Understanding DEWA: Dubai's Energy Management Insights

Visionary infrastructure of Dubai's energy landscape

Intro

In the ever-evolving landscape of urban development, energy management plays a pivotal role in facilitating sustainable growth. The Dubai Electricity and Water Authority (DEWA) stands at the forefront of this initiative, shaping not just the energy paradigm for the emirate, but also setting benchmarks that resonate across global sustainability frameworks. By integrating advanced technology and innovative practices into its operations, DEWA has emerged as a critical player in promoting efficient resource utilization while ensuring economic prosperity.

This article seeks to furnish an insightful exploration of DEWA’s initiatives aimed at enhancing the sustainability of Dubai’s energy usage. The intricate link between DEWA's strategies and the broader economic implications will be discussed, catering specifically to investors, homebuyers, realtors, agents, and analysts. Each section will peel back the layers, revealing how DEWA is not merely an energy provider but a cornerstone for a greener and more resilient future.

Market Insights

Current dynamics within Dubai’s infrastructure highlight a thriving energy market. DEWA’s commitment to renewable energy resources has sparked a transformation within the industry, inspiring parallel developments across various sectors. The government of Dubai has laid out a roadmap with ambitious goals, most notably the Dubai Clean Energy Strategy 2050, which aims to make Dubai a global center for clean energy and a key player in the global green economy.

Key Trends in Dubai’s Energy Sector

Adoption of Renewable Resources: DEWA is aggressively ramping up its investment in solar energy, with the Mohammed bin Rashid Al Maktoum Solar Park being one of the largest in the world.
Smart Grid Implementation: Efforts to modernize the electrical grid ensure improved efficiency and reliability, crucial for supporting the heavy demands of a growing metropolis.
Electric Vehicles (EV) Integration: The surge in electric vehicles has prompted DEWA to expand its network of charging stations, promoting sustainable transport.

This shift reflects broader global trends where renewable energy sources are rapidly gaining traction, shifting perceptions of energy dependency and usage. The move to sustainability not only enhances the environment but energizes the economy by creating jobs and opportunities.

Future Outlook for Energy Pricing

The energy pricing structure in Dubai is gradually evolving. With the embrace of renewables, forecasts suggest that property prices are likely to be influenced by energy efficiency ratings, aligning with consumer preferences shifting towards sustainability. Real estate developments that integrate energy-efficient technologies will likely gain favor, promising substantial returns for investors who are forward-looking.

"The integration of renewable energy and smart technology not only curtails emissions but also drives economic growth."

In summary, DEWA's initiatives are indicative of a larger trend towards sustainability that transcends local borders, aligning with global goals for energy management. As we further our understanding of DEWA, we lay the groundwork for recognizing the profound impact of energy on urban environments.

Prolusion to DEWA

The Dubai Electricity and Water Authority, widely known as DEWA, plays an instrumental role in the infrastructure and energy management of Dubai. Established in 1992, DEWA is more than just a utility provider; it embodies Dubai's commitment to sustainability and innovation in the management of its precious resources. Understanding DEWA means delving into its structure, strategies, and significant impact on the daily lives of residents and businesses.

The relevance of DEWA in today's context cannot be overstated. In a world increasingly focused on sustainable energy practices, DEWA stands at the forefront, showcasing how a city can balance growth and environmental stewardship. This introduction invites readers to investigate how DEWA has transformed energy management and what this means for the future of Dubai and its inhabitants.

Overview of DEWA

As a government entity, DEWA’s overarching responsibility revolves around producing and distributing electricity and water. The organization operates under a clear vision that aligns with Dubai’s strategic objectives, aiming to provide an efficient supply of essential services that meet the emirate’s escalating demands.

Some important aspects of DEWA include:

Electricity Generation: Diverse energy portfolios including natural gas, solar, and nuclear sources.
Water Management: Implementation of advanced techniques to ensure the sustainable use of water resources.
Infrastructure Projects: Large-scale initiatives focusing on enhancing network capabilities across the emirate.

By understanding the operational remit and functionalities of DEWA, stakeholders can appreciate the authority’s pivotal role in shaping Dubai’s resource narrative.

Mission and Vision

At the heart of DEWA's framework lies its mission and vision, which resonate with the broader goals of Dubai to foster a sustainable future. DEWA’s mission emphasizes reliability, efficiency, and customer satisfaction while minimizing environmental impact.

