These investments play a pivotal role in advancing global clean and renewable energy initiatives, proactively envisioning the landscape of eco-friendly financial solutions. DEWA is dedicated to pioneering climate finance methods and cultivating innovative practices to address the impacts of climate change. Through its Independent Power Producer (IPP) projects, DEWA seeks to establish robust channels of communication and collaboration with like-minded partners who share similar insights, ideas, and directives. This collaborative effort not only supports sustainable investments but also lays the groundwork for a groundbreaking financing model that effectively addresses both climate and development imperatives.
DEWA has forged a leading model of collaboration between private and public industries, strategically designed to entice acquisition in energy and water projects in Dubai. This unique approach also serves as a conduit for the transfer of knowledge and cutting-edge technologies, enabling the diversification of energy sources in alignment with the best international practices.
In the UAE’s journey towards fostering environmentally friendly solutions, sustainable financing stands as a notable milestone. Green finance emerges as a key pillar in the United Nations Framework Convention on Climate Change (COP28), hosted by the UAE at Expo City Dubai from November 30 to December 12, 2023.
“We are committed to realizing the visionary directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai.
DEWA actively champions a comprehensive development trajectory, fostering robust public-private partnerships. Our objective is to bolster the UAE’s initiatives in crafting climate finance mechanisms while solidifying Dubai’s standing as a global hub for a sustainable green economy. Since 2014, DEWA has spearheaded the innovative IPP assignment administration and undertaking model. Collaborating with the private sector has proven immensely advantageous for DEWA, attracting investments exceeding AED 43 billion. This has not only drawn foreign investments and international stakeholders but has also significantly advanced the sustainable development of the energy sector, augmenting DEWA’s capabilities to deliver sustainable energy and water solutions to Dubai,” stated HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.
“To realize the ambitious goals of the Dubai Clean Energy Strategy 2050 and Dubai Net Zero Carbon Emissions Strategy 2050, aiming for 100% of Dubai’s total power capacity from clean energy sources by 2050, an estimated capacity of 42,000MW of clean and renewable energy is imperative.
DEWA is unwavering in its commitment to the effective implementation of good governance principles, fostering transparency, accountability, and the rule of law. This commitment aims to improve investor trust and cultivate appealing regulatory, supervisory, and legal conditions. Aligned with the specific conditions of Dubai and its legal and technical landscape, the Independent Power and Water Producer (IPWP) model serves as a catalyst for incorporated solutions in energy and water technologies.
The overarching goal of the IPWP model is to facilitate profitable partnerships, with DEWA providing essential support to its private sector collaborators. This support streamlines procedures and expedites the implementation of energy and water projects in Dubai, aligning seamlessly with the Emirate’s overarching strategies,” added Al Tayer.
“DEWA exemplifies the concerted efforts required from corporations to catalyze increased investment for the transition to green energy. Its strategic positioning inherently fosters collaboration among stakeholders in the public and private sectors. These collaborative endeavors play a pivotal role in propelling the UAE Green Agenda forward and contributing to international climate goals,” stated David Hay, President of Brand Finance.
DEWA’s ongoing projects with private sector collaboration utilizing the Independent Power Producer (IPP) model boast a capacity exceeding 4,000 megawatts (MW). Leveraging this model, DEWA has realized substantial savings, amounting to approximately AED 26 billion, enabling the utility to allocate resources to other crucial infrastructure projects. Notably, through this innovative approach, DEWA has achieved unparalleled results, establishing a new benchmark for solar energy prices per kilowatt-hour. This accomplishment positions Dubai as a global standard for competitive and groundbreaking solar energy pricing.
The financing aspect of the Dubai Clean Energy Strategy 2050 centers around identifying funding solutions to support research and development endeavors related to clean energy and its diverse applications. A pivotal component of this pillar is the Dubai Green Fund (DGF), which holds membership in the Global Impact Investing Network, a prominent non-profit organization committed to amplifying the scale and efficacy of impact investing.
Impact investing, a relatively recent term, characterizes investment funds and global corporations that diversify across various asset classes, sectors, and regions. Their primary focus is on enhancing societal and environmental well-being while concurrently generating financial returns. This approach has significantly evolved towards investing in companies that actively contribute to positive social or climate impacts worldwide. Typically traded as private equity firms—accessible solely to institutional or accredited investors—these corporations prioritize societal and environmental impact over immediate liquidity and returns, underlining their commitment to making a substantial and positive difference.