Abu Dhabi extends 1.5GW Al-Khazna bid deadline

16 September 2024

Abu Dhabi state utility Emirates Water & Electricity Company (Ewec) has extended the bid deadline for a contract to develop Abu Dhabi's fourth utility-scale solar photovoltaic (PV) project.

The planned Khazna solar independent power project (IPP), also known as PV4, will have a capacity of 1,500MW.

It will be located in Khazna, between Abu Dhabi and Al-Ain, and is expected to reach commercial operation by 2027.

Ewec requested proposals for the contract to develop and operate the solar IPP scheme in April and initially set the end of August as the last day for bidders to submit their proposals.

MEED understands the revised tender closing date is 3 October.

The state utility prequalified nine companies and consortiums as managing members and another 10 that can bid as consortium members.

Parties or companies prequalified as managing members are free to bid individually or as part of a consortium. These include:

  • Acwa Power (Saudi Arabia)
  • EDF Renewables (France)
  • International Power (Engie, France)
  • Jera Company (Japan)
  • Jinko Power (China)
  • Korea Electric Power Corporation (Kowepo, South Korea)
  • Marubeni Corporation (Japan)
  • Sumitomo Corporation (Japan)
  • TotalEnergies Renewables (France)

The following companies can bid as part of a consortium with a managing member: 

  • Al-Jomaih Energy & Water (Jenwa, Saudi Arabia)
  • Avaada Energy (India)
  • Buhur for Investment Company (Saudi Arabia)
  • China Machinery Engineering Corporation (China)
  • China Power Engineering Consulting Group International Engineering Corporation (CPECC, China)
  • Kalyon Enerji Yatrimlari (Turkiye)
  • Korea Western Power Company (Kowepo, South Korea)
  • Orascom Construction (Egypt)
  • PowerChina International Group
  • SPIC Huanghe Hydropower Development (Spic, China)

A transaction advisory team comprising US-headquartered Ashurst and Alderbrook Finance and Norwegian engineering services firm DNV is advising Ewec on the 1.5GW Al-Khazna IPP scheme.

Solar energy is integral to achieving Abu Dhabi's target of producing nearly 50% of its electricity from renewable and clean energy sources by 2030.

In April, Ewec awarded the contract to develop PV3, the 1,500MW Al-Ajban solar IPP, to a team led by French utility developer EDF Renewables and including South Korea's Korea Western Power Company (Kowepo).

Like the first three schemes, the Khazna solar PV will involve the development, financing, construction, operation, maintenance and ownership of the plant and associated infrastructure.

The successful developer or developer consortium will own up to 40% of the entity, while the Abu Dhabi government will retain the remaining equity.

The developer will enter into a long-term power-purchase agreement with Ewec.

Once fully operational, the Khazna solar PV, along with Noor Abu Dhabi, the Al-Dhafra solar PV and Al-Ajban solar PV, will raise Ewec's total installed solar PV capacity to 5.5GW and collectively reduce CO2 emissions by more than 8.2 million metric tonnes a year by 2027. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/12537771/main.jpg
Jennifer Aguinaldo
Related Articles
  • Egypt faces complex economic reality

    13 March 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13483136/main.gif
    MEED Editorial
  • LIVE WEBINAR: GCC Projects Market 2025

    13 March 2025

    Register now

    Topic: GCC Projects Market 2025

    Date & time: 11:00 AM GST, 20 March 2025

    Agenda:

    • Introduction and overview of the GCC projects market
    • Data-driven historical and current performance
    • Top clients and contractors
    • Assessment of main market drivers
    • Summary of the Saudi gigaprojects programme
    • Market overview by country and sector
    • Market pipeline and outlook for 2025 and beyond
    • Key trends, opportunities and challenges
    • Selected major projects to watch
    • Q&A session

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13483162/main.gif
    MEED Editorial
  • Dubai property market rebounds in February

    13 March 2025

    Property prices in Dubai rebounded in February following a decline in January. Average property prices hit a record high of AED1,505 ($410) per square foot, reflecting a month-on-month increase of 1.41% or a rise of AED20.94 compared to January 2025, according to a statement from property agent Better Homes.