The key components of their mission are:

Sustainable Practices: Emphasizing renewable energy projects to diversify energy sources.
Customer-Centric Services: Focused on providing quality service that enhances user experience.
Innovation and Technology: Leveraging technological advancements to improve service delivery and operational efficiency.

The vision of DEWA aims for places it as a global leader in energy and water services. Through continuous innovation and adherence to sustainable principles, DEWA seeks to set benchmarks in energy efficiency that align with international standards.

"Through innovation and sustainability, we are not just managing resources; we are crafting the blueprint for future generations."

Historical Context of DEWA

The Dubai Electricity and Water Authority (DEWA) has a rich historical background that reflects the ambitions and aspirations of Dubai itself. Understanding this historical context is crucial, as it provides insight into how DEWA has evolved into a key player in the region’s energy management. This section will explore the founding and development of DEWA, along with the major milestones that have marked its growth.

Founding and Development

In the early 1960s, the prospects of development in Dubai were dim due to a lack of consistent electricity and water supply. The pinch of desert living urged the rulers at the time to seek solutions that would foster urbanization and development. In 1992, the Dubai Electricity and Water Authority was established, combining the various electricity and water entities under a single umbrella. This move was not just about consolidation; it was a strategic step to ensure that the emirate met the increasing demand for these vital resources.

Innovative technologies in energy management

The initial infrastructure for water and power was basic, but ambitious projects began appearing soon after DEWA's formation. The first large-scale venture included the construction of the Al Quoz Power Station, which set the stage for the robust generation he would see in the following decades. DEWA's establishment was more than just a government initiative; it was a promise to the people that their living standards would improve—a factor that deeply resonated with citizens and residents alike.

Major Milestones

As DEWA developed, it marked several pivotal milestones that not only defined its trajectory but were also reflective of Dubai’s broader ambitions.

Establishment of the First Power Station: Following the founding of DEWA, the Al Quoz Power Station was commissioned, which served as a vital electricity source for a rapidly urbanizing city.
1997 – Implementation of Strategic Planning: In aligning with modern standards, DEWA adopted strategic planning guidelines to enhance operational efficiency. This was a turning point that saw the authority not just as a utility provider but as a visionary authority in Dubai's progress.
Renewable Energy Initiatives: A notable milestone came in 2012, when DEWA launched its first solar power project, aiming to diversify energy sources and align with global sustainability trends. The initiative positioned DEWA as a leader in the renewable energy space within the region.
Smart Grid Implementation: With the advent of technology, DEWA embraced smart grid technologies, which enhanced efficiency and reliability in service delivery. This step also aligned with Dubai’s vision of becoming a smart city, integrating advanced technologies into daily operations.

As DEWA continues its journey, each milestone reflects not just progress in energy management but also an unwavering commitment to sustainability and community engagement. In the context of Dubai's rapid growth, the historical developments of DEWA underscore the importance of energy management in supporting economic expansion and infrastructure development.

Functional Structure of DEWA

Understanding the functional structure of the Dubai Electricity and Water Authority (DEWA) is essential to grasp how Dubai manages its critical resources and ensures sustainability. This structure is not just an organizational chart; it's a roadmap guiding DEWA toward excellence in energy and water management, reflecting a blend of innovation, efficiency, and environmental stewardship.

Electricity Generation

Electricity generation forms the backbone of DEWA's operations, encompassing various methods and technologies that power the entire emirate. DEWA has transitioned from traditional hydrocarbon-based power generation to more sustainable practices. Notably, the authority is progressing towards a more extensive use of renewable energy sources.

In recent years, DEWA has significantly invested in solar energy projects like the Mohammed bin Rashid Al Maktoum Solar Park. This facility isn't just remarkable for its size; it can potentially generate 5,000 megawatts by 2030, positioning Dubai among the top solar-energy producers globally. This shift towards renewable resources is crucial for several reasons:

Environmental Impact: Reducing carbon emissions aligns with global climate goals.
Energy Security: Diversification of energy sources ensures more reliable supply.
Economic Efficiency: Renewable energy can be more cost-effective in the long run.

Through efficient management, DEWA ensures the electricity produced is distributed effectively to meet the needs of Dubai's growing population and economy. By investing in modern grid technology, DEWA can monitor and optimize energy distribution.

