Appoints consultants for feasibility study, in line with Dubai’s energy diversification strategy

Dubai Electricity and Water Authority (DEWA) has announced that after completing the assessment of the bids received for technical and economic consultants to study the feasibility to generate power by using clean coal, it has selected M/s McKinsey & Company in association with technical consultants, M/s Black & Veatch, and legal consultants M/s Allen & Overy.

The tenders received world-wide response, as more than 16 national and international consultancy companies expressed their wish to participate in the economic and technical feasibility study aimed at assessing the possibility of generating energy by using clean coal, the announcement said.
 
According to DEWA, the initiative to conduct the assessment is in line with the vision of His Highness Shaikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which aims to promote sustainable development and global position of Dubai, while preserving the environment and natural resources from pollution, and  also in line with the Dubai Supreme Council of Energy’s strategy, which focuses on ensuring energy supply, meeting growing energy requirements in Dubai and diversifying energy sources. The announcement revealed that DEWA was, therefore, seeking to provide alternative primary sources of energy at a reasonable cost, while reducing their negative effects, which cause harm to the environment.
 
In this context, H E Saeed Mohammed Al Tayer MD and CEO of DEWA said: “This study is a major step towards the implementation of the energy diversification strategy adopted by the Dubai’s Supreme Council of Energy, in which coal is set to become part of Dubai’s energy portfolio. The strategy aims to diversify energy sources to ensure energy supply and meet the growing energy demands in the Emirate of Dubai.”

Al Tayer added that the study would be divided into two phases. In the first phase, the selected consultants would conduct a preliminary analysis on the type of technology, the type of coal and sourcing strategy, which would best suit DEWA’s requirements, taking into account logistics and infrastructure requirements, as well as environmental impacts associated with the construction of the first coal-based power plant for DEWA. The second phase would comprise setting technical and business specifications to implement and establish a coal-based power plant, after the request of bid submission and assessment.

The study, expected to be completed by September 2011, will be followed by another study for the second phase, to be conducted during the last quarter of the year.