DEWA increases percentage of renewables in energy mix targets to 7% by 2020 and 15% by 2030

Press release
Published January 21st, 2015 - 12:18 GMT
During the event
During the event

HE Saeed Mohammed Al Tayer, MD & CEO of DEWA has announced today that DEWA is increasing the percentage of renewables in Dubai’s energy mix target to 7% by 2020 and 15% by 2030. The announcement was made at a discussion panel Al Tayer participated in on the third day of the World Future Energy Summit 2015, which is held in Abu Dhabi from 19-22 January 2015. HE Razan Khalifa Al Mubarak, Secretary General of the Environment Agency of Abu Dhabi, and Mohamed Al Ramahi, Chief Operating Officer of Masdar, also participated in the discussion panel, which was attended by HE Dr. Sultan Al Jaber, Minister of State and CEO of Masdar. The discussion panel, called Building a Clean Economy Future, was moderated by Eithne Treanor. It discussed different topics in sustainability and energy in the UAE including investment in clean energy, the challenges facing the UAE in this field, and the participation of the private sector.

At the beginning of the panel, Al Tayer thanked HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for their limitless support of the sustainable development of the UAE. He also thanked HH General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for his patronage of the World Energy Future Summit (WFES 2015,) which has become one of the largest and most important global events that brings together countries from around the world to discuss energy security and its future and to identify implementable solutions for the challenges of the global energy sector and ensure development and innovation in sustainable energy around the world.

At the session, Al Tayer also announced that DEWA will release a bid for a 500MW photovoltaic (PV) project in 2016 using the Independent Power Producer (IPP) model.

The announcement increases the percentage of renewable energy following DEWA’s earlier announcement to double the capacity of phase two of the Mohammed bin Rashid Al Maktoum Solar Park from 100MW to 200 MW. It is one of the world’s biggest strategic IPP projects in the renewable energy market. The consortium led by Saudi Arabia’s ACWA and Spain’s TSK was selected as a Preferred Bidder with the lowest price. This reflects the trust and interest of international investors in Dubai and DEWA, its transparency in all its projects and its strong financial position. The ACWA and TSK consortium was selected based on its alternate proposal for 200MW with an LCOE of 5.84869 USD cents/kWh.

“DEWA managed to get the lowest price thanks to the global trust it enjoys and the encouraging regulations that protect the rights of all parties. Our wise leadership supports partnership between the public and private sectors. The economic and social development depends on utilising the capabilities, resources, and expertise of both the government and private sectors to partner in building and operating different projects. DEWA has been a major proponent of such joint efforts and implemented them in the energy generation sector by adopting the IPP model in the Mohammed bin Rashid Al Maktoum Solar Park and the Hassyan Clean Coal Power Project. The worldwide participation in the bids reflects the trust and interest of international investors to invest in big projects that are supported by the Government of Dubai,” said Al Tayer.

“DEWA works to achieve the strategy of the Dubai Supreme Council of Energy in Dubai to diversify the energy mix and reduce consumption by 30% by 2030 and we are on track to surpass the previous targets. The UAE, represented by DEWA, has been ranked first in the Middle East and North Africa and fourth globally for the second consecutive year, in getting electricity as per the World Bank’s Doing Business Report. DEWA has a 90% fuel consumption efficiency rate,” he added.

The UAE has come a very long way in green economy and enjoys a leading position. With the UAE Vision 2021, the country aims to become one of the best countries in the world by 2021 and diversify its economy to achieve sustainable development through several strategic objectives, including responding effectively to climate change and environmental hazards, saving natural resources, promoting diverse ecosystems, ensuring a healthy and clean environment, and reducing pollution. All government organisations operate under the directives of HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, to locally generate renewable energy and contribute to the conservation of the country’s valuable natural resources by supporting a new energy sector that has promising prospects. They also support the Green Economy for Sustainable Development initiative, launched by HH Sheikh Mohammed bin Rashid Al Maktoum, to build a clean economy in the UAE” added HE Al Tayer.

Al Tayer noted that several clean and renewable energy projects are implemented across the UAE, including Abu Dhabi’s Masdar City and Dubai’s Mohammed bin Rashid Al Maktoum Solar Park, which drive the transition towards a green economy, help reduces carbon emissions and negative environmental effects, thereby achieving the happiness and welfare of its citizens and residents. He pointed out that renewable energy has a lot of health and economic benefits for all society.

Al Tayer also noted that renewable energy costs have significantly decreased in recent years and are expected to continue this trend. For example, the prices of PV panels have dropped by 60% since 2011. He explained that investments in the energy sector are expected to surpass AED 56 billion over the next five years to meet Dubai’s growing demand for electricity and water. This will boost green economy and create a competitive advantage for the UAE in clean energy technology and energy efficiency.

The smart gird initiative which DEWA is being implementing with AED 7 billion of investments to achieve the Smart Dubai initiative along DEWA’s smart initiatives to produce solar electricity in buildings and homes, connecting them to the grid, and building the infrastructure and electric-vehicle charging stations. He noted that renewable energy resources create more jobs in different sectors in the UAE.

To achieve the vision of His Highness, DEWA has developed the smart grid strategy, which is an important step towards achieving the Smart Dubai initiative to make Dubai the smartest city in the world, and achieve the Dubai Plan 2021, to achieve a happy society that fulfils the aspirations of Emiratis and residents in Dubai. DEWA has developed plans and programmes for demand side management, energy efficiency and operational improvement. Under the smart grid strategy, DEWA will focus on different programmes in the short, medium and long term including advanced metering infrastructure, asset management, demand side management, distribution automation, information technology infrastructure, substation automation, system integration, telecommunications, and efficiency, reliability, and availability of energy supplies.

“We launched the energy demand strategy in 2013, which includes eight major programmes. These are regulations for green building construction, retrofitting of existing buildings, district cooling, standards and labels for appliances and equipment, water reuse and efficient irrigation, outdoor lighting, tariff structures to support energy conservation, and demand response. Furthermore, DEWA established Etihad ESCO to retrofit around 30,000 buildings in Dubai. Etihad ESCO also examines DEWA’s buildings for energy efficiency to reduce consumption, and support sustainability and energy efficiency. This project will be a model for the promotion of energy efficiency performance, not only in Dubai but the entire region.

“We are delighted to be working with DEWA, which is leading the way in carbon reduction and we are proud to be part of it. We are confident of our ability to deliver on time according to the highest international standards,” said Paddy Padmanathan, President & CEO of Acwa Power.

Padmanathan noted that the consortium succeeded in getting the lowest price thanks to the global trust in Dubai and DEWA, especially in the global financial credit and the trust of financial institutions and banks.

WFES takes place during Abu Dhabi Sustainability Week (ADSW), from 17-24 January 2015. ADSW is a global platform that attracts over 32,000 delegates to address the interconnected challenges of economic development, water scarcity, poverty, energy, and climate change that affect the widespread acceleration and adoption of sustainable development and clean energy.

Background Information

Dewan Architects & Engineers

Dewan Architects + Engineers has been at the forefront of the Middle East's booming architectural and engineering design sector for almost three decades. Its founder and current Chairman and Managing Director, Mohamed Al Assam, established the inaugural Dewan office in Abu Dhabi in 1984 and successfully completed Dewan's first high-rise commercial project, Baniyas Tower, in 1988, which cemented Dewan's presence as a major player in the regional architectural scene. 

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