Dubai Electricity and Water Authority (DEWA) has signed a 35-year Water Purchase Agreement (WPA) and the Shareholder Agreement (SHA) for the Hassyan Sea Water Reverse Osmosis (SWRO) Plant, with Emirati company Utico.

The 120 Million Imperial Gallons per Day (MIGD) project is DEWA's first desalination plant to be developed using the Independent Water Producer (IWP) model, the utility said in a press statement on Wednesday.

The IWP model is based on the successful Independent Power Producer (IPP) model usedat the Mohammed bin Rashid Al Maktoum Solar Park, which fetched DEWA the lowest global solar energy prices five times in a row.

DEWA said the project is expected to be completed by March 2024 at a total cost of $410 million (around 1.5 billion UAE dirhams).

Saeed Mohammed Al Tayer, MD & CEO of DEWA noted that the utility giant has achieved a world record for the lowest levelised water tariff of $0.277 per cubic metre for the Hassyan IWP.

"This key project supports DEWA’s strategy to engage the private sector in developing innovations that enhance water supplies and improve the efficiency and quality of water services. The project also supports DEWA’s strategy to promote Sea Water Reverse Osmosis, as it consumes less energy compared to Multi-Stage Flash (MSF) plants. We aim to produce 100 percent of desalinated water using a mix of clean energy and waste heat by 2030,” Al Tayer said

Rashed Mehran Al Blooshi, Chairman of Utico, said: "Utico’s shareholders and the Board believe that we will deliver this project as the most sustainable desalination plant in the UAE with the world's lowest tariff.”

DEWA is aiming to increase its desalination capacity to 750 MIGD by 2030.

(Writing by Anoop Menon; Editing by Seban Scaria)


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