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Two Sides of The Coin, Faisal Al Raisi, Acting COO, Etihad ESCO
Two Sides of the Coin
By: Faisal Al Raisi, Acting Chief Operating Officer, Etihad ESCO
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Faisal Al Raisi shares his views on clean energy in the UAE and beyond while highlighting that renewable energy and energy efficiency are equally important in driving global energy decarbonisation. Moreover, he elaborates on Etihad ESCO’s efforts towards making Dubai one of the most sustainable cities in the world.
Renewable energy is derived from sources or processes that can naturally and constantly replenish themselves, for example: wind and sun. These sources, in theory, should never run out, making it a much more efficient option than nonrenewable sources, such as fossil fuels and gas, which are damaging the atmosphere. Clean energy, on the other hand, is wider and encompasses all zero-carbon energy sources, including renewable energy, nuclear energy, and the carbonneutralising impact of technologies like carbon capture and sequestration (CCS).
The rapid proliferation of solar and wind has brought a new energy player into the game, namely, green hydrogen. In fact, selected countries across the world are rolling out their green hydrogen strategies. To clarify, hydrogen can be renewable if it is produced through electrolysis using renewables and water, or it can be produced from natural gas, coal, biomass and oil. In the latter cases — and if utilised with CCS — hydrogen becomes a zero-carbon energy source. An alternative fuel must be technically feasible, economically viable, easily convert to another energy form when combusted, be safe to use, and be potentially harmless to the environment. Hydrogen is the most abundant element on earth. Although hydrogen does not exist freely in nature, it can be produced from a variety of sources, such as steam reformation of natural gas, gasification of coal, and electrolysis of water (green hydrogen). Hence, it is called ‘fuel of the future.’ Hydrogen can be used in internal combustion engines or fuel cells, producing virtually no greenhouse gas emissions when combusted with oxygen. Preservation of the planet we live in is a growing concern for policy makers around the globe. The challenge of climate change mitigation is now trending through major global think-tank forums as nation economies account for damage caused by variations in climate patterns. The solution is clear and has been unanimously accepted; however, it requires a legion of collaboration and effort from leaders, innovators, and consumers worldwide.
Within the last decade, several major industry sectors in developed countries have incorporated initiatives directed towards sustainable growth.
These initiatives primarily consist of reductions in energy and water use, renewable energy generation, or the implementation of resource and waste management strategies that streamline upstream and downstream emission reductions in the manufacturing process.
Production and consumption of energy accounts for over 70% of the humancaused greenhouse gas emissions that cause climate change. Worldwide, nearly a billion people lack access to electricity, and another billion rely on smoky fuels, such as wood, charcoal, or animal dung to cook. These and fossil fuels are major contributors to air pollution which causes adverse impact on climate.
Due to the various environmental damages caused by the production and consumption of energy, efficient use of energy is of utmost importance. To link it back to the theme of this issue, the definition of clean energy also entails ‘energy saved by energy efficiency measures.’ Energy efficiency simply means using less energy to perform the same tasks, and eliminating energy waste, which, in turn, can be incredibly beneficial for the environment and economy as it reduces CO 2 emissions. For us at Etihad ESCO, energy efficiency is a core value. Thus far, Etihad ESCO has retrofitted more than 7,700 buildings in Dubai, which has resulted in saving energy costs in excess of AED 250 million and contributed to an equivalent CO2 abatement of 220 kilotonnes.
Etihad ESCO has done some of the biggest and unique renewable energy projects in the region. 18 MWp project for Mai Dubai water bottling factory is one of the largest single rooftop projects in the region. Solar PV installation on 5,000 villas rooftops is a unique community project of its size. In recent years, Etihad ESCO contributed towards renewable energy use in Dubai by installing approximately 82,000 kWp capacity of solar.
Established in 2013, with a vision to make Dubai one of the most sustainable cities in the world, Etihad ESCO has lived up to this expectation. It has created a successful model for Energy Performance Contracting (EPC) in the region, and now many other cities in the Middle East follow the same model. With a mission to make Dubai’s built environment a leading example of energy efficiency for the region and the world, Etihad ESCO contributes to achieving energy demand reduction targets set by the Dubai Supreme Council of Energy (DSCE) and creates an EPC market.
Due to the region’s hot climate, most of the energy consumption in buildings is driven by cooling, which makes up more than 60% of building energy demand. As a Super ESCO (Energy Service Company), it enables the energy performance contracting market in Dubai by developing energy efficiency projects targeting more than 30,000 buildings. Etihad ESCO aims to jumpstart the creation of viable performance contracting market for energy service companies by executing building retrofits, increasing penetration of district cooling, building capacity of local ESCOs for private sector, and facilitating access to project finance.
The Dubai ESCOs market will provide new business opportunities for joint ventures, international partnerships as well as engage UAE national entrepreneurs through a diversified supply chain from financial institutions, technology providers, and equipment manufacturers, to service providers across the project development, management, and reporting stages.
According to the UN, the world needs a five-fold increase in its commitment to reduce carbon emissions and maintain a global temperature averaged at 1.5°C. In the UAE, this commitment has been accepted at all levels of government, and is channeled through a robust system of socio-economic frameworks, such as the UAE Vision 2021, UAE Centennial 2071, and the 50-Year Charter. The ensuing policies, laws and regulations are directing development in the country with the objective of bringing about tangible benefits in energy efficiency and the rapid adoption of renewable energy. It is here where Etihad ESCO plays a critical role as a key driver and Programme Manager of Dubai’s Demand Side Management Strategy. By the year 2030, Etihad ESCO intends to abate 1 million tonnes of CO 2 , save 1.4 TWh of electricity and 4.9 billion IG of water.
According to a joint study by International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), global energy-related CO2 emissions could be reduced 70% by 2050, with a net positive economic outlook. Importantly, renewables would account for about half of total emission reductions while another 45% would come from increased energy efficiency and electrification. Hence, renewable energy and energy efficiency are two sides of the same coin in driving global energy decarbonisation. The massive solar projects in the UAE, namely Al Dhafra, Noor Abu Dhabi and the Mohammed bin Rashid Al Maktoum Solar Park, as well as targeted energy efficiency strategies and efforts at country and emirate level serve as testament of the UAE’s wise leadership acknowledging this fact. Etihad ESCO will continue its efforts on both fronts to make Dubai one of the most sustainable cities in the world and to ultimately contribute to the global energy decarbonisation efforts.
Faisal Al Raisi
ACTING COO, ETIHAD ESCO
Faisal Al Raisi is Acting COO of Etihad ESCO. He is leading Etihad - the Super ESCO in the emirate of Dubai, which is thriving to make Dubai one of the most sustainable cities and a leading example of energy efficiency for the region and the world.
Mr Al Raisi is playing a key role in the expansion of Etihad ESCO portfolio. He is actively involved in formation of two verticals under the Etihad umbrella – Etihad Facility Management (FM) & Etihad Electro-Mechanical (EM) over the past year, and is currently working to develop several other verticals. Mr Al Raisi is also strategically planning to expand the footprint of Etihad ESCO to the MENA region and to other parts of the world. He has successfully established a Joint Venture (JV) between Etihad ESCO and Royal Strategic Partners under the umbrella of Abu Dhabi Capital Group in Abu Dhabi and is supervising the business of Etihad International – KSA, which is a JV between Etihad ESCO and Vision Invest to create base for Etihad ESCO to expand its business into the market of the Kingdom of Saudi Arabia.
