Abu Dhabi launches energy aggregator licensing framework for demand flexibility

The Abu Dhabi Department of Energy has announced results of its 2025 Demand Response Pilot Project, which achieved an average electricity load reduction of 251MW and a maximum reduction of 401MW, with participation from more than 30 entities across the emirate's economic sectors. The project reduces electricity consumption during peak periods by approximately 27GWh and avoided an estimated 4,000 tonnes of carbon dioxide equivalent emissions. Participants received financial incentives in the form of credits applied to electricity bills issued by TAQA Distribution. A comprehensive, regulated energy aggregator licensing programme is now being launched as part of the Load Management Programme under the Abu Dhabi Energy and Water Efficiency Strategy 2030. The framework enables the licensing and operation of energy aggregator companies while protecting consumers. Entities from metals, refining, cement, industrial gases, logistics, commercial buildings and district cooling sectors participated in pilot phases. The DoE is also exploring the use of artificial intelligence and virtual power plants to further improve electricity demand flexibility in collaboration with Emirates Water and Electricity Company.