DEWA inks Hassyan coal power plant project deal
First phase of the project has a capacity of 1200MW
Dubai Electricity and Water Authority (DEWA) has awarded the contract for Independent Power Producer (IPP) advisory services for the first phase of the Hassyan Clean Coal Power Plant to an international consultancy firm. DEWA had received eight bids for IPP advisory services for the project.
The Hassyan project will use clean coal as feedstock for electricity generation. The first phase of the project has a capacity of 1200 MW, and is expected to be operational by 2020. To accelerate the project, DEWA issued an open tender on 13th August 2013, inviting IPP advisory services, which received strong response.
“The Hassyan project reflects our commitment to the vision of HH Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote energy sector diversification and support the ‘Green Economy for Sustainable Development’ vision. The advisory service for IPPs is a key step in the implementation of the energy diversification strategy adopted by the Dubai Supreme Council of Energy, in which clean coal based electricity generation is set to become part of Dubai’s energy portfolio. Through such path-breaking projects, DEWA will continue to strive forward to accomplish renewable energy projects that also contribute to meeting Dubai’s growing energy requirements and support the sustainable growth of the Emirate,” said Saeed Mohammed Al Tayer, MD and CEO of DEWA.
“The scope of the advisory service includes reviewing existing legislation and regulatory frame work, recommend and amend it if required, IPP tender preparation, tendering and evaluation, negotiation, signing PPA and financial closure with IPP developer. The scope also includes the preparation of project marketing plan, and participating in the marketing activities, local and international road shows, workshops and training on the IPP concept,” added Al Tayer.
Dubai Integrated Energy 2030, which is aimed at boosting Dubai’s strategic efforts to secure sustainable energy and improve demand efficiency, aims to diversify energy sources as follows : natural gas 71%, nuclear energy 12%, clean coal 12%, and solar power 5%, in addition to reducing energy demand by 30% by 2030.