Etihad ESCO Solar PV Energy Performance Contracting in Dubai: 100% Turnkey Financing

Key Takeaways

• Etihad ESCO is a wholly-owned subsidiary of DEWA, established to create Dubai's energy performance contracting market.
• The company provides 100% turnkey financing for solar PV projects, with no upfront capital expenditure required.
• Project costs are recovered entirely through verified utility bill savings from Shams Dubai net metering.
• Notable installations include 1,000 kWp at the Dubai World Trade Centre and 16,000 kWp at the Ghaffat Reservoirs (under construction).

Etihad ESCO's Role in Dubai's Energy Market

Al Etihad Energy Services, known as Etihad ESCO, is a Super ESCO and a wholly owned subsidiary of the Dubai Electricity and Water Authority (DEWA). Its mandate is to create an energy performance contracting market in Dubai. Etihad ESCO executes utility-scale and commercial building retrofits.

Financing Model: 100% Turnkey and Payment from Savings

Etihad ESCO offers a financing model designed to remove upfront capital expenditure for building owners. The company provides 100% turnkey financing for solar PV projects. This means capital costs and recurring expenses, such as Maintenance (O&M) and Measurement and Verification (M&V), are covered. These costs are recovered entirely through verified utility bill savings generated by the solar installation and energy efficiency retrofits. The model aims to provide positive cash flow to support project success, with competitive finance rates.

Integration with Shams Dubai Net Metering

Etihad ESCO's solar projects integrate with DEWA's Shams Dubai net metering framework. This framework regulates the connection of solar energy to DEWA’s grid. At every billing cycle, any surplus solar production is offset against actual consumption. If a net credit exists, where solar production exceeds total consumption, it is carried over and used against future consumption. Etihad ESCO is identified as a key driver of the Shams Dubai program.

Major Solar PV Installations

Etihad ESCO has completed or is developing several significant solar PV projects across Dubai. These include a 1,000 kWp installation on the rooftop of the Dubai World Trade Centre (DWTC). The company has also deployed 3,000 kWp across 640 residential villas in Hatta. Other projects include 2,000 kWp on the rooftop of the Mai Dubai Factory, which is currently under construction. A larger project, 16,000 kWp, is under construction on the roofs of the Ghaffat Reservoirs. Etihad ESCO's core service scope includes energy consulting and design for these solar PV initiatives.