CEO says Hassyan plant will open in Q1 2014 due to predicted fall in demand growth.
Dubai Electricity and Water Authority will postpone the opening of a 1,500 megawatt power plant by a year after the emirate’s financial crisis forced the utility to slash its forecasts for energy demand.
The Hassyan plant will be open in the first quarter of 2014, rather than 2013, because power demand is expected to grow at 6 percent annually rather than the 15 percent the utility initially envisaged, Chief Executive Officer Saeed Mohammed al-Tayer told reporters in Dubai on Sunday.
“We delayed Hassyan because the forecast initially was higher,” al-Tayer said. “We envisaged 15 percent growth, because twice we reached 15 percent: in 2006 and 2007. Now we expect 6 percent, so we have ample time.”
Dubai’s construction boom petered out in the third quarter of 2008 after banks tightened lending.
Dubai’s population, which is 90 percent expatriate, may have dropped by 8 percent in 2009 and may fall by another 2 percent this year, UBS AG analysts said in November.
Almost half the emirate’s workforce is employed in real estate or construction.