Water Systems Overview: Department of Energy, Abu Dhabi Emirate

Executive overview

Key findings

45%: share of 2025 water generation from reverse osmosis, up from 10% in 2016 (actual)

About 2,100 million m3 a year: groundwater pumping in the emirate, around 20 times natural recharge (Environment Agency – Abu Dhabi, February 2021)

AED 16,202 million: capital expenditure allowance for the four regulated network companies over 2023–2026 (regulatory allowance, not spending)

3.41 → 4.03 million m3/day: forecast emirate water system peak plus auxiliaries, 2025 to 2033 (projection)

Buyer relevance

Who the report is for

Desalination developers and reverse osmosis suppliers

Compare EWEC's capacity recommendations to 2031 with the status of Shuweihat 4, EWEC's planned Future RO plant of up to 273,000 m3 a day and the Saadiyat Island project.

Network contractors and asset managers

Use the transmission, distribution and sewer series from 2018 to 2023, including 2.34% transmission losses and 92.85% pressure compliance in Al Ain, to locate network needs.

Infrastructure investors and lenders

Read the RC1 and RC2 cost of capital, capital allowances and regulatory asset values ahead of the third price control from January 2027.

Water resource and policy advisers

Set groundwater pumping of about 2,100 million m3 a year against desalinated output and recycled water reuse of 72% in 2023.

Decision scope

Questions answered

How dependent is Abu Dhabi on groundwater?

The Environment Agency – Abu Dhabi reported in February 2021 that groundwater makes up around 60% of water used and is pumped at about 2,100 million m3 a year, around 20 times natural recharge; only 3% of reserves are fresh.

How fast is the shift to reverse osmosis?

Reverse osmosis produced 45% of water generation at EWEC-contracted plants in 2025 (549 million m3), up from 10% in 2016 and 6% in 2014.

What did the current price control allow for capital spending?

The RC2 final decision set capital expenditure allowances of AED 16,202 million over 2023–2026 for the four network companies, 23% below their adjusted forecasts, with a 4.9% WACC.

How reliable is water transmission?

In 2023 only 0.0078% of water transmitted to the distribution companies went unsupplied because of transmission interruptions, within a 0.05% KPI, but transmission losses rose to 2.34% against a 2% threshold.

How much is demand expected to grow?

EWEC's 2025 statistics forecast the emirate water system peak plus auxiliaries rising from 3.41 million m3 a day in 2025 to 4.03 million m3 a day in 2033.

Inside the report

Inside the complete report

Executive Overview: The System at a Glance

1. Water Resource Profile

2. Governance and Institutional Framework

3. Infrastructure and Service Delivery

Strategic Outlook and Opportunities

Source Register

Public preview

What to watch next

2. Governance and Institutional Framework

Publication of the RC3 consultation and decision (from January 2027), especially the capital allowance and cost of capital; how RC3 treats the merged TAQA Distribution business; any allocation policy based on the Integrated Water Model.

Strategic Outlook and Opportunities

EWEC's next Statement of Future Capacity Requirements and any revision of the 2033 peak forecast; Shuweihat 4 commercial operation; whether the Saadiyat Island project proceeds; the RC3 decision.

3. Infrastructure and Service Delivery

Transmission losses against the 2% threshold in the next technical report; Al Ain pressure compliance; whether the Saur contract is followed by other wastewater operation and maintenance packages.

1. Water Resource Profile

Updated groundwater figures with dates from the Environment Agency – Abu Dhabi; reverse osmosis share in EWEC's 2026 statistics; recycled water reuse in the Department of Energy's next technical report.

Report page showing two tables: cost of capital, operating and capital allowances and asset values for RC1 and RC2, and RC2 maximum allowed revenue for TRANSCO, ADDC and AADC. — Sample page · page 6 of 14
Price control elements for RC1 and RC2 and projected RC2 maximum allowed revenue by company.

Included

What you receive

The complete PDF report: 14 pages, 6 sections, 20 tables and a register of 22 sources.

This edition

October 2026, First edition.

Evidence & method

Evidence and method

The report draws on the Department of Energy's technical reports for 2018 to 2023, its RC1, recycled water and RC2 price control papers, EWEC statistical reports and capacity statements, Statistics Centre – Abu Dhabi water statistics and the Environment Agency – Abu Dhabi groundwater assessment. Project and institutional status was checked against EWEC, ENGIE, MEED and government sources on October 26, 2026.

Sources

22 sources, listed in the report's source register. Evidence current to 26 October 2026. Principal data periods: Department of Energy technical reports for calendar 2018–2023 (2023 is the latest edition); EWEC Statistical Report 2025 (calendar 2025, forecasts to 2033); Second Regulatory Control price control, 2023–2026. Project and institutional status checked on October 26, 2026. All currency is UAE dirhams (AED)..

Evidence boundaries

This report uses authoritative source material available at the stated research cutoff. It distinguishes published facts, calculated values and analytical interpretation. No independent modelling is performed. Forward-looking analysis reflects published plans, documented trends and stated uncertainties. It does not constitute legal, financial, investment or engineering advice.

Lead analyst

Robert C. Brears

Founder, Our Future Water Intelligence

Robert C. Brears is a water-security specialist and author whose work examines utility governance, infrastructure investment, climate resilience and long-term water-system change for executive and policy audiences.

Decision-focused utility intelligence
Published water-policy author
Evidence-grounded system analysis

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