Toufic Allaf, a speaker at the marcus evans Power Generation MEA Summit 2010,on how the Abu Dhabi power generation model is a success
DUBAI, UAE--(BUSINESS WIRE)--
Power Generation MEA Summit 2010
Dubai, UAE, 29 November to 1 December
Interview with: Toufic Allaf, Technical Advisor, Abu Dhabi Water & Electricity Authority
Abu Dhabi has a successful power generation privatisation model in the region, highlights Toufic Allaf, Technical Advisor of the Abu Dhabi Water & Electricity Authority (ADWEA). Private and international investors feel secure investing in Abu Dhabi, as the continuous supply of fuel and the purchase of water and electricity generated are both addressed in the Power & Water Purchase Agreement (PWPA). A speaker at the marcus evans Power Generation MEA Summit 2010 in Dubai, UAE, 29 November to 1 December, Allaf shares the unique features that make the Abu Dhabi model an attractive power generation investment model in the region.
How does Abu Dhabi secure a constant supply of water and electricity?
Toufic Allaf: “ADWEA has in place a strategic implementation and transformation process with a structured methodology for linking operations to performance. This assures the alignment of operational targets and high level objectives within ADWEA Group. ADWEA, on the other hand, ensures alignment with the goals of the Abu Dhabi government and the 2030 vision.
Two of the pillars of our strategy are sustainability of supply and efficiency which addresses the companies’ operational efficiency. In addition, Abu Dhabi Water & Electricity Company (ADWEC) issues a seven year forecast of supply / demand for ensuring the availability of supply from the generation companies will meet the expected demand. ADWEC works very closely with several entities, including municipalities, urban planning Council, developers and others to guarantee that the forecast takes into consideration all these factors.”
What can others learn from your example? What is unique about the Abu Dhabi model?
Toufic Allaf: “Abu Dhabi has a successful privatisation model in the region, with almost all generating capacities privatised. We exchange our experience with companies that are planning to adopt a model similar to ours, whether in conferences or on a one-to-one basis.
What makes our model unique is our investment environment. During the recent economic crisis ADWEA managed to secure the financial closing of one of our projects. Investors feel that their capital and returns are safe. We purchase their products and supply them with the fuel at agreed rates and formula.”
What are some of the upcoming developments that power generation directors in the region should prepare for?
Toufic Allaf: “There are large developments under construction and the production companies will have to cope with this. They need to be flexible enough to cope with changes every now and then. A production facility that takes into account meeting forecasted demand for electricity and water while meeting applicable regulatory requirements is the best formula for all power generation companies to consider.”