ABU DHABI - The Power Sector.

Abu Dhabi's power plants have an 8,000 MW generating capacity, up from 5,000 MW in early 2003, and 2,100 MW in 1994. Most capacity lies at the Taweelah complex. Abu Dhabi's generating capacity is to exceed 11,000 MW by mid-2009. Taweelah will be the terminal to receive gas from Qatar. From Taweelah Qatari gas will be pumped via an existing pipeline to Dubai's Jebel Ali free zone and other parts of the UAE.

Abu Dhabi's power demand is rising by 8%/year. UAE demand for power is rising 7.10% per annum. Total UAE power generating capacity by 2010 should exceed 15,000 MW.

Taweelah, the main water desalination and power generating zone in Abu Dhabi, is a state-of-the-art centre on which huge capital has been spent. All the water and power plants at Taweelah and elsewhere in Abu Dhabi have been privatised (see the background of the power sector in down1AbuDbaseJan3-05).

A joint power grid for the UAE, a two-phase project launched in April 1995 at the cost of $194.8m, should help the seven member-emirates save funds and avoid infrastructure duplication. This union has a high concentration of international airports, ports, free zones, banks, etc.

In mid-2002 the UAE Ministry of Electricity and Water approved a study for the joint network - Emirates National Grid (ENG) - and for the UAE networks to be inter-connected. This proposed a UAE control and settlement system and a Federal Electricity & Grid Authority (FEGA), the latter to build, own and operate the ENG. FEGA is to be owned by the five utilities in the union: ADWEA, the Dubai Electricity & Water Authority (DEWA), the Sharjah Electricity & Water Authority (SEWA), the Federal Electricity & Water Authority (FEWA), and the Abu Dhabi-controlled Union Water & Electricity Co. (UWEC) in Fujairah.

The inter-connection system revolves around installation of two 400-kV transmission lines between Dhaid in Sharjah and H station in Dubai; two 400-kV transmission lines between H station and Shahama or Taweelah; a 400/220-kV substation at Dhaid; and a 220-kV double circuit transmission line between Dhaid and Sharjah's Sajaa region. Electricite de France (EdF), helped by Fichtner of Germany, is the ENG Phase 1 consultant. EdF says capacity savings from the ENG by 2010 would reach 1,150 MW for the whole of the UAE, and the internal rate of return would be around 22-26%, depending on which option for the grid system is adopted.

The GCC Inter-Connection Authority (GCCIA), set up at Dammam in 2001 with a capital of $100m, has an updated financial study to connect all the grids of the six GCC countries, with Phase 1 to start up in late 2007.

Full GCC inter-connection will be completed in 2010. The UAE and Oman will be linked to the GCC in the second phase.