ACWA Power wins deal to build $1.8 bln Dubai coal power plant

Dubai Water and Electricity Authority (DEWA) has selected Saudi Arabia’s ACWA Power International and its consortium partner Harbin Electric to build the first phase of a $1.8 billion coal-burning power plant in the emirate, the authority said in a statement.

The first phase of the project consists of two 600 MW units, which are set to be operational by March 2021. DEWA is also planning to launch two additional projects to boost total capacity to 3,600 MW.

The 1,200 megawatt (MW) facility is the first of its kind in Dubai, which has stepped up its efforts to meet growing demand for electricity.

The emirate’s power use has increased 6.4 percent so far in 2015; a rate which has exceeded the utility provider’s forecast of five percent for the entire year.

The move also falls in line with the Dubai Integrated Energy Strategy 2030, which includes several targets for diversifying the city’s energy resources, of which clean coal is expected to represent seven percent.