Dubai has selected eight firms to build a 1200 megawatt (MW) clean coal power plant, UAE officials stated, part of a $20 billion investment that inye to help to diversify the Gulf Arab emirate’s energy mix by 2030.
Dubai produces very little oil and relies on costly imports of gas to comply with its rising energy spending.
Dubai Electricity and Water Authority (DEWA) has also put out a bid for the construction of a 100-megawatt independent solar power project (IPP), part of the emirate’s 2030 energy plan.
DEWA also prepares to enlarge its existing power production and desalination plant, known as the M-Station, to add around 600 MW of extra capacity. They anticipate the total investments in those three projects at more than $20 billion.
It was also stated DEWA has no plans to proffer bonds this year to bring up money for the projects.
DEWA executive averred that they expected the cost of the clean coal project, known as the Hassyan power plant, which is anticipated to come online by 2021, to be more than $2 billion. A more precise cost estimate will be known by the end of November, when tenders from the selected firms are projected.
DEWA has chosen 24 firms for its 100 MW solar project and hopes to assess tenders by the end of October.
Like the rest of the Middle East, Dubai wraps behind Europe and the United States in solar energy, but may in time upsurge to 1,000 MW of solar power plants as part of plans to get 5% of its electrical energy from renewable sources by 2030.
The UAE is one of the world’s biggest oil exporters, creating approximately 2.8 million barrels each day. But most of the UAE’s crude production is collected in Abu Dhabi, which produces most of the UAE’s oil and holds over 90% of its reserves.