DEWA reviews bids after receiving lowest tariff

Dubai Electricity and Water Authority (DEWA) has opened the bids it has received for the first phase of the Hassyan clean-coal power plant, which is based on the Independent Power Producer (IPP) model. The first phase of the 1,200MW project is expected to be operational by 2020. Four global bidders have been shortlisted after opening the bids. They will be evaluated and the best bid will be selected based on the criteria developed by the advisory committee that oversees the project.

DEWA previously extended the bid deadline for the first phase of the IPP Hassyan clean-coal power plant to accommodate requests from developers. The deadline was extended to 30 April 2015. The lowest price among the bids that DEWA received is US$4.9 cents/kWh.

"The Hassyan Clean Coal Power Project reflects our commitment to the vision of His Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum, to diversify the energy mix. It also reflects our commitment to our goals to energy diversification and sustainability of resources, and achieving the Dubai Integrated Energy Strategy 2030, which focuses on producing electricity from clean coal as part of Dubai's energy mix," said HE Saeed Mohammed Al Tayer, MD and CEO of DEWA.

Al Tayer noted that this is a major step in implementing the energy diversification strategy approved by the Dubai Supreme Council of Energy, which focuses on producing electricity from clean coal as part of Dubai's energy portfolio. He noted that the Hassyan power plant uses ultra-supercritical technology to produce energy according to the highest international standards set by the European Union. Last year, DEWA awarded the consultancy service contract for the first phase of the IPP project to an international consultant.

Al Tayer expressed his satisfaction with the wide interest in the project from international developers. He noted that the wide international participation in this vital field reflects the trust and interest of international investors to invest in large projects supported by the Government of Dubai.

Al Tayer emphasised that DEWA is a role model in performance, efficiency, productivity, and excellence in providing electricity and water services according to the highest international reliability and availability standards.

Through these projects, DEWA is managing Dubai's increasing energy demand and contribute to the sustainable development of the Emirate.

Al Tayer noted that DEWA is working to diversify its energy sources and increase its share of renewable energy. He explained that the Dubai Integrated Energy Strategy 2030 initially set the percentage of renewable energy in Dubai's energy mix to be 1% by 2020 and 5% by 2030 but DEWA has increased this target to 7 % by 2020 and 15 % by 2030. The Dubai Integrated Energy Strategy 2030 diversifies Dubai's energy mix to include 71% from gas, 7% from clean coal, and 7% from nuclear power.
Source: WAM