Dubai Electricity and Water Authority (Dewa) has approved strategic projects worth over Dh27 billion ($7.34 billion) based on the independent power producer (IPP) model in its new budget.

The utility firm's move is aimed at leveraging public private partnerships and build new capacity in renewable energy and diversify the emirate’s energy mix in the long term, said a senior official.

Dewa has announced a total budget of Dh23.65 billion ($6.43 billion) for 2016, a slight increase from Dh22.873 billion ($6.2 billion) last year.

"Its operational budget for 2016 is Dh14.165 billion ($3.85 billion) compared to Dh13.465 billion ($3.66 billion) the year before, while the administrative capital budget has been set at Dh770 million ($210 million)," remarked Saeed Mohammed Al Tayer, the managing director and chief executive of Dewa.

"Dewa has assigned a large part of the budget to clean-energy-related projects in support of the Dubai Clean Energy Strategy 2050 launched to provide 75 per cent of Dubai’s total power output from clean energy. This will make Dubai’s carbon footprint the lowest in the world," he added.

According to Al Tayer, a sum of Dh8.72 billion ($2.37 billion) will be allocated to capital expenditure and projects, compared with Dh8.028 billion ($2.1 billion) in 2015," said Al Tayer.

Dewa, he stated, has also allocated funds for several key projects, including the construction of nine new 132 kV substations at a cost of Dh775 million ($211 million) and the extension of 256 km of 132 kV cables, and other power transmission and distribution projects and smart communication networks.

"Also Dh245 million ($67 million) has been set aside to build two water reservoirs at Al Nakhly area to increase water storage capacity at Dewa and a further Dh50 million ($13.6 million) to build a water pumping station on the Dubai-Al Ain road, as well as other water transmission and distribution projects," added Al Tayer.

According to him, the new budget ensures a reliable supply of electricity and water to meet Dubai’s development plans in all its operations.

"This budget for 2016 is aligned to the directives of our visionary leadership, and will meet all the requirements of Dewa’s projects, operational facilities, ambitious initiatives in electricity and water, and all smart grid projects and services that will contribute to supporting Dewa’s service delivery, smoothly, easily and efficiently, to all Dubai’s customers," stated Al Tayer.

"The budget will enable Dewa to adopt the best and latest clean energy technologies across all its operations to maintain its leading position nationally and internationally, by providing electricity and water at the highest levels of reliability, efficiency, safety, and sustainability," he added.-TradeArabia News Service