Water and Electricity Infrastructure Projects

Overview

In the United Arab Emirates (UAE), demand for water and electricity is increasing year-on-year. This is driven by growth in population, industrialisation and urbanisation. One by-product of increased demand has been an increase in public-private partnership (PPP) structuring for new construction projects in the water and electricity sectors.

In 2017, the UAE launched ‘Energy Strategy 2050' (the Strategy) with the aim of increasing the contribution of carbon-free energy in the UAE's energy mix from 25% to 50% by 2050. The target is for the UAE's energy mix to comprise 44% clean energy, 38% gas, 12% clean coal and 6% nuclear energy. In conjunction, the Strategy aims to reduce energy consumption of individuals and corporates by 40%.*[1]

The UAE government is also targeting an overall reduction in water consumption. By 2030, the aim is for 100% of the country's desalinated water to be produced using a combination of clean energy sources and waste heat.*[2]

We examine the impact of all these factors below.

Practical Guidance

Regulations and best practices to be considered when starting a project

Federal law

The UAE has a federal system of law. On a national level, the UAE's electricity and water sectors are regulated by: