You are on page 1of 20

ANNUAL WORK PLAN AND FIVE -YEAR SECTOR TIMELINE 2011-2015

Statement of intent
Our Annual Work Plan for 2011 sets out our main objectives for the year and seeks to illustrate our unique role in the water, wastewater and electricity Sector. As with previous years, we have included a strategic element in our forward work plans which, in a number of cases, help support the Sectors long term vision and more immediate five-year timeline objectives.

Part 1 Strategy in mind

Page 1

In this section, we list strategic projects sponsored directly by the Bureau which may have an impact on the Sector in the future. In most cases, these will require the co-operation of various licence holders. Costs, where incurred, will be allocated to the Sector, rather than individual licence holders.

Part 2 Five-year timelines

Page 5

The electricity, water and wastewater timelines show how the Sector intends to meet demand requirements in these areas over the next five years.

Part 3 Key work streams

Page 9

These form the bulk of our work for 2011 and are more concerned with operational/regulatory matters than strategic ones. Our work is driven by the needs of the Sector and Sector Customers who expect a reliable and value-for-money service at all times, so what we do matters. As a result, our work, both in the Sector and the greater community, takes on an increasingly important role in ensuring we provide suitable regulations and guidance for the future. Welcome to our 2011 Work Plan.

Nick Carter
Director General

PART 1

Strategy in mind

ANNUAL WORK PLAN 2011

Strategy in mind
Water usage
Although consumption of water in the UAE is high, less than 20 percent of the total water delivered to the transmission system is Returned to Sewer (RTS). This means that over 80 percent ends up on the ground, mainly through irrigation. Our goal is to encourage a more efficient usage of water and increase the amount recaptured after use.

Smart grids
Smart Grid relates to the concept of building more intelligence into our power networks to enable the Sector to benefit from the introduction of a range of embedded generation technologies, monitoring, control and power storage. The purpose of smart grids is to manage more efficiently the generating capacity, particularly at peak demand time. It is a complex system that works well when fully integrated and we intend to work with all licence holders concerned to produce a range of operating and connection standards to be known as Smart Grid Operating Codes and Standards. A consultation document will be produced this year.

Demand Side Management (DSM)


DSM comprises a range of measures that aim to modify or reduce customers energy demand. DSM, smart grids and variable generation all have an impact on grid stability and generation expansion. Given the importance of reducing peak-load quickly, the Bureau will seek to identify suitable DSM options and fast-track pilot studies to verify their effectiveness. This may include direct or indirect control of loads, such as air conditioning, with the objective of moving the demand away from the peak period. We will work closely with other government entities and sector licence holders to implement such DSM measures. We are aiming at a reduction of 250 MW in system peak by the end of 2012, approximately 3.5 percent of the 2010 peak demand.

GCC Grid
2011 will see the next phase of this existing project that will link the Gulf Cooperation Council (GCC) national power grids with the UAE. Our role entails facilitating the transmission system interconnections with the other transmission network operators. We will review the Interconnection Codes and the Power Exchange and Trading Agreements to ensure compliance with Abu Dhabi electricity sector legislation. Additionally, we must ensure that the expected benefits of the interconnection are achieved in terms of emergency support, saving of generation installed capacity and the development of a regional electricity market, based on economic power transfer.

ANNUAL WORK PLAN 2011

Strategy in mind
Energy purchasing trials
A sample number of volunteer customers will be provided with electronic displays to enable them to utilise time-of-day electricity pricing. For example, buying electricity in the evening would be cheaper than in the afternoon. Customers living in large premises will form the main sample. This work will build on the trials recently undertaken elsewhere in the world.

Awareness campaign on the value of resources


At the end of 2010, we embarked on a communications campaign to pave the way for better awareness of the value of water and electricity. An integral part of this on-going project is the redesign of utilities bills. The newlook bill will accommodate specific information to show the large gap between what customers pay and the actual cost of getting water and power to them. A key component for increased awareness is the change in the billing unit of water from gallons to cubic metres (1,000 litres), so as to help customers visualise the amount of water they use.

Power Wise and Water Wise


In 2011, the Bureau will create two new offices named Power Wise and Water Wise to promote the efficient use and conservation of electricity and water. Their primary aims will be to help customers, especially large users, reduce consumption and, more importantly, use water and electricity wisely. Power Wise and Water Wise will also work closely with other Abu Dhabi government entities, such as the Depar tment of Municipal Affairs, Urban Planning Council and the Environment Agency - Abu Dhabi, in promoting an awareness of the impor tance of using water and electricity in a sustainable way.

