9 November 2026
The Abu Dhabi Department of Energy (DoE) announced on 9 November 2026 a licensing framework for energy aggregators, companies that pool the flexible electricity demand of industrial and commercial consumers and offer it to the grid at peak hours. The DoE describes it as the first comprehensive, regulated aggregator licensing programme in the region. Alongside it, the DoE published the results of its 2025 Demand Response Pilot Project: more than 30 entities took part, average peak load reduction reached 251 MW against 106 MW in 2024, the maximum reduction was 401 MW, and peak consumption fell by about 27 GWh.
What the Department of Energy announced
According to the Abu Dhabi Media Office, years of work on demand response “have culminated in a regulatory framework enabling the licensing and operation of energy aggregator companies, while protecting consumers and generating commercial returns that contribute to the emirate’s economy”. Eng. Ahmed Al Falasi, Executive Director of the Energy Efficiency Sector at the DoE, said that a comprehensive, regulated energy aggregator licensing programme is being launched for the first time in the region, “opening new markets that attract investment and strengthen demand flexibility and security of supply”.
The DoE also said it is exploring, together with Emirates Water and Electricity Company (EWEC) and other stakeholders, the use of artificial intelligence and virtual power plants to increase electricity demand flexibility further.
The announcement itself does not list licence fees, capital requirements or an application timetable. These details are not public yet, and companies interested in the activity should take them from the DoE directly.
What an energy aggregator does
Demand response means that large consumers agree to cut or shift part of their electricity use when the grid is close to its peak. An aggregator signs up many such consumers and offers their combined flexible capacity to the power system as one resource. In the second phase of the Abu Dhabi pilot, the scope included advanced energy management systems, performance monitoring and measurement reporting, with potential integration into smart metering and the national dispatch system. For the grid, in the DoE’s words, this reduces the need to operate additional high-cost, high-emission generation capacity and improves the use of existing infrastructure.
In the DoE’s own Demand Response Regulations 2023, in force since 1 January 2024, a DR aggregator is defined as “an entity that aggregates and represents a portfolio of customers for the purpose of providing DR services”. Those regulations name the DoE as the sole authority issuing Demand Response Licences to demand response providers and list the activities that may require one: aggregator services, direct load control programmes and demand response resource operations.
Results of the 2025 pilot
The pilot is part of the Load Management Programme under the Abu Dhabi Energy and Water Efficiency Strategy 2030. Key figures published by the DoE:
| Indicator | 2024 | 2025 |
|---|---|---|
| Average peak load reduction | 106 MW | 251 MW |
| Maximum load reduction | n/a | 401 MW |
| Flexible capacity provided by participants | n/a | more than 408 MW |
| Peak consumption avoided | n/a | about 27 GWh |
| Emissions avoided | n/a | about 4,000 tonnes of CO2 equivalent |
Participants came from metals, refining, cement, industrial gases, logistics, commercial buildings, district cooling and other sectors. They were paid through financial incentives in the form of credits applied to their electricity bills issued by TAQA Distribution. The project also included the region’s first direct load control trials at industrial facilities, educational institutions and district cooling companies, which tested response times and the technologies used to adjust load on request.
How Abu Dhabi got here
- 2019: the Abu Dhabi Energy and Water Efficiency Strategy 2030 is launched.
- 2022: the DoE issues the Demand Response Policy and Regulatory Framework.
- 1 January 2024: the Demand Response Regulations 2023 come into force, including the conditions for demand response licences.
- 2024: the pilot delivers an average load reduction of 106 MW.
- 30 May 2025: the DoE launches the second phase of the pilot with Energy Pool as the DR aggregator and Guidehouse as consultant, targeting over 250 MW from more than 30 industrial and commercial entities over 12 months.
- 9 November 2026: the DoE reports 2025 results of 251 MW on average and 401 MW at peak, and announces the aggregator licensing framework.
