Abu Dhabi: Demand for electricity in the emirate will grow by 11 per cent through 2019 due to the expected growth in residential and commercial projects and the industrial sector, the government said yesterday.

"Through the first 12 weeks of this year, we've seen an increase of 500 megawatts [MW] per week in peak electricity demand," said Keith Miller, director of planning and studies directorate at the government-owned Abu Dhabi Water and Electricity Company (Adwec). "We're well on course to match or exceed the growth in demand of 2009."

The emirate's population is expected to grow from 1.4 million in 2005 to about 5 million in 2030, a factor representing the "driving force" behind the increase in demand for electricity and water, Miller said.

Last year, demand for electricity in Abu Dhabi grew by 11 per cent to 6,255 MW, its highest rate ever, said Miller. That demand will approach 19,000 MW by 2019 and 26,000 MW by 2030, a growth rate of 7 per cent in the next two decades, according to Adwec's forecast.

The growing needs of the Abu Dhabi National Oil Company (Adnoc), residential, commercial and industrial projects will generate 75 per cent of the demand, Adwec announced at the MEED Arabian Power and Water Summit.

"Last year's growth showed the global financial crisis had little or no impact on electricity demand in Abu Dhabi," said Miller. He added residential and commercial projects will drive almost 90 per cent of the growth in demand for water from 664 million gallons per day last year to more than 1.4 trillion gallons by 2030, representing 3.7 per cent annual growth.

The Adwec forecast followed the disclosure of a senior official of its parent company Abu Dhabi Water and Electricity Authority (Adwea) that it is in talks with banks to finance a new 1,600 MW power plant in Shuweihat.

The Shuweihat 3 plant has attracted bids from 14 companies, Adwea Director of Privatisation Abdullah Al Nuaimi said.

Finance

In October, Adwea said it secured $2.1 billion in financing over 22 years for the $2.7 billion Shweihat 2 electricity and water plant.

The project, being developed by GDF Suez and Marubeni, will have a capacity of 1,500 MW and run on natural gas.

The growth in Abu Dhabi's demand for electricity is expected to be met using traditional fossil fuels, delegates said.

Still, the development of more advanced solar technology could bring down costs and provide a clean alternative to be used alongside nuclear energy.

"Today, energy production in the region is dominated by fossil fuels," said Dietmar Siersdorfer, chief executive of Siemens Middle East Energy Sector Cluster.

data

key indicators

11%

rise in eletricity demand in Abu Dhabi last year

5m

emirate's projected population in 2030