United Arab Emirates' Ras Al Khaimah Inviting Proposals for Coal-Fired Power Plants by February 2009

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Ras Al Khaimah Investment Authority (RAKIA) (Ras Al Khaimah, United Arab Emirates) has announced plans to build two coal-fired power plants in the state of Ras Al Khaimah. RAKIA is controlled by the government of Ras Al Khaimah, one of the seven states that constitute the United Arab Emirates. The plants will be the first of their kind in the country: a 600-megawatt (MW) plant in Mina Saqr and a 120-MW plant in Al Hamra. The Mina Saqr plant will be executed in the first phase, and the plant's generation capacity could be increased to 4,000 MW.

RAKIA will start accepting proposals for the projects in February 2009. The company that is chosen to execute the project will have to undertake the design, engineering, procurement and construction, and trial operation activities. The company will also be responsible for constructing the ash-disposal system and coal-handling facility. RAKIA holds a majority stake in an Indonesian mine, which will supply the feedstock for the plants.

All of the states in the United Arab Emirates depend on the national distribution grid for power supply. But Dubai draws a major share of the power supply, which has led to power shortages in the smaller emirates states. Therefore, these states, including Ras Al Khaimah, are looking at other options to sustain their growing energy demand. The state-controlled Federal Electricity and Water Authority (FEWA) oversees power generation and distribution in the United Arab Emirates. According to Oxford Business Group (London), which published the Ras Al Khaimah Report 2008, FEWA plans to increase the power capacity of Ajman, Ras Al Khaimah and Umm Al-Qaiwain from 1,200 MW to 2,000 MW by 2018. But experts say Ras Al Khaimah's demand for power will increase to more than 4,000 MW by 2015.

Ras Al Khaimah is witnessing unprecedented growth in the industrial, real estate and tourism sectors. Since Sheikh Saud Bin Saqr al Qasimi took over the administration of this state in 2003, Ras Al Khaimah is gearing up to equal Dubai in growth and development. Large-scale industrial and residential construction activities are planned. RAKIA is also proposing to develop world-class resorts, industrial parks and business centers. Tourism is expected to be one of the biggest consumers of energy in Ras Al Khaimah. The industry is being promoted extensively, with more than 2.5 million visitors expected in the state by 2012, which is 10 times the size of the local population. But the shortage of electricity in the state has stalled the construction of many ongoing real estate and infrastructure projects.

The economies of gulf countries have always thrived on crude oil. This region accounts for more than 40% of the world's oil reserves. Gas has always been the primary source of energy, but the Arab nations are now waking up to the reality of acute gas shortages. According to energy consultants Wood Mackenzie (Edinburgh, United Kingdom), the demand for gas in the United Arab Emirates is expected to double in the next 10 years. This year, the peak power consumption in the country was 15% higher than last year, and demand for natural gas is increasing at 12% every year. In the summer of last year, the United Arab Emirates' natural gas demand supply gap was close to 1 billion cubic feet per day. One of the reasons attributed to the shortage is the allocation of large reserves of gas for injection into condensate and oil fields to maintain pressure of the reservoirs. The huge demand for water and gas to drive large scale development is also another reason. Therefore, the United Arab Emirates is focusing on other sustainable sources of energy. The country, which has the world's fifth-largest gas reserve, is considering renewable energy sources and nuclear power as possible long-term options. But power generation from coal is the top choice as it is a quicker, cost effective and a more economical alternative to bridge the current demand and supply gap.

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