In September 2019, following extensive consultation with the Energy Sector stakeholders providing district cooling services (“DC Services“) within Abu Dhabi, the Department of Energy (“DoE”) issued the District Cooling Regulations and the District Cooling Applicability Regulations (together the “DC Regulations”) to introduce the licensing and regulatory regime for all existing and new district cooling schemes.

In recognition of the pre-existing operation of DC Services prior to the DoE’s issue and publication of the DC Regulations, the DoE conducts detailed grandfathering reviews of existing district cooling schemes (during the licensing process) to enable transitional regimes and continuation of legacy commercial terms, subject to individual assessment and in the best interests of the Energy Sector.

As part of the DoE’s mandate to regulate DC Services through the licensing of entities and monitoring of their compliance with quality standards, the grace period granted by the DoE to enable those entities undertaking DC Services to familiarize themselves with, and apply the regulatory requirements, will end on 31 March 2023. 

The DoE reserves the right to apply administrative and legal measures, including but not limited to, the withdrawal of any future grandfathering reviews, issue of warning notices with required remedial steps and application of financial penalties, against any entity which is unable or unwilling to comply with the DC Regulations and submit licensing applications to obtain the appropriate district cooling licence by 31 March 2023.

For more information click here, or contact the DoE on (Licence@doe.gov.ae)