• Home
• /
• Business

UAE power grid contract to be awarded soon

DUBAI - A Dh814 million contract to establish the UAE National Power Grid, which will include Abu Dhabi, Dubai, Sharjah and Fujairah power grids, will be awarded next month, according to the UAE MInister of Electricity and Water.

Humaid bin Nasser Al Owais told this correspondent yesterday that seven companies, which participated in the tender and have been chosen out of a number of other bidders for the project, have already submitted their quotations and the contract is likely to be signed on April 15. The project will take two and a half years to complete.

He said the National Power Grid will be using gas, which provides low cost of operation and less pollution. The Minister was speaking after the official opening of the sixth Water Technologies, Energy and Environment Exhibition (Wetex 2004) in Dubai yesterday.

During the exhibition, Dubai Electricity and Water Authority (Dewa) signed a Dh570 million contract with Areva Company for the supply, installation, testing and commissioning of two new main 132/400 kV substations at Bukadra-2 and Jebel Ali Free Zone (Jafz) to enhance the production capacity, and to meet growth in demand, enhance efficiency and reliability of the electricity transmission networks in Dubai.

According to Saeed Mohammad Al Tayer, General Manager, Dewa, who signed the contract on behalf of the authority, the total value of the projects Dewa is currently executing is Dh3 billion. The importance of this project lies in a huge unprecedented increase in demand, he said, adding that the Bukadra substation will be completed in 18 months, while Jafz project in 24 months. Dewa also signed a Dh29 million contract with Lahmeyer for the engineering consultancy services for Jebel Ali Power & Desalination Station 'L', phase II, which is considered as one of the biggest power generation projects, with capacity of 1,200 MW (Gross) of power and 50 MIGD of desalinated water.

The configuration consists of Gas Turbines (GTs) associated with Heat Recovery Steam Generators (HRSGs), Auxiliary boilers (Abs), Back Pressure Steam Turbines (BPSTs) or Condensing Extraction Steam Turbines (CST) and MSF Desalination Units. The plant is scheduled to be operational in phases during 2007 and 2008.

Work on Phase I of L-station is currently in progress and will produce 850 MW of energy and 70 MIGD of desalinated water. The total capacity of the station, at the completion of Phase II is 2,050 MW of energy and 120 MIGD of desalinated water.

It also signed a Dh16.9 million contract with Mott MacDonald for engineering consultancy services for Al Aweer Gas Turbine Power Station (Station H), Phase II with a capacity of 400 MW (gross) and consisting of three simple cycle Gas Turbines. It is planned to be commissioned in stages and be operational in 2006. The production capacity of Station H is currently 602 MW and its total capacity will be at the completion of the project 1,000 MW.

Al Tayer said that the construction of these two important substations will contribute in enhancing the reliability of the electricity networks and add a new transformation capacity of 360 MVA through four 450 MV capacity transformers in each substation.

This will constitute an important addition to the infrastructure of the electricity networks and contribute significantly in satisfying the consumers' needs in the different economical sectors in the country, he said, adding that these substations would contain the latest technologies, especially the state-of-the-art Digital Control System that will enhance efficiency and reliability of these substations.