The MD and CEO of Dubai Electricity and Water Authority (DEWA), Saeed Mohammed Al Tayer announced that the capacity of DEWA’s current projects with the private sector using the Independent Power Producer (IPP) model surpass 4,000 megawatts (MW), with investments that add up to more than AED 40 billion.
He noted that through this model, DEWA was able to save an additional investment of approximately AED 26 billion (USD 5.08 billion), which allows DEWA to invest in other infrastructure projects. Al Tayer said that the IPP model encourages partnership between the public and private sectors. Through the IPP model, DEWA has attained world-class results and developed a new standard for solar energy prices for every kilowatt hour, thus making Dubai a worldwide benchmark for solar energy prices.
DEWA attracted favourable investments to the UAE from the private sector and foreign banks, which administered a surge in cash flow to the economy of Dubai and the United Arab Emirates (UAE).
Al Tayer further added that the legislative and regulatory frameworks in Dubai would empower the private sector to participate in energy generation projects in the Emirate of Dubai and urged global investors and developers to take part in the projects at the Mohammed bin Rashid Al Maktoum Solar Park, which is executed by DEWA using the IPP model.
DEWA’s vision
The IPP projects aims to achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. The vision is to make Dubai the global capital of the green economy and strengthen the goals of the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100 percent of Dubai’s power capacity from clean energy sources by 2050. Earlier, DEWA adopted the EPC model (Engineering, Procurement and Construction) for their power generation projects. DEWA has initiated the IPP project management and implementation model, Tayer explained.
DEWA’s key projects using the IPP model consist of:
The Sheikh Mohammed bin Rashid Al Maktoum Solar Park
The Solar Park, is the largest single-site solar park in the globe, using the IPP model, with a production capacity of 5,000 megawatts by 2030, and a total investment of 50 AED billion. When completed, the solar park will reduce more than 6.5 million tonnes of carbon dioxide emissions per annum. The capacity of solar energy projects that have been conducted at the Solar Park is 1,627 MW using photovoltaic solar panels. DEWA possesses 1,233 MW ongoing projects using photovoltaic panels and concentrated solar power (CSP). The production capacity of clean energy measures to about 11.5 percent of the total energy mix in Dubai and is projected to ramp up to about 14 percent by the end of this year.
The fourth phase is the biggest single-site investment project that blends CSP and photovoltaic technology. On its completion, the project will have the largest thermal storage capacity in the world of 15 hours, allowing for energy availability round the clock. The fourth phase will offer clean energy for about 320,000 residences and reduce 1.6 million tonnes of carbon emissions per annum.
Hassyan Power Complex
The current production capacity of the Hassyan Power Complex, which operates on natural gas, has achieved 1,800MW, using the IPP model. An additional 600MW will be included in 2023. This will increase the capacity of the complex to 2,400MW.
Hassyan Desalination Plant
DEWA aims to produce 100% desalinated water utilizing a mix of clean energy that combines renewable energy resources and waste heat by 2030. To achieve this, DEWA is working on a desalination plant using the IPP model at the Hassyan Complex, with a production capacity of 120 million Imperial Gallons per Day (MIGD), using reverse osmosis technology. DEWA accomplished a new international milestone by acquiring the lowest global competitive price of USD 0.277 per cubic metre of desalinated water in the project, which is likely to be completed in 2024.