Abu Dhabi Energy issues a new license for “retail cooling” service providers

The Department of Energy in Abu Dhabi issued a new license for retail district cooling service providers, which includes all activities related to the purchase of district cooling services by the buyer and their resale to end users, as part of the Department’s ongoing efforts to regulate the energy sector in the Emirate of Abu Dhabi, by issuing legislation and policies that contribute to Achieving greater energy efficiency in cooling buildings.

The Undersecretary of the Department of Energy in Abu Dhabi, Engineer Ahmed Mohammed Al Rumaithi, confirmed that the regulations for district cooling services include requirements for licensing retail services, and aim to protect the rights of consumers and regulate the work of merchants and distributors of cooling services, ensuring the highest levels of transparency and competition.

He said that the department is committed to developing and issuing new policies, rules and regulations in accordance with the highest international standards in the refrigeration sector, in order to meet the growing demand, and to continuously strive to improve the quality of services and provide innovative solutions that support sustainability and keep pace with the aspirations of the future.

According to the new regulations, all retail district cooling service providers must apply for the necessary license as part of the regulatory framework for district cooling services, through the DoE Unified Platform before January 31, 2025.

The retail services sector license comes to facilitate procedures, focus primarily on the consumer, support sustainable practices and energy efficiency, and promote economic growth in Abu Dhabi.

Retail district cooling service providers mean the entity that receives cooling energy from a wholesale supplier for the purpose of reselling it to final customers, whether directly or through one or more agents who provide billing, measurement and collection services.

District cooling systems are considered the most appropriate and effective option for preserving the environment, as they contribute to reducing electrical energy consumption compared to traditional cooling systems, in addition to their low levels of carbon dioxide emission in electric power production plants operating on fossil fuels.

District cooling systems are also considered more efficient in medium- and high-density residential complexes and locations.

It is noteworthy that “district cooling” is a central production and distribution system for cooling energy through an insulated underground pipe network that serves a different group of buildings, and is usually used to cool commercial buildings, mixed-use buildings and areas with relatively high population density.