The power sectors of Abu Dhabi and Dubai are currently undergoing a rapid and ambitious transformation spurred on by staggering growth in demand for electricity. Experts estimate year-on-year growth in demand for electricity in the region of 8 to 12% for the next 10 years. The main contributors are population growth and industrial development requiring a rapid and innovative response from the power sector. Abu Dhabi and Dubai retain relative independence for power generation, with each structuring and developing their sector to match their specific and differing needs.
Abu Dhabi’s power sector is the envy of many in the region. It is set up according to a single-buyer model, with Abu Dhabi Water and Electricity Authority (ADWEA) responsible for overseeing the sector through its subsidiaries: Abu Dhabi Water and Electricity Company (ADWEC), Abu Dhabi Transmission and Despatch Company (TRANSCO) and Abu Dhabi / Al Ain Distribution Company’s (ADDC / AADC). Dubai, meanwhile, retains a much more bundled approach to power governance through the Dubai Electricity and Water Authority (DEWA). DEWA owns and operates 11 plants varying from 400 MW to 1,400 MW with a total capacity of almost 9,000 MW.