Dubai power shortage continues to deepen, say reports

UAE. Dubai’s decision to open its power industry to foreign investors, ending a 50-year monopoly, is a sign of the Emirate’s growing panic that the US$300 billion construction boom is outpacing supplies of water and electricity.

Dubai’s power consumption will quadruple to 21,000 megawatts, equivalent to half of Florida’s, over the next 12 years if growth doesn’t slow sharply.



Burj Dubai, the world’s tallest skyscraper, being built off Dubai’s main Sheikh Zayed highway, will gobble up 150 megawatts of power, equivalent to about 10% of the power produced by a new-generation nuclear reactor.

A report by Zawya Dow Jones points out that poor energy planning means that in a region that controls 60% of the world’s oil and 40% of known natural gas stocks Dubai finds itself begging its neighbours for energy.

Dubai has known for many years that its finite oil and gas resources weren’t sufficient to meet the surge in demand for electricity but has done little to address the issue. Now, in the absence of an expected Iranian gas pipeline and other issues, Dubai Electricity & Water Authority is running out of cheap gas to fire its gigantic power and sea-water desalination plants.

Business Intelligence Middle East