DEWA to invest $22bn in energy, water projects in the next five years
Of the $22bn, $10.6bn will go to the IPP developer, while around $11.2bn will be invested in transmission, distribution, and water infrastructure, according to DEWA's MD and CEO
Dubai Electricity and Water Authority (DEWA) has earmarked $22bn (AED81bn) to be invested in energy and water projects over the next five years.
DEWA’s managing director and chief executive officer, HE Saeed Mohammed Al Tayer, said that of the $22bn (AED81bn), $10.6bn (AED39bn) will go to the independent power producer (IPP) developer, while around $11.2bn (AED41bn) will be invested in transmission, distribution, and water infrastructure.
Speaking to the press on the sidelines of the inauguration of the 200MW first stage of the 800MW Phase 3 of the Mohammed bin Rashid Al Maktoum Solar Park (MBR Solar Park), Al Tayer revealed that DEWA will tender a 300MW concentrated solar power (CSP) project no later than the first quarter of 2019.
The MBR Solar Park is the world’s largest single-site solar project based on the IPP model. Upon completion in 2030, it will span 214km2 and generate 5,000MW, with total investments worth up to $13.6bn (AED50bn).
According to Al Tayer, while DEWA’s strategy aims to source 7% of Dubai’s energy needs from solar by 2020, the authority is expecting to exceed that target.
“We have a strategy to follow and, based on that, we are commissioning our plant on a yearly basis,” said Al Tayer. “[The] MBR Solar Park will be 4,000MW PV technology and 1,000MW CSP.”
Last month, DEWA announced that an engineering, procurement, and construction (EPC) contract had been awarded for the 700MW CSP fourth phase of the solar park, with Saudi Arabia's ACWA Power signing the deal with China's Shanghai Electric.
“[For the] CSP technology, we need another 300MW in order to complete it,” said Al Tayer, adding that DEWA will tender the project either in Q4 2018 or Q1 2019.
In addition to the solar park, DEWA is currently developing a pumped-storage hydroelectric power station at Hatta Dam, for which it awarded a consultancy contract valued at $15.8m (AED58m) to EDF in June 2017.
Saying that he is hoping for the hydroelectric plant to come online in 2021, Al Tayer added: “According to a study we made, it is very cost effective. It is cheaper than the cost of the CSP and the payback period is [around] one year and a half.”