Local firms rise in GCC Power Developer Ranking
24 September 2024
Two Saudi Arabia-headquartered firms have joined Acwa Power in the top 10 of MEED’s 2024 GCC Power Developer Ranking.
Aljomaih Energy & Water Company and Ajlan & Bros have entered the list, occupying the sixth and ninth spots, respectively.
The latest developer ranking included a survey of 109 privately owned and financed power generation plants in the six GCC states, including those with attached water desalination facilities. These plants have a collective gross electricity generation capacity of approximately 112,400MW.
These projects include seven solar, two wind and two gas-fired plants, as well as one industrial steam and cogeneration facility, with a total combined gross capacity of 19,635MW, for which contracts were awarded between September 2023 and August 2024.
Of the total capacity awarded during the 12-month period, solar photovoltaic (PV) and wind capacity accounted for 58%, or 11,400MW. Three solar PV contracts with a total capacity of 5,500MW, directly negotiated between Saudi Arabia’s Public Investment Fund (PIF) and a team led by Riyadh-headquartered Acwa Power, comprised nearly half of the awarded renewable IPP capacity.
These three contracts, along with a fourth for the development and operation of the 3,800MW Taiba 1 and Qassim 1 combined-cycle gas turbine (CCGT) IPP, helped boost Acwa Power’s dominance over its competitors.
Acwa Power's 35.1% stake in the 2,000MW Haden, the 2,000MW Muwayh and 1,500MW Al-Khushaybi solar PV projects, and its 40% share in Taiba 1 and Qassim 1, increased the company's total net capacity by 3,200MW, up 23% from last year’s 13,340MW. This figure takes into account the dilution of its shares in Rabigh Arabian Water & Electricity Company. As a result of the contracts it won, Acwa Power’s gross capacity also rose by 8,800MW to reach a total of 45,150MW.
Acwa Power has occupied the top spot in MEED’s GCC Power Developer Ranking in terms of net capacity since 2021, but it overtook its main rival, French utility developer and investor Engie, in terms of gross capacity only the following year.
Excluding the capacity of the directly negotiated solar IPP contracts that Acwa Power secured with the PIF in the past
three years does not change the company’s dominant position in the ranking, although it decreases its net and gross capacities by 25% and 24%, respectively.
Contenders
With no new contracts won, Engie still managed to retain second place in the ranking, with a net capacity of close to 8,000MW.
The successful bids of a team comprising Japan’s Marubeni Corporation and Ajlan & Bros for the contracts to develop and operate the 600MW Al-Ghat and 500MW Waad Al-Shamal wind schemes in Saudi Arabia increased Marubeni’s net capacity to 4,257MW, up 555MW compared to the previous year.
As with Engie, Japan’s Mitsui did not win any new contracts but retained its fourth place in the ranking, just above EDF, which climbed two positions to claim this year’s fifth spot and registered a net capacity that nearly doubled to reach 2,047MW.
EDF’s impressive performance accrued from its equities in three contracts: the 1,100MW Hinakiyah solar PV and the 3,960MW Taiba 2 and Qassim 2 CCGT projects in Saudi Arabia, and Abu Dhabi’s 1,500MW Al-Ajban solar PV scheme.
EDF knocked Japanese developer Sumitomo down the ranking; it landed in the seventh spot this year. Saudi Arabia’s Aljomaih Energy & Water Company – which was not part of the top 10 last year – rose past Sumitomo to claim sixth position.
Aljomaih’s 30% shareholding in the Taiba 2 and Qassim 2 IPP increased its net capacity by close to 1,200MW from just 775MW in the previous 12-month period.
Previously ranked sixth, Japan’s Jera fell to eighth place, despite having won the contract to develop the Najim cogeneration plant catering to Saudi Arabia’s Amiral petrochemicals complex, which it secured along with Abu Dhabi National Energy Company (Taqa).
Below Jera in the ranking is Ajlan & Bros, which is Marubeni’s partner for the contract to develop the Al-Ghat and Waad Al-Shamal wind IPPs. Ajlan is also understood to have taken a 30% stake in the consortium that won the contract to develop the Taiba 2 and Qassim 2 CCGT project.
China’s Jinko Power rounded out the top 10. It led the team that won the contract to develop the 400MW Tubarjal solar IPP in Saudi Arabia in November last year.
