Abu Dhabi, Kuwait Cautiously Looks To Curb Power Demand Growth

Abu Dhabi and Kuwait want to curb power waste but leave subsidies intact. Abu Dhabi’s focus is demand-management; Kuwait’s is prices for government (see box).

Abu Dhabi state utility Adwea has begun registering energy services companies to bid for contracts to reduce energy consumption in government and commercial buildings. The aim is to curb demand without targeting private customers.

The UAE, like all GCC countries, provides electricity at heavily subsidized rates. This practice, which has seen consumption soar to world-beating levels, has become increasingly unsustainable since the late-2014 fall in oil prices slashed government revenues.

The UAE recently announced a strategy to meet forecast power demand growth of 6%/year to 2050. This envisages a spend of Dh600bn ($162bn) on new generating and supply equipment, taking generating capacity from almost 29GW now to more than 90GW in 2050 (MEES, 13 January). (CONTINUED - 515 WORDS)


table UAE Electricity Tariffs*