Pre-payment schemes
The energy costs associated with apartment occupancy tends to be fairly constant; given most air conditioning is central and paid by landlords. The cost to serve such customers by a distribution company are high, compared with a customers income. Therefore, we intend to work with one of the distribution companies to install pre-paid meters in a number of premises (apartments/ flats). The trial will last for at least a year and will provide an opportunity to look to install pre-paid meters, as a norm, in high-rise buildings.

ANNUAL WORK PLAN 2011

Strategy in mind
Variable generation
As the Emirate adopts new generation strategies and seeks to diversify away from traditional only generation, the need to integrate intermittent generation such as solar or wind power is important. Intermittent resources are fundamentally different to fossil-fuel resources in that their primary fuel (solar, wind, etc) is not storable (gas or oil are). Therefore,TRANSCO and the distribution companies will be required to adopt a different approach to the control and operation of large-scale intermittent generation over the coming years. Our role in this area is to ensure that suitable probabilistic models and control systems are established by TRANSCO, AADC and ADDC, and that grid distribution access codes are modified to reflect this new reality.

ANNUAL WORK PLAN 2011

PART 2

Five-year timelines

ANNUAL WORK PLAN 2011

Power

2011

2012

2013

2014

2015

Generation
Conventional - Completion of S2 at Shuweihat - Fujairah F1 extension (2 Qidfa GTs) - Al Zawra - relocation of 4 gas turbines to Al Gharbia - Construction of S3 at Shuweihat - Evaluation and construction of a new power station Other energy sources - Shams 1- concentrated solar power - Photovoltaic (PV) - Hydrogen Plant Abu Dhabi (HPAD) - Energy from waste (evaluation)
100 MW 100 MW 100 MW 380 MW 1,511 MW 200 MW 400 MW 500 MW 150 MW 900 MW 1,950 MW

Available generation capacity (MW*)


20,000 MW 17,500 MW 15,000 MW 12,500 MW 10,000 MW 7,500 MW 5,000 MW

Transmission and distribution


- Completion of three 400kV grid sub stations for Mahawi, Shamkha and Bahia - 400 kV connections to EMAL aluminium smelter at Taweelah - Construction of GCC grid connections - Provision of major electricity connections - Provision and commissioning of transmission grid to ICAD
All figures approximate * MW = megawatt To Saudi Arabia S2, Qidfa and Sweihan ICAD 400kV ADNOC at Ruwais ICAD 220KV ADNOC at Bab F3, HPAD Distribution works Second circuit

Sources: ADWEC 2010 Statement of Future Capacity Requirements 2010-2030 (draft) TRANSCOs 2010 draft Seven-year Planning Statement (2011-2017)

ANNUAL WORK PLAN 2011

Drinking water

2011

2012

2013

2014

2015

Desalination
- Completion of S2 at Shuweihat - Expansion of F1 - Mirfa expansion (refitting) - Evaluation of new plant A - Evaluation of new plant B
101 MGD 30 MGD 22.5 MGD 100 MGD 60 MGD

Available desalination capacity (MGD*)


1,300 MGD 1,000 MGD 943 943 1103 (P) 916 916

500 MGD

Transmission and distribution


- Fujairah to Al Ain phase 2 transmission scheme up to Al Hayer tanks - Transmission scheme from Fujairah line to Al Ain reception pumping station - Shuweihat transmission scheme upgrade - Major transmission schemes to Abu Dhabi Mina area , Reem, Sowa and Saadiyat Islands - Transmission scheme from Mussaffah to Abu Dhabi Island - Al Ain water distribution network (full pressurisation of system) - Water transmission scheme at Unit III pumping station - Upgrade of Fujairah transmission scheme (dependent on Fujairah F3) - Taweelah to Al Ain transmission scheme (dependent on Taweelah C upgrade)
All figures approximate *MGD = million gallons per day 100 MGD

100 MGD 100 MGD

75 MGD

75 MGD

100 MGD

100 MGD

60 MGD

Sources: ADWEC 2010 Statement of Future Capacity Requirements 2010-2030 (draft) TRANSCOs 2010 draft Seven-year Planning Statement (2011-2017)

