UAE Federal Decree-Law 17 2022: Distributed Solar Grid Connection Guide

Key Takeaways

• Federal Decree by Law No. (17) of 2022 was promulgated on 26 September 2022.
• The law applies across all seven Emirates, including economic, investment, and free zones.
• The Ministry of Energy and Infrastructure (MoEI) holds federal regulatory duties.
• It mandates Connection Agreements and allows for tariffs on exported electric power.

Understanding UAE Federal Decree by Law No. (17) of 2022

Federal Decree by Law No. (17) of 2022 establishes a comprehensive legal and regulatory framework for connecting distributed renewable energy units, specifically solar PV, to the electrical distribution network throughout the United Arab Emirates. President Mohammed bin Zayed Al Nahyan promulgated this landmark federal statute on 26 September 2022.

The law's provisions apply to the operations of connecting distributed production units to the distribution network. This includes all producers, service providers, and electrical installations contractors in the State. Its scope extends to economic, free, and investment zones across all seven Emirates.

Regulatory Framework and Competent Authorities

The Ministry of Energy and Infrastructure (MoEI) is designated as the Competent Authority in Emirates where Etihad Water & Electricity provides services. MoEI also maintains a national database of distributed production units and producers.

Local Competent Authorities determine the electrical voltage and the size of distributed production units allowed to connect to the distribution network. They also establish an annual limit for connection capacity.

Key Provisions for Distributed Solar

The law defines a "Distributed production unit" as one or more units designated for the production of electricity by renewable energy sources, which are connected to the distribution network. A formal "Connection agreement" is required between the service provider and the producer. This agreement regulates the rules and conditions for the operation of the distributed production unit and its connection to the distribution network.

Article 9 of the Decree by Law empowers the Competent Authority to regulate tariffs. This includes tariffs for supplying imported electric power, exported electric power, and excess capacity. "Excess capacity" is defined as the difference between exported electric power and imported electric power during a specified period of time. The Competent Authority may also set fees and costs for connecting distributed production units.