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DEWA signs agreement for 2400 MW clean coal project

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World Coal,

Dubai Electricity and Water Authority (DEWA) signed a power purchase agreement (PPA) and a shareholders agreement (SHA) with ACWA Power and the ACWA Power and Harbin Electric consortium.

HE Saeed Mohammed Al Tayer, MD and CEO of DEWA and HE Mohammad Abdullah Abunayyan, Chairman of ACWA Power and representative of the ACWA Power and Harbin Electric consortium signed the agreement.

The agreement intends to implement a project that would produce 2400 MW of electricity using clean coal.

The Hassyan clean coal power project uses the Independent Power Producer (IPP) procurement model on a Build Own Operate (BOO) basis.

This follows the sending of a letter of intent to ACWA Power and Harbin Electric consortium on 19 January 2016 in which DEWA selected the best bidder. The signing was attended by DEWA’s Executive Vice Presidents, and senior officials from both ACWA Power and Harbin Electric.

The project will be supported by a 25 year PPA with DEWA and the bidder has been required to put in place a secure delivery of coal to the project over the 25 year life of the PPA.

The first 2400 MW phase of the project comprises four x 600 MW units. The second 1200 MW phase of the project includes two x 600MW units with ultra-supercritical technology. The project has a planned commercial operation date of March 2023.

HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, commented: “DEWA’s Hassyan clean coal power project shows our commitment to achieving the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to diversify the energy mix. It also reflects DEWA’s commitment to its goals of energy diversification and sustainability of resources, and achieving the Dubai Clean Energy Strategy 2050, which focuses on producing electricity from clean coal as part of Dubai's energy mix.”

“DEWA works to achieve the fifth pillar of the Dubai Clean Energy Strategy 2050, which focuses on creating an environmentally-friendly energy mix, with 25% coming from solar energy, 7% from nuclear power, 7% from clean coal, and 61% from gas by 2030,” added Al Tayer.

“Signing this agreement exemplifies the success of Public Private Partnerships and the importance of involving the private sector in enhancing efficiency, productivity and cost reduction, in addition to optimising resources, transferring the technology, and training and developing local skills in the energy industry. Moreover, signing a PPA with DEWA brings us closer to the completion of the financial close of the project to start its construction as per the stated timeframe,” said Abunayyan.

Edited from press release by Harleigh Hobbs

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