Licence conditions under the existing regulations
The detailed rules of the new framework were not published with the announcement. The closest public reference is section 3.3 of the Demand Response Regulations 2023. Under it, a prospective provider may seek a licence from the DoE on the following conditions, and the DoE evaluates each application on its merits:
- a valid Demand Response Agreement with the DR programme owner;
- the provider is either a consumer directly connected to the transmission network or an aggregator representing a portfolio of customers;
- a formal application to the DoE describing the type of demand response the applicant plans to develop or aggregate;
- a privacy and data security policy that governs how customer information is stored, safeguarded and limited in disclosure, aligned with UAE data protection laws;
- evidence that the service will not negatively impact electricity supply to the sick and elderly;
- the standard letter or agreement explaining participation terms to each customer, and evidence that customers have consented to provide DR capacity.
The regulations also oblige the DoE to keep and publish a list of licensed providers on its website. Whether the November 2026 framework adds new conditions to this list is not stated in the announcement.
Who should pay attention
- Energy-intensive businesses in Abu Dhabi. Plants, warehouses, commercial buildings and district cooling operators with load they can shift for a few hours were the core of the pilot and received bill credits for it.
- Energy service and technology companies. Firms working with energy management systems, metering or load control may look at the aggregator licence as a way to offer their customers’ flexibility to the grid, subject to the DoE’s conditions.
- Investors. The DoE explicitly positions the framework as a new market that attracts investment, and it is studying virtual power plants with EWEC as the next step.
A foreign company looking at this market will also need to decide how it is structured in the UAE. The choice between an onshore licence and a free zone affects where the company can trade and how it is supervised, and our comparison of mainland and free zone companies in the UAE sets out the differences. For the wider context of the UAE power sector, see our article on the UAE becoming the world leader in solar power per capita by 2031.
How Atlant Capital can help
Atlant Capital helps entrepreneurs and international companies set up in the UAE: we select the jurisdiction and business activities, register the company, arrange visas for founders and staff and support the opening of a corporate bank account. The sector licence from the Department of Energy is a separate step taken with the regulator. More details are on our company setup and bank account opening pages, and for a specific project you can contact us.
Conclusion
On 9 November 2026 the Abu Dhabi Department of Energy announced a licensing framework for energy aggregators, which it calls the first of its kind in the region. The 2025 pilot that preceded it cut peak load by 251 MW on average and up to 401 MW. Fees, capital requirements and application dates for the new licences have not been published yet.
Source: Abu Dhabi Media Office, Department of Energy, Demand Response Regulations 2023.
FAQ
What is an energy aggregator in Abu Dhabi?
An energy aggregator is a company that combines the flexible electricity demand of many industrial and commercial consumers and offers it to the grid as one resource at peak hours. The DoE Demand Response Regulations 2023 define it as an entity that aggregates and represents a portfolio of customers to provide demand response services. On 9 November 2026 the Abu Dhabi Department of Energy announced a licensing framework for such companies.
What did Abu Dhabi’s 2025 demand response pilot achieve?
More than 30 entities took part and provided over 408 MW of flexible capacity. The average peak load reduction was 251 MW, compared with 106 MW in 2024, and the maximum reduction was 401 MW. Peak consumption fell by about 27 GWh and about 4,000 tonnes of CO2 equivalent emissions were avoided.
How were businesses rewarded for reducing their load?
Participants in the pilot received financial incentives in the form of credits applied to their electricity bills issued by TAQA Distribution. Participating sectors included metals, refining, cement, industrial gases, logistics, commercial buildings and district cooling.
Who issues demand response licences in Abu Dhabi and what is required?
Under the Demand Response Regulations 2023, the Department of Energy is the sole authority issuing Demand Response Licences to demand response providers. The licence conditions include a Demand Response Agreement with the programme owner, a formal application, a customer data privacy and security policy and evidence of customer consent, and the DoE evaluates each application on its merits. Fees and timelines for the new aggregator licences were not published with the 9 November 2026 announcement.
