Bloomberg News

Dubai’s Power Use Will Grow 4% as Emirate Plans Carbon Cuts

February 26, 2012

Dubai’s power demand is set to grow this year at a rate in line with the Persian Gulf emirate’s economy, or about 4 percent, as the city develops a plan to cut emissions.

The emirate plans to survey its carbon dioxide emissions from energy and industrial production in a study this year, Saeed Mohammed Al Tayer, vice chairman of the Dubai Supreme Council of Energy, said today. Dubai will use the study to estimate a baseline figure for emissions that it will use to plan cuts in the release of the gas, he said.

The emirate may trade credits linked to emission reductions, depending on future international climate change rules, Al Tayer said at a press conference today. Al Tayer, who is also managing director of Dubai Electricity & Water Authority, spoke at the utility’s offices in the city.

DEWA, as the utility is known, is still evaluating bids from companies seeking to join it in a partnership to build a 1,500-megawatt natural-gas-fired power plant, Al Tayer said. Dubai has enough flexibility in natural gas import contracts to secure sufficient supply of fuel to cover current demand and the needs for the new power unit, Nejib Zaafrani, chief executive of the Supreme Council of Energy said.

Dubai is also expanding production of solar energy. The emirate currently has about 4.5 megawatts of generation from individually installed capacity, Zaafrani said.

The utility will build a 10-megawatt solar plant by the end of 2013 and has hired consultants to help with the project, said Waleed Salman, vice president for business development at the utility. GDF Suez (GSZ) SA’s Tractebel engineering unit is developing the regulations and procedures for connecting solar plants to Dubai’s power grid and ILF Consulting Engineers will help plan the plant as well as the expansion of a planned solar park with a forecast 1,000-megawatt capacity, Salman said.

To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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