The Abu Dhabi Economic Development Department (ADDED) has announced the expansion of the Electricity Tariffs Incentive Program which Lunched in 2019 to include industrial SMEs to join the program once they meet the criteria, in an effort to encourage the use of the developed logistic infrastructure of Abu Dhabi,to create a supportive eco-system.
The Abu Dhabi Economic Development Department (ADDED) has announced the expansion of the Electricity Tariffs Incentive Program which Lunched in 2019 to include industrial SMEsto join the program once they meet the criteria, in an effort to encourage the use of the developed logistic infrastructure of Abu Dhabi,to create a supportive eco-system.
The ETIP, come as part of the initiatives of the Abu Dhabi Development Accelerators “Ghadan 21”, with the aim of increasing the capital of industrial facilities. In addition, it will enable the factories to develop their industrial products and increase their value in the local market and promoting their ability to compete in the regional and international markets.
His Excellency (HE) Rashid Abdul Karim Al Blooshi, the Undersecretary of ADDED, confirmed that DED’s Industrial Development bureau, seeks to raise the awareness of these manufacturing facilities about adopting energy management and sustainability standards, in collaboration with the strategic partners of the Department, in order to enhance their contribution to the emirate’s GDP.
He also added that ETIP, aims at reducing the operation costs in the industrial sector, boosting productivity, increasing the competitiveness of the industrial products, and encouraging technological transformation within the sector. ETIP will also raise the efficiency of energy use, helping to provide competitive prices for the electricity tariff to the industrial facilities while fulfilling the conditions and criteria.
The Industrial Development bureau, has issued 51 registered certificates for the industrial facilities in Abu Dhabi, as part of the second year of the program. ETIP have contributed in increasing the return rate by 25% on the investments of those facilities, while the manufacturers have benefited from AED 610 million in benefits and incentives granted by the Abu Dhabi Government.
Due to the benefits of ETIP, the productivity rate of the factories, which have obtained this certificate of ETIP, has already increased by 14%. This data demonstrates the impact of the initiative, as it has enhanced the productivity of the industrial facilities and ensured its stability and resilience of their works by reducing their financial burdens, especially under the implications of the current COVID-19 crisis.
HE Rashid Abdul Karim Al Blooshi added, “ETIP is aligned with the vision and mission of the Abu Dhabi Government, which aims to enhance the emirate’s competitiveness globally As well as creating new investment opportunities that support the emirate’s local economy ecosystem in non-oil sectors, providing it with the highest sustainability standards and operational efficiency”.
His Excellency indicated that “The success of ETIP, reflects the cooperation and strategic partnership between ADDED and the distribution companies (Abu Dhabi and Al Ain), as well as the industrial sector facilities throughout Abu Dhabi. These partnerships support the contribution of the industrial sector to the non-oil GDP and may attract further industrial investments by providing incentives and initiatives that promote the continuing of business practices in Abu Dhabi.”
HE Rashid Al Blooshi confirmed that the Industrial Development bureau is committed to continuing the rollout of ETIP by encouraging SMEs within Abu Dhabi in order to benefit from the advantages of the program.
ETIP includes a measurement system that identifies the categories and the amount due for each category of the tariff. These measurements will be reviewed and evaluated through a specific process led by a group of specialized companies. While protecting investors from the fluctuations of energy prices, this tariff will simultaneously contribute to supporting the industrial sector as a key driver for the long-term growth and sustainable economic development in the emirate.