Infrastructure

Dubai’s DEWA approves $6.4bn 2016 budget

State utilities firm also plans independent power producer projects worth $7.35bn

PHOTO: The 2016 budget includes AED 2.957 billion in generation, AED 3.416 billion in power transmission and AED 1.209 billion in power distribution. Credit: Shutterstock

The Dubai Electricity and Water Authority (DEWA) has approved a total budget of AED 23.655 billion ($6.4bn) for 2016, compared to AED 22.873 billion last year, according to WAM.

“The new budget ensures a reliable supply of electricity and water to meet Dubai’s development plans in all its operations,” the UAE state news agency reported.

“The budget will enable DEWA to adopt the best and latest clean energy technologies across all its operations to maintain its leading position nationally and internationally, by providing electricity and water at the highest levels of reliability, efficiency, safety, and sustainability.”

In addition, DEWA has also launched strategic projects worth over AED 27 billion ($7.35bn) that use the independent power producer (IPP) model to leverage public private partnerships and build new capacity in renewable energy and diversify the emirate’s energy mix in the long-term.

“This budget for 2016 is aligned to the directives of our visionary leadership, and will meet all the requirements of DEWA’s projects, operational facilities, ambitious initiatives in electricity and water, and all smart grid projects and services that will contribute to supporting DEWA’s service delivery, smoothly, easily and efficiently, to all Dubai’s customers,” said Saeed Mohammed Al Tayer, MD and CEO of DEWA.

“A large part of the budget will also go to clean-energy-related projects in support of the Dubai Clean Energy Strategy 2050 to provide 75% of Dubai’s total power output from clean energy. This will make Dubai’s carbon footprint the lowest in the world. Most prominent of these projects is the Mohammed bin Rashid Al Maktoum Solar Park and the Shams Dubai project to encourage building owners to install photovoltaic panels to generate electricity from solar energy and connect it to DEWA’s grid. DEWA has also budgeted for research and development, and research and innovation in renewable energy. All these will promote sustainable development in the UAE,” he added.

“The sum of AED 8.72 billion will be allocated to capital expenditure and projects, compared with AED 8.028 billion in 2015. The 2016 budget includes a number of key projects, including AED 2.957 billion in generation, AED 3.416 billion in power transmission, AED 1.209 billion in power distribution, and AED 1.042 billion in water and civil, in addition to other amounts totalling AED 95 million.

“Other projects include building 9 new 132kV substations at a cost of AED 775 million. AED 1.544 billion has been allocated to the extension of 256 km of 132kV cables, and other power transmission and distribution projects and smart communication networks.

“To increase water storage capacity at DEWA, AED 245 million will be budgeted to build two water reservoirs at Al Nakhly, and a further AED 50 million to build a water pumping station on the Dubai-Al Ain road, as well as other water transmission and distribution projects.

“DEWA’s operational budget for 2016 is AED 14.165 billion compared with AED 13.465 billion in 2015, while the administrative capital budget is AED 770 million,” Al Tayer added.

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