UAE Law and Practice Contributed by: Brendan Hundt, Dan Feldman, Sam Anastasiou and Saiesh Kamath, King & Spalding LLP
2.5 Surveillance to Detect Anti-Competitive Behaviour The UAE power sector is not a competitive wholesale market but a single-buyer model dominated by state utilities. Therefore, sector-specific market surveillance of the kind found in liberalised electricity markets does not exist. Instead, anti-competitive behaviour across the economy, including in the power sector to the extent private undertakings are involved, is monitored by the general federal competition authority. Please also see responses to 2.1 The Wholesale Elec- tricity Market and 2.4 Market Concentration Limits . 3. Generation Facilities 3.1 Constructing and Operating Generation Facilities The construction and operation of generation facilities is governed by a combination of emirate-specific and federal laws relating to electricity, climate transition, environmental protection, land, construction permit- ting requirements and project documents. In Abu Dhabi, the key public-law sources include Law No 11 of 2018 establishing the Department of Energy and the Abu Dhabi water and electricity sector frame- work, under which the Department regulates activities including electricity generation, storage, transmission, distribution, supply, sale and purchase. In Dubai, laws of relevance may include the DEWA framework, the Dubai Supreme Council of Energy framework, Law No 6 of 2011 on private-sector par- ticipation in electricity and water production, and Executive Council Resolution No 46 of 2014 for solar generators connected to the distribution system. Federal Law No 24 of 1999 Concerning the Protec- tion and Development of the Environment is also rel- evant because projects and establishments requiring a licence typically need to conduct an environmental impact assessment (EIA) before commencing activi- ties. Environmental permitting is also administered at emirate level. A project may not commence activity before obtaining the relevant environmental approval. In practice, this workstream is handled by the com-
petent environmental authority in the relevant emir- ate (for example, Environment Agency – Abu Dhabi in Abu Dhabi, Dubai Municipality in Dubai, Environment and Protected Areas Authority in Sharjah, Environ- ment Protection and Development Authority in Ras Al Khaimah, Environmental Protection Authority in Fujai- rah, Department of Municipality and Planning in Ajman and Umm Al Quwain Municipality in Umm Al Quwain) and typically includes environmental assessment, permitting, inspection and operational compliance requirements. These environmental approvals run in parallel with sector licensing, land, grid connection, construction and civil defence approvals. Nuclear power plants are governed by a distinct fed- eral framework including Federal Decree Law No 6 of 2009 Concerning the Peaceful Uses of Nuclear Energy, which established the Federal Authority for Nuclear Regulation (FANR). The law prohibits con- ducting any “Regulated Activity” (including site selec- tion, site preparation, construction, commissioning, operation, closure and decommissioning of a nuclear facility) without a FANR licence. A construction licence does not authorise operation, and the operator must apply separately for an operating licence describing the final design, safety analysis, operating organisa- tion, training and emergency plans. 3.2 Obtaining Approvals to Construct and Operate Generation Facilities For utility-scale projects, the approval process is usu- ally initiated through procurement by the relevant util- ity or single buyer. In Abu Dhabi, EWEC typically procures capacity through competitive processes, the selected bidder forms or uses a project company, and the project then proceeds through offtake documentation, Department of Energy licensing, land arrangements, environmental approvals, construction permits, grid connection and commissioning. In Dubai, DEWA-led procurement performs a similar function for IPP projects under Dubai’s private-sector participation framework. The approval package com- monly includes prequalification, bid award, project- company establishment, PPA or equivalent offtake documentation, licence applications, land lease or
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