Dubai energy demand soars as economy recovers

Issac John /Dubai Filed on June 2, 2021
The Dewa power station in Dubai. The rise in energy demand indicates that the UAE is moving steadily towards promoting economic prosperity and decent living for all citizens and residents. — AFP file

Double-digit uptick in Dubai energy demand in 5 months reflects all-round economic rebound

Dubai recorded a 10 per cent jump in energy demand and a 10 per cent rise in the peak load of electricity during the first five months of 2021 compared to the same period in 2020, underscoring all-round economic rebound.

Dubai Electricity and Water Authority, or Dewa, said the demand for energy increased in the first five months of 2021 to 16,467 Gigawatt hours (GWh) compared to 14,988 GWh in the same period of 2020. This is an extra 1,479 GWh, which is an increase of 10 per cent.

Peak load also increased in Dubai from January until the end of May 2021 to 7,966 MW, compared to 7,248 MW in the same period of 2020, recording an extra 718 MW, an increase of 10 per cent, Dewa said.

Saeed Mohammed Al Tayer, managing director and CEO of Dewa, said the increase in energy demand and peak load in Dubai “is a testament to the economic recovery and the comeback” of various vital activities in the emirate.

The rise in energy demand indicates that the UAE is moving steadily towards promoting economic prosperity and decent living for all citizens and residents, he said.

“In line with the forward-looking vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to achieve comprehensive and sustainable development in Dubai, we continue to increase our installed capacity of electricity and water, as well as the capacity of the transmission and distribution networks. This is to keep pace with the expansion of urban and economic development in Dubai and Dewa’s vision to become a globally leading sustainable innovative corporation,” said Al Tayer.

Dewa’s installed capacity has reached 12,900 megawatts of electricity and 490 million imperial gallons per day (MIGD) of desalinated water, he said.

Al Tayer said the energy and water provider is one of the best and most reputable utilities in the world based on its benchmarks with similar global utilities in developed countries.

”Dewa has recorded excellent levels of reliability, efficiency, sustainability and optimum management of electricity and water infrastructures. It has achieved very competitive results surpassing the private sector and similar top utilities in Europe and America in terms of efficiency and reliability,” said a Dewa statement.

The utility has reduced losses in electricity transmission and distribution networks to 3.3 per cent, compared to 6-7 per cent recorded in Europe and the USA. Water network losses decreased to 5.1 per cent, compared to 15 per cent in North America.

Dewa achieved a new world record in electricity Customer Minutes Lost (CML) per year. Dewa recorded 1.66 minutes, in Dubai, compared to around 15 minutes recorded by leading electricity companies in the European Union, added Al Tayer.

Dewa’s Dh45 billion power production and water desalination plant complex in the Jebel Ali complex uses the latest technologies in electricity generation and water desalination and continuously expands the complex to meet increasing demand. In 2019, it completed the extension project for M-Station in Jebel Ali, which is the largest power generation and water desalination plant in the UAE. With the construction of the extension, the total cost of M-Station reached over Dh 12 billion, while its production capacity reached 2,885 MW and 140 million gallons of desalinated water per day.

The total value of Dewa’s investments in electricity transmission reached Dh8.8 billion following the launch of six substations in the first four month of 2021. The six new transmission substations had a combined investment of Dh1.1 billion from the beginning of 2021 to 30 April 2021.



Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.

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