Al Tayer (right) and Abunayyan at the signing ceremony

The Dubai Electricity and Water Authority (Dewa) has signed a power purchase agreement (PPA) and a shareholders deal with the ACWA Power and Harbin Electric consortium for a clean coal project.

Signing the agreements were Saeed Mohammed Al Tayer, Dewa’s managing director and chief executive, and Abdullah Abunayyan, chairman of Acwa Power and representative of the Acwa Power and Harbin Electric consortium. The Hassyan clean coal power project uses the Independent Power Producer (IPP) procurement model on a Build Own Operate (BOO) basis.

The consortium will implement a project to produce 2,400 MW of electricity using clean coal.

The project will be supported by a 25-year PPA with Dewa and the bidder has been required to put in place a secure delivery of coal to the project over the 25-year life of the PPA. The first 2,400 MW phase of the project comprises four 600 MW units. The second 1,200 MW phase includes two 600 MW units with ultra-supercritical technology. The project has a planned commercial operations date of March 2023.

“Dewa’s Hassyan clean coal power project shows our commitment to achieving the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to diversify the energy mix. It also reflects Dewa’s commitment to its goals of energy diversification and sustainability of resources and achieving the Dubai Clean Energy Strategy 2050, which focuses on producing electricity from clean coal as part of Dubai’s energy mix,” said Al Tayer.

“Dewa works to achieve the fifth pillar of the Dubai Clean Energy Strategy 2050, which focuses on creating an environmentally-friendly energy mix, with 25 per cent coming from solar energy, 7 per cent from nuclear power, 7 per cent from clean coal, and 61per cent from gas by 2030,” added Al Tayer.

“Signing this agreement exemplifies the success of  public-private partnerships and the importance of involving the private sector in enhancing efficiency, productivity and cost reduction, in addition to optimising resources, transferring technology and training and developing local skills,” said Abunayyan.