Development of a demand-side marginal cost of carbon abatement curve for the emirate of abu dhabi

The best way to achieve emissions´ reduction in the near and mid-term is increasing the demand-side energy efficiency - this is especially true in developing countries where the potential for demand reduction is significant and achievable at relatively lower cost. An ideal candidate for the implementation of demand-side energy efficiency measures is the building sector, since it contributes to a large extent to the total amount of GHGs emitted worldwide. In the Emirate of Abu Dhabi, the relative contribution of the building sector to the total GHG emissions is even higher than the worldwide average. This is due to the lower level of industrial activity, the inefficiency of the envelope and technical systems of the existing buildings, as well as harsh climatic conditions requiring the use of energy intensive air-conditioning equipment. The air-conditioning load in buildings is the ideal target for demand-side management because it constitutes approximately 70% of the total energy consumption. Using a detailed engineering model of a typical Abu Dhabi building as specified by the Emirate´s Urban Planning Council, we proceed to evaluate the energy impact of different retrofits through numerical simulation. Extrapolating the results to the whole Emirate, we present a demand-side Marginal Abatement Cost Curve (MACC). A surprising number of the abatement levers analyzed in this study exhibit a positive net present value (NPV), if the cost-reflective price of electricity is used for the life-cycle assessment.