The Abu Dhabi Department of Economic Development (ADDED) announced expansion of energy incentives scheme to further enhance productivity and improve energy efficiency of manufacturers in the emirate.
The Energy Tariff Incentive Programme 2.0 (ETIP 2.0) offers preferential rates for gas and electricity, based on eligibility criteria such as economic impact, Emiratisation rate and energy management efficiency.
Expanding the programme to include gas tariff will reduce operations expenses.
The decision followed discussions with manufacturers in the emirate to meet their demands in providing competitive energy rates.
The annual consumption of gas by the industrial sector in the emirate is around 18.5 MMBTU.
ETIP 2.0 is an expansion of the electricity tariff incentive programme launched by ADDED’s industrial department bureau (IDB) in 2019.
ADDED said the number of manufacturing entities earned the ETIP certificates reached 55, with a total investment of AED24 billion.
The number of new joiners continues to grow especially as the programme was extended to include SMEs, it said.
The programme is estimated to have helped industrial facilities to increase productivity by 15 percent.
Mohamed Ali Al Shorafa, Chairman of ADDED, said the move to roll out new initiatives was aimed at further enhancing the manufacturing sector’s attractiveness to local, regional, and international investors by continuous enhancement of the business ecosystem.
Recently, ADDED launched a land incentive programme under which it offered long-term lease contracts with rates as low as AED5 per square metre to promote manufacturers’ growth and development by enhancing capital expenditures and cash-flow management.
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