UAE: DEWA Secures AED 43.6 Billion in Projects via IPWP Model in Last Decade

Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), has emphasised that DEWA operates in alignment with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai. The objective is to transform Dubai into a global hub for the green economy, an ambitious goal that DEWA actively pursues through various strategic initiatives.

Al Tayer highlighted that DEWA has developed the Independent Power and Water Producer (IPWP) model by incorporating the best international experiences and practices. This innovative model is designed to fit the specific legislative and technical environment of Dubai. The adoption of the Independent Producer model by DEWA has been instrumental in attracting investments worth AED 43.6 billion over the past decade. This substantial influx of investment has significantly boosted Dubai’s renewable energy and water sectors.

The Independent Producer projects foster robust partnerships between the government and private sectors. By leveraging this model, DEWA has managed to achieve the lowest Levelised Cost Of Energy (LCOE) globally in solar energy projects. This accomplishment positions Dubai as a global benchmark for solar energy prices, showcasing its leadership in renewable energy.

Al Tayer stated, “The regulatory and legislative frameworks in Dubai, which allow the private sector to participate in energy generation projects, encourage international investors and developers to participate in the Mohammed bin Rashid Al Maktoum Solar Park’s projects, which DEWA is implementing using the IPP model. Our IPWP projects support the Dubai Economic Agenda D33, which aims to double the size of Dubai’s economy over 10 years and consolidate its position among the top three global cities. They also align with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100 per cent of the energy production capacity from clean energy sources by 2050.”

Dubai offers an ideal business environment for investors. According to the Financial Times Ltd’s “fDi Markets” data, Dubai has maintained its position as the world’s leading hub for foreign direct investment (FDI) for the third consecutive year. In 2023 alone, Dubai attracted over AED 39.2 billion in total FDI capital, resulting in the creation of around 45,000 job opportunities.

DEWA’s role in attracting foreign investments is pivotal, driven by its pioneering energy and water projects based on the Independent Power and Water Producer (IPWP) model. Since adopting this model in 2014, replacing the traditional Engineering, Procurement, and Construction (EPC) model, DEWA has advanced its infrastructure and service offerings.

Among DEWA’s flagship IPP projects is the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world. The solar park is designed to achieve a planned production capacity of over 5,000MW by 2030, with a total investment of AED 50 billion. DEWA has successfully inaugurated five phases of the solar park and is currently implementing the 1,800MW sixth phase, which involves an investment of approximately AED 5.5 billion. This project has seen participation from several global consortiums, led by major companies such as Saudi Arabia’s ACWA Power and Abu Dhabi Future Energy Company (Masdar).

DEWA’s other notable energy projects based on the IPP model include the Hassyan Power Complex, which operates on natural gas. The 2,400MW power complex is one of the largest power stations in the region, employing the latest international technologies in energy production to ensure efficiency and sustainability.

In addition to energy projects, DEWA is also implementing a 180 million imperial gallons per day (MIGD) seawater reverse osmosis (RO) desalination project in Hassyan, using the Independent Water Producer model. This project is the world’s largest of its kind employing RO technology under the IWP model, with an investment of AED 3.4 billion.

Through these strategic initiatives and projects, DEWA continues to contribute significantly to Dubai’s economic growth and its ambition to become a leading global city in renewable energy and sustainable development. The ongoing efforts reflect DEWA’s commitment to aligning with the broader goals of the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050, aiming to ensure that all energy production capacity in Dubai is sourced from clean energy by the year 2050.