DEWA to invest around $11 billion in next five years
Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA), on Wednesday announced that DEWA has plans to invest ($10.89 billion (AED40 billion) on capital expenditure in the next five years including the expansion of renewable and clean energy projects.
He noted that DEWA plans to invest about $4.36 billion to strengthen and expand electricity and water transmission and distribution networks, about $3.27 billion to complete the Independent Power Producer (IPP) projects in the Mohammed bin Rashid Al Maktoum Solar Park, the Hassyan Power Complex and the Independent Water Producer (IWP) projects at Hassyan, in addition to completing other ongoing DEWA projects in infrastructure and smart systems.
The Emirates Central Cooling Systems Corporation (EMPOWER), which is 70% owned by DEWA, plans to spend around $820 million mainly to expand district cooling capacity and network to meet demand growth for district cooling services.
“We are working in line with the vision of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to provide an advanced infrastructure that meets the requirements of sustainable development.”
He also said: “We are committed to the ‘Projects of the 50’, part of the wise leadership’s directives, to enhance cooperation between the public and private sectors and provide promising investment opportunities. We have strategic partnerships with various local and international companies to implement renewable energy and water desalination projects according to the IPP model.”
He said that thanks to the IPP model, DEWA achieved many world records in the lowest solar energy prices (Levelised Cost of Electricity), making Dubai a global benchmark for solar power prices.
Investments in Renewables
DEWA will continue to invest and enhance renewables’ generation capacity, through informed plans based on the latest tools for future foresight, in order to meet the increasing demand for electricity and water.
“We provide our services in accordance with the highest levels of quality, availability, reliability and efficiency and will keep pace with the rapid growth of Dubai across all areas. Our plans will consolidate Dubai’s position as an advanced model that provides a favourable and supportive environment for investments,” added Al Tayer.
Dubai’s electricity and water demand has been increasing due to the hectic activity in the Emirate’s economic recovery in the emirate. Business activity in its non-oil private sector improved at its quickest pace in three years last month, as new orders rose sharply despite inflationary pressures.
According to DEWA, the demand for energy in the Emirate in H1 of 2022 reached 23,096 gigawatt hours compared with 21,729 gigawatt hours in the same period last year. DEWA’s capacity reached 14,117 megawatts of electricity and 490 million imperial gallons of desalinated water per day, the company said a couple of days ago.
DEWA currently serves more than 3.5 million Dubai residents and the Emirate’s active daytime population of more than 4.7 million. These numbers are expected to grow to 5.8 million and 7.8 million, respectively, by 2040, DEWA added.