UAE Law and Practice Contributed by: Brendan Hundt, Dan Feldman, Sam Anastasiou and Saiesh Kamath, King & Spalding LLP
general open-access transmission rights, EWEC- procured projects are typically protected under the PPA and related project documents against key risks associated with the incumbent transmission system, including grid connection delay or transmission una- vailability where those matters are outside the project company’s control. The protection may take the form of deemed availability, deemed generation, tariff relief or delay compensation. In other emirates, equivalent network-interface risk allocation depends on the rel- evant procurement model and project documents. In Dubai, generation projects connect through DEWA’s network arrangements and project-specific approvals. DEWA-procured projects appear to be afforded pro- tections under the PPA similar to those under EWEC- procured projects. Distributed renewable generation connects to distri- bution networks under specific distributed-generation rules, including Federal Decree Law No 17 of 2022 and emirate implementing arrangements, rather than through open-access transmission rights. 5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities Distribution facilities are governed by emirate utility laws, electricity regulations, construction permitting rules, safety standards, environmental requirements and customer-service rules discussed above. Federal Decree Law No 17 of 2022 is particularly important because it regulates the connection of dis- tributed renewable energy production units to distri- bution networks across the UAE, including economic, free and investment zones. The law requires the rela- tionship between the producer and service provider to be governed by a connection agreement that regu- lates operation and connection conditions. In Dubai, Executive Council Resolution No 46 of 2014 and the Shams Dubai connection conditions provide the practical framework for solar generators connect- ed to DEWA’s distribution system. Storage and micro- grids should be analysed through the same lens: the
question is not only whether the technology is techni- cally feasible, but whether the relevant licence, con- nection and safety framework permits the proposed configuration. There is not yet a single UAE-wide statute dedicated to battery storage or microgrids, as private grids are largely prohibited unless they are expressly approved by the relevant emirate authorities. The approval process is emirate-specific and depends on whether the works are being carried out by the incumbent distribution utility, such as TAQA Distribu- tion (formerly ADDC/AADC) in Abu Dhabi, DEWA in Dubai, SEWA in Sharjah or EtihadWE in the Northern Emirates, or by a customer, developer or embedded- generation proponent connecting facilities to the dis- tribution network. For utility-led distribution assets, the process is usually handled within the incumbent utility’s licensed network-planning and capital-works framework, with separate municipal, road-opening, land, environmental, civil defence and no-objection approvals (NOCs) obtained as required. For customer or developer works, the usual process is load-demand approval, design and single-line- diagram approval, equipment compliance, external NOCs, construction, inspection, testing, meter instal- lation and energisation. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities Distributed renewable generation connected to a distribution network is separately regulated under Federal Decree Law No 17 of 2022, which applies to producers, service providers and electrical-installation contractors and requires connection arrangements with the relevant service provider. Public participation is not generally a formal feature of UAE distribution-utility approvals, and there is no general requirement for public hearings before dis- tribution lines, substations or customer distribution facilities are approved. Environmental or planning authorities may consult other governmental stakeholders or require project-
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