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Dewa announces $5.4bn expansion projects

Plans include 'clean coal' and solar developments.

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Al Tayer: New projects will boost capacity ahead of Expo 2020.
Al Tayer: New projects will boost capacity ahead of Expo 2020.

Dubai Electricity and Water Authority (Dewa) has announced three major expansion projects worth $5.4bn (AED20bn).

The plan aims to promote sustainable development across the Emirate ahead of the Expo in 2020.

Saeed Al Tayer, MD and CEO of Dewa, said: “Currently we have enough reserve to cover the increasing demand in power and water until Expo 2020, but we should go on with Dewa’s strategy, which aims to meet the increasing needs of customers and development projects in all economic and social sectors.

“These projects will enhance Dewa’s power generation capacity by 20 per cent to meet the ongoing demand in Dubai, particularly ahead of the mega event Expo 2020, which will be hosted in Dubai.”

The projects include building a clean coal plant at a cost of $3.5bn (AED13bn), which is expected to be commissioned in the second quarter of 2020 with a capacity of 1,200MW, according to a report in Gulf Times.

Al Tayer said that the private sector’s stake will be 49% in the coal project, and Dewa’s stake will be 51%. The project will be developed in the Hyssian Complex in Dubai.

A consultant has been selected to conduct the financial and legal perspective of the projects as well as the infrastructure requirements.

Currently, Dewa has an electricity capacity of 9,700MW, with consumers using, at peak times, 6,500MW during the summer. Also, Dewa produces 470mn gallons of water per day. Peak consumption in summer does not exceed 300mn gallons per day, he added.

M Station, a power and desalination near Jebel Ali, is also part of Dewa’s expansion plan as they are going to increase its capacity from 2,030MW to 2,630MW. The exact cost of the M Station expansion, was not available.

Mohammad Bin Rashid Al Maktoum Solar Park will be included as one of the main expansion projects as well, at a cost of Dh1 billion, which will increase capacity from 13 mega watt to 113 mega watt. The expanded solar project will be commissioned by 2017, Al Tayer said.

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