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Home » Abu Dhabi Department of Energy issues energy aggregator licensing framework to strengthen grid flexibility and manage peak electricity demand
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Abu Dhabi Department of Energy issues energy aggregator licensing framework to strengthen grid flexibility and manage peak electricity demand

By dailyguardian.aeNovember 9, 20264 Mins Read
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Abu Dhabi, 9 November 2026: 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 maximum reduction of 401MW, with participation from more than 30 entities across the emirate’s economic sectors.

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

The project forms part of the Load Management Programme under the Abu Dhabi Energy and Water Efficiency Strategy 2030. It strengthens electricity system flexibility by enabling consumers to adjust their consumption during peak demand periods, reducing the need to operate additional high-cost, high-emission generation capacity and improving the utilisation 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 electricity bills issued by TAQA Distribution.

His Excellency 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.”

Entities from the metals, refining, cement, industrial gases, logistics, commercial buildings, district cooling and other sectors participated in the pilot and final rollout phases of the Demand Response Project. Together, participants provided more than 408MW of flexible capacity, demonstrating the potential to expand consumer participation in supporting electricity system stability and load management.

The project phases also included the region’s first direct load control trials at industrial facilities, educational institutions and district cooling companies. These trials assessed response times and the effectiveness of technologies used to adjust electricity loads when required, while strengthening the operational experience needed to expand the application of these solutions.

This achievement builds on DoE’s efforts to develop Abu Dhabi’s demand response framework, beginning with the launch of the Abu Dhabi Energy and Water Efficiency Strategy 2030 in 2019, followed by the issuance of the Demand Response Policy and Regulatory Framework in 2022. The 2025 pilot achieved an average load reduction of 251MW, compared with 106MW recorded in 2024.

These efforts have culminated in a regulatory framework enabling the licensing and operation of energy aggregator companies, while protecting consumers and generating commercial returns that contribute to the emirate’s economy. In collaboration with Emirates Water and Electricity Company and relevant stakeholders, DoE is also exploring the use of artificial intelligence and virtual power plants to further improve electricity demand flexibility.

–END–

About the Department of Energy – Abu Dhabi

The Department of Energy – Abu Dhabi (DoE) was established in 2018, guided by a vision to create a prosperous economy, a sustainable society, and a safe environment. The DoE is tasked with setting the policies, regulations, and strategies that underpin the transformation of the Emirate’s energy sector, developing national talent and capabilities, and achieving a highly efficient energy ecosystem. The Department also focuses on protecting consumer interests, mitigating the environmental effects of the energy sector, and ensuring reliable, secure, and affordable energy services are provided through the adoption of latest smart and innovative technologies.

To learn more, please visit our official website at doe.gov.ae or follow our social media channels for the most recent news and updates.

Twitter: @abudhabidoe
Instagram: @abudhabidoe
LinkedIn: Department of Energy Abu Dhabi
YouTube: Department of Energy Abu Dhabi

For queries, please reach out by email to: [email protected] or [email protected]

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