Dubai’s power demand is rising at an average rate of 15 per cent to 20 per cent each year, according to the Dubai Electricity and Water Authority (Dewa), which is expanding infrastructure rapidly to provide electricity to the numerous up-coming projects in the emirate.
The authority announced yesterday that it will install 10 substations with transmission and distribution circuits worth Dh3.2 billion in the first phase of Nakheel’s Palm Deira development.
The announcement came during a visit by top Dewa officials to the development, which upon completion will be the world’s largest man-made island.
Saeed Mohammad Al Tayer, Dewa’s Managing Director and CEO, said the main purpose of the visit was to look closely at the services it needs for all its phases.
Nine 132 /22 kV substations and one 400 /132 kV will be built on the development with Nakheel investing Dh1bn for the power facilities, a company spokesman told Emirates Business.
Chris O’Donnell, CEO of The Palm Deira, said the Dewa officials’ visit was “within the framework of continuous co-operation and consultations between Dewa and Nakheel for their mutual benefit”.
“The authority is considered the strategic partner of Nakheel, and specifically Palm Deira,” he said, adding that through co-ordination and field visits, the necessary facilities will be executed for infrastructure needs. More substations are also on the way to support other mega projects in Dubai.
On Monday, Al Tayer said Dubai Industrial City (DIC) – which would be home to about 450 factories and manufacturing centres by 2015 – will be given six substations.
DIC’s Managing Director Rashed Al Ansari said the management will be ready to construct more should the need arise. Currently, Dewa is building four substations at DIC, each with a capacity of 132kV. Total investment in the construction of the substations is expected to reach $163m (Dh598m), according to a spokesman for DIC.
DIC is Dewa’s third-largest client after Dubailand and the Al Maktoum Airport, the new airport being developed near Jebel Ali. Also recently, Dubailand, Dubai’s biggest non-real estate project, said it will build 11 substations of 132-kV, valued at Dh1.43bn, to supply power for the first phase of the development.
Mohammed Al Habbai, CEO of Dubailand, told Emirates Business that the project has received approval for 10 more substations from Dewa, to be built over 24 months. Last month, Dewa signed six contracts for mega projects at a total value of Dh12bn. A number of them are for installation and commissioning of substations.
A consortium of France’s Areva and South Korea’s Hyundai Heavy Industries won the Dh816m contract for two 400/132 substations.
The substations, named Barsha and Horse Race, are due to be finished by the end of December 2009. Japan’s Mitsubishi Electric Corporation has been contracted for another 400/132 substation.
20% Growth in demand for electricity in Dubai each year
$12bn Worth of contracts were signed by Dewa for mega projects
Dewa to install 10 substations at Palm Deira