DEWA to Increase Installed Power Capacity to 20 GW

Dubai Electricity and Water Authority (DEWA), Dubai’s exclusive electricity and water services provider, on Monday said that it plans to increase the installed capacity to 20 GW and 735 Million Imperial Gallons Per Day MIGD of desalinated water by the end of 2030.

Of this 20 GW, around 5.3 GW will be from clean sources, representing 26.5%. In the same period, the company plans to add 240 MIGD of desalination capacity using reverse osmosis technology. The installed desalinated water production capacity was unchanged at 495 (MIGD) at the of nine months of 2024.

DEWA’s total desalinated water production in the third quarter of 2024 grew by 4.64% compared to the previous year, reaching a record production of 40.5 billion Imperial Gallons (BIG). The daily desalinated water demand reached a record peak of 455 Million Imperial Gallons (MIG) which is a 4.92% increase over the same period of the previous year.

DEWA also reported its first 9 month consolidated financial results for 2024, recording cumulative revenue of $6.4 billion, EBITDA of $3.21 billion, and net profit after tax of $1.5 billion, the state-owned utilities firm said in a regulatory filing with Dubai Financial Market (DFM).

DEWA’s MD and CEO Saeed Mohammed Al Tayer the financial performance for the first nine months reflected continued growth in Dubai and their commitment to operational excellence, innovation, and sustainability.

He added: “We are contributing to Dubai’s vision for a sustainable future in alignment with the Dubai Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy 2050. DEWA will continue to deliver strong shareholder value through efficient operations, consistent dividends and support Dubai’s transition to a green economy.”

DEWA’s third quarterly consolidated revenue increased by 4.75% to $2.7 billion in 2024 and the EBITDA for the third quarter was $1.39 billion, and Cash from Operations was up by 34.2% to $1.61 billion. DEWA’s first nine-month consolidated revenue was mainly driven by an increase in demand for electricity, water and cooling services.

Operating Performance

In the third quarter of 2024, DEWA’s power generation soared to a high of 19.6 TWh marking a 3.98% increase from the same period last year. Notably, 1.8 TWh out of 19.6 TWh was from green energy source.

This clean power accounted for 9.18% of the total power generated in Q3, 2024. DEWA is committed to using clean energy and maintain a sustainable generation mix to meet future demand, the company said.

DEWA imported 3.25 TWh from Hassyan power plant, 0.32 TWh from Warsan Waste Management Company and generated the remaining 14.32 TWh from its gas fired portfolio during the third quarter of 2024.

DEWA witnessed a 3.41% increase in its quarterly peak demand compared with the same period in Q3 of 2023, reaching 10.76 GW. The quarterly gross heat rate of 7,923 BTU/kWh is the best achieved so far in DEWA history.

New Substations

During the third quarter of 2024, DEWA commissioned two 132 kV substations, and 426 11kV substations. By the end of the third quarter of 2024, the company’s installed generation capacity was 16.779 GW with 2.86 GW (17%) of this capacity representing renewable energy.

Dividends

As per DEWA’s dividend policy, the Company expects to pay a minimum annual dividend of $1.69 billion in the first five years starting October 2022. The dividends are paid semi-annually in April and October. For H1 of 2024, DEWA has distributed $840 million to its shareholders on 31 October 2024.