Water Management

Moving on to water management, this aspect is equally vital as it directly impacts public health and economic sustainability. DEWA adopts a comprehensive approach, balancing between meeting current demands and ensuring the availability for future generations.

One of the noteworthy elements of DEWA's water management strategy involves high-tech desalination processes. By utilizing reverse osmosis and multi-stage flash distillation, the authority can produce potable water from seawater efficiently. This is significant given that approximately 90% of Dubai's drinking water comes from desalination.

Moreover, DEWA emphasizes water conservation among residents and businesses. Programs to promote awareness about smart consumption and the implementation of smart metering systems have come into play. These initiatives help users track their consumption patterns and identify potential savings, contributing to a culture of sustainability. The focus on water management is not merely a response to demand but a proactive measure to ensure resilience against potential climate shifts.

"Sustainable development is the path to the future we want for our children and grandchildren. It offers a framework to generate economic growth while preserving our environment."

For more information on DEWA's projects and future plans, you can visit DEWA's official website or explore related insights on Wikipedia.

Whether you are an investor, homebuyer, realtor, or analyst, understanding DEWA's operational structure can significantly impact your decision-making processes in the vibrant landscape of Dubai.

Sustainability Initiatives

Sustainability initiatives are pivotal for DEWA, not just in preserving resources for future generations, but also in driving Dubai towards its ambitious environmental goals. The significance of these initiatives radiates throughout the emirate, impacting various facets of urban life and investment opportunities. By actively pursuing policies and projects aimed at reducing carbon footprints and optimizing resource usage, DEWA stands at the forefront of a paradigm shift in energy management.

Renewable Energy Projects

DEWA's commitment to renewable energy is a cornerstone of its sustainability efforts. Among the most notable is the Mohammed bin Rashid Al Maktoum Solar Park, envisioned as a major player in enhancing Dubai's energy mix. This vast complex plans to achieve an impressive capacity of 5,000 MW by 2030, pushing the boundaries of solar energy generation.

But what does this mean for investors and homebuyers?

Reduced Operational Costs: By integrating renewable sources, DEWA lowers electricity rates, fostering economic growth in the region.
Attractive Investments: The focus on sustainable energy attracts foreign investments and ensures long-term economic viability.

Additionally, incentives and programs are increasingly aligning with global sustainability standards, compelling construction and real estate sectors to prioritize energy-efficient practices. As such, buildings powered by green energy not only comply with current regulations but often exceed them, marking their owners as forward-thinkers in a competitive market.

"The future of energy is not just in usage but in conscious selection and commitment, guided by initiatives that resonate with global sustainability goals."

Smart Grid Technologies

The advent of smart grid technologies marks another leap forward for DEWA in managing energy more effectively. These systems facilitate real-time monitoring and flexible distribution of electricity, ultimately leading to improved reliability and efficiency. For instance, smart meters installed across the city enable customers to track their consumption patterns, empowering them to make informed changes that can reduce their energy needs.

The benefits of smart grid technologies include:

Increased Resilience: The infrastructure can withstand and quickly recover from outages, ensuring a steady energy supply.
Enhanced Communication: Proactive data-sharing with customers fosters a greater awareness of energy management and conservation.

Sustainable practices in water and electricity

Moving forward, adopting smart grids indicates a readiness to leverage emerging technologies, which is crucial not just for operational efficiency, but also for maintaining a competitive edge in the global market. Understanding these systems is central for investors who are attuned to the dynamics of modern energy landscapes.

In summary, DEWA's sustainability initiatives, through renewable energy projects and the implementation of smart grid technologies, underline a proactive approach in addressing both current energy demands and future resource challenges. This groundwork opens doors for informed investment decisions and sustainable development within Dubai.

Technological Innovations

The landscape of energy consumption and distribution is rapidly evolving, and at the heart of this transformation in Dubai is the Dubai Electricity and Water Authority (DEWA). Technological innovations play a crucial role in not only enhancing efficiency but also in streamlining operations and sustaining the environment. By embracing modern technologies, DEWA positions itself as a pioneering entity in the energy sector, ensuring it stays ahead of both local and global trends.

