Investment to meet higher demand includes K-Station expansion in Jebel Ali
The Dubai Electricity and Water Authority (Dewa) will invest AED8.28 billion ($2.25bn) in capital purchases and projects in 2015, out of a total budget of AED22.9bn.
This investment represents a 17 per cent increase on the 2014 budget, in which AED7.06bn out of AED20.6bn was invested.
A new project will increase the capacity of the Jebel Ali K-Station electricity generation and water desalination plant by adding two gas turbines with a capacity of 500 megawatts. The plant currently has a capacity of 880MW and 60 million gallons a day of desalinated water (MIGD).
The capacity of the M-Station electricity and desalination plant in Jebel Ali will also be increased by 700MW. Firms submitted bids on 15 October 2014 for the engineering, procurement and construction (EPC) contract.
Other projects include building 12 new 132 kilovolt substations, extending 272km of 132kV cables, and smart communication networks.
Peak demand for electricity reached 7233MW in 2014, compared to 6857MW in 2013, an increase of 5.5 per cent. Annual growth in peak demand for electricity had been slowed to 3.6 per cent in 2009-13, from 10.4 per cent in 2004-08, partly by higher tariffs for expatriates. This took pressure off Dewa to expand capacity, as its reserve margin remains approximately 2423MW.
If the trend continues, new investment will be needed, and Dewa is diversifying its energy mix.
Bids are due for the Hassyan Coal independent power project (IPP) in March 2015. The first 600MW unit is expected to come online in 2020.
Dewa continues to expand the Mohammed bin Rashid Al-Maktoum Solar Park, and is evaluating bids for the 100MW second phase.
Dewa will spend AED590m on water network projects including water reservoirs and transmission networks in 2015, and AED175m on extending new networks and introducing a district meter system to monitor leakage and reduce water losses.
Peak water demand in 2014 reached 316MIGD with a reserve margin of 154MIGD. This shows growth of 6.8 per cent from 2013, compared with only a 3.9 per cent growth between 2012 and 2013.
The sharp increases in peak demand growth reflect Dubais economic recovery and a strong construction sector in 2014.
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