Dubai’s electricity utility picked up its pace in June as it moves to expand its power network, awarding several contracts valued at over Dh2 billion during the month.
As the emirate grows, so does its need for more electricity. Dubai saw a 4 per cent increase in power demand last year compared to 2015, and that need isn’t expected to slow. Dubai Electricity and Water Authority (Dewa) in response has set aside Dh65bn toward the emirate’s energy sector over the next five years.
“We are moving ahead with our development projects to provide the necessary electricity and water resources to meet the growing needs of the emirate,” said Saeed Al Tayer, managing director and chief executive of Dewa. In the past month the utility has awarded contracts for three projects with a combined value of over Dh2bn. Dewa announced on 1 July that it had selected an unnamed company for a Dh226.5 million construction contract for its distribution division at Al Rawaiyah.
The utility said that the work would include a five-floor office building with a basement, a multi-story car park, mosque and imam accommodation. In addition, the development will hold stores, field offices, staff accommodation and a parking lot for heavy machinery. Earlier this month, the utility signed a 12-year operating plant service agreement with Siemens. The Dh1.7bn contract will have the German company providing maintenance for the second phase of the K-station at Jebel Ali, as well as the third phase of the H-station at the Al Aweer power station.
Dewa also tapped France’s EDF in a Dh58m consultancy contract earlier this month for the pumped storage hydropower station at Hatta dam. EDF will design and carry out various studies including deepwater tunnel designs as well as mapping out the engineering, procurement and construction tender.
The project will have a total capacity of 250 megawatts, with the plant expected to be completed by to cost a total of Dh1.92bn.
EDF chief executive Jean-Bernard Levy said that the company was looking to grow in the Middle East and hoped to grab a few landmark projects. He said that there was now a real change on the energy market in the region and diversification is a key objective. “Just having fossil-based electricity systems is the past. The new view is a diversified mix,” he said.