Case
Teaching Notes
Supplementary Resources
Abstract
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), has a dream for the future of the United Arab Emirates (UAE) that involves renewable energy significantly contributing to the energy mix of the country. Shams Dubai was launched as a smart initiative to connect solar energy to buildings, a part of the Distributed Renewable Resources Generation programme. The case encourages students to analyze the business process, innovation, and value chain of Shams Dubai. It highlights the viability of the process of expanding renewable energy in the context of the UAE and discusses the current and long-term effectiveness of Shams Dubai. The business question deals with the scalability of Shams Dubai and addresses the concern of the strategic planning head, Mr. Ahmad, in meeting the Demand Side Management targets of 2030. Another business question involves the feasibility of Shams Dubai meeting the objectives of individuals and organizations in the installation of solar rooftops.
Shams Dubai was launched in 2014 in response to Executive Council Resolution 46 that called for the connection of solar energy to the distribution grid of Dubai. Dubai Government’s Supreme Council of Energy had set a target of renewable energy supplying 1% of Dubai’s energy mix by 2020 and 5% by 2030 under the Dubai Integrated Energy Strategy 2030 plan. Initial results are encouraging and suggest that this project will be successful. It will be interesting to see if sustainable growth of Shams Dubai and the Demand Side Management strategy is realized. Will the targets of 2030 and 2050 be met? Will the policy mechanisms and stakeholder structures that have been put in place be sufficiently robust to drive this in the future? Is Shams Dubai viable, and will it meet the objectives of a sustainable future for the UAE?
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Appendix A: List of Abbreviations
| DEWA | Dubai Water and Electricity Board |
| PV | Photovoltaic |
| DIES | Dubai Integrated Energy Strategy 2030 |
| GCC | Gulf Cooperation Council |
| TW-h | Terawatt-hours |
| KWh | Kilowatt hour |
| CSP | Concentrated Solar Power |
| RE | Renewable Energy |
| DSM | Demand Side Management |
| DSCE | Dubai Supreme Council for Energy |
| nZEB | Near Zero Energy Building |
| DGBR | Dubai Government building regulation |
| EUI | Energy Use Intensities |
| ESCO | Energy Service Company |
| EPS | Energy Performance Services |
| MEPS | Minimum Energy performance standards |
| ESMA | Emirates Standards and Measuring Authority |
| TSE | Treated Sewage Effluent |
| DM | Dubai Municipality |
| RTA | Road and Transport Authority |
| GWh | Giga Watt hours |
Appendix B: List of Dubai Demand Side Management programs and targets
| DSM program | Program owner | Primary target areas | 2030 targets, electricity | 2030 targets, water | ||
| TWh | % of total DSM consumption savings | BIG | % of total DSM consumption savings | |||
| Building Regulations | Dubai Municipality | Full implementation of DGBRS 2010 in new buildings and update regulations to increase electricity and water savings | 5.13 | 26.75 | 14.95 | 32.3 |
| Building Retrofits | Etihad Energy Services | Reducing the energy intensity of 30,000 bukiding by 2030 | 1.68 | 8.77 | 5.64 | 12.19 |
| District Cooling | Etihad Energy Services | Raising District cooling to 40% of the cooling market by 2030 | 3.36 | 17.52 | - | - |
| Standards and Labels for Appliances and Equipment | Emirates Authority for standardization and metrology | Develop, implement, and update water and electricity efficiency standards and labels for high consuming appliances in the UAE | 4.19 | 21.84 | 8.07 | 17.43 |
| Water Reuse and Efficient Irrigation | Dubai Municipality | Irrigate public areas using TSE, implementing efficiency measures in Dubai’s green areas | - | - | 8.06 | 17.41 |
| Outdoor Lighting | Roads and Transport Authority | Adopting high-efficiency lighting in roads and public areas in new installations and retrofitting existing ones | 0.22 | 1.15 | - | - |
| Tariff Rates | Dubai Electricity and Water Authority | Using price signaling as a tool to induce and develop dynamic consumer behavior with respect to water and electricity consumption. | 4.6 | 23.96 | 9.56 | 20.65 |
| Shams Dubai | Etihad Energy Services | Encourage the usage of solar photovoltaic systems by home and building owners | ||||
Appendix C: Input and Output Parameters in Shams Calculator
| Parameter | Details | Notes |
| Sustainability Score (output) | Numeric measure of the potential of a building roof for electricity generation | On a scale of 1-5. |
| Savings on Electricity Charges (output) | If users are registered as DEWA customers, they get to know how much can be saved. | Only for DEWA customers |
| Avoided Carbon Emission (output) | The estimated reduction in Carbon Footprint. | Based on Dubai emission factor: 1 MWh of electricity generated with the current production mix equals to 424.1 kilograms of carbon dioxide |
| Trees Grown (output) | Another way to express carbon footprint | 1000 kg of carbon dioxide is equivalent to 25.92 tree seedlings grown for 10 years. |
| Estimated Electricity Production (output) | Insolation is expressed in kWh/m2 of installed solar panel | Calculated for each individual solar panel and aggregate the total amount. |
| Modifiable parameters (input) | Several parameters of solar panel installation can be modified. | Solar panel number; Solar panel orientation; Solar panel angle or tilt (expressed in degrees from the horizon); Spacing between the rows of the solar panels; Solar panel efficiency |
Source: Author’s understanding from DEWA calculator (Dubai Electricity and Water Authority, 2019b)
Appendix D: List of Major Projects by Shams Dubai
| Project Title | Location and Premise | Project Model | Execution Model: Executed by | Model Led by: |
| Year: 2018
 | Mai Dubai Bottling Factory
 | Direct ownership -DEWA
 | Enerwhere
 |
 |
| Year: 2018
 | Al-Wasl Residential Properties
 | Five years guaranteed savings | Smart Automation Energy
 |
 |
| Year: 2018
 | Aramex Building
 | Direct ownership- ARAMEX
 | IMG Solar FZE
 | |
| Year 2019
 | Al Barakah Dates Factory
 | 20 years lease with
 | Enviromena Power Systems
 | |
| Year 2017
 | RSA Global
 | 15 year lease agreement with
 | SirajPower
 | |
Source: Data from Taqati Annual Report 2018 and other sources. Author compiled.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
