Dubai’s Jebel Ali Free Zone Authority (Jafza) has initiated an energy efficiency programme that will save 30 per cent of its utility cost, or some AED132m ($36m), over a six-year period.

The initial phase of the project comprises extensive retrofit work for some 157 staff accommodations. Jafza will be replacing 5,000 oil air-conditioning units (AC) with split units, 85,000 old light fixtures with LED lights, and 31,000 water fixtures with water-efficient units.

According to a report by state-controlled Emirates News Agency (Wam), the memorandum of understanding (MoU) signed between Economic Zones World, operator of Jafza, and Etihad Energy Savings Company (Esco), an arm of utility Dubai Electricity & Water Authority (Dewa), is for seven years, which includes one year for the retrofit project and six years for implementation.

Etihad Esco will be utilising sharia-compliant financing from the local National Bonds Corporation to finance the scheme. The repayment, Wam reported, will be met from the guaranteed savings over the six-year project period.

The programme aligns with Jafza’s strategic goal to become the most energy-efficient business hub in the region.

In a statement, Sultan Ahmed bin Sulayem, chairman of DP World, the parent company of Jafza, confirmed that the utility cost is Jafza’s second-largest expense. The annual power and water consumption level at the free zone has crossed 75 million kilowatt hours (kWh) and 750 million imperial gallons respectively.

“We felt an urgent need to make our old commercial and residential buildings more energy-efficient… We selected Etihad Esco… to achieve an average consumption saving of 28 per cent of power and 36 per cent of water, while reducing our carbon footprint by 75,000 tonnes during the six-year project,” said Bin Sulayem. “It is the largest energy retrofit project in the entire Middle East.”