Dubai The Dubai Electricity and Water Authority (Dewa) has deferred its $1.3 billion (Dh4.7 billion) Hassyan power plant project until further notice, Saeed Al Tayer, chief executive and managing director, told Gulf News.
"As a result of Dewa's achievements in the field of raising power-production capacity and improving demand conservation, by increasing power reserves to meet increasing demand due to the economic development of Dubai, the Hassyan Power Plant Project can be deferred until a later date, thus deferring capital and operational expenditures," Al Tayer said.
The Hassyan 1 IPP (independent power producer) was to have a capacity of 1,600 megawatts with 51 per cent owned by Dewa and 49 per cent by the winning party.
The plant was to form part of the Hassyan power generation complex near Abu Dhabi and use natural gas for fuel. It was due to be commissioned in 2014.
Dewa earlier announced plans to build a large power and desalination complex at Hassyan comprising six plants in all boasting a total capacity of up to 9,000MW and 720 million gallons per day of desalinated water.
Power demand
While 18 consortiums had applied for the project, four made the final shortlist for bidding.
Al Tayer said Dewa conducted a comprehensive review of its plans to deliver all future demands for power and water.
"These plans are in alignment with the Dubai Strategic Plan and the Dubai Integrated Energy Strategy 2030 formed by the Supreme Council of Energy, and in accordance with Dewa's Strategic Plan to provide these supplies [with] efficiency, reliability and safety, while protecting the environment [and] sustaining natural resources.
"In 2011, Dewa succeeded in reducing power demand growth considerably to only three per cent net consumption growth, down from the six per cent expected gross consumption growth, despite a simultaneous five per cent growth in registered combined electricity and water accounts.
This was achieved due to the deployment of best practices in power demand management, using the latest technologies, and implementing a slab tariff to encourage consumption conservation as a major means of reducing waste."
Dewa also succeeded in reducing the percentage line losses in its electrical network to 3.49 per cent in 2011, down from 6.28 per cent in 2001, he said.
"Among numerous benefits, the line loss reduction will reduce the requirement for building new power plants. These energy savings will partially offset existing demand."
