Dewa awards four substation construction deals worth Dh1.28bn

The firm plans to spend Dh81bn on energy projects over the next five years

Dewa's managing director and chief executive Saeed Mohammed Al Tayer says the utility plans to spend Dh81bn in the next five years. Reem Mohammed / The National

Dubai Electricity & Water Authority (Dewa) awarded contracts to construct four substations with a combined value of Dh1.28 billion, as the state-owned firm continues to invest in the emirate’s power infrastructure to meet future demand.

The new facilities will add to Dewa’s existing 21 substations, reflecting the utility’s efforts to increase the capacity and efficiency of its transmission networks, the company said in a statement carried by state news agency WAM.

Dewa aims to spend Dh81 billion on energy projects over the next five years, with renewables accounting for a growing share of electricity output as the emirate’s demand for power grows. Dubai, which generates 98 per cent of its electricity from natural gas, has over four gigawatts (GW) of power projects in the pipeline, with 10.2GW of total production capacity for electricity and 470 million imperial gallons per day of desalinated water, according to Dewa.

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"Dewa’s initiatives and projects aim to strengthen its competitive position globally, especially in renewable and clean energy, sustainability, and green economy," Saeed Mohammed Al Tayer, the managing director and chief executive, said.

Dewa, which in February awarded a contract for an 815-megawatt gas turbine project to Germany’s Siemens and Egypt’s El Sewedy, is building the world’s largest concentrated solar power project at the Mohammed bin Rashid Al Maktoum Solar Park, as it seeks to reduce reliance on natural gas as the main source of energy for electricity.

The utility said on Saturday the new contracts include a Dh314.93m deal awarded to Grid Solution to build the Canal Garden Station, while Siemens has won the deal for a Dubai South substation, worth AED323m. Al Fanar Company was selected to construct Dh304.54m Dubai North station and ABB was awarded a Dh338.87m contract for Shams station.