Dewa approves Dh23.655 billion budget for 2016 in addition to IPP-based projects totalling Dh27 billion

Dubai: The Dubai Electricity and Water Authority (Dewa) has approved a total budget of Dh23.655 billion for 2016, compared to Dh22.873 billion in 2015, it announced on Saturday.

In a statement, Dewa said the new budget ensures a reliable supply of electricity and water to meet Dubai’s development plans in all its operations and will enable Dewa to adopt the best and latest clean energy technologies across all its operations.

In addition, Dewa has also launched strategic projects worth over Dh27 billion that use the Independent Power Producer (IPP) model to leverage Public Private Partnerships and build new capacity in renewable energy and diversify the Emirate’s energy mix in the long-term.

“This budget for 2016 ... will meet all the requirements of Dewa’s projects, operational facilities, ambitious initiatives in electricity and water, and all smart grid projects and services that will contribute to supporting Dewa’s service delivery, smoothly, easily and efficiently, to all Dubai’s customers,” said Saeed Mohammed Al Tayer, MD and CEO of Dewa.

A large part of the budget will also go to clean-energy-related projects in support of the Dubai Clean Energy Strategy 2050 to provide 75 per cent of Dubai’s total power output from clean energy.

The sum of Dh8.72 billion will be allocated to capital expenditure and projects, compared with Dh8.028 billion in 2015. The 2016 budget includes a number of key projects, including Dh2.957 billion in generation, Dh3.416 billion in power transmission, Dh1.209 billion in power distribution, and Dh1.042 billion in water and civil, in addition to other amounts totalling Dh95 million. Other projects include building 9 new 132kV substations at a cost of Dh775 million. Dh1.544 billion has been allocated to the extension of 256km of 132kV cables, and other power transmission and distribution projects and smart communication networks.

“To increase water storage capacity at Dewa, Dh245 million will be budgeted to build two water reservoirs at Al Nakhly, and a further Dh50 million to build a water pumping station on the Dubai-Al Ain road, as well as other water transmission and distribution projects,” Al Tayer said.

Dewa’s operational budget for 2016 is Dh14.165 billion compared with Dh13.465 billion in 2015, while the administrative capital budget is Dh770 million.