ABU DHABI, (Pakistan Point News - 28th Sep, 2021) The Abu Dhabi Economic Development Department (ADDED) has announced the expansion of the Electricity Tariffs Incentive Programme (ETIP), launched in 2019 for industrial SMEs to join the programme once they meet the criteria, to encourage the use of the developed logistic infrastructure of Abu Dhabi to create a supportive eco-system.
The ETIP comes as part of the Abu Dhabi Development Accelerators "Ghadan 21" initiatives to increase the capital of industrial facilities. In addition, it will enable the factories to develop their industrial products and grow their value in the local market while promoting their ability to compete in the regional and international markets.
Rashid Abdul Karim Al Blooshi, the Under-Secretary of ADDED, confirmed that the Industrial Development Bureau of ADDED seeks to raise the awareness of these manufacturing facilities about energy management and sustainability standards, in collaboration with the strategic partners of the department, to enhance their contribution to the emirate’s GDP.
He also added that ETIP aims to reduce the operating costs in the industrial sector, boost productivity, increase the competitiveness of the industrial products, and encourage technological transformation within the sector.
ETIP will also raise energy use efficiency by 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 programme’s second year. ETIP has contributed to increasing the return rate by 25 percent on the investments of those facilities. In contrast, the manufacturers have benefitted from AED610 million in benefits and incentives granted by the Abu Dhabi Government.
The productivity rate of the factories, which have obtained this certificate of ETIP, has already increased by 14 percent. This data demonstrates the initiative’s impact, as it has enhanced the productivity of the industrial facilities and ensured its stability.
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 and create 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."
"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," he indicated.
He confirmed that the Industrial Development Bureau is committed to continuing the rollout of ETIP by encouraging SMEs within Abu Dhabi to benefit from the programme.
ETIP includes a measurement system that identifies the categories and the amount due for each tariff category. These measurements will be reviewed and evaluated through a specific process led by a group of specialised companies. While protecting investors from the fluctuations of energy prices, this tariff will simultaneously support the industrial sector as a critical driver for long-term growth and sustainable economic development in the emirate.
