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• 
  Ewec gives battery IPP bidders more time

  31 January 2025

  Abu Dhabi-based utility offtaker Emirates Water & Electricity Company (Ewec) has extended the last day for companies to submit their proposals for a contract to develop and operate a battery energy storage system (bess) project.

  Called Bess 1, the 400MW project will closely follow the model of Abu Dhabi's independent power project (IPP) programme, in which developers enter into a long-term energy storage agreement (ESA) with Ewec as the sole procurer.

  The first plant will be in Al-Bihouth, about 45 kilometres (km) southwest of Abu Dhabi, and the second plant will be in Madinat Zayed, about 160km southwest of the city.

  According to industry sources, the last day for bid submission has been extended from the end of January to 3 March.

  MEED previously reported that up to four consortiums are considering bidding for the contract.

  Ewec issued the request for proposals to prequalified companies in July last year and initially set 30 November 2024 as the last day to submit proposals. 

  Ewec prequalified 11 managing partners that can bid either individually or as part of a consortium with other prequalified bidders. These are:

  • Acwa Power (Saudi Arabia)
  • China Electrical Equipment International
  • EDF (France)
  • International Power (Engie)
  • Jera (Japan)
  • Jinko Power (China)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni (Japan)
  • Sembcorp Utilities (Singapore)
  • SPIC Huanghe Hydropower Development Company (China) 
  • Sumitomo Corporation (Japan)

  Ewec prequalified 18 other companies that can bid as part of a consortium. These are:

  • Abrdn Investcorp Infrastructure Investments Manager (UK)
  • AGP Capital (US)
  • Al-Masaood (UAE)
  • Al-Fanar Company (Saudi Arabia)
  • Alghanim International (Kuwait)
  • Aljomaih Energy & Water Company (Jenwa, Saudi Arabia)
  • Amplex-Emirates (local)
  • ATGC Transport & General Trading (local)
  • Amea Power (local)
  • China Electric Power Equipment & Technology (China)
  • China Machinery Engineering Corporation (China)
  • GE Capital EFS Financing (US)
  • Itochu (Japan)
  • Korea Western Power Company (Kowepo, South Korea)
  • Pacific Green (US)
  • Samsung C&T (South Korea)
  • Swift Energy (Malaysia)
  • X-Noor Energy Equipment Trading  (UAE)

  The planned facility is expected to provide up to 800 megawatt-hours (MWh) of storage capacity.

  The ESA will be for 15 years, commencing on the project’s commercial operation date, which falls in the third quarter of 2026. 

  MEED previously reported that at least two teams comprising infrastructure investors, developers and contractors have been formed and are preparing to submit their proposals for the contract.

  According to Ewec, the bess project will provide additional flexibility to the system and ancillary services such as frequency response and voltage regulation.

  Global bess market

  The overall capacity of deployed bess globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to a recent GlobalData report.

  The report named Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

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  Jennifer Aguinaldo
• 
  Jordan gives go-ahead for open banking test

  31 January 2025

  UAE-based Fintech Galaxy has received approval from the Central Bank of Jordan (CBJ) to test open banking services within the country’s regulatory sandbox, JoRegBox. It is the first company to secure such approval, marking a key step in Jordan’s financial technology strategy.

  The sandbox will allow the firm to trial open banking under CBJ supervision. It aims to ensure compliance with global and local standards while promoting financial inclusion.

  Through its FINX Connect platform, Fintech Galaxy will provide third-party providers with secure, consent-driven access to customer financial data.

  The regulatory approval is expected to accelerate the adoption of open banking in Jordan, enabling financial institutions to offer more customer-centric digital services.

  The initiative aligns with Jordan’s executive programme for the Economic Modernisation Vision (2023–25), which aims to position the country as a regional fintech hub.

  The firm, led in Jordan by Zaid Khatib, plans to integrate with major banks and financial institutions, offering open baking services focused on Personal Finance Management (PFM) and Business Finance Management (BFM).

  The company has raised $9m for platform development and regional expansion. Jordan’s approval comes as regional regulators push for greater financial sector digitisation, with open banking frameworks being tested across the GCC.

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  Sarah Rizvi
• 
  Masdar meets renewable’s moonshot challenge

  31 January 2025

  Abu Dhabi Future Company (Masdar) is off to a great start this year by taking on a project that addresses what UAE Minister of Industry and Advanced Technology Sultan Al-Jaber describes as the “moonshot challenge of our time”, the intermittency of renewables.

  Masdar, along with state utility Emirates Water & Electricity Company (Ewec), announced the project on 14 January. The $6bn project comprises 5,200MW solar and 19 gigawatt-hour (GWh) battery energy storage system plants.  

  It is designed to deliver up to 1,000MW of uninterrupted “baseload” power from a renewable source, a first in the world in terms of its scale.

