Dubai - Arabstoday
Dubai has an energy surplus of 30 per cent, according to the president of the Dubai Electricity and Water Authority (Dewa). Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and President of Dewa, told media at the opening of the 14th Water, Energy and Environment Exhibition 2012 (Wetex) that Dewa\'s financial situation is healthy and there is no plan for the UAE to issue bonds. Shaikh Hamdan said Dewa is working hard to reliably and efficiently meet consumers\' needs and development projects in various economic and social sectors, and provide for the emirate\'s requirements in electricity and water. \"[The] government is determined to pursue its developmental march steadily and push forward to implement its vital projects and steadily increase the installed capacity on an annual basis,\" he said. \"Dubai has a 30 per cent energy surplus [and] the completion of the M station for power generation and water desalination plant in Jebel Ali, will increase the power generation capacity [in] the emirates.\" The station for power generation and water desalination at Jebel Ali, which will have a production capacity of 2,000 megawatts (MW) and produce 140 million gallons of desalinated water per day, at a cost of more than Dh10 billion, constitutes one of the main pillars of Dewa\'s production capacity, he said. It is expected that the M station\'s full production capacity, after being fully commissioned, will reach about 10,000 megawatts this year Saeed Al Tayer, CEO and managing director of Dewa said: \"Dewa has enough reserves of electricity and water until 2020.\" \"Moreover, the completion of one of Dewa\'s biggest projects, the M station, will increase the power generation capacity from 8,700 megawatts to 9,600 megawatts, while desalinated water capacity would increase to 470 million gallons per day, compared to 330 million gallons per day last year.\" Reservoir He added that Dewa recorded a 4 per cent increase in the number of consumers to 630,000, adding 22,000 new accounts. While 75 per cent of the consumers are residential accounts and 25 per cent are commercial, the consumption for the latter is higher. \"Electricity and water consumption are linked to economic growth, and this is expected to rise in 2012,\" he said. Moreover, Al Tayer remarked that they are building a big water reservoir in Al Gafat. \"We are building a water storage with a capacity of 170 million gallons for emergency cases.\" This capacity represents the consumption of water for two days but would be enough for 30 days in an emergency, he added. Al Tayer pointed to the importance of power links within the Gulf Cooperation Council (GCC) as well as Europe, Turkey and Iran. Benefits \"While the GCC power grid has a very useful impact on the Gulf region, the power grid with other countries of different geographies and nature would be better for the differences in peak time and weather,\" he said. Dubai has developed a strategic plan to have a power grid with Iran, however no proper response from Iran has been received yet, Al Tayer said. \"Dubai and Iran developed the feasibility study three years ago as phase one of a power grid project between the two countries at a Dh4 million cost and with the assistance of international consultants. \"This project is very useful for the two countries since they have different peak hours and different weather; however, the project has been frozen at this point,\" Al Tayer added, refusing to comment if it had been on hold for political and economic reasons. Financial policy Al Tayer said Dewa has no financial difficulties and will be able to pay its outstanding Dh1.2 billion in loans after two days while it is due next November. \"Dewa does not need any further financing even as it targets under construction projects worth Dh20 billion.\" \"We have no financial problems and we are going to pay Dewa\'s outstanding loans for this year, which stand at Dh1.2 billion,\" he said. He added that Dewa has several financial tools to meet its ongoing expansion projects in electricity and water networks, transmission and distribution at a value of Dh20 billion.\"