Dubai Electricity and Water Authority (Dewa) has signed a memorandum of understanding (MoU) with German utility giant RWE Energy Group in order to increase cooperation for renewable energy innovations.

The collaboration is expected to promote research and development (R&D) for energy and smart grids, scientific research and sustainable development projects.

This deal is in line with Dewa’s Smart Dubai initiative, which aims to turn the UAE city into the smartest city in the world through implementation of smart technologies.

DEWA CEO Saeed Mohammed Al Tayer said: "DEWA is committed to enhancing cooperation with local and international government and private organisations to improve its services for customers, and develop its operations to the highest levels of availability, reliability, and efficiency."

"We intend to set an innovative role model in the region for the sustainable development and ease of connecting renewable energy sources with existing electricity grids."

The MoU also supports Dubai Innovation Strategy, which intends to turn the city into the most innovative one worldwide.

This deal will increase cooperation between the two parties and result in an exchange of experience, knowledge, and research in renewable energy, and technical, economic, and environmental analysis of alternative energy scenarios.

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RWE Consulting CEO Dr Klaus Grellmann said: "We look forward to working with DEWA in solar and other alternative and renewable sources of energy.

"We intend to set an innovative role model in the region for the sustainable development and ease of connecting renewable energy sources with existing electricity grids.

"We are confident that DEWA’s excellent initiatives combined with RWE’s latest innovations and technologies will achieve this ambitious goal."

In a separate deal, RWE Supply & Trading has agreed to sell its 420MW coal-fired Lynemouth power plant to EP UK Investment, a subsidiary of Czech energy group Energetický a prumyslový (EPH).

The power plant, which has been sold for an undisclosed amount, is intended to be converted within about 18 months to run on biomass.