DEWA CEO Saeed Al Tayer has told district cooling companies in Dubai they must take steps to shave their peak, or no incentives will be provided by the government.
“The point is that district cooling companies must take the first step. Based on that step they are taking in order to shave the peak, we will provide the incentives. Without this step being taken the government will not give any incentives,” Al Tayer told Utilities Middle East.
There have been calls from the district cooling sector for the government to introduce day and night tariffs in order for them to introduce thermal storage, but Al Tayer has said they must make the first move.
“They must prove to DEWA that they will take steps in respect to their projects and how they shave the peak. It is very important to us. We gave them a grace period of 18 months but so far we are waiting for the feedback from them,” Al Tayer added.
“DEWA is already studying the incentives but I think they should take a chance now to either convert existing plants or to ensure their future plants should be thermal storage.”
The grace period given to district cooling firms started in September last year and has approximately one year to run. Al Tayer was also quick to stress that there are no current power or water shortages in Dubai, with all projects going in line with the government’s strategy plan.
Al Tayer also announced that the budget for 2009 will be US$3.54 billion, while contract awards for the Hayssan project in Jebel Ali has been delayed because Dubai has a “sufficient” power and water supply.
