Dubai has begun a programme to improve the energy efficiency of 100 government buildings, retrofitting appliances such as air conditioning units and lighting to reduce their energy consumption.

Government buildings in Dubai use 10 per cent of the emirate’s energy generation, but are considered inefficient. Of the energy used by a building, 60-80 per cent is consumed by air conditioning and about 15 per cent by lights.

Speaking to MEED at the Dubai Clean Energy forum, Hany Ayesh, director of Etihad Energy Services Company, said: “I cannot imagine retrofitting any building without touching at least lighting and air conditioning.”

Funding for the improvements has come from a mix of seed capital from Dubai Electricity & Water Authority (Dewa), with additional money supplied as bank loans. This money pays for the building improvements, which is then repaid through the savings from reduced energy bills.

“The savings are quantified and you will see the savings in your bill. But the customer will then see an invoice for the agreed amount. It is basically like a lease payment, and that lease payment is used to pay off the principle,” said Ayesh.

The model is similar to ones used in major cities globally, such as London and New York.

“It makes sense for the Dubai market because it has the highest tariff rate among other Gulf countries. In some neighbouring countries, the tariffs are so low it wouldn’t justify the model,” added Ayesh.