Siemens to build gas plant in Northern Emirates

The German company signed a memorandum of understanding with the Federal Electricity and Water Authority for the construction of a 2.2 gigawatt plant in the Northern Emirates to 'enhance the electricity infrastructure in the area'.

Siemens will develop a major gas-fired power plant in the Northern Emirates to help the area meet its growing power needs.

The German company signed a memorandum of understanding with the Federal Electricity and Water Authority (Fewa) for the construction of a 2.2 gigawatt plant in the Northern Emirates to “enhance the electricity infrastructure in the area”, said Siemens. No other details were provided.

Dietmar Siersdorfer, the chief executive of Siemens Middle East and UAE, said that this deal fell in line with the company’s strategy to play an even greater role in the country’s power sector.

Siemens technology accounts for about 40 per cent of electricity generated in the UAE. This includes the Dh1.47 billion expansion at the Jebel Ali M-Station agreed last year.

While Siemens did not release specifics, the company is pushing its H-class gas turbines, which it claims has the highest efficiency rates on the market, standing at 61 per cent.

Using less fuel means more for exporting, which is a plus in the low oil price environment.

And all of this would help the Northern Emirates as it struggles with insufficient power generation.

Fewa is trying to ramp up construction of additional capacity as well as draw power from the larger emirates through the Emirates National Grid.

Last month, Fewa inaugurated the Dh33.9 million Al Hamra substation in Umm Al Quwain, reducing loads on the old power station. Fewa’s external director of shared services, Adnan Naseeb, said that there would be future expansion plans for Al Hamra.

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