Fuel consumption efficiency for electricity and water production in Abu Dhabi

Middle eastern countries are good examples of the strong link between energy and water. Indeed, most power plants are operated on a cogeneration mode and most of the water produced is a desalinated water. With growing economies and population, the demand for natural gas in the power and water sectors is increasing at sustained rates. Understanding the main drivers for the fuel consumption along with the associated (in)efficiencies is critical for designing policies aimed at rationalizing the use of natural gas. The Emirates of Abu Dhabi in the United Arab Emirates is used as a case study to quantify the effects of some key operational, economic and region specific gas consumption features on the gas requirements in the power and water sectors. A multilevel Divisia Index decomposition between 1990 and 2010 is used in this regard. We found that energy intensity has a major contribution to fuel requirements which indicates there is a room for potential efficiency improvements and fuel savings. The results show the contributions of power generation plants efficiency, annual demand profile and power requirements for water production (auxiliaries) to the fuel consumption. A monthly profile of the contributions of such factors shows the seasonality impact on the performance of the power and water production system. (C) 2016 Elsevier Ltd. All rights reserved.