Advanced Metering Infrastructure

Advanced Metering Infrastructure (AMI) is a game-changer in how utilities manage consumption data and build a relationship with their customers. For DEWA, AMI comprises smart meters that offer real-time data collection on electricity and water usage. This immediate feedback allows consumers to understand their consumption patterns, ultimately promoting energy conservation.

The benefits of AMI are multifaceted:

Enhanced accuracy: Traditional meter readings can often lead to discrepancies and estimation errors. With AMI, readings are accurate, which directly affects billing and customer satisfaction.
Consumer empowerment: Customers can now track their usage via digital platforms, which encourages responsible energy consumption.
Operational efficiency: DEWA can detect issues in real time, minimizing downtime and maintaining service reliability. This reduces the load on the workforce needed for manual inspections.
Environmental impact: By optimizing energy usage, the reliance on non-renewable energy sources decreases, contributing to sustainability goals.

Implementing AMI also lays the groundwork for future upgrades. These smart meters can be integrated with other systems, making it easier to introduce new functionalities and improve service delivery.

Automation in Operations

Another significant technological innovation is the automation in DEWA’s operations. The integration of automation technologies across various functions not only enhances efficiency but also reduces human error, making the processes more reliable. Automation impacts various aspects of energy management:

Monitoring and control systems: Through rigidly automated systems, DEWA manages grid stability, meaning outages are less frequent and respond more quickly to fluctuations in demand.
Predictive maintenance: Automation leverages data analytics to anticipate equipment failures before they occur. This proactive approach enables timely maintenance, ensuring the infrastructure remains intact and operational.
Enhanced safety protocols: Automated systems can undertake hazardous tasks, reducing the risk for personnel and enhancing overall workplace safety.
Cost efficiency: By automating mundane and repetitive tasks, DEWA can allocate resources more effectively, ultimately leading to significant cost savings.

In the face of increasing energy demands and environmental challenges, these technological innovations offered by DEWA not only streamline operations but also set the foundation for a sustainable future. As we look towards the next decade, the emphasis on embracing such advancements will solidify Dubai's stance as a leader in energy management.

"Technological advancements in utility management are not just beneficial; they are essential to sustain cities of the future."

As developments continue, investors and stakeholders should closely monitor DEWA’s trajectory. Understanding its technological initiatives provides insight into the evolving energy landscape and potential opportunities for investment and growth.

For further information, you can explore links such as Wikipedia - Dubai Electricity and Water Authority, Britannica - Energy Management or community discussions on platforms such as Reddit that might provide additional perspectives.

DEWA and Economic Growth

The Dubai Electricity and Water Authority, or DEWA, is more than just a provider of essential services; it plays a pivotal role in the economic framework of Dubai itself. As the city zooms toward its ambitious goals for growth and sustainability, DEWA finds itself at the intersection of energy management and economic development. This synergy not only empowers citizens with reliable electricity and water but also lays down a foundation for economic prosperity and innovation in diverse sectors.

Impact on the Real Estate Market

The influence of DEWA on the real estate market in Dubai cannot be overstated. In a city where the skyline is continuously evolving, having a reliable energy supply is crucial for attracting investors and developers. When prospective homebuyers or commercial investors consider a property, access to uninterrupted power and water is a non-negotiable factor. DEWA's commitment to providing these services results in increased property values.

Infrastructural Reliability: Enhanced power and water infrastructure, led by DEWA, support the development of large-scale projects like Dubai Marina and Downtown Dubai. These areas flourish because of stable utilities that promote growth and sustainability.
Sustainability Initiatives: Properties equipped with energy-efficient technologies attract buyers looking for greener options. DEWA’s push for renewable energy, such as solar power, encourages developers to integrate sustainable designs, thus appealing to a more conscious buyer demographic.

Ultimately, the trust built around DEWA's efficient service guarantees that homes and businesses will have the resources they need to thrive. This, in turn, translates to a strong real estate market, showcasing a win-win scenario for the economy.

"Stable energy and water services provided by DEWA are increasingly seen as key factors in real estate investment decisions."

Role in Foreign Investment

DEWA's influence extends beyond local appreciation; it is a significant player in attracting foreign investment. As Dubai positions itself as a global business hub, companies from all corners of the world are looking to establish a presence in the emirate. The availability of efficient energy solutions fosters a climate of trust among potential investors.

