ADWEC 2008 Statement of Future Capacity Requirements 2008 ...

RSB Approved Version- 4 th August 2008
One potential option for minimising ADWEC’s economic purchase costs is to defer
the retirement of capacity scheduled for closure. The ADWEC 2005 Statement of
Future Capacity Requirements concluded that deferring the retirement of capacity at
the Arabian Power Company’s Umm Al Nar (UAN) IWPP site, originally scheduled
for retirement in June 2008, was the most economic way in which to enhance capacity
during the period 2008 - 2010. Based on that recommendation, an updated PWPA was
signed between ADWEC and APC implementing the deferred retirement.
Accordingly, this Statement has incorporated the delayed retirement of some UAN
capacity in order to meet the short term capacity requirements of 2008 - 2010.
Note that the above deferment in the retirement dates for some Umm Al Nar capacity
was the result of higher forecasted electricity demands in 2008 – 2010 (than
previously forecasted) primarily because of the announcement of several mega
projects in the residential and industrial sectors. At least some of this Umm Al Nar
capacity can also burn crude oil as a backup fuel, and so in times of constrained gas
supplies this ability to burn crude oil enhances security of supply.
Details of the Umm Al Nar IWPP electricity and water capacities that have had their
retirements deferred until the end of 2010 are shown below:
a) UAN East A (118 MW)
b) UAN West 1-6 (360 MW)
c) UAN West 7-8 (300 MW)
d) UAN East B (20 MGD)
e) UAN West 1-6 (24 MGD)
f) UAN West 7.1 (6 MGD)
The above Umm Al Nar capacities were originally scheduled to be retired in June
2008.
After the water peak demand of 2006 some 19 MIGD capacity of Umm al Nar East A
was retired, along with 17 MIGD at UAN West 7-8 and 3 MIGD at UAN East B.
These water capacity retirements decreased the water capacity of Umm Al Nar station
from 184 MIGD in 2006 to 145 MIGD from 2007.
Umm Al Nar IWPP 2011 - 2012
As a result of firm long-term contracted electricity exports to the Northern Emirates
being included in the ADWEC 2008 Statement for the first time, it was concluded that
additional electricity generation capacity may be required in 2011 and 2012 (in
addition to Shuweihat S2 in 2011 and Shuweihat S3 in 2012) in order to satisfy the
Generation Security Standard (GSS). Following consultations between ADWEC and
the Regulation and Supervision Bureau (RSB) 6 , it was agreed that the 778 MW
(gross) of capacity at Umm Al Nar that was scheduled to be retired at the of end-2010
should have its retirement date further extended to end-2012. This agreed extended
retirement date of end-2012 has been fully incorporated into the ADWEC 2008
Statement’s available capacity assumptions.
6 For example, ADWEC’s meeting with the RSB of 3 rd July 2008 and the RSB’s subsequent letter
of 7 th July 2008 to ADWEC.
Statement of Future Capacity Requirements 2008 – 2030 16