Legislation Details
- Full Title: Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid
- Law Type: Federal Decree-Law
- Law Number: (17) of 2022
- Issued Date: 26 Sep 2022
- Effective Date: 28 Oct 2022
- Official Gazette: No. 736
- Sector: Energy, Transport and Infrastructure
- Status: Active
- Number of Articles: 34
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law regulates the connection of renewable energy production units to the electrical grid in the United Arab Emirates. Its purpose is to organize the connection process, enable people to produce electricity from renewable sources, enhance the diversification of renewable energy, contribute to environmental protection, and reduce electricity demand during peak times. The law applies to all producers, service providers, and electrical contractors involved in connecting distributed renewable energy production units to the distribution network across the UAE, including in economic, free, and investment zones. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 1-3)
What is the scope and purpose of this law?
The law aims to: (1) organize the connection of distributed renewable energy production units to the distribution network and its specifications; (2) enable people to produce electricity from renewable energy sources; (3) enhance the diversification of renewable energy sources within the UAE to optimize the use of natural resources; (4) contribute to protecting the environment by reducing carbon footprint; and (5) reduce the demand for electricity from distribution networks during peak times. The law applies to the operations of connecting distributed renewable energy production units to the distribution network, as well as to all producers, service providers, and electrical installations contractors in the UAE, including in economic, free, and investment zones. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 2-3)
What are the key definitions under this law?
The law provides the following key definitions:
- State: United Arab Emirates
- Ministry: Ministry of Energy & Infrastructure
- Emirate: Any emirate of the UAE
- Competent Authority: The ministry or local authority competent to regulate the production, distribution and supply of electricity
- Renewable energy: Energy derived from natural sources that are replenished at a higher rate than they are consumed
- Service provider: Federal or local government agencies, or licensed private sector establishments, concerned with the distribution and supply of electricity to consumers
- Producer: Any person who produces electricity using the distributed production unit
- Distributed production unit: One or more units designated for the production of electricity by renewable energy sources, connected to the distribution network
- Distribution network: The network of the service provider, consisting of the electric power network with voltage lines, cables, substations, transformers, and other electrical elements for distributing electricity to consumers
- Connection: Connecting distributed production units to the distribution network
- Connection agreement: The agreement between the service provider and the producer regulating the rules and conditions for the operation of the distributed production unit and its connection to the distribution network
- Annual limit: The annual maximum limit of the distributed production units allowed to be connected to the service provider's distribution network
- Imported electric power: The electric power consumed by the producer and supplied from the distribution network
- Exported electric power: The electric power produced by the producer through the distributed production unit and exported to the distribution network
- Excess capacity: The difference between exported electric power and imported electric power during a specified period
- Electrical installations contractors: Consultants and contractors qualified to design, supervise, install, maintain and connect the distributed production units
(Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 1)
What are the main obligations and requirements?
The law imposes the following key obligations on producers: 1. Obtain approval from the Competent Authorities for licensing buildings and land uses before installing distributed production units. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(1)) 2. Contract with electrical installations contractors approved by the service provider. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(2)) 3. Obtain a license from the Competent Authority for the production of electric power by distributed production units. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(3)) 4. Provide all requirements and devices necessary to install and connect the distributed production unit according to specifications. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(4)) 5. Comply with the terms of the connection agreement and all connection requirements. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(5)) 6. Not exceed the electric power limit allowed to be produced and exported to the distribution network. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(6)) 7. Preserve the environment, health, and public safety. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(9)) 8. Pay the fees and costs of connecting distributed production units. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(10))
What licensing, registration, or approval requirements exist?
The law requires producers to: 1. Obtain approval from the Competent Authorities for licensing buildings and land uses before installing distributed production units. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(1)) 2. Obtain a license from the Competent Authority for the production of electric power by distributed production units. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 8(3)) 3. Conclude a connection agreement with the service provider prior to connecting the distributed production unit to the distribution network. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 7)
Which authorities or bodies are responsible for enforcement?
The law designates the following authorities and their responsibilities: 1. The Ministry of Energy & Infrastructure: Carries out the duties of the Competent Authority in emirates where Etihad Water & Electricity (or any federal entity that replaces it) provides services. Creates a database of distributed production units and producers. Coordinates with local Competent Authorities and service providers. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 4) 2. The Competent Authority (ministry or local authority): Prepares and approves the general policy for the production of electric power from distributed production units. Determines the electrical voltage, size of distributed production units, and renewable power sources allowed. Adopts the annual connection limit and distribution mechanism. Adopts the terms, regulations, agreements, requirements, standards, and specifications for connecting distributed production units. Monitors and supervises producers for compliance. Creates a database for producers. Licenses the production of energy from distributed production units. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 5) 3. Service providers: Approve electrical installations contractors and ensure they are aware of the requirements. Feed the database of the Ministry and Competent Authority with data on distributed production units and producers. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 6)
What are the penalties for non-compliance?
The law states that violations and administrative penalties for acts committed in violation of its provisions and implementing resolutions shall be defined by a resolution issued by the Council of Ministers based on the proposal by the Minister and in coordination with the Competent Authority. However, the law does not specify the actual penalties. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 12)
What exemptions or exceptions apply?
The law does not specify any exemptions or exceptions to its scope of application. It states that the provisions of the law shall apply to the operations of connecting distributed production units to the distribution network, and to all producers, service providers, and electrical installations contractors in the UAE, including in economic, free, and investment zones. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 3)
How does this law interact with other UAE legislation?
The law references the following related UAE legislation: - Federal Law No. (1) of 1972, Concerning the Competences of Ministries and the Capacities of Ministers, and its amendments - Federal Law No. (14) of 2016, Concerning the Administrative Violations and Sanctions in the Federal Government - Federal Decree by Law No. (31) of 2020, Concerning Etihad Water & Electricity (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Preamble) The law does not specify how it repeals or amends any of these related laws.
When did this law come into effect?
This Federal Decree-Law came into effect 30 days after its publication in the Official Gazette, which was on 28 September 2022. The law also requires all producers and service providers to regularize their status in accordance with its provisions within a maximum period of one year from the date of its enforcement, which the Competent Authority may extend for up to one additional year. (Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid, 2022, Art. 14, 17)
Source Documents
This article analyses Federal Decree by Law Regulating the Connection of Renewable Energy Production Units Distributed on the Electrical Grid for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.