Monday, July 15, 2024

DEWA’s Billions in Investments Foster Power Innovation and Economic Growth in Dubai

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DEWA Drives Billions in Investments with Innovative Power Model

Dubai Electricity and Water Authority (DEWA) has made a monumental impact over the past decade, spearheading investments worth AED 43.6 billion through its pioneering Independent Power and Water Producer (IPWP) model. This innovative approach has been tailored to meet the unique legislative and technical landscape of Dubai, fostering a climate of cooperation between the government and the private sector.

The IPWP model has been instrumental in establishing DEWA as a frontrunner in solar energy innovation, achieving the world’s lowest Levelised Cost Of Energy (LCOE). This achievement has not only elevated Dubai on the global stage but has also set new benchmarks for solar energy pricing.

“The regulatory and legislative frameworks in Dubai have been designed to encourage the private sector’s participation in energy generation projects. This is evident in the investments attracted to the Mohammed bin Rashid Al Maktoum Solar Park projects, instituted under the IPP model,” remarked Saeed Mohammed Al Tayer, MD & CEO of DEWA.

These projects are closely aligned with the Dubai Economic Agenda D33, aiming to double the size of Dubai’s economy within the next 10 years and position it among the top three cities worldwide. They also support the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050, which envisage sourcing all of the Emirate’s energy production capacity from clean energy sources by the year 2050.

Dubai continues to establish itself as an attractive destination for investors, consistently maintaining its status as the world’s leading hub for foreign direct investment (FDI) according to “fDi Markets” data from the Financial Times Ltd. In 2023 alone, the city attracted over AED 39.2 billion in FDI capital, creating approximately 45,000 new job opportunities.

Since 2014, DEWA has played a crucial role in this success by transitioning to the Independent Power and Water Producer (IPWP) model from the Engineering, Procurement, and Construction (EPC) model. This shift has not only optimized the economic efficiency of energy and water projects but also enhanced the attractiveness of Dubai’s investment landscape.

A flagship initiative under DEWA’s IPP model is the Mohammed bin Rashid Al Maktoum Solar Park, hailed as the largest single-site solar park globally. With an ambitious target production capacity of over 5,000MW by 2030 and a total investment earmarked at AED 50 billion, this project underscores Dubai’s commitment to sustainable energy. The solar park has already seen the inauguration of five phases, with the sixth phase—an AED 5.5 billion investment—currently underway. Esteemed global consortiums, including Saudi Arabia’s ACWA Power and Abu Dhabi Future Energy Company (Masdar), have been pivotal in realizing these phases.

In addition to solar energy initiatives, DEWA has also made significant strides in power production through its Hassyan Power Complex. Powered by natural gas, this 2,400MW complex stands as one of the most substantial power stations in the region, embodying the latest in energy production technology.

Moreover, DEWA is advancing a 180 million imperial gallons per day (MIGD) seawater reverse osmosis (RO) desalination project in Hassyan, employing the Independent Water Producer model. This RO project, with an investment of AED 3.4 billion, is set to become the world’s largest of its kind, further showcasing DEWA’s commitment to innovation and sustainable development.

Through strategic vision and innovative project models, DEWA continues to fuel Dubai’s growth, attract substantial investments, and lead the way in sustainable energy solutions, paving the path towards a greener and more prosperous future.

Alexandra Bennett
Alexandra Bennetthttps://www.businessorbital.com/
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

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