ACWA Power selected as a preferred bidder for Dewa’s desalination plant

Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (Dewa), announced on Wednesday that Saudi Arabia’s ACWA Power is the ‘Preferred Bidder’ for the construction and operation of the 180 Million Imperial Gallon per Day (MIGD) Sea Water Reverse Osmosis Hassyan Phase 1 Independent Water Producer (IWP) project, with an investment of Dhs3.357 billion ($914 million).

Dewa has achieved a world record by receiving the lowest bid of 0.36536 USD/m³ of desalinated water. The new project aligns with Dubai’s unparalleled economic growth and the Emirate’s thriving construction sector. This complements the Dubai 2040 Urban Master Plan, addresses the substantial population growth, and meets the steadily increasing demand for water in domestic, commercial, and other consumer sectors.

This project is the largest of its kind in the world for water production based on Sea Water Reverse Osmosis (SWRO) technology using solar energy. It is Dewa’s first Independent Water Producer (IWP) model project. The water desalination capacity in Dubai is currently 490 MIGD. This capacity will increase to 670 MIGD in 2026 with the completion of this project.

Dewa received 29 expressions of interest from international developers to implement this project. The Request for Qualification (RFQ) was released to market on 18th October 2022. Six international companies were qualified to submit their bids. DEWA received two bids from ACWA Power and Abu Dhabi National Energy Company PJSC (Taqa) on 22nd of May 2023 in response to the Request for Proposal (RFP) released to the market on 09 of December 2022.

“The development of the project supports the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote sustainable development. We have a clear direction for the energy sector in Dubai with a priority to use clean energy in line with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power capacity from clean energy sources by 2050 . We are building water production plants based on Sea Water Reverse Osmosis (SWRO) technology which require less energy than Multi-Stage Flash distillation (MSF) plants, making it a more sustainable choice for water desalination. By 2030, DEWA aims to produce 100% of desalinated water by a mix of clean energy and waste heat,” said Saeed Mohammed Al Tayer.

“The project is part of Dewa’s strategy to increase the water desalination capacity in Dubai to 730 MIGD, from 490 MIGD at present. We ensure the continuation of the 100% availability of DEWA’s services according to the world’s highest levels of availability, reliability, and efficiency thanks to our state-of-the-art infrastructure and advanced technologies. This is based on innovation and sound scientific planning so that we contribute to making the UAE the world’s leading nation by its centennial in 2071,” added Al Tayer.

Dewa recently announced that the Abu Dhabi Future Energy Company  Masdar is the Preferred Bidder to build and operate the 1,800MW 6th phase of the Mohammed Bin Rashid Al Maktoum Solar Park for using photovoltaic (PV) solar panels based on the Independent Power Producer (IPP) model, costing up to Dhs5.51 billion.

Dewa has achieved, through this phase VI, the lowest Levelised Cost Of Energy (LCOE) of $1.6215 cents per kilowatt hour (kWh) for any of Dewa’s Solar IPP Projects so far.

Dewa has received 23 expressions of interest from international applicants to develop this project. Subsequently, the Request for Qualification (RFQ) was released to market on 15th November 2022.

“We are striving to achieve the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into a global hub for clean energy and green economy.

We also support the Dubai Clean Energy Strategy 2050, and Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power capacity from clean energy sources by 2050. To achieve this, Dewa launched several leading renewable projects, including the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world. Using the Independent Power Producer (IPP) model, it will have a capacity of 5,000MW by 2030 with investments totaling Dhs 50 billion,” said Saeed Mohammed Al Tayer.