Electricity Tariff Incentive Program (ETIP)
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 (DED).
The program was initiated to promote Abu Dhabi’s vision of productivity, efficiency, transparency, and long-term clarity.
Primary objectives of ETIP:
Enhancing Economic impact of the industrial sector in the Emirates of Abu Dhabi
Boosting factories productivity in the Emirates of Abu Dhabi
Improve the efficiency of energy use
Why Energy Tariff Incentive Program (ETIP)
- The Energy Tariff Incentive Program (ETIP) aims to reduce the ambiguity surrounding electricity and gas prices and additional expenses on operations in the past years by providing discounted electricity and gas tariff rates. Thus, solving some of the significant issues faced by the manufacturing companies in the emirate of Abu Dhabi and positively impacting their competitiveness.
- This program is designed to enable companies to reduce operational costs and invest their savings towards R&D and further expansions by obtaining reduced tariffs based on the achievement of the program.
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.
- Skilled Employment; (For existing manufacturer)
- Supply Chain. (For existing manufacturers)
Productivity Criteria (for existing manufacturing entities)
Productivity denotes 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%.
Supply Chain Support (For new manufacturing entities)
The Supply Chain aims to build a robust value chain across the logistics sector and its contribution by the industrial sector in the Emirate of Abu Dhabi. 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%.
Critical considerations in ETIP Certification
- All entities under industrial licenses (in Abu Dhabi, excluding Free Zones) are eligible to participate in the program.
- Audited financial statements of the last financial year are required and should not be older than 18 months from the date of application.
- Separate financial statements are required for each factory. Each certificate is issued based on one industrial license only.
- A minimum score of 50 points is required to enroll in the program.
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