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Home Sector Energy DEWA, ACWA Power sign $914 mn deal for desalination plant

DEWA, ACWA Power sign $914 mn deal for desalination plant

Project aims to enhance DEWA's water desalination capacity to 730 MIGD by 2030
DEWA, ACWA Power sign $914 mn deal for desalination plant
From the signing ceremony (Photo from WAM)

The Dubai Electricity and Water Authority (DEWA) has entered into a 30-year Water Purchase Agreement (WPA) and a Shareholder Agreement with Saudi’s ACWA Power. The contract, with a duration of 30 years, was valued at 3.43 billion riyals (equivalent to US $914 million), according to ACWA.

This agreement relates to the first phase of the Hassyan Sea Water Reverse Osmosis (SWRO) desalination project. The project will utilize solar power and operate under the Independent Water Producer (IWP) model.

Read more: DEWA, Masdar, tie up for sixth phase of landmark solar park

The objective of this project is to enhance DEWA’s water desalination capacity to 730 MIGD by 2030, compared to the current capacity of 490 MIGD.

The project aligns with Dubai’s remarkable economic growth. It also supports the thriving construction sector in the region. Additionally, it contributes to the objectives outlined in the Dubai 2040 Urban Master Plan. Additionally, the project aims to address the growing population. It also aims to fulfill the rising demand for water in domestic, commercial, and other consumer sectors.

During the signing ceremony, the agreement was officially endorsed by Saeed Mohammed Al Tayer, the managing director & CEO of DEWA, and Mohammad Abunayyan, founder and chairman of ACWA Power. Representatives from both organizations were in attendance to witness the event.

Clean energy sources

Al Tayer highlighted that this project aims to enhance water supplies in Dubai through sustainable sources. It also aims to contribute to the achievement of the Dubai Clean Energy Strategy 2050. Additionally, it aims to contribute to the Dubai Net Zero Carbon Emissions Strategy 2050. Additionally, the ultimate goal is to ensure that 100 percent of Dubai’s total power capacity is derived from clean energy sources by 2050.

Prioritizing efficiency

Regarding Abunayyan’s perspective, he highlighted the significance of the Hassyan IWP. The project will hold the distinction of being the largest plant of its kind worldwide. Additionally, it is set to establish a new record for the lowest levelised water tariff. Furthermore, the plant will prioritize efficiency by utilizing reverse osmosis technology powered by solar energy for water desalination, he added.

Two men exchange documents at a table in a modern office.

Dubai solar park

In a related development, DEWA announced on Monday the commissioning of the second unit of the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park. This unit has a capacity of 200 megawatts (MW) and is estimated to have incurred costs of up to AED15.8 billion.

Utilizing the Independent Power Producer model, the fourth phase of the solar park is designed to generate clean energy. It aims to provide clean energy for approximately 320,000 households. Additionally, it seeks to contribute to an annual reduction of 1.6 million tons in carbon emissions.  Also, this project holds the distinction of being the world’s largest single-site undertaking, integrating concentrated solar power and photovoltaic technologies, with a total capacity of 950MW.

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