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Dewa attracts Dh40B investments from IPPs

Dubai - Dewa said investments from the private sector and foreign banks resulted in increased cash flows to the economy of Dubai and the UAE

Dubai Electricity and Water Authority (Dewa) has attracted Dh40 billion investments from the Independent Power Producer (IPP) model and its investments in the energy sector are estimated to hit Dh86 billion over the next five years.

It said investments from the private sector and foreign banks resulted in increased cash flows to the economy of Dubai and the UAE.

Under the UAE Energy Strategy 2050, the country aims to achieve an energy mix that combines renewable and clean energy sources to balance economic requirements and environmental goals. The UAE will invest Dh600 billion until 2050 to meet the growing energy demand and ensure the sustainable growth of the economy.

Renewable energy is an essential requirement for sustainability and stands at the forefront of the UAE’s strategic priorities. The UAE leads in efforts to adopt the latest innovations that address climate change, mitigate the effects of global warming, and plays a significant role in supporting the United Nations Sustainable Development Goals 2030.

Dr.Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, recently said during a conference that the UAE aims to become the first country in the world to achieve zero contribution of oil in the GDP over the next 50 years.

“The Eight Principles of Governance in Dubai show that Dubai’s growth is driven by three factors: a credible, resilient and excellent government; an active, fair and open private sector; and public and government-owned flagship companies that compete globally and move the economy locally. In light of the overall development of Dubai, cooperation and integration between the public and private sectors have become the foundation to achieve the Emirate’s ambitions,” said Saeed Mohammed Al Tayer, managing director and CEO of Dewa.

“We have strategic partnerships with many international companies, especially in the renewable and clean energy sector and cooperate with international companies in implementing projects of the Mohammed bin Rashid Al Maktoum Solar Park based on the IPP system. We have attracted investments estimated at Dh40 billion through this model,” he added.

The Dubai Clean Energy Strategy 2050 aims to provide 75 per cent of Dubai’s power capacity from clean energy by 2050. In order to meet target of this Strategy, it requires a capacity of 42,000MW of clean and renewable energy by 2050.

The strategy consists of five main pillars, namely infrastructure, legislation, funding, building capacities and skills, and having an environment-friendly energy mix, Dewa said.

It said total capacity of the projects under construction at the solar park is 1,850MW from photovoltaic and Concentrated Solar Power (CSP), with future phases to reach 5,000MW by 2030.

— waheedabbas@khaleejtimes.com