Dubai utility DEWA has attracted Dh40 billion worth of investments from the private sector using the Independent Power Producer model, and has seen capacity exceed 4,000 megawatts as a result.
DEWA has also been able to save Dh26 billion in additional investment as a result, Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA), said.
Al Tayer said that the IPP model has helped Dubai set a new benchmark for solar energy prices for every kilowatt hour.
He also praised the regulatory and legislative frameworks in Dubai that enable the private sector to participate in energy generation projects, and encouraged international investors and developers to participate in the projects at the Mohammed bin Rashid Al Maktoum Solar Park, which is implemented by DEWA using the IPP model.
“The IPP projects contribute to…making Dubai the global capital of the green economy and support the goals of the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100 per cent of Dubai’s power capacity from clean energy sources by 2050. Previously, DEWA adopted the EPC model (Engineering, Procurement and Construction) for our power generation projects. Since 2014, DEWA has pioneered the IPP project management and implementation model,” added Al Tayer.
DEWA’s key projects using the IPP model include:
The Mohammed bin Rashid Al Maktoum Solar Park
The solar park is the largest single-site solar park in the world using the IPP model, and will have a production capacity of 5,000 MW by 2030, with a total investment of Dh50 billion. When completed, the solar park will reduce more than 6.5 million tonnes of carbon dioxide emissions annually. The capacity of solar energy projects that have been operated at the solar park is 1,627 MW using photovoltaic solar panels. The production capacity of clean energy amounts to about 11.5 per cent of the total energy mix in Dubai and is expected to reach about 14 per cent by the end of this year.
Hassyan Power Complex
The current production capacity of the Hassyan Power Complex, which runs on natural gas, has reached 1,800MW, using the IPP model. A further 600MW will be added in 2023. This will raise capacity of the complex to 2,400MW.
Hassyan Desalination Plant
DEWA aims to produce 100 per cent desalinated water using a mix of clean energy that combines renewable energy sources and waste heat by 2030. To achieve this, DEWA is working on a desalination plant using the IPP model at the Hassyan Complex, with a production capacity of 120 Million Imperial Gallons per Day.