Dewa reviews bids for first phase of Hassyan clean-coal power plant {Dubai}

Gulf News ^ | MAY 2, 2015 | WAM

[thackney]

ubai Electricity and Water Authority (Dewa) has opened the bids it has received for the first phase of the Hassyan clean-coal power plant, which is based on the Independent Power Producer (IPP) model.

The first phase of the 1,200MW project is expected to be operational by 2020. Four global bidders have been shortlisted after opening the bids. The agency said in a statement on Saturday that the bids will be evaluated and the best bid will be selected based on the criteria developed by the advisory committee that oversees the project.

Dewa previously extended the bid deadline for the first phase of the IPP Hassyan clean-coal power plant to accommodate requests from developers. The deadline was extended to 30 April 2015. The lowest price among the bids that Dewa received is $4.9 cents/kWh.

Saeed Mohammad Al Tayer, MD and CEO of Dewa, said in the statement this is a major step in implementing the energy diversification strategy approved by the Dubai Supreme Council of Energy, which focuses on producing electricity from clean coal as part of Dubai’s energy portfolio. He noted that the Hassyan power plant uses ultra-supercritical technology to produce energy according to the highest international standards set by the European Union. Last year, Dewa awarded the consultancy service contract for the first phase of the IPP project to an international consultant.

Al Tayer noted that Dewa is working to diversify its energy sources and increase its share of renewable energy. He explained that the Dubai Integrated Energy Strategy 2030 initially set the percentage of renewable energy in Dubai’s energy mix to be 1 per cent by 2020 and 5 per cent by 2030 but Dewa has increased this target to 7 per cent by 2020 and 15 per cent by 2030. The Dubai Integrated Energy Strategy 2030 diversifies Dubai’s energy mix to include 71 per cent from gas, 7 per cent from clean coal, and 7 per cent from nuclear power.