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Abu Dhabi launches grid flexibility drive by offering ratepayers option to install behind-the-meter solar and BESS
25/2/2026
News
The Emirate of Abu Dhabi has launched a policy that enables electricity customers to install renewable energy systems to reduce the cost of electricity to power their own homes and businesses.
‘Consumers will be able to generate significant savings by leveraging solar energy solutions, including photovoltaic panels and solar-powered water heaters, in addition to battery storage systems to power their facilities during evening hours,’ said the UAE Department of Energy. But they are not obliged to.
In some Middle Eastern countries like Pakistan, solar panels have proved popular to power homes off-grid. While they may supply one household’s electricity, that power is untaxed and does not help support development of a national transmission and distribution grid for electricity.
The Department of Energy also said: ‘The policy will contribute to improving grid efficiency, enhancing security of supply and supporting growth plans for Abu Dhabi’s energy sector, in line with the Emirate’s direction to increase reliance on renewable energy generated from clean and environmentally friendly sources, apply global best practices, add value for consumers and strengthen security of supply.’ The first sector specified to benefit is agriculture.
Also announced is an energy efficiency drive to be achieved partly through domestic and industrial devices with improved electricity efficiency, along the lines of the European EcoDesign for Sustainable Products regulation. Devices covered provide cooling, water heating, lighting, electrical equipment, motors, pumps and irrigation systems. Guidance has been published (see below).
‘The manual promotes best-practice operational behaviours, smart control solutions, and data-driven decision-making to reduce energy and water consumption, lower peak demand and deliver long-term cost savings, while supporting emissions reduction and system-wide efficiency.’
The Department of Energy statement refers to an Energy Efficiency Appliances Policy, but it is not clear whether it has been published, or what its stipulations are/will be.
However, in January, it did announce new energy efficiency rules for public procurement (without specifying any details in the press release). It noted: ‘The policy is expected to enable an estimated 8.2 gigawatt-hours (GWh) of annual electricity savings and 120,000 cubic meters (m3) of annual water savings by 2030, depending on appliance stock turnover and adoption rates.’
For further information, see UAE Department of Energy PV and Battery Energy Storage Systems For Self Supply Policy and UAE Guide to the Selection and Operation of High Efficiency Equipment and Irrigation Systems (published in Arabic only).
