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Dubai Electricity and Water Authority (Dewa) announced that it has deferred its US$1.3 billion Hassyan power project to a later date as a result of its success in boosting power capacity to meet growing demand
The utility company's deferral of the first independent power project (IPP) in the Emirates came after it conducted a comprehensive review of its plans to deliver all future demands for power and water in a timely manner as per the international standards and practices.
Dewa said it has succeeded in raising the efficiency and production capacity of its existing power plants at Jebel Ali by around 450MW while managing to cut the percentage line losses in its electrical network to 3.5 per cent in 2011, down from 6.3 per cent in 2001.
"Amongst numerous benefits, the line loss reduction will reduce the requirement for building new power plants. These energy savings will partially offset existing demand," Dewa said in a statement.
The company's decision is quite sudden as it was only in December last year that it had received four bids from an international consortia for the contract to build the first phase of the IPP, expected to generate about 1,600MW of power and help meet the increasing electricity demand in the country from 2014.
While issuing the statement, Dewa took pains to stress that there is no change in the Emirate's policy on partnerships with the private sector in future power-generation projects.