DEWA to invite foreign funding
Dubai Electricity and Water Authority (DEWA) is reportedly considering opening the Emirate's power generation industry to foreign investment.
Dubai Electricity and Water Authority (DEWA) is reportedly considering opening the Emirate's power generation industry to foreign investment. The suggestion forms part of a drive to meet a 20% annual rise in demand within Dubai's power sector.
International firms may be allowed to invest in Dubai's power plants if they are able to deliver at a cost-effective price. "If their unit cost is more attractive it should be considered," DEWA chief executive Saeed Al Tayer stated.
An estimated US $37 billion (AED136 billion) of funding is needed to increase the Emirate's power capacity to 25,000MW by 2017. Various projects intended to meet this demand are underway or in the design stages. These include the upgrading of Jebel Ali power plants to provide an additional 400MW and adding 5,000MW at the Al Habab power facility.
Gulf countries are expected to need $345 billion of investment in the energy sector by 2011 as the region develops infrastructure to meet the current growth. The Kingdom of Saudi Arabia is estimated to require approximately $50 billion investment to meet demands up to 2015, while Kuwait is expected to invest $27 billion in water and power projects over the next eight years.