The Abu Dhabi Department of Energy (DoE) launched on Wednesday the emirate's waste-to-energy policy to support Abu Dhabi's transition towards a more sustainable and circular economy.

Abu Dhabi's Policy for Energy Production from Waste (EFW), according to a DoE statement, outlines a set of relevant procedures, namely, coordinating between the energy and waste management sectors in Abu Dhabi; developing and selecting waste-to-energy projects; setting processes to cover costs and set prices for energy generated at waste-to-energy power plants; licensing, regulating, and monitoring waste-to-energy power plants; and outlining the Emirates Water and Electricity Company's (EWEC) commitments.

The Policy, the statement said, emphaises fair and proportionate allocation of the recovery of EFW costs to waste and energy end-users, economic efficiency and emissions reduction technology.

As for the allocation mechanism for EFW cost recovery from the energy sector, the Policy clarifies that it should be based on an approach that estimates the energy sector's avoided costs from EFW electricity. The price for electricity from EFW is determined by the Long Run Marginal Cost (LRMC) of the Energy Sector avoidable costs from EFW electricity.

As per the Policy, EWEC is required to provide a report for the EFW energy LRMC estimate to the DoE for approval. The DoE must also approve EWEC's requirements to move forward with these projects.

(Writing by Syed Ameen Kader; Editing by Anoop Menon)


Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021