Dubai's utility DEWA approves $6.4bn budget for 2016

Dubai Electricity and Water Authority says larger focus will be on clean energy related projects

The Dubai Electricity and Water Authority (DEWA) has approved a total budget of AED23.655 billion ($6.44 billion) for 2016, an increase of 3.4 percent on the AED22.873 billion budget agreed last year.

Dubai's state utility said in a statement cited by news agency WAM that the new budget will ensure a "reliable supply of electricity and water to meet Dubai’s development plans in all its operations".

A total of AED8.72 billion will be allocated to capital expenditure and projects, compared with AED8.028 billion in 2015. The 2016 budget includes a number of key projects, including AED2.957 billion in generation, AED3.416 billion in power transmission, AED1.209 billion in power distribution, and AED1.042 billion in water and civil.

In addition, DEWA has also launched strategic projects worth over AED27 billion that use the Independent Power Producer (IPP) model to leverage public private partnerships.

"This budget for 2016 is aligned to the directives of our visionary leadership, and will meet all the requirements of DEWA’s projects, operational facilities, ambitious initiatives in electricity and water, and all smart grid projects and services that will contribute to supporting DEWA’s service delivery, smoothly, easily and efficiently, to all Dubai’s customers," said Saeed Mohammed Al Tayer, managing director and CEO of DEWA.

"A large part of the budget will also go to clean energy related projects in support of the Dubai Clean Energy Strategy 2050 to provide 75 percent of Dubai’s total power output from clean energy," he added.

Other projects include building nine new 132kV substations at a cost of AED775 million while AED1.544 billion has been allocated to the extension of 256km of 132kV cables.

A further AED245 million has been budgeted to build two water reservoirs at Al Nakhly, and AED50 million to build a water pumping station on the Dubai-Al Ain road.

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