Building retrofits deliver double-digit savings in the UAE

UAE

Waleed Alnuaimi, CEO of Etihad ESCO, talks to The Energy Year about acting as a catalyst for solar PV projects and energy efficiency retrofits that can deliver substantial energy savings and the company’s growing business among private-sector companies in the UAE. Etihad ESCO is a provider of energy efficiency services.

How does Etihad ESCO support local ESCO companies?
Etihad ESCO is a subsidiary of the Dubai Electricity & Water Authority (DEWA) created to support Dubai’s growing energy efficiency sector.
With the rise of solar energy, longer-term projects lasting 20-25 years require reliable parameters and guarantees to ensure their success. Etihad ESCO sets these standards with experienced teams, by ensuring the use of high-quality equipment such as tier-one solar panels and by providing solid guarantees, which are critical for securing large investments with optimal payback periods.
As part of DEWA, Etihad ESCO works closely with experienced solar contractors to obtain the necessary NOCs [no-objection certificates] for solar projects and reroute client payments through DEWA, providing transparency. Clients can track their savings and repayments as an additional line item on their electricity bill and enjoy peace of mind because they are dealing with a government-backed entity rather than a private company. Transparency and long-term commitment help foster trust.
Etihad ESCO’s mission is to develop the ESCO (energy service company) market by managing tenders and funding projects, particularly those over 10 MWp, which may be too large for a single contractor. Acting as the developer, Etihad ESCO secures government contracts, relieving solar contracting companies from long-term financial burdens and allowing them to focus on execution.
In addition to solar PV projects, Etihad ESCO also handles energy efficiency retrofits in partnership with industry-leading ESCOs such as Siemens, Johnson Controls, Ista and Hansa Energy Solutions, among others. We conduct energy audits and provide comprehensive solutions. While other ESCOs may specialise in areas such as chillers, HVAC, lighting or solar, Etihad ESCO offers expertise across all these fields, acting as a one-stop shop for clients.
Etihad ESCO takes a hands-on approach and conducts thorough energy audits to determine potential savings. We can provide tailored proposals that address all aspects of energy efficiency, including solar generation, building management systems, HVAC, lighting and more.
Our approach contemplates not only investments but also expected returns and savings-sharing with our clients. During projects, Etihad ESCO works closely with clients, offering capacity-building and training for key team members, ensuring they fully understand and appreciate the long-term impact of the project.

Who is Etihad ESCO working with currently?
Etihad ESCO supports major government entities, such as Dubai Airports, Dubai Police, Dubai Municipality, the RTA [Roads and Transport Authority], Wasl Properties, the Jebel Ali Free Zone and Islamic Affairs for the Mosques. Etihad ESCO leads the building retrofits programme under the Dubai Supreme Council of Energy.
The initial target was to retrofit 47,000 buildings and achieve savings of 2.6 TWh of electricity and 3.2 billion gallons [14.5 billion litres] of water by 2030, and the target has been extended to 3.7 TWh of electricity and 7.8 billion gallons [35.5 million litres] of water by 2050.
So far, we have retrofitted more than 8,000 buildings. In 2024, we started focusing on freehold buildings, which requires co-ordinating with individual apartment owners. We are managing the project under an MoU with RERA [Real Estate Regulatory Agency]. We started with a pilot of 18 buildings and aim to target additional freehold buildings in Dubai for future sustainability and energy savings.
We have also signed a significant solar project with Dubai Airports and Emirates airline, aiming to complete the world’s largest airport solar plant by mid-2026.

How are you growing your activities outside the public sector?
In our first 10 years in operation, 80% of our projects were with public or government entities. We targeted the largest consumers of electricity to achieve higher savings. Now, we are shifting our focus to the private sector, including freehold buildings, industries and manufacturing. One of the challenges is securing guarantees for projects, as they are long-term commitments. We require bank or payment guarantees, which can be a challenge for clients, even though repayment is through savings. We need assurances for our investment throughout the project duration.
By executing projects, increasing our visibility through social media and participating in sustainability events, we have built awareness and trust. In 2025, our primary focus will be on the private sector. Almost every major company is already aware of the importance of sustainability.
For instance, in manufacturing, we conducted a service audit of SLB’s facilities, exploring how to introduce sustainable energy into their production. The solutions are still under consideration, primarily due to government regulations on solar system installations.
There is a cap on the amount of solar capacity that can be installed for any entity or plot, which is determined by a formula linked to the total connected load. You can’t install solar systems freely, as it could result in a loss for DEWA. The goal is to balance independent solar production with output from DEWA’s solar assets.
In 2024, DEWA launched the D33 Solar PV Initiative, which targets data centres, industry and the manufacturing sector. Through a special application, companies can apply for solar installations based on their needs. Applications are considered individually, taking into account factors such as the type of manufacturing, location, facility size and total capacity, with DEWA determining the maximum capacity allowed for each installation.

What are the key barriers to the growth of solar, and how do you address them?
Our main challenges include client hesitation, knowledge gaps about sustainability and logistical complexities. Clients often question the feasibility of our solutions, thinking they are too good to be true because they lack understanding about retrofitting and sustainability projects.
Additionally, some clients do not own their facilities or are reluctant to commit to long-term contracts, citing expansion or relocation uncertainties. Gaining access to sensitive facilities, such as prisons or airports, presents logistical difficulties, as strict regulations require us to execute projects without disrupting operations.
To overcome these challenges, we can offer flexible project durations and reduce contracts from 20 years to 10 or five, adjusting repayment terms accordingly. We often engage in lengthy negotiations with clients; it can take months to align with their needs and overcome resistance from their legal and finance departments, for instance.
For the Dubai Airports retrofit project, we forecasted minimum savings of 29% and have already achieved 34%, which has led to the initiation of a second phase that includes Dubai International Airport and Al Maktoum International Airport. Projects like these involve detailed audits, ongoing client education and the use of advanced technologies to ensure measurable results.

Do you plan to expand internationally or diversify your business into other segments?
We are working towards expanding in Bahrain, where we are advising EWA [Electricity and Water Authority] on how to set up regulatory frameworks, conduct energy audits and develop energy efficiency projects. Our board of directors has instructed us to consider other markets, as well.
Looking ahead, we aim to remain a market leader in sustainability and retrofitting, particularly in Dubai, which is a hub for innovation. Our vision is to be a reference for ESCOs globally, continually adopting the latest technologies and fostering sustainable development in every project.

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