Staff Report,
Dubai, UAE
State-owned Dubai Electricity and Water Authority PJSC (DEWA), the exclusive electricity and water services provider in the emirate of Dubai that is listed on the Dubai Financial Market (DFM), reported a 7 percent growth in consolidated full year revenue to Dh29.2 billion, which “was mainly driven by an increase in demand for electricity, water and cooling services”, it said in a statement.
Its full-year net profit stood at Dh7.9 billion in 2023. DEWA also reported quarterly revenue of Dh7.1 billion and net profit of Dh1.8 billion in the last quarter of 2023. As per DEWA’s dividend policy, the company expects to pay a minimum annual dividend of Dh6.2 billion in the first five years starting October 2022. The dividends are paid semi-annually in April and October.
On 26 October 2023, DEWA distributed Dh3.1 billion as dividend for H1, 2023 to its shareholders, based on a record date of 18 October 2023. The upcoming dividend of Dh3.1 billion for H2, 2023 is expected to be distributed in April 2024, subject to approval by DEWA’s shareholders at the general assembly, proposed to be held on March 28th, 2024. The issuance of invitation to DEWA’s upcoming general assembly is subject to approval by the Securities and Commodities Authority of the UAE.
“DEWA is focused on its core strategic objective of delivering sustainable growth, staying at the forefront of smart and innovative operational excellence and optimising returns for all its stakeholders whilst minimising its environmental footprint,” it said.
The system demand for power soared to a high of 56.5 TWh in 2023 marking a 6.3 percent annual increase from the 53.2 TWh recorded in 2022. Notably, DEWA generated 6.2 TWh of clean power during the year, which is 32.7 percent increase over the previous year.
This clean power accounted for 11 percent of the total power generated in 2023. DEWA is committed to using clean energy to maintain a sustainable generation mix to meet the consistently growing demand, it says.
DEWA experienced a noteworthy 9.0 percent increase in its annual peak demand compared to 2022, reaching 10.4 GW in 2023. The annual gross heat rate of 8,365 BTU/kWh achieved, represents a 2.79 percent improvement over previous year and is the best in DEWA’s history. Power plant annual reliability factor was sustained above the target of 99.70%. These achievements highlight the company’s unwavering commitment to operational excellence.
The system desalinated water demand in 2023 grew by 5.2 percent compared to the previous year, reaching a record of 144.1 billion Imperial Gallons (BIG). The peak daily desalinated water demand reached 434 MIG which is 4.91 percent increase over the previous year.
At the end of 2023, DEWA is serving 1,211,475 customers, having added 53,974 customer accounts in the year—a 4.66 percent increase over previous year. DEWA achieved a global milestone by recording the lowest electricity Customer Minutes Lost in the year 2023, with a low 1.06 minutes per customer, surpassing its previous record of 1.19 minutes per customer in 2022.
In the fourth quarter of 2023, DEWA continued its upward trajectory by generating 13.4 TWh, a 7.66 percent increase over the same period in 2022. During this quarter, DEWA achieved a 26.79 percent increase in clean power generation, contributing 1.4 TWh to the overall generation mix. Simultaneously, desalinated water production in the quarter reached 36.2 BIG, showcasing a 5.3 percent increase. DEWA expanded its customer base by 11,163 customer accounts during the quarter, reflecting consistent growth.
“I am pleased to report that we have delivered significant results and record-breaking milestones for DEWA. We have achieved the highest annual revenue and operating profit in DEWA’s history. Our electricity generation growth of 6.1 percent, total installed capacity of 15.7 GW with around 17 percent contributed by renewable sources, peak load of 10.4GW and customer accounts exceeding 1.2 million, are the highest ever reported,” Saeed Mohammed Al Tayer, MD & CEO of DEWA, said.
“I am optimistic about our operating and financial outlook for 2024 and beyond. DEWA stands ready to support the Dubai Economic Agenda (D33), which aims to double the size of Dubai’s economy over the next decade. Our strategy, growth pillars and capital commitments are well positioned to deliver on our energy transition ambitions to achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Emissions Strategy 2050 to provide 100 percent of the energy production capacity from clean energy sources by 2050, while supporting the strong demand for our exclusive portfolio of products and services in Dubai.”
By the end of the 2023, the Company’s installed generation capacity was 15.7 GW with 2.6 GW of this capacity coming from clean energy sources.
At the end of 2023, DEWA’s 829 MW phase 4 Al Aweer station was 94.5 percent complete, and 250 MW of the Hatta hydro station was 82.5 percent complete. DEWA expects to add additional solar capacity as part of its ongoing IPP projects. The company’s total installed generation capacity is expected to reach 20 GW by 2030. Of this 20 GW capacity, DEWA will have 5.3 GW representing around 27% of the generation, sourced from clean sources.
By 2030, DEWA will add 240 MIGD of desalination capacity, using seawater reverse osmosis technology. By that time, DEWA’s total installed desalinated capacity will reach 735 MIGD.
In 2023, DEWA grew its substation network and fibre optic cable network by 364 km to 3,998 km in 2023.
At the end of 2023, DEWA’s water reservoir capacity stood at 911 MIG. Additional capacity is under construction.
Emission Reduction
In the year 2023, DEWA has reduced 9.1 million tonnes of CO2 of which 6.6 million tonnes of CO2 emissions by its efficiency improvement and emission reduction initiatives and 2.5 million tonnes from the operating phases of the Mohammed bin Rashid Al Maktoum Solar Park.
DEWA won Guinness World Records in 2023 for the 4th phase of the Mohammed bin Rashid Al Maktoum Solar Park, featuring the tallest solar tower in the world, at 263.126 metres, and the largest thermal energy storage capacity of 5,907 megawatt hours (MWh).
Ends
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