World-record tariff rate helps ACWA Power win contract for new Dubai desalination plant

World-record tariff rate helps ACWA Power win contract for new Dubai desalination plant
Marco Arcelli, CEO of ACWA Power (Supplied)
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Updated 18 August 2023
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World-record tariff rate helps ACWA Power win contract for new Dubai desalination plant

World-record tariff rate helps ACWA Power win contract for new Dubai desalination plant

RIYADH: ACWA Power has been selected to operate one of the world’s largest desalination plants in Dubai after submitting the lowest water levelised tariff rate in the world.

The Saudi-based firm has been designated as the preferred bidder to run the Hassyan Seawater Reverse Osmosis facility by the Dubai Electricity and Water Authority.

The win was secured after ACWA Power proposed the lowest water levelised tariff of $0.365 per cubic meter, setting a world record for DEWA’s first Independent Water Producer model project.

The firm is now set to develop and operate the 818,280 m3/day plant, which will increase ACWA Power’s overall water capacity to 7.6 million m3/day.

Marco Arcelli, CEO of ACWA Power, said: “We are delighted to set the world record once again for the lowest water levelised tariff rate – in fact, this is the first IWP project in history to break the $0.4/m3 barrier for a SWRO (Sea Water Reverse Osmosis) plant of this scale. 

“This has been made possible by the combination of innovation and our spirit to continuously improve the efficiency of our projects.”

He added: “We are honored to have been entrusted this project by our longstanding partner DEWA, and we are committed to contributing towards the Emirate of Dubai’s Integrated Energy Strategy 2030 to supply clean, affordable and responsible water to its communities.” 

The plant is an integral part of DEWA’s strategy to scale up Dubai’s water desalination capacity and to produce 100 percent of the commodity from a mix of clean energy and waste heat by 2030, according to the company’s CEO Saeed Mohammed Al-Tayer.

He added: “We have a clear direction for the energy sector in Dubai with a priority to use clean energy in line with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100 percent of Dubai’s total power capacity from clean energy sources by 2050.”

When complete in 2026, the Hassyan IWP will increase water desalination in Dubai from 2,227,540 million m3/day to 3,409,500 million m3/day.

ACWA Power was recently recognised by Global Water Intelligence as the world’s largest water project developer outside of China, and now has an overall market presence in over 12 countries.