Abu Dhabi to faces power and water shortfall by 2010
Posted: 22 March 2006
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By 2010, Abu Dhabi will face a considerable gap between capacity and requirements for power and water, according to Keith Miller, Head of Planning and Studies Department at Abu Dhabi Water and Electricity Company (ADWEC).
Miller, who was speaking at MEED's third Middle East Power and Desalination Conference in Abu Dhabi, announced new independent water and power projects (IWPP).
 He said: "Changes in land ownership laws in 2005 and the release of surplus oil revenues for major infrastructure developments and mega projects have resulted in a development boom. This will require significant quantities of extra electricity and water capacity above the normal developments assumed in past forecasts."
New projects underway in Abu Dhabi include those at Mina Zayed Port, Sadiyat Island, Reem Island and Al Raha Beach. These are in addition to 33 unannounced ALDAR projects, as well as those required for Lulu Island and Higher Corporation for Special Economic Zones.
Miller continued: "Uncertainties remain over the timing and size of mega projects - as well as those developments that have yet to be announced - and the number of new expatriates living in these projects." ADWEC is responsible for forecasting electricity and water demand and capacity planning, and is the single buyer and seller of electricity and water. It has predicted 239 megawatts (MW) of definite new projects in 2009, and more than 1500 MW of possible new projects from 2010 onwards.
According to ADWEC estimates, there could be a shortfall in both power and water as early as 2010 as demand rises above supply.
"Electricity demand has been shifted five years forward, and additional IWPP capacity will be required in 2009 / 2010," said Miller. "This will aid privatisation and create more opportunities for investors. Beyond 2012, demand and capacity requirements are uncertain."
Projects to increase capacity are also underway in Dubai and Oman. On March 7, Dubai Electricity & Water Authority (DEWA) released tender documents for its biggest co-generation projects so far, the Jebel Ali M power and desalination complex.
M station is one of two major capacity additions now out to tender at DEWA: the other is the 800 MW expansion of H station at Al-Aweer.
Meanwhile, evaluation of bids is under way for the financial, technical and legal advisory mandates on the planned IWPP at Salalah, under the direction of the Power & Water Procurement Authority (PWPA). The planned plant will have capacity of 150 MW and 10 million gallons a day and commissioning is due in 2009.
(WAM)
Posted by Editor Offshore Arabia Magazine
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