The electric power industry in the UAE is a crucial sector that plays a vital role in driving economic growth and development. With its vast energy resources and strategic location, the UAE has invested heavily in modernising and expanding its power infrastructure.
The UAE is embracing renewable energy technologies and smart grid solutions to enhance energy efficiency and reduce carbon emissions. The country is a major player in the regional energy market, trading electricity with neighbouring countries and participating in international energy initiatives.
The development of new cities and urban centres in the region creates a strong demand for electricity for residential, commercial, and industrial use. Entrepreneurs who wish to enter this industry can choose the following business activities under their business license.
3510.00 – Electric power generation, transmission and distribution
Electric power generation, transmission, and distribution is a fundamental industry that provides the essential energy needed for modern economies. It involves the production of electricity, its transportation across vast distances, and its delivery to end-users. It involves generation through various sources, transmission through a network of interconnected power lines, known as the grid, and distribution through local grids, involving transformers.
This business excludes the production of electricity through incineration of waste.
Third-party Approval: This business activity does not require third-party approval.
Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.
Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article.
3510.01 – Operation of generation facilities that produce electric energy, including thermal, nuclear, hydroelectric, gas turbine, diesel and renewable
Electric power generation facilities are responsible for producing electricity from various sources. The operation of these facilities requires technical expertise, precision, and adherence to strict safety protocols. It can involve thermal, nuclear, hydroelectric, gas turbine, diesel power, and renewable energy power plants.
This business excludes the production of electricity through incineration of waste.
Third-party Approval: This business activity does not require third-party approval.
Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.
Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article.
3510.02 – Operation of transmission systems that convey the electricity from the generation facility to the distribution system
Transmission systems are the backbone of the electric power grid, responsible for conveying electricity from power generation facilities to distribution systems. These systems ensure that electricity reaches end-users reliably and efficiently. It includes high-voltage lines, substations, transformers, and switchgear.
This business excludes the production of electricity through incineration of waste.
Third-party Approval: This business activity does not require third-party approval.
Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.
Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article.
3510.03 – Operation of distribution systems (i.e. consisting of lines, poles, meters, and wiring) that convey electric power received from the generation facility or the transmission system to the final consumer
Distribution systems are the final link in the electric power grid, responsible for delivering electricity from generation or transmission facilities to individual consumers. These systems typically consist of a network of lines, poles, metres, and wiring. Examples include urban distribution, rural distribution, and microgrids.
This business excludes the production of electricity through incineration of waste.
Third-party Approval: This business activity does not require third-party approval.
Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.
Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article.
3510.06 – Operation of electricity and transmission capacity exchanges for electric power
Electricity and transmission capacity exchanges are platforms where electricity and transmission capacity are traded. These exchanges play a vital role in ensuring a reliable and efficient electric power grid by balancing supply and demand, facilitating trade, and promoting competition. Key functions are market clearing, price discovery, congestion management, risk management, and promoting competition.
This business excludes the production of electricity through incineration of waste.
Third-party Approval: This business activity does not require third-party approval.
Filing of Economic Substance Returns: This requirement does not apply to the business activity mentioned in this article.
Anti-Money Laundering Compliance: This requirement does not apply to the business activity mentioned in this article.
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