As part of its commitment to regulate the energy sector in Abu Dhabi by issuing policies and regulations that enhance energy efficiency in building cooling, the Abu Dhabi Department of Energy (DoE) is licensing District Cooling Retailers. The license covers all activities related to purchasing district cooling services from district cooling providers and reselling them to end-users.
His Excellency Engineer Ahmed Mohammed Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy, stated: “The regulatory framework for district cooling services includes requirements for retail services licensing, aiming to protect consumer rights and regulate the operations of retailers and distributors of cooling services to ensure the highest levels of transparency and competitiveness.”
He added: “We are committed to developing and issuing policies, frameworks, and regulations in line with the highest global standards in the cooling sector to meet increasing demand, continuously improve service quality, and provide innovative solutions that support sustainability and align with future aspirations.”
According to the regulations, all District Cooling Retailers must apply for the necessary license as part of the regulatory framework for district cooling services through the DoE Unified Platform before 31 January 2025.
The licensing of the retail sector aims to streamline processes, focus primarily on the consumer, support sustainable practices, enhance energy efficiency, and contribute to economic growth in Abu Dhabi.
District Cooling Retailers are entities that receive cooling energy from District Cooling Providers to resell it to end-users, either directly or through one or more agents handling billing, metering, and collection services.
District cooling systems are widely recognized as the most efficient and environmentally sustainable cooling solution, reducing electricity consumption compared to conventional cooling systems. They also produce lower carbon dioxide emissions at fossil fuel-powered electricity generation plants. Additionally, district cooling is particularly effective for medium- to high-density residential and commercial complexes.
District cooling is a centralized system that generates and distributes cooling energy via insulated underground pipes to multiple buildings. It is commonly utilized in commercial buildings, mixed-use developments, and areas with relatively high population densities.
