direct load control trials at industrial facilities, educational institutions and district cooling companies. These tested response times and how effectively technologies could adjust electricity loads, helping prepare for wider use.

Further plans

The project forms part of the Load Management Programme under the Abu Dhabi Energy and Water Efficiency Strategy 2030, launched in 2019. DoE said it followed this with the Demand Response Policy and Regulatory Framework in 2022.

The department is also working with Emirates Water and Electricity Company and other stakeholders to explore artificial intelligence and virtual power plants. The work aims to improve the electricity system’s ability to adjust demand when required.