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
Recommend this article Recommend this article () You recommended this article You recommended this article ()
Follow Power Engineering on Twitter

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.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

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

Buyers Guide Categories

Current Magazine Issue

08/01/2013
Volume 117, Issue 8
1308PE_C1_digital

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...

Buyers Guide Company Listings

Caterpillar Power Plants

We provide major power generation equipment, project design, construction, operation and maintenance.

TEi Construction Services Inc

Provides direct-hire, on-site construction services for installation, repair, and maintenance of boilers, pressure parts, scrubbers, precipitators, burners, air heaters, feedwater heaters, condensers, and other related equipment.

Tech Development

Manufactures high-quality engine air starters for industrial and gas turbine applications. Turbine design is resistant to contamination; offers a no-maintenance design. Manufactures TechTorque Inertia Drives-more rugged, more contaminant resistant.

Tower Performance Inc

Specializes in cooling tower construction, repair, upgrades, maintenance, inspections, and replacement parts. Nationwide service.

Power Industry Wire News

Magnum Hunter Resources Announces Closing of New Credit Facilities and Refinancing of Prior Revolving Credit Facility

Magnum Hunter Resources Announces Closing of New Credit Facilities and Refinancing of P...

Gehrlicher Solar America Corp. Grabs Top Spot on Solar Power World's 2014 Top 400 Solar Commercial Contractors List

Gehrlicher Solar America Corp. Grabs Top Spot on Solar Power World's 2014 Top 400 Solar...

Welocalize Sponsors and Exhibits at Localization World 2014 in Vancouver

Welocalize Sponsors and Exhibits at Localization World 2014 in Vancouver

Falconridge Oil Technologies Corp. Discusses Mission Statement for Growth of Terra Slicing Alternative Fracking Technology

Falconridge Oil Technologies Corp. Discusses Mission Statement for Growth of Terra Slic...

Semitech Debuts Single-Chip, Grid-Connected Signal Controller for IoT Applications

Semitech Debuts Single-Chip, Grid-Connected Signal Controller for IoT Applications

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 >>