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DEWA sets global solar benchmarks in Dubai

DEWA leads Dubai's green economy with innovative IPWP models, attracting billions in investments and setting global solar benchmarks. (Image source: DEWA)

DEWA leads Dubai's green economy drive with innovative IPWP models, attracting billions in investments and setting global benchmarks in solar energy pricing and sustainable development

HE Saeed Mohammed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority (DEWA), underscored DEWA's alignment with the vision and directives of HH Sheikh Mohammed bin Rashid Al Maktoum, vice-president and prime minister of the UAE and Ruler of Dubai, to position Dubai as a global hub for the green economy

Al Tayer highlighted DEWA's development of the Independent Power and Water Producer (IPWP) model, incorporating leading international practices tailored to Dubai's legislative and technical requirements. The IPWP model has attracted investments totaling approximately US$11.9bn over a decade, fostering partnerships between the government and private sectors. This approach has enabled DEWA to achieve the world's lowest Levelised Cost of Energy (LCOE) in solar energy projects, establishing Dubai as a benchmark for global solar energy pricing.

"The regulatory and legislative frameworks in Dubai, facilitating private sector participation in energy generation projects, have incentivized international investors and developers to engage in projects like the Mohammed bin Rashid Al Maktoum Solar Park under the IPP model," noted Al Tayer. "Our IPWP initiatives support Dubai's Economic Agenda D33, aimed at doubling the city's economy over a decade and solidifying its position among the world's top three cities. They are also aligned with Dubai's Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy 2050, targeting 100% clean energy production by 2050."

Ideal environment for investment

Dubai's conducive business environment has made it a premier destination for foreign direct investment (FDI), attracting US$10.7bn in FDI capital in 2023, creating around 45,000 job opportunities, according to Financial Times Ltd.'s "fDi Markets" data.

Pioneering energy and water projects

This environment supports DEWA's efforts to draw foreign investments through pioneering energy and water projects under the Independent Power and Water Producer (IPWP) model, which DEWA has embraced since 2014, supplanting the Engineering, Procurement and Construction (EPC) model.

Key among DEWA's IPWP projects is the Mohammed bin Rashid Al Maktoum Solar Park, the world's largest single-site solar park slated to produce over 5,000MW by 2030, with a total investment of USD 13.6 billion. DEWA has commissioned five phases of the solar park and is currently implementing its 6th phase, a 1,800MW project costing approximately US$1.5bn. Noteworthy global consortiums, including major firms like Saudi Arabia's ACWA Power and Abu Dhabi Future Energy Company (Masdar), have participated in these phases.

DEWA's other significant IPWP-based projects include the Hassyan Power Complex, a 2,400MW natural gas facility employing state-of-the-art technologies in energy production, and a 180 million imperial gallons per day (MIGD) seawater reverse osmosis (RO) desalination project in Hassyan, the world's largest of its kind using RO technology under the Independent Water Producer (IWP) model, with an investment of approximately USD 925 million.