DEWA Attracts AED 43.6 Billion Investment Through IPWP Model In Ten Years

Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA), has underscored DEWA's alignment with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum. This vision aims to position Dubai as a global leader in the green economy.

Dubai provides an ideal business environment for investors. According to 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, Dubai attracted over AED 39.2 billion in total FDI capital, creating around 45,000 job opportunities.

DEWA contributes to attracting foreign investments through its pioneering energy and water projects based on the Independent Power and Water Producer (IPWP) model. DEWA has adopted this model since 2014, replacing the Engineering, Procurement and Construction (EPC) model.

Al Tayer highlighted that DEWA developed the Independent Power and Water Producer (IPWP) model by utilising the best international experiences and practices. This model aligns with Dubai's legislative and technical environment requirements. DEWA’s adoption of this model has attracted investments worth AED 43.6 billion over 10 years.

The Independent Producer projects encourage partnerships between government and private sectors. Through this model, DEWA has achieved the lowest Levelised Cost Of Energy (LCOE) in solar energy projects globally, making Dubai a benchmark for solar energy prices.

Key Projects Under IPP Model

Among DEWA’s key IPP projects is the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world. It has a planned production capacity of over 5,000MW by 2030 and a total investment of AED 50 billion.

DEWA has inaugurated five phases of the solar park and is currently implementing the 1,800MW sixth phase at a cost of around AED 5.5 billion. Several global consortiums participated in these phases, led by major companies such as Saudi Arabia’s ACWA Power and Abu Dhabi Future Energy Company (Masdar).

Regulatory Frameworks Encouraging Investment

"The regulatory and legislative frameworks in Dubai allow private sector participation in energy generation projects," said Al Tayer. "These frameworks encourage international investors to participate in projects like those at the Mohammed bin Rashid Al Maktoum Solar Park."

He added that these IPWP projects support the Dubai Economic Agenda D33, which aims to double Dubai’s economy size over ten years. They also align with strategies to provide 100% clean energy production capacity by 2050.

Other Notable Projects

DEWA’s other energy projects based on the IPP model include the Hassyan Power Complex, which runs on natural gas. The 2,400MW power complex is one of the largest power stations in the region using advanced technologies in energy production.

Additionally, DEWA is implementing a seawater reverse osmosis (RO) desalination project at Hassyan using the Independent Water Producer model. This project will produce 180 million imperial gallons per day (MIGD) and is considered the world's largest RO technology-based project under this model with an investment of AED 3.4 billion.

The strategic initiatives undertaken by DEWA reflect its commitment to sustainable development while fostering economic growth through innovative models that attract significant investments.

With inputs from WAM