Government-owned Dubai Electricity and Water Authority (DEWA) has announced the deferral of plans to build the $1.3 billion Hassyan independent power and water project, citing increased efficiency at existing power plants.

“The Hassyan power plant project can be deferred until a later date,” the state company said, adding that it had raised power production capacity elsewhere while demand growth had slowed.

Located 60 km south-west of Dubai in the United Arab Emirates, the Hassyan power and water complex was expected to have a total production capacity of 900 MW of power and 720 million gallons per day of desalinated water, reports Reuters.

Abu Dhabi National Energy Company in December identified itself and its consortium partners Marubeni of Japan and South Korea’s SK E&S Co Ltd as the lowest bidders for the project.

Some bidders said the decision may even damage the government’s future project plans. “It’s disappointing. In the future bidders may think twice,” said an executive from one of the international companies that had bid for the project.

Dubai has also launched plans to build a solar park with a potential capacity of 1,000 MW to help reduce its energy imports. The first solar plant in the park will have a capacity of 10 MW and is planned to commence operations by end-2013.

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