Dewa to spend $11 billion on Renewable Energy in Dubai

The Dubai Electricity and Water Authority (Dewa) has announced that it will be investing $11 billion or Dh40 billion as capital expenditure over a period of next five years from now to enhance the utility’s renewable energy portfolio.

Dewa has issued an official statement that confirms the media reports about the anticipated RE investments by the authority. The statement said, “We are writing to confirm the news printed on 26 April 2022 that Dewa shall invest Dh40 billion in capital expenditure over the next five years with a focus on increasing renewable energy generation capacity.”

Under the Dubai Clean Energy Strategy, Dubai targets to obtain 75% of its energy requirements only from the clean energy sources by the middle of this century and making the city a centre of clean and green economy on the globe.

The official Dewa statement further reveals that Dewa is going to earmark Dh16 billion to strengthen the water and electricity network in Dubai. The utility will also spend Dh12 billion on existing independent power production projects. Then Dh3bn will be set aside for district cooling services. The statement said that the leftover funds will be utilized to complement existing projects. Smart systems and infrastructure will be first focused upon.

Dewa has started trading on the Dubai Financial Market on April 12, this year only. The listing of Dewa in the market was the largest since the listing of Saudi Arabia major Aramco in 2019 in the entire Middle East and Europe. On the very first day Dewa raised more than Dh 22 billion from its initial public offering due to strong investor demand which included many international funds. The shares prices rose by about 23% while trading on Dubai Financial Market.

Managing Director and Chief Executive Officer of Dewa, Saeed Al Tayer had said last week that soon an IPO of Emirates Central Cooling System Corporation will be out. The corporation is a district cooling provider.

Dewa has also said recently that the utility’s EV Green Charger initiative has already imparted in excess of 8,800 MWh to the electric vehicles running in Dubai. As per Dewa, it has enabled electric vehicles to run more than 58 million km in the past seven years. The initiative has saved three quarters of the refuelling costs of the EV owners.