ANNUAL WORK PLAN 2011

Wastewater

2011

2012

2013

2014

2015

Abu Dhabi Region


- Operation at ICAD plant - Etihad Biwater - phase 1 at Al Wathba (final commissioning and commence operation) - Veolia Besix - phase 2 at Al Wathba (under construction) - Proposed decommissioning of Mafraq - Membrane bio-reactors treatment plants
40 MLD

300 MLD

300 MLD -150 MLD 30 MLD -240 MLD -15 MLD

Al Ain Region
- Etihad Biwater - Phase 1 at Al Saad (final commissioning and commence operation) - Veolia Besix treatment plant at Bida Hamama (under construction) - Decommissioning of old Zakher plant - Decommissioning of temporary package plants
-10 MLD 80 MLD 130 MLD -99 MLD -5 MLD

Island developments
- Reem (new plants and long term evaluation of flow diversion to STEP) - Saadiyat (2 new plants and evaluation of flow diversion to STEP) - Yas (new plant and long term evaluation of flow diversion to STEP)
95 MLD 16.5 MLD 57 MLD 78 MLD

Strategic Tunnel Enhancement Programme (STEP) Wastewater treatment capacity (MLD*)


1,500

1,000

500

All figures approximate *MLD = megalitre per day

Source: ADSSCs AIS and Five-year Planning Statement 2009 and 2010

ANNUAL WORK PLAN 2011

PART 3

Key work streams

ANNUAL WORK PLAN 2011

Protecting customers interests


Gated communities
The Bureau will carry out an in-depth study on the way owners and operators of private networks provide utilities and operate within private residential compounds, tower buildings and commercial units, commonly known as gated communities. The objectives are to ensure a safe and economic provision of services to customers and to provide, if needed, regulatory guidance for developers and property owners.

Strengthen guaranteed customer service standards


An independent audit of the two distribution companies compliance with the guaranteed customer service standards showed that improvements must be made for individual standards to be met. Furthermore, end-to-end integration is insufficient and reporting of performance is incomplete and unreliable. We will work with both distribution companies to review and possibly revise the Code of Practice on Guaranteed and Overall Service Standards as well as the internal processes required to meet these standards. A guide for all stakeholders will also be produced. Additionally, we will work with the distribution companies so that they improve data collection and reliability of reporting on performance against the standards.

Water quality inspections


The Water Supply Regulations we issued in 2009 address the safety of potable water supplies in storage facilities, tanks and road tanker vehicles. This year, we will put in place an inspection and sampling scheme in a number of both small and large installations to monitor the effectiveness of the Regulations. The findings will help us determine whether a mechanism to improve compliance needs to be implemented.

Methodology for the charging of connections


As part of the overall focus on connections, this year we will work with the distribution companies to ensure that a connection charging methodology, issued by the Bureau in 2010, is implemented. This is a licence requirement and it will set out the basis upon which charges for connection to their distribution systems are made. The aim is to improve transparency and enable persons applying for a new connection to estimate the charges they can expect to pay.

10

ANNUAL WORK PLAN 2011

Improving performance
Implementation of plant audit regime
Effective plant maintenance is key to achieving power plant reliability and overall system resilience. This year, we will continue to examine the maintenance regimes and associated planned maintenance procedures of power plants to test the robustness and effectiveness of these in preventing plant breakdowns. We will also explore potential improvements and best practice that could maximise reliability and availability across the sector.

Load forecasting
Strategic system planning is crucial to ensure that efficient networks are developed to meet the needs of Abu Dhabi over the next few decades and beyond. For the moment the sector lacks a source of real historic data on actual demand for all categories of premises in Abu Dhabi. By working with the distribution companies, we will carry out load studies utilising data extracted from the new automated meter reading infrastructure, to help build a knowledge base of expected demand in the future.

Water supplies by tankers


Following an in-depth study of the practices in supplying water by tankers we carried out in 2010, the situation is found to be complex and, in many areas, unregulated. In 2011, we will follow-up on the recommendations we made in our study to ensure compliance of drinking water regulations at the point of end-use as well as the improvement in management, reporting and control processes for all categories of tankers and filling stations. A regulatory impact assessment may be included.

Wastewater security standards


Last year saw the approval of the first wastewater security standards following extensive consultation with ADSSC, the major sewerage services company in the Emirate. In 2011, we will work with ADSSC to refine these standards and develop a reporting mechanism based on key performance indicators. We will also begin to work with other sewerage service licensees in this important area.

