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Retrofit project to lift Jafza's energy efficiency

The project is likely to result into energy savings worth Dh132 million, and add to efforts aimed at making Jebel Ali Free Zone (Jafza) the most energy efficient business hub in the world.

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The project will make Jafza the most energy efficient business hub in the Middle East.
The project will make Jafza the most energy efficient business hub in the Middle East.

Economic Zones World (EZW) has signed a deal to retrofit DEWA’s Etihad ESCO existing buildings and facilities to make them more energy efficient.

The project is likely to result into energy savings worth Dh132 million, and add to efforts aimed at making Jebel Ali Free Zone (Jafza) the most energy efficient business hub in the Middle East.

The first phase of the project comprises energy retrofit of 157 staff accommodation buildings in Jafza and includes replacement of 5000 old air conditioners with highly efficient split units; 85,000 old light fixtures with high efficiency LEDs and 31,000 old water fixtures with new efficient water units.

“The utility cost is the second largest expense for Jafza. The power and water consumption level in Jafza crossed 75 million KWh and 750 million IG per year respectively,” said HE Sultan Ahmed Bin Sulayem, Chairman of DP World and Ports, Customs and Free Zone Corporation.

“As a pioneering Free Zone and top business hub, we felt the urgent need to make our old commercial and residential buildings more energy efficient.”

He said that as a result, EZW and Etihad Energy, a subsidiary of DEWA, developed a detailed technical scope for an energy conservation project in Jafza and invited top licensed and certified specialists to participate.

Etihad ESCO was selected for exhibiting viable Energy Conservation Measures (ECMs) to achieve an average consumption savings of 28% of power, 36% of water while reducing carbon footprint by 75,000 tons during the six year project.

“It is the largest energy retrofit project in the entire Middle East. I consider this initiative to be a major step forward in making EXPO 2020 in Dubai a grand success since sustainability is one of the key components of the upcoming global event,” said Bin Sulayem.

The seven year EZW-Etihad ESCO contract includes one year for the project retrofit and 6 years for implementation. The project will generate a net saving of 30% worth AED 132 million over 6-years period. The project will be funded by Etihad ESCO through sharia compliant financing from National Bonds Corporation. The repayment (including financing cost) will be met from the guaranteed savings over the 6 years project period.

The guaranteed savings over 6 years period will include the savings of 158 GWh (28%) in electricity consumption and 1.2 billion IG (36%) in water consumption, which together amounts to net 30% savings worth AED 132 million.

The project will result in the reduction of 75,000 tons of carbon emission into the atmosphere.

“The combined average savings in power and water consumption is 30%, which is fully in line with the recently announced the UAE and Dubai Government’s energy conservation strategy that seeks to reduce overall energy consumption to 30% by the end of 2030,” said Bin Sulayem.

The current retrofit project in Jafza will, therefore, make the Free Zone the first organization in the UAE to comply with the provisions of national energy conservation strategy far ahead of time.”

Jafza has continuously implemented green initiatives over the years. Specific measures undertaken by Jafza to save energy include the installation of timer controlled devices and photocells in parking areas, corridors and other parts of the buildings as well as replacement of old lighting fixtures with LED in Jafza buildings.

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