Attractive Incentives: DEWA has initiated programs that allow businesses to invest in green technologies, enticing foreign companies that prioritize sustainability. As a result, billions of dollars in foreign direct investment have been funneled into renewable energy projects in the UAE.
Diverse Economic Landscape: With DEWA's reliable services in place, sectors such as hospitality, technology, and even finance flourish. Foreign businesses gain confidence from knowing that essential resources are managed effectively, leading them to make economic commitments that benefit the broader market.

In essence, DEWA's alignment with global sustainability practices enhances Dubai's appeal, positioning it as a prime destination for foreign investment. The benefits of these investments ripple throughout the economy, creating jobs and promoting further development.

In summary, DEWA is a cornerstone of Dubai's economic growth, propelling both the real estate market and foreign investment. The authority's role in crafting a sustainable future is far-reaching, making it a vital entity that underpins the emirate's success.

Community Engagement

Community engagement stands as a cornerstone of DEWA’s operations, reflecting its commitment to fostering a sustainable and informed society. By actively involving the community in its initiatives, DEWA not only elevates awareness about energy conservation but also fosters a culture of sustainability among residents.

Importance of Community Engagement

Strategic initiatives driving economic growth

Engagement is not just about ticking boxes; it’s about creating real value. When DEWA involves the community, it builds trust, encourages participation, and promotes shared responsibility. Having the general public on board ensures that the programs resonate and are implemented effectively. Plus, it can provide insights that are more grounded in everyday life, allowing for better strategic decisions in future projects. This is particularly vital as Dubai continues its quest for a greener economy.

Educational Programs

DEWA’s educational programs play a pivotal role in shaping public knowledge and attitudes toward energy and water conservation. These initiatives range from workshops in schools to community seminars, targeting various demographics. One example is DEWA’s “Green Schools Program”, aimed specifically at young students. The idea is to instill good habits early on so that students carry these practices into their adulthood.

Workshops and Seminars: Regular sessions are held, promoting energy efficiency and sustainable practices. These gatherings create an open dialogue and provide residents with valuable insights.
Online Resources: DEWA has invested in creating a digital library of educational materials. This includes not only downloadable guides but also video content that can be easily shared, increasing outreach and impact.

Through these efforts, DEWA ensures that the younger generation is not only informed but also empowered to make smart choices about energy use.

Customer Service Initiatives

Additionally, DEWA’s approach to customer service exemplifies its commitment to community engagement. The organization understands that energy and water services have direct impacts on daily life, so it strives to provide comprehensive support to its customers. By leveraging digital tools and face-to-face interaction, DEWA addresses concerns proactively and efficiently.

Smart Chattbots: Integrated into DEWA’s website, these tools provide quick troubleshooting and instant responses to common queries. This minimizes frustration and optimizes customer experience.
Feedback Mechanisms: DEWA actively seeks feedback through surveys and community forums, ensuring that the voices of residents are heard. The feedback collected informs future initiatives, making sure they align with the community's genuine needs.
Dedicated Helplines: Special lines offer assistance not just in emergencies but also for general queries about energy efficiency and conservation practices. This demonstrates DEWA’s focus on approachable and reliable service.

In essence, DEWA’s community engagement strategies build a foundation where not only is trust cultivated, but sustainable practices are embedded into the culture of Dubai. By folding the community into its operation, DEWA is effectively addressing the needs of its residents while also paving the way for a more sustainable future.

"Community support can turn the wheels of sustainability, ensuring that the benefits of energy and water management programs are felt by all."

For more information about community engagement strategies, please visit Wikipedia and explore the various methods communities can adopt to improve their environmental footprint.

Challenges Ahead

The development and management of energy resources in Dubai does not come without its hurdles. Understanding the challenges faced by DEWA is crucial to appreciating its innovative strategies and the broader implications for Dubai's energy landscape. As the city continues to expand and attract a growing population alongside various business interests, the need for robust infrastructure and compliant regulations becomes ever more pressing. The insights from this section are vital not only for those in the energy sector but also for investors, homebuyers, and realtors who may be looking at the sustainability credentials of properties and businesses within the emirate.

Infrastructure Needs

One of the primary challenges is ensuring that the infrastructure can keep pace with the rapid development seen in Dubai. The electricity and water networks must not only support current demands but also be scalable to cater to future growth. DEWA has been proactive in assessing infrastructure requirements, often looking long term.