Local developers
The rise of Aljomaih and Ajlan & Bros, which led to South Korea’s Korea Electric Power Corporation (Kepco) and Singapore’s Sembcorp dropping out of the power developer ranking’s top 10 this year, confirms the improving profile of regional utility developers.
The resurgence of gas-fired power generation IPPs – in part due to Saudi Arabia’s liquid fuel displacement programme and the overall demand for baseload to address rising renewable energy capacity – is helping local developers to strengthen their footing.
“The reduced interest from European and Japanese contractors in bidding for gas-fired power generation projects could present an opportunity for local developers and investors,” says a senior executive with an international developer.
“As these firms are less constrained by their 2040-50 net-zero targets, they might focus on efficiency and quick deployment rather than on adhering to decarbonisation timelines, allowing for more flexibility in CCGT projects.”
The fact that only two teams submitted bids for the contracts to develop the next pair of CCGT IPPs in Saudi Arabia supports this observation. Similarly, Qatar’s General Electricity & Water Corporation (Kahramaa) received only one bid from a team led by Sumitomo for the contract to develop the Facility E independent water and power producer (IWPP) project earlier this year.
Conscious of its own net-zero targets, and those of its partners, Abu Dhabi state utility Emirates Water & Electricity Company (Ewec) is adopting a slightly different approach for its next CCGT project in Taweelah by announcing that a carbon-capture facility will be installed as part of the project once such solutions become commercially viable.
In addition, the power-purchase agreement (PPA) for Taweelah C is expected to expire by 2049, making it several years shorter than previous PPAs and in line with the UAE's plan to reach net-zero carbon emissions by 2050.
So far, the market has responded positively, with nine companies having met Ewec’s prequalification requirements for Taweelah C.
However, the scale and volume of gas and renewable energy projects planned by Saudi Arabia, which has said it could procure up to 20GW of renewable energy capacity annually starting this year, is expected to continue to boost the net capacity of local developers and their less net-zero-constrained counterparts for the foreseeable future.
There is also an expectation that the exclusion of Acwa Power from the latest round of tenders for Saudi Arabia’s National Renewable Energy Programme (NREP) could further open up opportunities for other companies, regardless of their origin and net-zero targets.
Tariffs
There are mixed expectations in terms of how levelised electricity costs (LCOE) will behave over the next 12 months. Compared to the preceding decade, when unsubsidised renewable energy production costs consistently and sharply declined, tariffs have become less predictable since 2022.
In the region, solar PV tariffs in particular have trended upward since Acwa Power offered to develop the Shuaibah 1 solar IPP scheme for $cents 1.04 a kilowatt-hour (kWh) in 2020-21.
These tariffs have remained highly competitive relative to those seen in other, less renewable energy-intense regions, however, disincentivising some developers that felt they could not compete on price.
The next six to 12 months could prove decisive, according to one industry expert.
“It is possible that the surge in renewable projects could limit the availability of competent engineering, procurement and construction (EPC) contractors. The combination of aggressive national targets and competition for EPC services may drive up prices and slow project timelines,” the Dubai-based executive tells MEED.
“With raw materials and commodity prices trending downward, it's feasible that renewable energy tariffs could remain low in the short term. However, sustained record-low tariffs will also depend on the availability of financing, local regulations and grid integration costs.”
The LCOE trend for gas-fired power generation schemes seems more predictable.
According to the executive, the limited capacity of original equipment manufacturers, particularly for turbines and other key components of CCGT plants, will likely push tariffs up over the next 12 months.
“Limited availability of high-efficiency equipment will increase procurement costs and construction timelines, influencing the overall project cost.”
This extends to CCGTs incorporating carbon capture, where the LCOE will likely increase due to additional capital and operational expenses. “Whether these costs are absorbed through renegotiation or passed on to the state offtaker will depend on the power-purchase agreement structure,” he says.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Arada completes Sokoon buildings construction26 March 2026
-
Local contractor wins Medina substation contract26 March 2026
-
Neom terminates $5bn Trojena dams contract with WeBuild26 March 2026
-
Iraq gas field project disrupted by regional conflict26 March 2026
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Arada completes Sokoon buildings construction
26 March 2026
Sharjah-based private real estate developer Arada has announced the completion of five additional buildings in the Naseej District of its Aljada development.
