IPP projects enhance promising investments flow

July 17, 2022

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IPP projects enhance promising investments flow

H.E. Saeed Mohammed Al Tayer, Director General of Dubai Electricity and Water Authority (DEWA), announced that DEWA’s current projects with the private sector under the Independent Power Producer (IPP) model exceed 4,000 megawatts (MW), with an investment of over AED 40 billion. He said that through this model, DEWA was able to save an additional investment of around AED 26 billion, enabling DEWA to invest in other infrastructure projects. Al Tayer said that the IPP model encourages partnership between the public and private sectors. Through this model, DEWA has achieved world-class results and developed a new benchmark price for solar energy per kilowatt hour, thereby making Dubai the global benchmark price for solar energy. DEWA has attracted promising investment in the UAE from the private sector and foreign banks, resulting in increased cash flow to the Dubai and UAE economy.

Al Tayer noted that Dubai’s regulatory and legislative framework allows the private sector to participate in energy generation projects in the emirate of Dubai, and encouraged international investors and developers to participate in the Mohammed Bin Rashid Al Maktoum Solar Park projects, which DEWA is implementing under the IPP model.

Key DEWA projects using the IPP model include:

The Mohammed bin Rashid Al Maktoum Solar Park

The solar park is the world’s largest single-site solar park built using the IPP model, with a production capacity of 5,000 megawatts MW by 2030 and a total investment of AED 50 billion. Once completed, the solar park will reduce more than 6.5 million tonnes of carbon dioxide emissions per year. The solar energy projects that have been launched in the Solar Park have a capacity of 1,627 MW using photovoltaic solar panels. DEWA has projects with a capacity of 1,233 MW using photovoltaic panels and concentrated solar power (CSP). The clean energy generation capacity represents around 11.5% of Dubai’s total energy mix and is expected to reach around 14% by the end of this year.

Hassyan Power Complex

Hassyan Power Complex’s current natural gas-fired generation capacity has reached 1,800MW using the IPP model. An additional 600 MW will be added in 2023. This will increase the capacity of the complex to 2,400 MW.

Hassyan Desalination Plant

DEWA aims to produce 100% desalinated water by 2030 using clean energy, combining renewable energy and waste heat. To achieve this goal, DEWA is working on an IPP desalination plant at the Hassyan complex with a production capacity of 120 million imperial gallons per day (MIGD) using reverse osmosis technology. DEWA has achieved a new global achievement with the lowest global competitive price of US$0.277 per cubic metre of desalinated water in the project, which is expected to be completed in 2024. The plant will rely on the latest, most efficient and reliable technology in the field and will strengthen DEWA’s water network, ensuring a sustainable supply.

.@DEWAOfficial’s IPP projects enhance promising investments flow to the #UAE and #Dubai https://t.co/EGBxBQj6pu pic.twitter.com/bG0jArjLC5
— Dubai Media Office (@DXBMediaOffice) July 17, 2022