DEWA reports record revenue for 9 months

Dubai’s state-owned publicly-listed utility Dubai Electricity and Water Authority (DEWA), reported a 6.2 percent growth in revenue reaching a record US$6.4 billion (Dh23.5 billion) and net profit of US$1.5 billion (Dh5.5 billion) in the first nine months of the year. DEWA, the share of which is traded on Dubai Financial Market also declared a US$844.6 million (Dh3.1 billion) dividend to shareholders.

DEWA’s first 9-month revenue growth was mainly driven by an increase in demand for electricity, water and cooling services. DEWA’s consolidated first 9-month EBITDA was up by 4.71 percent to Dh11.8 billion. Its third quarterly consolidated revenue increased by 4.75 percent to US$2.7 billion (Dh9.9 billion) and EBITDA was Dh5.1 billion, and cash from operations was up by 34.20 percent to Dh5.9 billion.

The news comes a few weeks after DEWA issued a tender seeking Independent Power Producer (IPP) advisory service for a 1,600 megawatt (MW) solar photovoltaic power plant with 1000 MW Battery Energy Storage System (BESS). The BESS is expected to provide six hours of storage, according to DEWA’s tender notice.

“DEWA has initiated several key programmes and initiatives aimed at advancing sustainability, innovation, and the efficient provision of electricity and water services in Dubai. Among those initiatives are the Dubai Clean Energy Strategy 2050, Shams Dubai, and Dubai’s Demand Side Management (DSM) programme,” writes Salma Saleh on Statista, a global market intelligence provider. “One of the Dubai 2050 strategy’s main goals is to increase the share of clean energy generation in Dubai to 75 percent by 2050. From the consumption side, DSM programmes, developed by the Dubai Supreme Council of Energy, promote the efficient use of electricity and water among customers. It targets reaching a reduction of 30 percent in the consumption of water and energy by 2030.”

DEWA’s independent producer model has attracted investments worth Dh43.6 billion (US$11.9 billion) over 10 years. These investments cover renewable and conventional power plants and seawater reverse osmosis projects. Through the independent procurement model, Dewa has achieved the lowest levelised cost of energy in the world for solar energy projects, making Dubai a global benchmark for solar energy prices, the utility said.

“DEWA’s 6.2 percent revenue growth to Dh23.5 billion and 4.7 percent increase in EBITDA to Dh11.8 billion for the first 9 months of 2024, reflect continued growth in the Emirate of Dubai and our commitment to operational excellence, innovation, and sustainability. We are contributing to Dubai’s vision for a sustainable future in alignment with the Dubai Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy 2050. DEWA will continue to deliver strong shareholder value through efficient operations, consistent dividends and support Dubai’s transition to a green economy,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA, said in a statement.

In the third quarter of 2024, DEWA’s power generation soared to a high of 19.6 TWh marking a 3.98% increase from the same period last year. Notably, 1.8 TWh out of 19.6 TWh was from green energy source. This clean power accounted for 9.18 percent of the total power generated in Q3, 2024. DEWA is committed to using clean energy and maintain a sustainable generation mix to meet future demand.

DEWA imported 3.25 TWh from Hassyan power plant, 0.32 TWh from Warsan Waste Management Company and generated the remaining 14.32 TWh from its gas fired portfolio during the third quarter of 2024.

DEWA experienced a noteworthy 3.41 percent increase in its quarterly peak demand compared to Q3, 2023, reaching 10.76 GW. The quarterly gross heat rate of 7,923 BTU/kWh is the best achieved so far in DEWA history.

DEWA’s total desalinated water production in the third quarter of 2024 grew by 4.64 percent compared to the previous year, reaching a record production of 40.5 billion Imperial Gallons (BIG). The daily desalinated water demand reached a record peak of 455 Million Imperial Gallons (MIG) which is a 4.92 percent increase over the same period of the previous year.

At the end of the third quarter of 2024, DEWA has 1,250,288 customer accounts, representing a 4.16 percent increase compared to the same period in the previous year.

During the third quarter of 2024, DEWA commissioned two 132 kV substations, and 426 11kV substations. By the end of the third quarter of 2024, the company’s installed generation capacity was 16.779 GW with 2.86 GW (17%) of this capacity representing renewable energy. The company’s installed desalinated water production capacity was unchanged at 495 MIGD.

By the end of 2030, DEWA plans to reach installed capacity of 20 GW and 735 MIGD of desalinated water. Of this 20 GW, around 5.3 GW will be from clean sources, representing 26.5 percent. In the same period, the company plans to add 240 MIGD of desalination capacity using reverse osmosis technology.

DEWA was created in 1992 as a result of the merger of the Dubai Electricity Company and the Dubai Water Department. DEWA is the exclusive electricity and water utility provider in Dubai. DEWA was listed on the Dubai Financial Market in April 2022. DEWA’s attracted US$85 billion demand for its initial public offering (IPO) that was 37 times oversubscribed. The Group generates, transmits and distributes electricity and potable water to end users throughout Dubai. DEWA owns 56 percent of Empower, currently the world’s largest district cooling services provider by connected capacity, and owns, manages, operates and maintains district cooling plants and affiliated distribution networks across Dubai.