Power demand in Dubai jumped 6% or 500 megawatts in the second quarter in the wake of pandemic-related movement restrictions, according to Saeed Mohammed Al Tayer, chief executive of Dewa. Chris Whiteoak / The National
Power demand in Dubai jumped 6% or 500 megawatts in the second quarter in the wake of pandemic-related movement restrictions, according to Saeed Mohammed Al Tayer, chief executive of Dewa. Chris Whiteoak / The National
Power demand in Dubai jumped 6% or 500 megawatts in the second quarter in the wake of pandemic-related movement restrictions, according to Saeed Mohammed Al Tayer, chief executive of Dewa. Chris Whiteoak / The National
Power demand in Dubai jumped 6% or 500 megawatts in the second quarter in the wake of pandemic-related movement restrictions, according to Saeed Mohammed Al Tayer, chief executive of Dewa. Chris White

Dubai power demand jumped 6% in Q2 to highest peak in eight years, Dewa chief says


Fareed Rahman
  • English
  • Arabic

Power demand in Dubai jumped 6 per cent in the second quarter compared to a year earlier, due to peak summer demand as well as Covid-19 related movement restrictions, according to Dubai Electricity and Water Authority's chief executive.

“We have seen the highest peak in the second quarter compared to last year and reached nearly 9000 megawatts compared to 8500 last year,” Saeed Mohammed Al Tayer told reporters during a virtual press conference on Tuesday.

The increase marked "the highest peak" since 2012, Mr Al Tayer said.

Dubai introduced movement restrictions in the second quarter to contain the spread of the coronavirus. Dewa provided uninterrupted service to its more than one million customers in the period, he said.

The utility company, which employs more than 6000 people, operated in a seamless manner in the wake of the pandemic due to “steps taken by Dewa towards digitalisation and acceleration of digital project,” Mr Al Tayer said.

“The operation remained in shift work without any adverse impact.”

Dewa will spend Dh86 billion ($23bn) in the next five years on new projects, transmission and distribution-related work as well as renewable energy schemes, with 50 per cent of financing coming through public private partnerships, Mr Al Tayer said.

Dubai plans to derive three-quarters of its total power capacity from clean sources by 2050, with the massive Mohammed bin Rashid Solar Park expected to reach 5GW capacity by 2030.

It is also building a 2.4 gigawatt clean coal power plant in Hassyan close to Dubai's border with Abu Dhabi, which will be fully-operational by 2023.

Mr Al Tayer said the first unit of the coal plant has been commissioned and the remaining three units will “come in due course.”

“We have to ensure that we have security of supply,” he said of the coal plant. “What we have here is a different technology. This technology we call it ultra-super critical technology with emissions being lowest compared to European, the US (coal plants).”

The coal project is a joint venture between Acwa Power, Harbin Holding Company and Dubai Electricity and Water Authority.

Dewa is also undertaking the development of a 250MW hydroelectric power plant – the GCC's first – at Hatta. It awarded construction contracts to a consortium comprising Strabag and its Dubai affiliate as well as Andritz Hydro and Ozkar.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

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Where to Find Me by Alba Arikha
Alma Books 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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