Dubai retains a bundled power and water sector where Dubai Electricity and Water Authority (DEWA) owns and operates all power production and water desalination plants, in addition to the associatedtransmission and distribution networks.
In line with Dubai’s strategy of diversifying its electricity generation fuel mix, Law No 6 of 2011 establishes a framework for private sector participation in the water and electricity sector. Moreover, as Dubai’s economy continues to grow and develop, there will be further requirements for increased foreign investment for the construction and operation of power and water plants.
Independent power producers are expected to play an increasing role in Dubai and will be licensed by the RSB. They will also have to meet technical standards contained in the IWPP Code. Dubai’s current energy strategy envisages clean coal and renewable electricity generation coming from IPPs later in this decade and the next. DEWA will remain the single buyer of water and electricity in the Emirate.
IWPPs are typically governed by Power and Water Purchase Agreements and other contractual agreements related to their financing, ownership, land lease,EPC (Engineering, Procurement and Construction),and O&M (Operation and Maintenance).