ACWA Power Secures Contract for New Dubai Desalination Plant with Record Tariff Rate

18 Aug, 2023

ACWA Power Secures Contract for New Dubai Desalination Plant with Record Tariff Rate

ACWA Power, a Saudi-based firm, has been chosen to operate one of the largest desalination plants globally, situated in Dubai. This selection came after ACWA Power submitted the world's lowest water levelised tariff rate for consideration. The company has been designated as the preferred bidder to oversee the Hassyan Seawater Reverse Osmosis facility, a decision made by the Dubai Electricity and Water Authority.

ACWA Power's victory stems from their proposal of an unprecedented water levelised tariff of $0.365 per cubic meter. This groundbreaking rate establishes a new world record and marks a significant milestone in DEWA's inaugural Independent Water Producer model project. The forthcoming undertaking entails the development and operation of an expansive 818,280 m3/day plant. This endeavor will notably elevate ACWA Power's aggregate water capacity to an impressive 7.6 million m3/day.

Expressing his satisfaction, Marco Arcelli, CEO of ACWA Power, highlighted their achievement in setting another world record for the lowest water levelised tariff rate. Notably, this feat marks the first time that an IWP project of this scale, specifically a Sea Water Reverse Osmosis (SWRO) plant, has transcended the $0.4/m3 barrier. Arcelli attributed this success to a potent blend of innovation and their continuous drive to enhance project efficiency. He also expressed honor in being entrusted with this project by their longstanding partner DEWA. Arcelli pledged ACWA Power's commitment to contribute to the Emirate of Dubai's Integrated Energy Strategy 2030, ensuring the provision of clean, cost-effective, and sustainable water to the local communities.

The Hassyan plant serves as a vital component of DEWA's strategic efforts to amplify Dubai's water desalination capacity. Additionally, it is aligned with their vision to generate 100 percent of this essential resource through a combination of clean energy and waste heat by 2030, according to CEO Saeed Mohammed Al-Tayer.

Al-Tayer emphasized the clear trajectory set for Dubai's energy sector, prioritizing clean energy in line with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050. The objective is to meet 100 percent of Dubai's total power capacity from renewable energy sources by 2050.

The anticipated completion of the Hassyan IWP project in 2026 will significantly augment water desalination in Dubai, elevating the output from 2,227,540 million m3/day to an impressive 3,409,500 million m3/day.

ACWA Power's prowess in the field has not gone unnoticed. Global Water Intelligence recently recognized the company as the world's largest water project developer outside of China. With a presence spanning over 12 countries, ACWA Power continues to establish itself as a prominent player in the global water industry.