Dubai Electricity and Water Authority (DEWA) has attracted an investment of $10 billion (Dh40 billion) from the Independent Power Producer (IPP) model and its energy sector investment is expected to cross $23 billion (Dh86 billion) over the next five years.
An independent power producer or non-utility generator is an organization that is not a public utility but owns facilities to generate energy for sale to utilities, central government buyers and end-users.
The company said that the investments from the private sector and international banks led to higher cash flows to the Dubai and UAE economies.
The country aims to achieve an energy mix that incorporates conventional and clean energy sources to balance economic needs and environmental objectives under the UAE Energy Strategy 2050. The UAE will spend $163 billion (Dh600 billion) by 2050 to meet the increasing energy demand and ensure that the economy grows sustainably.
Renewable energy is an important sustainability necessity and stands at the forefront of the strategic goals of the UAE. The UAE is leading efforts to implement the latest technologies that combat climate change, mitigate the impact of global warming and play an important role in promoting the 2030 Sustainable Development Goals of the United Nations.
During a recent conference, Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade said that the UAE intends to become the first country in the world to reach a zero oil contribution to GDP within the next 50 years.
“The Eight Principles of Governance in Dubai show that Dubai’s growth is driven by three factors: a credible, resilient and excellent government; an active, fair and open private sector; and public and government-owned flagship companies that compete globally and move the economy locally. In light of the overall development of Dubai, cooperation and integration between the public and private sectors have become the foundation to achieve the Emirate’s ambitions. We have strategic partnerships with many international companies, especially in the renewable and clean energy sector and cooperate with international companies in implementing projects of the Mohammed bin Rashid Al Maktoum Solar Park based on the IPP system. We have attracted investments estimated at Dh40 billion through this model”.
The Dubai Clean Energy Strategy 2050 aims to provide 75 percent of Dubai’s power capacity from clean energy by 2050. To achieve the goal of this strategy, it will require 42,000 MW of clean and renewable energy by 2050.
DEWA said that the strategy consists of five key pillars involving infrastructure, legislation, funding, building capacities and skills, and having an environment-friendly energy mix.
It said that the combined photovoltaic and concentrated solar power (CSP) potential of the projects under construction in the solar park is 1,850MW, with future phases hitting 5,000MW by 2030.