Dubai has abundant desalinated water and electricity for the medium term, said Dewa CEO Saeed Mohamed Al Tayer on Wednesday.
"I can assure that there will be no shortage of electricity in Dubai for the next five years," he said.
He said in March the company planned annual capital expenditure of around $1 billion over the next three years and expected Dubai's energy use to increase by between six and seven per cent in 2011.
Al Tayer also said the Gulf emirate would have enough power and desalinated water in the medium term.
He said state-owned utility Dubai Electricity and Water Authority (Dewa) can pursue its ambitious investment plans without a further bond issue in the short term.
"For the time being, there is no plan to issue new bonds," Tayer told reporters, though he said Dewa is aiming to double the capacity of a planned clean-coal project to 3,000 megawatts.
The state utility received a "BBB minus" rating with a stable outlook from Standard & Poor's earlier this week.
The utility tapped global debt markets twice in 2010 in heavily oversubscribed bond sales. There was growing speculation it would seek to benefit from the rating, as well as from narrowing spreads and strong global appetite.
Dubai's government and flagship carrier Emirates have both issued bonds in the last month.
Dewa has sole responsibility for transmission and distribution of power and water supply in Dubai.
Al Tayer said Dewa has doubled the size of its planned coal-fired power plant, dismissing summer power shortage fears over the next few years.
Dewa had planned to build a 1,500 megawatt (MW) coal-fired power plant to reduce Dubai's heavy reliance on a steady supply of imported gas. But it now plans to double the size of the coal plant to help keep the business and trade hub of the UAE cool as demand soars.
"I can assure you there will be no power shortage for the next five years," Al Tayer told reporters.
"Dubai has enough power and enough desalinated water for the next five years," he said, adding the emirate would have nearly 10,000 MW of power production capacity by the end of 2011.
Dubai is home to nearly 2 million people and used around 33,000 gigawatt hours (GWh) of electricity in 2010. Tayer expects demand to surge again in 2011.
"I expect five per cent of growth but then it could be 7 per cent," he said. "The peak demand (growth) last year we thought would be 6 per cent and then it came 9.6 per cent."
Demand for electricity peaked at 6,161 MW in summer 2010, up from 5,622 MW in 2009, according to the figures from Dewa's website.