Progress needed on Abu Dhabi power plants

20 February 2014

The UAE capital must ensure delays on its power schemes do not erode its reserve margin

Abu Dhabi has yet to appoint a developer for its Mirfa independent water and power project (IWPP).

The initial target of first power from the scheme in 2015 has been missed, and while sources close to the scheme say Abu Dhabi Water & Electricity Authority (Adwea) remains committed to the IWPP, the state utility provider has not made any public statement on the project’s status for several months.

While Abu Dhabi had a healthy reserve margin of almost 24 per cent in 2012, it must ensure delays on its power schemes do not cause problems in the coming years. Abu Dhabi Water and Electricity Company has forecast that base peak power demand will reach 20,370MW by 2020, almost double the peak demand recorded in 2012. This will require an increase in capacity of more than 6,500MW in the next six years to avoid a future supply-demand mismatch.

With the 1,647MW Shuweihat 3 independent power project planned for commissioning this year, this would still leave a deficit of 4,853MW, which will be negated if the emirate’s 5,600MW nuclear project at Baraka is fully operational by 2020. Emirates Nuclear Energy Corporation says first power is on schedule for 2017. However, due to technical and legal complexities, no nuclear project in the world has ever been completed on time. As a result, bringing the Mirfa project online has become increasingly crucial.

Although the emirate is in no immediate danger of power shortages, the Mirfa IWPP will test Adwea’s resolve. With Abu Dhabi set to see growth in electricity demand from an expanding population and industry and rising demand for exports from neighbouring emirates in the coming years, it is important the Executive Council and Adwea are able to move forward with the scheme.

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