Kuwaiti firm Mohammad Abdulmohsen Al-Kharafi & Sons secured the construction contract for the Sokoon buildings in 2023, replacing Airolink Building Contracting as the project’s main contractor.
The first four Sokoon buildings were completed in December 2023.
In April last year, Arada also announced the completion of all eight Tiraz buildings in the Naseej District. The Tiraz buildings comprise 920 homes, including studios, one-bedroom and two-bedroom apartments.
With the completion of the five Sokoon buildings, Aljada’s total number of completed residential units has risen to more than 8,200.
Spanning 2.2 square kilometres, Aljada features residential districts, retail spaces, educational institutions, healthcare services and other facilities.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16141382/main.png -
Local contractor wins Medina substation contract
26 March 2026
Danway Saudi Arabia has won a contract with National Grid SA to construct a new 110/13.8kV substation in Medina.
The contract is valued at more than SR100m ($26.7m) and covers the construction of the King Abdulaziz Road substation, including design, engineering, supply, installation, testing and commissioning.
The project is expected to take approximately 23 months to complete.
Key components include 110kV gas-insulated switchgear (GIS), 50/67MVA 110/13.8kV power transformers and 13.8kV switchgear.
National Grid SA is a wholly owned subsidiary of Saudi Energy, formerly Saudi Electricity Company. It owns and operates the kingdom’s high-voltage transmission network and is responsible for grid planning, interconnection and system reliability.
The operator recently appointed another local firm, Nesma Infrastructure & Technology, as the contractor for the construction of two 380kV double-circuit overhead transmission lines in Riyadh, connecting an existing substation to a wind power substation, referred to as Samha Wind BSP.
As MEED understands, National Grid SA is also due to begin construction on the replacement of 132kV oil-filled underground cable circuits between several substations in the Central Operation Area in Murabba in Riyadh.
Riyadh-based Keir International is the engineering, procurement and construction contractor for the project.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16139578/main.jpg -
Neom terminates $5bn Trojena dams contract with WeBuild
26 March 2026
Register for MEED’s 14-day trial access
Neom has terminated its contract with Italian contractor Webuild for the construction of three dams feeding a freshwater lake, as well as ‘The Bow’ architectural structure at Trojena in northwest Saudi Arabia.
In a statement posted on its website, Webuild said: “The termination will become effective on 29 March. As of that date, the works are approximately 30% complete, with a remaining project backlog for Webuild of approximately €2.8bn ($3.2bn).”
Neom awarded Webuild a SR20bn ($5bn) contract to build the dams in late 2023, which MEED exclusively reported at the time.
The termination is the latest in a series of high-profile contract cancellations by Neom in recent weeks. Earlier this week, Neom terminated its contract with Malaysian contractor Eversendai Corporation for the steel structural works on the Ski Village project in Trojena.
In a statement published on its website, Eversendai said it had received an official notice that the termination would take effect from 26 March.
In January this year, Saudi Arabia confirmed the postponement of the 2029 Asian Winter Games, which were scheduled to be held at Trojena. Trojena was chosen to host the event in October 2022.
Neom has also cancelled contracts for the construction of the tunnel sections of The Line in northwest Saudi Arabia.
In a stock exchange filing dated 13 March, South Korean contractor Hyundai E&C said Neom cancelled its contract on 29 December last year.
Hyundai E&C was executing the drill-and-blast section of The Line’s tunnels in a joint venture with Greece’s Archirodon and South Korean counterpart Samsung C&T.
These developments follow a wider strategic review of Neom last year, as Saudi Arabia reassesses priorities under its Vision 2030 programme.
With tighter liquidity at the sovereign wealth fund level, resources are being redirected towards projects linked to the Fifa World Cup 2034, Expo 2030, and essential housing, healthcare and education initiatives.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16140200/main.jpg -
Iraq gas field project disrupted by regional conflict
26 March 2026
Register for MEED’s 14-day trial access
Progress on Iraq’s project to develop the strategically important Akkas gas field has been disrupted by security issues related to the US and Israel’s ongoing war with Iran, according to industry sources.
Work activity at the project site has been significantly reduced due to security concerns, and the project is now expected to take longer to complete.
Iraq held a ceremony in January this year to mark the restart of drilling operations at the site as part of the field development project.
