Sunday, August 05, 2007

Power and water supply demand will hold Real Estate Boom in Dubai?

It’s a reality that DEWA is behind schedule. Infrastructure isn’t keeping up with property development. Demand is outstretching the availability of power and projects such as Dubai Industrial Park and Dubai World Central are waiting for power. The government is struggling to keep up with rising demand. The Dubai government is looking for alternative sources of energy, but the time factor isn’t clear. For example it takes three to four years to build a power station so real estate projects have to slow down so they can get power in time, over come this situation the government is doing all it can to respond.

DEWA is definitely having a lot of sleepless nights, but they aren’t just waiting. They are doing what they can. A report by Arab Petroleum Investments Corp last week said the UAE will invest US$61.2 billion to boost power and water capacity by around 60% by 2011 from the 2006 level of 14.8 Gigawatts.

DEWA plans to build a 9,000 MW power and desalination complex near the border with Abu Dhabi, known as P station, and adding 5,000 MW at new sites at Al Habab power facility by 2017. Another 400 MW will be added from upgrading existing power plants at Jebel Ali, the port and free zone adjacent to which most of the Emirate’s power generation capacity of about 5,000 MW is presently located.

Present production capability is in excess of 4,500 MW. If we assume there are one million people in Dubai that is 0.0045 MW per person. This would include all power usages, not just domestic homes. There are estimates that this will be almost double that in the next five years,

1 comment:

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