Under the deal, the five northern emirates will depend on the Abu Dhabi Water & Electricity Authority (Adwea) for power. In the future, the Federal Electricity & Water Authority (Fewa) could provide Adwea with land to develop new plants in the north.

The memorandum of understanding between Adwea and Fewa, agreed in early January, will be followed by a power purchasing agreement, under which Adwea will supply the northern emirates with 2,500MW of power up to 2015.

Initially, the federal authority will take a share of the power produced from the 890MW Fujairah 1 and 2,000MW Fujairah 2 independent water and power projects already being developed by Adwea (MEED 3:12:07). The total capacity installed across Ajman, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain is about 1,100MW, with 200MW to be added by April.

But as demand in the northern emirates is growing at an average of 18 per cent a year, more capacity will be needed.

The 200MW gas turbine at Al-Zawra in Ajman is under construction by the US’ GE. It will be the last Fewa installs before responsibility for power generation shifts to Adwea.

In late 2007, it invited private developers to help boost power and water capacity for the first time, to help meet demand from upcoming megaprojects.