Additional work streams


Assess achievement of economic despatch Contractor health & safety performance Connections process performance

ANNUAL WORK PLAN 2011

11

Investing wisely
Asset risk management review
The Emirate of Abu Dhabi invests heavily in its utility infrastructure. To avoid acute operation and maintenance shortcomings, it is essential that these assets are managed effectively from day one. This year, we will conduct an asset stewardship review to assess the way network assets are being managed. We will be considering how best practice is being embraced to minimise cost whilst maintaining performance and identify improvements for the network companies to adopt.

Reviewing the approach to setting price controls


In addition to reviewing capital expenditure for the period 2006 to 2009, we will look more broadly at our approach to setting price controls and regulating capital expenditure in the future. Our objectives will be to increase the incentives on licensees for efficiency, make sure that price controls properly reflect the importance of quality of service, take appropriate account of the Bureaus supervisory functions (such as those relating to safety), while not imposing undue burdens on licensees.

The capital efficiency of network companies


In making price control proposals for network companies (transmission, distribution and wastewater licensees) for the period 2006 to 2009, the Bureau made provisional allowances for network capital expenditure with a view to determining the efficient level of spending, once audited information was available on actual spending. The audited accounts and price control returns are now available for 2009 and we are recruiting expert technical consultants to assist with the assessment of efficient spending. The consultants are expected to start work in early 2011. As well as advising on the efficient level of spending to be allowed in the price controls, they will advise the licensees on how to improve their processes and procedures in future, to encourage efficiency and encourage good practices such as life-time costing.

Additional work streams


Approval of 2010 BST Exceptional Charges and 2012 BST Leaflet Approval of 2012 TUoS Charges Statement Approval of ADWECs 2011 Seven-Year Statement Cost benchmarking dataset review and annual report Review of 2011 AIS and TA Reports

12

ANNUAL WORK PLAN 2011

Fulfilling a regulatory role


Enforcing regulatory compliance
Ensuring compliance with the licences and Regulations we issue is essential. It is also crucial that enforcement procedures are transparent, fair and consistently applied. In 2011, we will develop a compliance framework that sets out the various stakeholders roles and responsibilities in cases of a breach of licence conditions. Furthermore, in recent years, we have issued an increasing number of Regulations.This has heightened the need to develop procedures for enforcing compliance with such Regulations, including channels of consultation with other Abu Dhabi regulatory bodies and Government departments. We will also be looking at creating and maintaining a register of enforcement actions taken by the Bureau.

High voltage operations appraisal


The safe operation of High Voltage (HV) networks requires a high degree of competency. Currently, there is insufficient control over the competence level of individuals and companies responsible for operating these assets in customers premises (e.g. factories and district cooling plants). We will therefore engage with licensees to ensure that operators of such networks are identified and their activities reviewed, to ensure compliance with the established requirements for operating and maintaining HV assets. A suitable training programme to raise competence levels and improve standards, where required, will also be identified.

Wastewater regulatory compliance


The Trade Effluent Control and Recycled Water and Biosolids Regulations were issued in June 2010. They set a legal framework for the safe, economic and sustainable collection, treatment and disposal of industrial wastewater produced in the Emirate, and provide a set of quality standards and management procedures for recycled water and biosolids reuse.This year, the Bureau will work with sector companies and stakeholders to ensure compliance programmes are in place, with key areas focused on review panel initiation, low-risk trade effluent, codes of practice and process mapping.

Promoting health and safety


The health and safety performance of the sector continues to fall short of best practice with significant numbers of accidents occurring. Since 2009, we have been assessing the four network companies health and safety procedures and this year we will work to build on the results, to ensure licence holders improve in this critical area. We will focus on consistent, sustainable and effective measures being introduced to deliver improved safety performance amongst licensees and their contractors.

ANNUAL WORK PLAN 2011

13

Planning for the future


Renewable energy assessment
The plan to have seven percent renewable energy sources by 2020 in Abu Dhabi will require the Bureau to assess a range of renewable generation technologies. As part of our licensing activity, we will evaluate the implications of connecting such sources to the power network as they have different characteristics from those of conventional power plants. Additionally, we will work to develop amendments to current regulatory policies, as required, to accommodate the envisaged mix of generation types.