    The report also said there was a 17% increase in sales volume, reaching AED41bn across 14,929 transactions, marking a 15% month-on-month rise. This resurgence underscores Dubai's resilience and enduring appeal as a global property investment hub.

    The rebound comes just a month after a slight decline in property prices, which had marked the first decrease in over two years.

    In January, average prices fell by 0.57% to AED1,484 per square foot, raising concerns about market stabilisation. The February figures indicate that the market has quickly regained its momentum, driven primarily by a surge in off-plan properties, which accounted for 59% of all sales.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13483150/main.jpg
    Colin Foreman
  • Siemens Energy wins $1.6bn Saudi deal

    13 March 2025

    Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany's Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia. 

    The Rumah 2 and Nairiyah 2 CCGT  plants will each have a capacity of roughly 1,800MW, requiring an estimated investment of $2bn each.

    The value of the contract Siemens Energy won is $1.6bn.

    Siemens Energy will supply six SGT6-9000HL gas turbines, four SST6-5000 steam turbines, eight SGen6-3000W generators, two SGen6-2000P generators, and associated auxiliary equipment for each site.

    The power plants are designed to replace aging oil-fired stations, reducing carbon dioxide emissions by up to 60% compared to traditional oil-based power generation.

    The project includes long-term maintenance agreements to support the plants’ operational reliability over the next 25 years, Siemens Energy said.  

    It added: "Core components for the power plants will be manufactured at the Siemens Energy Dammam Hub, which is currently expanding to increase local production capacity and support Saudi Arabia’s energy sector."

    MEED reported in November last year that a developer consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company had partnered with Siemens Energy for projects' gas turbines contract.

    The consortium tapped Harbin Electric to undertake the projects' EPC.

    The power generation projects will be developed using a build, own and operate (BOO) model over 25 years, with principal buyer Saudi Power Procurement Company (SPPC) as the sole offtaker.

    SPPC previously indicated that the four power plants will operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.

    SPPC’s transaction advisory team for the Rumah 1 and Nairiyah 1 and Rumah 2 and Al-Nairiyah 2  IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

    Photo credit: Siemens Energy

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13483115/main.jpg
    Jennifer Aguinaldo
  • Chinese builders go global

    13 March 2025

    Commentary
    Colin Foreman
    Editor

    Read the March MEED Business Review

    It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.

    That success has created contractors that are now the largest construction companies on the planet. According to GlobalData, seven Chinese companies are among the top 10 largest construction companies in the world, with China State Construction Engineering Corporation topping the list with revenues of $320bn.

    In the Middle East and North Africa, Chinese contractors dominated in 2024 by securing $90bn of the $347bn of contracts awarded, according to data from MEED Projects.

    The region’s active projects market has created unprecedented demand for contractors. Most notably, project clients in Saudi Arabia have been actively courting international construction companies to come and work in the kingdom.

    Many international contractors exited the region over the past decade, which has meant Chinese contractors have had little competition as they stepped in to fill the void and deliver crucial projects.

    On top of exploiting the shifting competitive landscape, Chinese successes have been able to meet the budgetary requirements of many projects, offering cost-effective solutions and even providing financing.

    At the same time, the maturing Chinese economy has driven contractors to seek opportunities abroad. With a slowing domestic real estate market, they are turning to international markets for growth. The Middle East presents an attractive option due to its wide range of projects, backed by financially secure clients and governments.

    The scale of the contractors and the large number of players yet to meaningfully venture overseas means they possess the ability to grow even further in the Middle East and North Africa as the region continues to press ahead with large-scale projects that require vast resources.

    Register for MEED’s 14-day trial access 


    READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF

    Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

    Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:

    > GULF PROJECTS INDEX: Gulf hits six-month growth streak
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13483117/main.gif
    Colin Foreman