Energy Tariff Incentive Program (ETIP)
Nithin NK, Partner
The Energy Tariff Incentive Program 2.0 (ETIP) is the latest version of the Electric Tariff Incentive Program 1.0 (ETIP). This program includes a gas tariff to the existing Electricity Tariff Incentive Program for eligible industrial sector entities based on the eligibility criteria. The eligibility criteria include economic impact, spending on logistics and, demand-side management efficiency (both for electricity & gas) and energy management efficiency in the Emirates of Abu Dhabi.
The Electricity Tariff Incentive Program was initially launched in 2019 by the Industrial Development Bureau of the Abu Dhabi Department of Economic Development (ADDED). This program is designed for ten years from 2019, which helps manufacturers obtain reduced tariffs based on the achievement of program objectives, thus lowering operating costs and can invest the savings towards R&D and further expansions.
The program was initiated to promote Abu Dhabi’s vision of productivity, efficiency, transparency, and long-term clarity.
Objectives of the program
- Enhancing the economic impact of the industrial sector in the Emirate of Abu Dhabi.
- Boost the manufacturing entity productivity in the Emirate of Abu Dhabi by encouraging technological transformation.
- Improve the efficiency of energy usage in the Emirate of Abu Dhabi.
Description of program
The scoring criteria of the program for Manufacturing Entities which are in operation/production (I.e., industries that have a production license) for more than six months from the date of issue of the production/operational license from ADDED is as follows:
Criteria for ETIP
Several criteria are set for ETIP scoring for electricity and gas incentives. There are variations in the requirements for existing and new manufacturing entities.
For economic impact (50% weightage), the following attributes are considered:
- Investment in Abu Dhabi.
- Investment top-up score.
- Emiratization; (For existing manufacturers)
- Skilled Employment; (For existing manufacturer)
- Supply Chain. (For existing manufacturers)
For New Companies
For existing companies
AD Logistics Criteria (For new entities)
The weight of supply chain criteria concerning the total score is 30%. The AD Logistics Criteria is part of the Economic Impact evaluation for Existing Companies.
Productivity refers to how well an organization converts input (such as labour, materials, machines, and capital) into outputs. The productivity will be based on the value addition done by the manufacturing entity based on the total number of employees. Weightage is 30%.
Connection load and Energy Management System (Electricity)
The manufacturing entity will scan and submit its site power connection details forum and Single Line Diagram for Connectivity load. If the site is distribution connected for power, the connected load can be greater than equal to or less than 5MW as stated in ADDC/AADC Site. Regardless of their connection load, manufacturing entities can be considered in the ETIP. Weightage is 20%.
Demand side management (Gas)
The applicants forecasted demand for Gas consumption submitted to AD ports is compared with the actual consumption for the scoring criteria. Weightage is 20%.
Stakeholders’ Roles and Responsibilities
There are four key stakeholders in the Energy Tariff Incentive Program. The four stakeholders and their roles and responsibilities are listed below:
How can we help
As a certifying body (CB) for the ETIP program, we can guide the entity through the entire process and help enroll the program. We will advise you on best practices to improve your score.
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