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Tue 7 Jun 2016 07:23 PM

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Dubai's DEWA signs deal for 2,400MW clean coal project

Agreements are inked with consortium including China's Harbin Electric and Saudi Arabia's ACWA Power

Dubai's DEWA signs deal for 2,400MW clean coal project
Saeed Mohammed Al Tayer, MD and CEO of DEWA

Dubai's state utility firm has officially signed agreements with a consortium including China's Harbin Electric and Saudi Arabia's ACWA Power to build and operate a 2,400 megawatt clean coal power plant in the emirate.

Saeed Mohammed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority (DEWA), signed a power purchase agreement and a shareholders agreement, news agency WAM reported on Tuesday.

This follows the sending of a letter of intent to ACWA Power and Harbin Electric consortium in January in which DEWA selected the best bidder.

The plant is the first phase of the $1.8 billion Hassyan clean coal project under planning by DEWA.

The project has a planned commercial operation date of March 2023, WAM added.

Lacking the huge oil reserves of its neighbour Abu Dhabi, Dubai is striving to broaden its sources of energy as the population rises. It has set a target to diversify its energy mix by 2030 to include 7 percent from clean coal, 7 percent from nuclear power, 15 percent from solar and 71 percent from gas. Currently, a larger proportion of Dubai's energy comes from gas.

Al Tayer said: "DEWA’s Hassyan clean coal power project shows our commitment to achieving the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to diversify the energy mix."

It was previously reported that DEWA will be the major stakeholder with a 51 percent share in the company established to build and operate the Hassyan plant.

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