Dubai aims to cut electricity demand by 30 per cent

27 April 2015

Dubai sets out sustainability strategy

  • Dewa aims to reduce demand by 30 per cent by 2030
  • Electricity demand rose by 5 per cent on 2014
  • Higher tariffs have been introduced to help reduce consumption

Dubai Electricity & Water Authority aims to reduce demand by 30 per cent by 2030 as a part of its long-term sustainability plan.

This is despite a rise of 5 per cent in electricity demand in 2014.

Water and electricity demand growth had slowed with the introduction of higher tariffs for expatriates in 2008 to encourage more sustainable consumption.

Dewa plans the following energy mix by 2030:

  • 71 per cent natural gas
  • 15 per cent solar (3,000MW)
  • 7 per cent coal
  • 7 per cent nuclear

“Our energy mix strategy is about diversification,” says Abdulla al-Hammadi, vice-president of strategy at Dewa. “You can’t depend on one source and we are decreasing our dependency on natural gas, which is at almost 100 per cent now, to 71 per cent.”

Dewa is in negotiations with authorities in Abu Dhabi to import power from the Barakah nuclear plant, which is due to come online in 2017.

It is also investigating the feasibility of a nuclear power plant in Dubai as a back-up option.

Proposals are due on 28 April for the Hassyan clean coal independent power project.

“Clean coal is just a small percentage of the mix and we will use the best, European standards,” says Hammadi. “The carbon capture technology will utilise waste carbon dioxide and reuse it in construction materials.”

Dewa reduced its carbon emissions by 8.8 per cent in 2014, but is aiming to increase the saving to 16 per cent by 2021 or 5.9 million tonnes of carbon dioxide.

The utility is also planning an extension of the K-Station gas plant in Jebel Ali.

“We are dedicated to the continuity of supply, and as demand may increase above 5 per cent a year before 2020, we are looking at this project,” says a spokesperson. “We do not want to wait and get a surprise.”

No water capacity is planned before 2020.

Dewa spent AED3.6bn ($1bn) on capital expenditure in 2014, but generated AED17.8m in revenues.

Dewa is investing in reducing water losses from the current 6.5 per cent to 5.7 per cent by 2021.

“Dubai is growing so there is pressure on the network,” says Al-Hammadi. “We are revamping the network to improve its efficiency through smart network technology and applying world-class standards to new developments.”

Electricity transmission losses are running at 3.3 per cent.

Stay informed with the latest in the Middle East
Download the MEED app today, available on Apple and Android devices

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications