Abu Dhabi boosts power efficiency as load reduction more than doubles

The Abu Dhabi Department of Energy (DoE) has announced the results of its 2025 Demand Response Pilot Project, which achieved an average electricity load reduction of 251MW and a peak reduction of 401MW, with more than 30 entities from various economic sectors across the emirate taking part.

The results highlight progress in developing flexible electricity demand management solutions and improving the efficiency and sustainability of Abu Dhabi's energy system.

The project is part of the Load Management Programme under the Abu Dhabi Energy and Water Efficiency Strategy 2030. It aims to make the electricity system more flexible by allowing consumers to adjust their electricity use during periods of peak demand. This reduces the need to operate additional high-cost, high-emission power generation capacity and makes better use of existing infrastructure.

The project reduced electricity consumption during peak periods by approximately 27GWh and avoided an estimated 4,000 tonnes of carbon dioxide equivalent emissions. Participants also received financial incentives in the form of credits applied to their electricity bills issued by TAQA Distribution.

Eng. Ahmed Al Falasi, Executive Director of the Energy Efficiency Sector at the Abu Dhabi Department of Energy, said: “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.

“For the first time in the region, a comprehensive, regulated energy aggregator licensing programme is being launched, opening new markets that attract investment and strengthen demand flexibility and security of supply. We believe that our collaboration with strategic partners across the energy sector has created the conditions to translate ideas into practical solutions that support the emirate’s objectives, through structured cooperation between the public and private sectors that improves infrastructure investment efficiency and strengthens the long-term sustainability of Abu Dhabi’s energy sector.”

Companies from the metals, refining, cement, industrial gases, logistics, commercial buildings and district cooling sectors, among others, took part in the pilot and final rollout phases of the project.

Together, participants provided more than 408MW of flexible capacity, demonstrating the potential for greater consumer involvement in maintaining electricity system stability and managing demand.

The project also included the region's first direct load control trials at industrial facilities, educational institutions and district cooling companies. The trials assessed how quickly participants could respond and how effectively technology could adjust electricity loads when required. They also helped build the operational experience needed to expand the use of such solutions.

The latest results build on the DoE's efforts to develop Abu Dhabi's demand response framework. These began with the launch of the Abu Dhabi Energy and Water Efficiency Strategy 2030 in 2019, followed by the introduction of the Demand Response Policy and Regulatory Framework in 2022.

The average electricity load reduction achieved in 2025 reached 251MW, up from 106MW in 2024.

These efforts have led to a regulatory framework that allows energy aggregator companies to be licensed and operate in the emirate, while protecting consumers and creating commercial opportunities that contribute to the economy.

In collaboration with Emirates Water and Electricity Company and other stakeholders, the DoE is also exploring the use of artificial intelligence and virtual power plants to further improve electricity demand flexibility.