Firms receive 1.5GW Madinat Zayed proposals request
31 July 2024
A subset of the nine companies prequalified to bid for the contract to develop Abu Dhabi's 2.5GW Taweelah C combined-cycle gas turbine (CCGT) project is understood to have received the request for proposals (RFP) for the contract to develop the 1.5GW Madinat Zayed open-cycle gas-turbine (OCGT) project.
Based on industry sources, at least two of the following companies that were prequalified to bid for the Taweelah C independent power producer (IPP) project have received the Madinat Zayed RFP:
- Acwa Power (Saudi Arabia)
- International Power (Engie)
- Jera (Japan)
- Korea Electric Power Corporation (Kepco, South Korea)
- Marubeni Corporation (Japan)
- Sumitomo Corporation (Japan)
- GE Vernova (US)
- Orascom Construction (Egypt)
- Sojitz (Japan)
However, other industry sources point out that more or less the same companies would have received an invitation to bid for the Madinat Zayed IPP contract.
The Madinat Zayed IPP is planned to begin commercial operations in Q3 2027, providing up to 1.5GW of backup generation, which can be operational at very short notice.
"Gas-fired plants like Madinat Zayed are key to ensuring a reliable energy supply while the country transitions to a decarbonised water and electricity system," state utility Emirate Water & Electricity Company (Ewec) said in a statement on 29 July when it announced issuing the RFP.
"These types of plants will be particularly important for supporting the growth of solar power, providing crucial flexibility during peak power demand periods and acting as a bridge to a future powered exclusively by clean and renewable sources."
Ewec issued the RFP for the Madinat Zayed IPP four days after it tendered the contract to develop a 400MW battery energy storage system IPP and five days after it floated a tender for the development of the 2.5GW Taweelah CCGT plant.
It expects to receive bids for the three contracts in the fourth quarter of the year.
In addition to the need to balance its grid with increased renewable energy capacity, Ewec is procuring new gas-fired projects in light of the expiring capacity from several independent water and power producer (IWPP) facilities.
The plants that will reach the end of their existing contracts between 2025-29 include:
- Shuweihat S1 (1,615MW, 101 million imperial gallons a day (MIGD)): expires in June 2025
- Sas Al-Nakhl (1,670MW, 95MIGD): expires in July 2027
- Taweelah B (2,220MW, 160MIGD): expires in October 2028
- Taweelah A1 (1,671MW, 85MIGD): expires in July 2029
Ewec and the developers and operators of these plants are expected to discuss whether a contract extension is possible before they expire. Unsuccessful negotiations will result in the dismantling of the assets at the end of the contract period.
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