ADWEC 2008 Statement of Future Capacity Requirements 2008 ...

RSB Approved Version- 4 th August 2008
The time horizon of this Statement is 2008 – 2030 inclusive. ADWEC’s license only
requires ADWEC to prepare a Statement for the next seven years, given however
rapidly rising demand and the need for sector participants to plan accordingly this
Statement covers the longer period 2008 – 2030 inclusive. The publication of the
Urban Planning Council’s Plan Abu Dhabi 2030 in September 2007 led ADWEC to
extend the time horizon of the Statement from 2020 to 2030 so that an integrated plan
for the Emirate of Abu Dhabi could be developed. Note however that the analysis for
the period 2016 – 2030 is primarily for illustrative purposes, and so should not be
given the same weight as the analysis for the period before 2015.
Particular emphasis is given to the immediate planning horizon of 2012 – 2013. New
IWPPs typically take around 16 months from the issue of the RFP to financial close.
Once financial close has been achieved, it takes a further 2 – 3 years to complete the
construction and testing of the new IWPP station, approximately 4 years in total for a
gas fired station. In the case of crude oil / coal fired stations, it is estimated that it
would take around 5 – 6 years to bring new capacity into production from the time an
RFP was issued. The current tight supply market means that it now takes longer to
procure and install all types of new capacity than at the start of this decade.
Consequently the earliest new IWPP capacity can be added to the Abu Dhabi system
is 2012, assuming an RFP was issued during the Summer of 2008.
Demand
New Abu Dhabi land ownership laws were announced during the Summer of 2005.
These changes in land ownership laws, and the releasing of surplus oil revenues for
major infrastructure developments, are expected to result in a construction boom that
will likely last for several years.
The Abu Dhabi Government has also announced the creation of Special Economic
Zones that will focus on the industrial sector. These special economic zones will be
run by the Higher Corporation for Special Economic Zones (Zonescorp). Zonescorp
will be setting up 30 industrial clusters and special economic zones, whose purpose is
to diversify the economy and to create better opportunities for entrepreneurship. The
clusters will take the form of industry specific zones where upstream, downstream
and service providers from the same industry will operate. For example, it is planned
to create a cluster to service the oil industry.
Besides the Special Economic Zones, the development of Khalifa Port and Industrial
Zone (KPIZ) has also been announced. The Abu Dhabi Ports Company (ADPC) has
been mandated to oversee the development of the KPIZ. KPIZ will be one of the
world's biggest industrial estates and will include a container handling terminal and
piers for handling raw and bulk cargoes. The project also offers an industrial estate
along with ancillary commercial and residential developments. The industrial estates
will be free zones, offering 100 per cent foreign ownership to companies and
individuals.
KPIZ will cater to a number of industrial clusters, including base metals, heavy
machinery, transport vehicle assembly, chemicals, shipyards, building materials,
processed foods and beverages, light manufacturing and assembly, small and medium
Statement of Future Capacity Requirements 2008 – 2030 8