DEWA rejects power shortage concerns

Dubai Electricity and Water Authority labels claims it is struggling to meet power demands 'speculation'.
By Safura Rahimi
Wed 01 Aug 2007 02:48 PM

Dubai Electricity and Water Authority (DEWA) today dismissed claims by property developers that it is struggling to keep up with power demands and that this is slowing down the emirate's property boom.

A spokesperson at DEWA labelled the claims ‘speculation from developers', and told that there is no reason why the authority should not be able to provide enough power for the emirate's numerous upcoming projects.

"DEWA has so far been able to provide power for all the years that Dubai has been under development proving it can meet the challenges," the spokesperson added.

A Zawya Dow Jones report yesterday said the emirate's $300 billion property boom may be headed for a slowdown as DEWA is having difficulties keeping up with the pace of construction.

"Power and water supply is one of the biggest challenges facing Dubai's real-estate sector. In a number of areas, the government is playing catch up," the report quoted Damac Properties chief executive Peter Riddoch as saying.

Riddoch expressed concern about possible delays hitting the company's developments coming onstream in the near future.

However, DEWA said it has new water desalination and power plants in the pipeline to ensure it gets the much-needed power to developments.

In March the authority announced it was going to invest $13.6 billion in boosting its power generating capacity by 2010.

Dubai's water and electricity demand is rising by about 12-18% each year, a figure that points to Dubai's ability to grow as a major global city as well as DEWA's ability to cope with its demands, the DEWA spokesperson stated

"The authority's ability to meet power demands depends on continued cooperation between DEWA and Dubai's developers," he added.

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