ETIP: Energy Tariff Incentive Programme

Help With The Cost of Energy for Qualifying Industrial Sites

ADDC and AADC have launched a joint initiative with the Industrial Development Bureau, part of the Department of Economic Development.

This initiative encourages investment and expansion in the manufacturing sector and contributes to the goals of the Abu Dhabi Industrial Strategy 2031, and the UAE Net Zero by 2050 strategic initiative.

The initiative will assist companies to:

  • Become more energy efficient.
  • Reduce operational costs.
  • Boost productivity.
  • Enhance competitiveness.
  • Pursue technological transformation.

The initiative provides a discount on normal industrial tariffs for sites with industrial licenses who fulfil certain qualifying criteria.

Qualifying criteria are assessed in a scoring process which applies the following tests:

  • Economic test for contribution to the Abu Dhabi economy - 50% of the total score.
  • Economic test for productivity - 30% of the total score.
  • Energy Management Test - 20% of the total score.

Details of the economic contribution and productivity tests are available on the IDB website.

For 2023 - 2024 enrolment, the scoring methodology differs according to the electrical supply capacity to the site (also known as the "Connected Load").

For sites above 5MVA supply transformer capacity: the energy management test score contributions are:

  • Connected load: 10%
  • Energy Management System (EMS): 10%

For sites below 5MVA supply transformer capacity, the EMS score contributions are:

  • Energy Management System: 20%

ADDC/AADC Energy Management Qualification Requirement

Each site will submit evidence that they have in place the basic elements of simple energy management systems to their chosen certifying body (CB). The evidence submitted will be tested against specific pass/fail criteria, all of which must be passed in order for the site to receive the CB's formal report of conformance. The CB can check with ADDC or AADC to check whether the evidence conforms to requirements. Based on the CB's assessment, if a site is admitted to the scheme, ongoing assessment by ADDC/AADC of site performance against other criteria also dictates whether or not it will continue to be eligible to receive the tariff during the year.

There are thus two separate sets of energy management criteria:

  • Initial joining and reapplication criteria that must be satisfied in order for the site to receive a conformance certificate from its certifying body and rejoin the scheme as part of the qualification process at the start of each year, as per table 1 that follows.
  • Ongoing performance criteria that must be satisfied for the site to continue receiving the tariff, as per table 2 that follows.

The evidence requirements for the start of the year given in table 1 cover both new joiners and reapplicant sites, either using ISO certificates for compliance or not.

The same documentary evidence that was submitted during a previous year's application can be used to apply for a new year, so long as the dates are still valid, and the evidence meets the specific requirements for that new year.

Where a site has special characteristics or circumstances that put its energy management evidence outside of the prescribed quality specifications, ADDC/AADC should be consulted by the CB to ensure that a fair assessment takes place.

Table 1: Requirements to submit evidence at the start of each new ETIP 2.0 year.

Table 2 gives the ongoing performance criteria that sites in the scheme must satisfy in order to maintain access to the incentive tariff.

Table 2: Ongoing performance criteria: must be satisfied for the site to continue receiving the tariff during the year.

Special Note on Single Line Diagram for Proving Connected Load (Supply Capacity)

Sites must provide an up-to-date approved Single Line Diagram of their electrical supply. If the site does not have this diagram, it should contact ADDC or AADC, depending on their supplier, to request a search of archives to check if a copy is available. If their distribution company does not possess a copy of the drawing, then the site should contract for production of an as-built drawing through an approved electrical contractor, who will then apply to ADDC or AADC for inspection and confirmation in writing, (E-mail or letter), that the drawing matches the actual installation and that the installation is safe.

Supply details form for the distribution company.

The as-built drawing should then be uploaded to the IDB web portal along with a copy of the distribution company approval letter. This should be done at the same time as uploading other items of energy management evidence to the portal.

If IDB awards the incentive tariff, the site will receive a certificate, which they should e-mail to their distribution company . For ADDC, the e-mail address for submission of the certificate is:

Once the distribution company has confirmed the information, the incentive tariff will be awarded.

To discover how energy management can save money in manufacturing, download our learning materials to start your energy efficiency journey.

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