Dubai Utility Doubles Business Electricity Rates in Three Years

dubai lights buildingYou wouldn’t want to be responsible for keeping the lights on in buildings like these!

In an attempt to reign in Dubai’s profligate fossil energy use, Dubai Electricity and Water Authority (DEWA) has sharply raised rates for business customers who have failed to reduce their electricity consumption since 2008, Utilities-ME is reporting. Starting in January 2011, there is a more sharply tiered rate system, so that profligate energy users wind up paying far more for each kilowatt hour than their more energy-efficient competitors. The new rates mean that in practice, businesses can pay almost double what they paid before 2008.

In 2008, the new system was begun. In January, the first rise means that for monthly consumption under 2,000 kilowatt hours, rates have gone up from 20 to 23 fils. But for consumption above 6,000 kilowatt hours monthly, the already high rates of 33 fils have gone up to 38 fils, almost double the pre-2008 charge at the old rate.

There are numerous cleantech solutions to reduce building energy use, from waste heat recovery, to renewable energy, to solutions that reduce the costs and fossil fuel use associated with air conditioning, so the reluctance of large businesses to take advantage of them is mystifying. As Markus Oberlin, the General Manager of one such company, Farnek Avireal points out:

“Consumers, particularly commercial, that did nothing to arrest consumption or waste after the first slab tariff increase in March 2008, will have electricity bills that in some cases will have soared by an additional AED1.1 million during the past twelve months.”

For example, a hotel of around 20,000 square metres in the New Dubai area which had annual energy costs of AED1.5 million in 2008 will now be paying over AED3 million in 2011 for the same level of energy use, about double.

The emirate relies on fossil fuels to make 93% of its electricity: 70% comes from burning gas, and 30% from burning oil. Two thirds of an estimated 56.6 terrawatts of power used in all the gulf emirates combined is used for cooling and lighting, and Dubai, with its over-the-top architecture, man-made islands and spectacular attractions is responsible for even more than the UAE average.

As we all begin the bumpy descent down the other side of Hubberts Peak, even within the Gulf countries, fossil energy prices are rising again, because the world is staggering back to its feet after the blows of the last oil price shocks of 2008.

Even in the Gulf nations, oil prices are becoming significant. In fact, the situation in the region is even more desperate, because what remains of fossil energy must be conserved to desalinate seawater.

Oberlin has one modest solution. The Farnek Avireal Energy Saving Module – which reduces electricity consumption from air conditioning and refrigeration systems – by only 20% – used to have a pay back period in utility costs savings, of about 22 months.

Now, with the higher prices, that payback time is down to within just one year, they claim. But actually, greater energy reduction yields the highest savings overall.

If you are in the LED business, you might want to get over to Dubai.

::Farnek Avireal

More on attempts to reign in profligate energy use:
Dubai’s Conservation Incentive: Higher Energy And Water Bills
California’s Hara Could Cut a Staggering 12 Terawatt Hours of Energy Waste in Abu Dhabi
Dubai’s New Net Zero Building Codes Should Boost Cleantech Worldwide

Facebook Comments



Get featured on Green Prophet Send us tips and news:[email protected]

16 thoughts on “Dubai Utility Doubles Business Electricity Rates in Three Years”

  1. Neville says:

    Howdy! Do you know if they make any plugins to help with SEO?
    I’m trying to get my blog to rank for some targeted keywords but I’m not seeing
    very good gains. If you know of any please share.

  2. change says:

    Wow, this piece of writing is good, my younger sister is analyzing these kinds
    of things, so I am going to let know her.

  3. Pretty! This was an incredibly wonderful post.
    Many thanks for supplying thse details.

    My web blog – potty training when to start

  4. nowremind says:

    I’m impressed, I must say. Rarely do I encounter a blog
    that’s equally educative and amusing, and let me tell you,
    you have hit the nail on the head. The problem is something that not enough men and women are speaking intelligently about.

    I’m very happy that I found this during my hunt for something relating to this.

  5. Hey this is somewhat of off topic but I was wondering if blogs use WYSIWYG editors or if you have to
    manually code with HTML. I’m starting a blog soon but
    have no coding experience so I wanted to get guidance from someone
    with experience. Any help would be greatly appreciated!

    Here is my blog post … enchant him by carrie engel

  6. Pretty! This has been a really wonderful post. Many thanks for supplying this info.

  7. I am genuinely grateful to the owner of this web
    page who has shared this fantastic post at here.

  8. cheap beats studio
    I constantly spent my half an hour to read this webpage’s posts daily along with a cup of coffee.

  9. says:

    Keeping in the fuel for a ride category, Pro Bar unvieled their new Peanut
    Butter and Jelly bar flavor. This glove would be great for
    chilly rides or cyclo cross. Additional interior features
    include an upgraded sound system, a Chevrolet Accessories pedal kit and a custom aluminum shift knob.

    Here is my webpage :: thule cycle rack (

  10. Adele says:

    Very great post. I just stumbled upon your weblog and
    wished to say that I have truly enjoyed browsing your weblog posts.
    In any case I’ll be subscribing to your feed and I’m hoping you write again very soon!

  11. Thanks for one’s marvelous posting! Iseriopusly enjoyed reading it, you could be a great author.I will be sure to bookmark your blog
    and may come back someday. I want to encourage
    that you continue our great writing, have a nice day!

  12. Hello mates, its impressive article about tutoringand completely defined,
    keep it up all the time.

  13. Sexy Girls says:

    What i do not understood is in reality how you are not actually much
    more well-favored than you might be right now. You’re very intelligent.
    You already know therefore considerably relating to this topic, made me for my part believe it from numerous numerous angles.

    Its like men and women don’t seem to be interested until it is something
    to do with Girl gaga! Your own stuffs excellent. All the time handle it up!

  14. Hi every one, here every one is sharing these kinds of
    knowledge, so it’s pleasant to read this webpage,
    and I used to pay a quick visit this weblog daily.

  15. Thanks for the good writeup. It if truth be told used to be a leisure
    account it. Look complex to more brought agreeable from you!

    However, how can we keep up a correspondence?

    My website film indonesia agnes monica

Comments are closed.