Review costs of renewable energy projects


In 2011, we will continue to work on the economic level of tariffs for Masdars 10 MW photovoltaic plant and its proposed wind farm on Sir Bani Yas Island. This work enables the Bureau to provide a view to various Government agencies and the Sector as to the suitability, or otherwise, of the costs of these renewable energy technologies.

Roadmap for the introduction of nuclear stations


In its 2030 Vision, Abu Dhabi is committed to securing sufficient power for the Emirate as well as diversifying generation away from hydrocarbons to low-carbon technologies. The nuclear programme, led by Emirates Nuclear Energy Corporation (ENEC), is key, with 5.6 GW of nuclear power committed; the first phase of which is scheduled to become available in 2017. The Bureau will be responsible for assessing the impact of this significant additional power and its integration in the Abu Dhabi power network. This work will be aligned with the nuclear programme to establish a roadmap and key milestones to ensure its connection is consistent with maintaining overall system reliability. This work will also develop the necessary licence conditions for the connection of nuclear generation. We will also work closely with the Federal Authority for Nuclear Regulation (FANR) who have additional, specific, regulation duties in respect of the nuclear facility and technology employed within the power plant. FANRs key responsibilities are to provide the regulation, licensing and appropriate oversight of the obligations under the international treaties, conventions and agreements in the nuclear sector entered into by the UAE.

Integrated planning framework


This years planning cycle has revealed shortcomings in sector companies abilities to plan adequately to accommodate anticipated load growth and subsequent generation and network development, in line with the objectives of the 2030 Vision. The Bureau will help the sector companies develop an improved planning strategy to incorporate and articulate a long-term vision. The planning framework would then be used and applied to all work streams involving the sector companies.

14

ANNUAL WORK PLAN 2011

Objectives
The primary duty of the Bureau, as set out in Law No (2) of 1998, is: To ensure, so far as it is practicable for it to do so, the continued availability of potable water for human consumption and electricity for use in hospitals and centres for the disabled, aged and sick.

Overall objectives are: To apply sound economic and technical regulation and supervision to all licence holders throughout the Emirate of Abu Dhabis water, wastewater and electricity sector. Ensuring full licensee compliance with all licence conditions, regulations, codes and other documents in force. Establishing sound documented management procedures for all Bureau functions. Ensuring the welfare and development of all Bureau staff in order to enable them to meet the objectives given in this work plan. Representing the interests of all stakeholders in the water, wastewater and electricity sector especially customers.

The Bureau will seek to achieve these objectives in accordance with the roles and responsibilities it has under the following laws: Law No (2) of 1998 concerning the Regulation of the Water and Electricity Sector in the Emirate of Abu Dhabi, as amended. Law No (17) of 2005 concerning the establishment of the Abu Dhabi Sewerage Services Company, as amended.

ANNUAL WORK PLAN 2011

15

Sector structure
The structure of the Sector is illustrated in terms of its supply chain components. All companies undertaking the regulated activities shown below must be in possession of a licence issued by the Bureau.

PWPA admin

ADWEC

Sells output to supply business

Collection

Treatment

Disposal

Customer connections

Transmission Production Transmission

Distribution Supply sales

Distribution

Waste water

Irrigation

* PWPA = Power and Water Purchase Agreement

Production of power and water is mainly in private hands and connects directly to the strategic transmission company (TRANSCO) to enable the efficient movement of bulk supplies of water and electricity to major demand and load centres throughout the Emirate. All water and power output is purchased by a single buyer, the Abu Dhabi Water and Electricity Company (ADWEC). The distribution and supply (sale) of water and electricity to customers is undertaken by distribution companies who are in possession of a distribution and supply licence. Currently, there are two distribution companies in the sector: Al Ain Distribution Company (AADC) which covers the old municipality region of Al Ain and Abu Dhabi Distribution Company (ADDC) which covers the old municipality region of Abu Dhabi including Al Gharbia (the Western Region). The wastewater collection network and treatment plants are predominantly owned and operated by the Abu Dhabi Sewerage Services Company (ADSSC), with disposal of recycled water to irrigation companies.

16

ANNUAL WORK PLAN 2011

Document reference: ER/P01/016

P.O.Box 32800 Abu Dhabi, United Arab Emirates Email: rsb@rsb.gov.ae www.rsb.gov.ae

You might also like