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ADWEC 2008 Statement of Future Capacity Requirements 2008 ...

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RSB Approved Version- 4 th August <strong>2008</strong><br />

would be Shuweihat S3, with net capacities <strong>of</strong> about 1500 MW and 100<br />

MIGD, and that S3 would start production in either 2012 or 2013 2<br />

As a result <strong>of</strong> firm long-term contracted electricity exports to the Northern Emirates<br />

being included in the <strong>ADWEC</strong> <strong>2008</strong> <strong>Statement</strong> for the first time, it was concluded that<br />

additional electricity generation capacity may be required in 2011 and 2012 (in<br />

addition to Shuweihat S2 in 2011 and Shuweihat S3 in 2012) in order to satisfy the<br />

Generation Security Standard (GSS). Following consultations between <strong>ADWEC</strong> and<br />

the Regulation and Supervision Bureau (RSB) 3 , it was agreed that Al Ain station’s<br />

256 MW (gross) <strong>of</strong> capacity should have its retirement date further extended from<br />

end-2009 until end-2012.<br />

It was also agreed that the 778 MW (gross) <strong>of</strong> capacity at Umm Al Nar that was<br />

scheduled to be retired before the <strong>of</strong> end-2010 should also have its retirement date<br />

further extended to end-2012. These agreed extended retirement dates <strong>of</strong> end-2012<br />

have been fully incorporated into this <strong>Statement</strong>’s available capacity assumptions.<br />

TRANSCO and <strong>ADWEC</strong>’s fuel suppliers etc will need to separately confirm that they<br />

can accommodate these lifetime extensions.<br />

<strong>ADWEC</strong> will make a final decision on whether or not to extend the lifetimes <strong>of</strong> the<br />

above capacities once work on the <strong>ADWEC</strong> Winter <strong>2008</strong> / 2009 demand forecast has<br />

been completed at the end <strong>of</strong> <strong>2008</strong>.<br />

In the case <strong>of</strong> the 50 MGD <strong>of</strong> desalination capacity associated with Umm Al Nar’s<br />

778 MW <strong>of</strong> deferred retirement generation capacity, the RSB requested <strong>ADWEC</strong> to<br />

provide some separate analysis on the advantages and disadvantage <strong>of</strong> retaining this<br />

capacity. Since this 50 MGD <strong>of</strong> capacity is not required in 2011 / 2012 to satisfy the<br />

Desalination Security Standard, <strong>ADWEC</strong> will submit this analysis separately to the<br />

RSB after work on the <strong>ADWEC</strong> <strong>2008</strong> <strong>Statement</strong> has been concluded.<br />

Demand Forecasts<br />

The Emirate <strong>of</strong> Abu Dhabi’s peak gross electricity demand increased from 2868 MW<br />

in 1998 to 5286 MW in 2007, an increase <strong>of</strong> 84% or 7% per annum. During the same<br />

period the Emirate <strong>of</strong> Abu Dhabi’s peak water supply increased from 206.8 MGD in<br />

1998 to about 559 MGD in 2007 an increase <strong>of</strong> 170% or 12% per annum. For the<br />

projection period <strong>2008</strong> - 2030, <strong>ADWEC</strong> has prepared High, Base / Most-Likely and<br />

Low demand forecasts. This increase in water supply, however, is not necessarily<br />

representative <strong>of</strong> the growth in demand due to the network constraints. Al Ain supply,<br />

for example increased from less than 40 MIGD in 1998 to over 170 MIGD in 2007; a<br />

more than 400% increase. This rapid growth reflects improvements in the water<br />

network supplying Al Ain and not the growth in water demand itself.<br />

As with previous <strong>ADWEC</strong> <strong>Statement</strong>s <strong>of</strong> <strong>Future</strong> <strong>Capacity</strong> <strong>Requirements</strong>, the Base<br />

Demand Forecast continues to be the most probable forecast. There are still however a<br />

number <strong>of</strong> unavoidable uncertainties surrounding the latest demand forecast, such as<br />

changes in the Abu Dhabi Government’s development and infrastructure policy, the<br />

2 The National, May 14, <strong>2008</strong>.<br />

3 For example, <strong>ADWEC</strong>’s meeting with the RSB <strong>of</strong> 3 rd July <strong>2008</strong> and the RSB’s subsequent letter<br />

<strong>of</strong> 7 th July <strong>2008</strong> to <strong>ADWEC</strong>.<br />

<strong>Statement</strong> <strong>of</strong> <strong>Future</strong> <strong>Capacity</strong> <strong>Requirements</strong> <strong>2008</strong> – 2030 10

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