Abu Dhabi plans to sell off power assets prompts mixed response

29 October 2007 - The Abu Dhabi government's plan to sell off assets controlled by the Federal Electricity & Water Authority (Fewa) has received a mixed response from Gulf-based developers, equipment suppliers and power consultants, according to local reports.

Fewa is a federation-run utility supplying water and electricity to the northern emirates and has installed capacity of 1000 MW and 55m gallons of water a day of desalination. However, the majority of its power plants are diesel-fired and in need of rehabilitation. "Of course we would be interested," says one Gulf-based developer.

However, an executive at an international equipment supplier based in the Gulf is more cautious. "If [Fewa] follows the route of Abu Dhabi Water & Electricity Authority (Adwea), using independent power projects, then we might be interested," the executive told MEED.

Adwea is the authority in charge of supplying power and water to Abu Dhabi and is the leading utility authority in the federation.

For others, Fewa's assets are unlikely to prove attractive. "Fewa has been heavily subsidised by Adwea for some time and has not made decent revenues from its plants," says a UAE-based consultant. "Our understanding was that Adwea has already moved to [manage] Fewa's assets."

The announcement to privatise Fewa's assets could increase pressure for a similar sell-off by Dubai Electricity & Water Authority (Dewa), although it does have other options.

"I do not think privatisation will be an issue for Dubai over the next five to 10 years," says the consultant. "It is under pressure to build up capacity but my impression is that, rather than an [independent power project] route, Dewa will favour an engineering, procurement and construction model. It will continue to appoint international consultants but will try to carry out much of the construction work itself."

A spokesman for Dewa declined to comment.

Sponsored by FLSmidth

Related Articles

Fuel Tech receives air pollution control contracts worth $3.6Mn

Fuel Tech Inc. has received multiple air pollution control (APC) contracts, worth approximately $3.6 million, from customers in China, Europe and the U.S.

Duke Energy completes ash excavation at W.S. Lee Steam Station

Duke Energy (NYSE: DUK) has submitted filings, to state regulators, outlining additional ash excavation plans for its W.S. Lee Steam Station in Belton, South Carolina.

Follow Power Engineering on Twitter
Latest News
GE names two to leadership positions GE Power & Water Global Research

GE names two to leadership positions

GE (NYSE: GE) announced the appointment of two new company officers.

Preferred bidders picked for new UK nuclear power project

EDF Energy announced more preferred bidders for construction of the Hinkley Point C nuclear p...

Nuclear unit returns to service after water leak repaired

The 600-MW Fort Calhoun nuclear power plant in Nebraska was returned to full power after a le...

Exxon profit falls by half but production rises

Exxon Mobil Corp. profit dropped by half in the second quarter on sharply lower oil and gas p...

NY to give low-cost electricity to Amazon, Bausch & Lomb

New York state is giving low-cost electricity to 15 businesses around the state as part of a ...
TEPCO executives face charges in Fukushima accident

3 ex-TEPCO execs to face criminal charges

A Japanese judicial committee has decided that three former utility executives should face cr...
07/29 Henry Hub Average Natural Gas Spot Prices

07/29 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...

GE wind turbines to power British Columbia’s largest wind farm

GE today confirmed it will supply Pattern Development with 61 wind turbines for its 180-megaw...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Buyers Guide Categories

Buyers Guide Product Listings

Predictive Maintenance

IPS field service technicians use state-of-the-...

Mitsubishi Gas Turbines

Mitsubishi's advanced turbine technology includ...

Condition Monitoring

TIGER® Monitoring System automates the knowledg...

Turbine Services Limited

Turbine Services Limited, a wholly owned subsid...
Power Industry Wire News

Vantage Drilling Company Schedules Second Quarter 2015 Earnings Release Date and Conference Call

Vantage Drilling Company Schedules Second Quarter 2015 Earnings Release Date and Confer...

EnerJex Resources Declares Monthly Cash Dividend on 10% Series A Preferred Stock

EnerJex Resources Declares Monthly Cash Dividend on 10% Series A Preferred Stock

FX Energy Schedules Second Quarter 2015 Financial and Operating Results Conference Call

FX Energy Schedules Second Quarter 2015 Financial and Operating Results Conference Call

Scorpio Bulkers Inc. Announces Purchase of 1,050,000 Common Shares by Scorpio Service Holdings Limited

Scorpio Bulkers Inc. Announces Purchase of 1,050,000 Common Shares by Scorpio Service H...

Magellan Petroleum Regains Compliance With NASDAQ Listing Requirements

Magellan Petroleum Regains Compliance With NASDAQ Listing Requirements

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>