Capacity Expansion: As demand for electricity surges, adding to the existing capacity is a must. DEWA is exploring investments in new plants, such as solar energy facilities, to diversify its generation methods. This is not just helpful; it’s essential for future resiliency.
Maintenance and Upgrades: Aging infrastructure can lead to inefficiencies, outages, and increased operational costs. Regular maintenance programs are needed, but also proactive upgrades that can integrate smarter, more efficient tech solutions. This initiative can foster sustainability and save operation costs.
Climate Resilience: With climate change presenting unique challenges, infrastructure must be robust. DEWA must plan for extreme weather events, ensuring that facilities can withstand the unforeseen and maintain reliable service.

In summary, investing in and maintaining a future-proof infrastructure is a foundation upon which DEWA must build its operational excellence. The successful navigation of these requirements will greatly influence the overall functionality of Dubai’s energy framework.

Regulatory and Compliance Issues

In the realm of energy management, navigating regulatory landscapes can often be akin to walking through a minefield. Regulations are essential, providing a framework within which DEWA must operate. However, they can also present challenges that affect operational agility.

Regulatory Framework: The energy sector is heavily regulated, and DEWA must comply with an array of local and international standards. Adhering to these rules ensures safe and reliable utility services but may also lead to increased operational complexity and costs.
Alignment with Global Standards: As part of Dubai's ambition to be a global leader in sustainability, DEWA must align its operations with international goals such as those outlined in the Paris Agreement. Adapting to evolving environmental policies requires foresight and flexibility.
Stakeholder Engagement: Engaging effectively with stakeholders—from government entities to investors and community members—is crucial in addressing compliance issues. DEWA’s transparency in these matters can foster trust but also requires continuous communication and negotiation.

The complexities surrounding regulatory compliance are challenges that DEWA must tackle head-on. By doing so, they not only ensure a stable energy supply but also reinforce their position as a leader in innovative and sustainable energy practices.

"The future of energy management in Dubai relies heavily on our ability to navigate these challenges effectively." - DEWA Executive

Addressing these challenges may appear daunting, yet they also present opportunities for improvement and innovation within DEWA. Investors and stakeholders who understand these dynamics can better appreciate the resilience and potential growth that DEWA represents.

Future of DEWA

The future of the Dubai Electricity and Water Authority (DEWA) is a topic of substantial significance not just for industry insiders, but also for potential investors and those seeking deeper insights into Dubai's evolving landscape. With rapid urbanization and sustainability being at the forefront, DEWA’s strategic direction plays a crucial role in meeting increasing energy demands while promoting a green economy. This is particularly vital as the UAE aims to set a precedent for energy efficiency in the region and globally. The integration of sustainable practices within DEWA’s framework indicates a move towards a more responsible management of natural resources, illuminating pathways for others to follow.

Vision for the Next Decade

In looking toward the next decade, DEWA’s vision is inherently intertwined with Dubai’s sustainability goals. It is poised to develop its infrastructure through initiatives that emphasize renewable energy. By 2030, DEWA aims to diversify its energy portfolio substantially.

Here are several key points outlining this vision:

Increased Renewable Energy Production: DEWA envisions a future where renewable sources contribute to 75% of its energy output by 2050, primarily through solar and other sustainable technologies.
Energy Efficiency Programs: The authority plans to enhance energy efficiency programs that encourage businesses and residents to reduce their energy consumption without sacrificing comfort and productivity.
Community Engagement: Education and outreach will be a huge part of DEWA’s strategy, seeking to instill a culture of sustainability within the community.

"A smart future for Dubai hinges not only on energy supply but equally on our collective responsibility to use it wisely."

Adopting Emerging Technologies

The adoption of emerging technologies is not merely an aspiration for DEWA; it is an imperative. With the advent of smart grids, artificial intelligence, and more, DEWA is at the cusp of a technological revolution.

Key technologies that will shape DEWA’s future include:

Smart Grids: These grids optimize electricity distribution through real-time data analysis, ensuring a seamless supply while minimizing waste.
Artificial Intelligence: AI will enable DEWA to predict and manage energy demands more effectively. It allows for dynamic responses to fluctuations in consumption, which is particularly crucial during peak demand times.
Blockchain for Energy Trading: Exploring blockchain technology could revolutionize how energy is traded and shared among consumers and producers, increasing transparency and potentially lowering costs.

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