In July last year, Iraq’s Oil Ministry announced signing a contract with the US-based oil field services provider SLB to develop production at Iraq’s Akkas gas field.
Under the terms of the deal, SLB will drill wells at the Akkas field, aiming to initially raise production to 100 million cubic feet a day (cf/d).
Many of SLB’s non-Iraqi employees have now been evacuated from the country.
Over the long term, Iraq is targeting gas production of 400 million cf/d from the field.
The contract with SLB replaces a previous deal with Ukraine-based Ukrzemresurs, which has been terminated.
It also covers the construction of surface infrastructure and pipelines to connect Akkas to central processing units.
The gas produced at Akkas will be used to fuel the Anbar combined-cycle power plant, which is under construction by the Electricity Ministry.
Akkas gas field development
The Akkas gas field, located in Anbar province in western Iraq, has 5.6 trillion cubic feet of proven reserves. The field was discovered in 1992 and began production in 1993.
Since then, Iraq’s plans to develop the Akkas gas field to its full potential have experienced several setbacks.
In April last year, the Iraqi Oil Ministry signed an agreement with Ukrzemresurs to develop the field.
At the time, the Oil Ministry said that the partners were aiming to produce 100 million cf/d in the first two years, as per the agreement, with output targeted to increase to 400 million cf/d within four years.
Prior to Ukrzemresurs, South Korean company Kogas was responsible for developing the field.
Rights to the field were originally awarded to a consortium of Kogas and Kazakhstan’s state-owned oil company KazMunaiGas (KMG) in the third licensing round, which was launched in October 2011.
KMG pulled out, leaving Kogas as the sole investor and operator on new contract terms.
When the deal with Ukrzemresurs was originally announced last year, it was negatively received by some Iraqi politicians, with the Oil and Gas Committee in Iraq’s parliament rejecting the contract signing.
At the time, Ali Al-Mashkour, a member of the Oil and Gas Committee, told Iraq’s Shafaq News Agency: “This contract involves a great waste of Iraq’s wealth, and there will be a waste of Iraq’s oil, and this confirms that Iraq is once again failing to choose reputable companies to work with in the most important economic field in the country.”
He added: “We will work to uncover and expose the suspicions in this contract during the next stage, especially since this contract was made by some representatives for specific interests, which we will reveal soon with evidence.”
Plans to sign the contract to develop the Akkas gas field with a Ukrainian company were first announced by the Oil Ministry in September 2023, but Ukrzemresurs was not named at the time.
Iraq’s government is trying to transform the country into a gas-exporting nation. Currently, Iraq is reliant on Iran for gas imports.
Both Saudi Arabia and the US, which are looking to contain Iranian influence in the region, have been supporting Iraq in developing its non-associated gas fields as this will reduce Iraq’s economic reliance on Iran.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16138892/main.png -
Dubai seeks contractors for Nadd Hessa stormwater project
26 March 2026
Dubai Municipality has invited contractors to prequalify for a contract to build a sewerage and stormwater system in the Nadd Hessa area.
The project is being procured through the Sewerage and Recycled Water Projects Department.
The submission deadline is 2 April.
Nadd Hessa is an emerging development area, located between Dubai Silicon Oasis and Academic City along the E311 corridor.
It has been earmarked for future residential expansion, with enabling infrastructure now being tendered to support planned housing and community developments in the area.
The scheme, known as DS 328/1–C1, covers the construction of sewerage and stormwater infrastructure, including approximately 12.4 kilometres of sewerage lines with diameters of up to 400 millimetres.
The scope also includes about 14km of stormwater lines with diameters of up to 1,000 millimetres.
In addition, the project involves around 500 metres of microtunnelling works for both sewerage and stormwater networks.
The municipality is currently prequalifying contractors for several upcoming water projects, including the expansion of the Jebel Ali sewage treatment plant (STP) phases one and two.
The upgraded facility will be capable of treating an additional sewage flow of 100,000 cubic metres a day (cm/d).
Bid submissions for this project are also due by 2 April.
In addition, the authority is planning a broader review of Dubai’s water and wastewater infrastructure to support future population growth, including identifying locations for future infrastructure.
Two separate consultancy tenders were issued in March.
One involves a study to develop a sustainable urban drainage systems strategy across the emirate. The other covers a review of the emirate’s sewage treatment and recycled water distribution strategy.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16138660/main.jpg