By Andy Sambidge
State-owned power firm says McKinsey & Co picked to lead study on alternative energy project
Dubai Electricity and Water Authority (DEWA) said on Monday it has appointed international consultants to draw up a study on the prospects of delivering power by using clean coal.
US-based McKinsey & Company in association with the technical consultant Black & Veatch, and the legal consultant Allen & Overy were selected as consultants, DEWA's managing director and CEO said.
Saeed Mohammed Al Tayer said in a statement: "This study is a major step towards the implementation of the energy diversification strategy adopted by the Dubai's Supreme Council of Energy, in which coal is set to become part of Dubai's energy portfolio.
"The strategy aims to diversify energy sources to ensure energy supply and meet the growing energy demands in the Emirate of Dubai."
The first phase of the clean coal project will see the consultants conduct a preliminary analysis on the type of technology, the type of coal and sourcing strategy which best suit DEWA's requirements.
The second phase comprises setting technical and business specifications to implement and establish a coal-based power plant in Dubai, Al Tayer added.
Al Tayer said Dubai "pays great attention to mitigate the impacts of air pollution, warm gases, and global warming", adding that DEWA is seeking to provide "alternative primary sources of energy at reasonable cost, while reducing the negative effects which cause harm to the environment".
More than 16 national and international consultancy companies bid to undertake the clean coal study, which is expected to be completed by September.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
It would make more sense to commission a
1. Concentrated Solar Power (steam) study
2. Waste to energy study
for the UAE.
Both are sustainable and address the laudable goal of diversification of power sources for the UAE. The current hydrocarbon arbitrage that this study hopes to take advantage of is artificial. Let us hope that McKinsey will be able to do a proper cradle to cradel energy/mass balance analysis with alternative sources.
This is a waste of at least AED5,000,000 between the internal time used to select the consultants and then the contract to the consultants. This cost will just get passed on to customers, which would normally be ok if customers thought that paying this amount would result in future reduction in pricing, or avoidance of future disruption in supply. However, neither the reduction nor the avoidance will happen as a result of Mckinsey presenting powerpoint slides in exchange for AED3,000,000. The utility needs to be privatized to stop this sort of inefficiency.
This study has been done over and over worldwide since the "80s.
JUST DO IT !
COAL IS NOT CLEAN.
Plain and simple.
If the UAE government actually believes that it is, then they are wrong. They have massive solar resources, which matches the peak HVAC load, and is proven technology.