Abu Dhabi has introduced a new licensing framework for energy aggregator companies. The Department of Energy (DoE) announced the programme on 9 November 2026, following the strong results of its 2025 Demand Response Pilot Project.
The new framework creates a regulated route for companies that help businesses manage and adjust their electricity use during periods of high demand. It is an important step towards improving energy efficiency and creating new commercial opportunities in Abu Dhabi’s energy sector.
Demand Response Pilot Delivers Strong Results
The new licensing programme follows positive results from the 2025 Demand Response Pilot Project. More than 30 businesses and organisations took part. These included companies from the metals, refining, cement, industrial gases, logistics, commercial buildings and district cooling sectors.
The pilot achieved an average electricity load reduction of 251 megawatts (MW) in 2025. This was a clear increase from 106 MW in 2024. The highest recorded reduction reached 401 MW, while participants provided more than 408 MW of flexible capacity.
The project also reduced electricity use during peak periods by around 27 gigawatt-hours (GWh). It helped avoid an estimated 4,000 tonnes of carbon dioxide equivalent emissions.
Businesses that took part in the pilot received financial incentives through credits on their electricity bills from TAQA Distribution. However, these benefits were linked to pilot participation. Other businesses should not assume that they will receive the same credits automatically.
How Energy Aggregator Companies Will Work
An energy aggregator brings together the electricity demand of several businesses. It works with customers that can reduce or adjust some of their electricity use when demand on the network is high.
For example, a factory, commercial building or district cooling operator may be able to change part of its electricity use during certain periods. An aggregator combines the available flexibility from different customers and helps manage it as one resource.
The new framework provides a regulatory route for companies that want to offer these services in Abu Dhabi. It also supports a more organised market for demand response activities.
The programme is mainly relevant to energy service providers interested in becoming aggregators and large electricity users that may take part in demand response schemes. It does not mean that every business in Abu Dhabi must apply for an aggregator licence.
Building on Abu Dhabi’s Energy Strategy
The announcement supports Abu Dhabi’s wider Energy and Water Efficiency Strategy 2030, which was launched in 2019. It also builds on the Demand Response Policy and Regulatory Framework issued in 2022.
The DoE is also exploring the use of artificial intelligence and virtual power plants with Emirates Water and Electricity Company (EWEC) and other stakeholders. These technologies could help improve the way electricity demand is managed in the future.
This work shows the emirate’s continued focus on using energy more efficiently and making better use of its existing electricity network.
What Businesses Should Do Now
Companies interested in entering the energy aggregation market should review the relevant DoE licensing requirements before starting regulated activities. They should also assess their financial position, business structure and ability to meet applicable regulatory duties.
Industrial and commercial businesses considering participation should review their electricity use and understand the terms of any demand response programme. They should also check whether they can adjust energy consumption without affecting essential operations. Ignoring licensing rules, customer consent requirements or data protection duties can expose businesses to compliance risks.
Good financial planning will also be important as companies assess the costs and potential returns of new energy-related activities. Budgeting and forecasting, accurate accounting and bookkeeping, and reliable financial reporting can help businesses understand their costs and make informed decisions.
Dubai Business and Tax Advisors (DBTA) supports businesses with business advisory, accounting, bookkeeping, financial reporting, budgeting and forecasting, and tax compliance services. Its ACCA-qualified team helps companies maintain sound financial records, manage compliance responsibilities and plan for business growth.
Abu Dhabi’s new framework creates opportunities for businesses involved in energy management. Companies that understand the licensing requirements and prepare their financial and operational plans early will be in a stronger position to assess these opportunities.