  “The political will to deploy cutting-edge technology despite perceived risks, along with the decline in battery prices helped expedite the project,” Abdulaziz Alobaidli, chief operating officer of Masdar tells MEED. “It’s a major achievement, over 10 years since the first single site 10MW project was procured in Abu Dhabi.”

  It has a lot to do with our culture to never say no to the impossible 

  Alobaidli was referring to Masdar’s first 10MW solar photovoltaic (PV) plant located on the north side of Masdar City, which was connected to the Abu Dhabi electricity grid in April 2009.

  The executive says the 5.2GW/19GWh project benefited from a smarter approval process, which facilitated the overall permitting proceedings.

  He also stressed that they have obtained the necessary experience by developing renewable energy projects in developed and developing countries over the past decade and a half, with their current portfolio sitting at around 32GW.

  “It has a lot to do with our culture to never say no to the impossible,” explains Alobaidli.

  “We solved a two-decade problem by jointly evaluating the technical and commercial feasibility of the project… it helped that the battery technology has reached a desired level of cost competitiveness along with improved efficiency.

  “Working with partners particularly Ewec also gave us confidence [to execute this project].”

  Fast-track project

  Masdar announced the selection of contractors and sub-contractors for the project a few days after it was launched.

  It selected India’s Larsen & Toubro and Beijing-headquartered PowerChina to undertake the engineering, procurement and construction (EPC) contract for the project.

  Masdar also picked Shanghai-based Jinko Solar and Beijing-headquartered JA Solar to supply solar PV modules. They will supply solar PV modules amounting to 2.6GW each, with maximum efficiency and production for 30 years.

  Another Chinese firm, Fujian-based Contemporary Amperex Technology Company Limited (CATL), will supply its Tener product line for the battery energy storage system plant.

  The project will be structured as a classic public-private partnership (PPP), to be funded by equity and syndicated debt.

  It is being deployed on a fast-track basis, with financial close expected by the second quarter of 2025 and commercial operations set for 2027.

  Alobaidli says “We are in the process of deployment” following months of technology assessments and technical workshops.

  He also says Masdar is open to considering co-investors or codevelopers in the project “if they will complement” its capability to deliver the project.  

  Alobaidli says Masdar has also engaged several banks and lenders, which have been conducting due diligence on the project, particularly on the selected battery technology.

  The executive, who previously served as general manager of Masdar subsidiary, Shams Power Company, said declining battery prices provide significant opportunities for their adoption.

  “This is significant for the industry, and we see demand and supply growing, including the number of suppliers in the market. Security of supply and more competitive battery price is key.”

  AI connection

  MEED first reported on the planned round-the-clock renewable project in October last year.  At the time, sources have indicated that the project is envisaged to support the state’s AI strategy.

  This was confirmed by a social media post on 14 January, when UAE President Sheikh Mohamed bin Zayed Al-Nahyan said the project will help power advancements in artificial intelligence (AI) and emerging technologies in addition to being a significant step on the UAE’s journey towards net zero.

  Alobaidli says the project, which will be the first of many, “will definitely unlock opportunities for AI and other industries”.

  Global expansion

  While the 5GW/19GWh project is the largest single project by far to be deployed by Masdar, the experiences it gained by growing organically and through mergers and acquisitions, especially over the past decade, can help ensure it can deliver the project within time and budget.

  The project's execution is also unlikely to hamper Masdar's ongoing global expansion given its goal to expand its renewable energy portfolio to 100GW by 2030.

  Masdar has been expanding its global footprint as well as the type of assets it deploys or acquires, which range from onshore and offshore solar, onshore and offshore wind and now, battery energy storage plants.

  It has been bidding for new projects close to home, such as in Saudi Arabia and Oman, as well as in developing or acquiring stakes in projects across nearly every region of the world, from the Philippines, Malaysia and Indonesia in Southeast  Asia, as well as Africa, to more mature markets in Europe such as Greece and Spain as well as in the Americas.

  “We are not just running after capacity, we look at profitability and the impact of these acquisitions on our profit and loss and Ebitda,” explains Alobaidli. “More importantly we focus on the impact of these projects to the local communities.”

  The executive notes that Masdar focuses on prudent risk-reward factor as it expands its operations to avoid overexposure and to make sure every deal is robust and backed by objective risk analysis.

  “We are backed by three very strong institutions,” he points out, referring to Abu Dhabi National Oil Company, Abu Dhabi National Energy Company (Taqa) and sovereign wealth fund Mubadala, “so every investment opportunity is a big deal”.

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  Jennifer Aguinaldo
• 
  Unlocking AI’s carbon conundrum

  31 January 2025

  

   

  This package also includes: Trump 2.0 targets technology

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  Abu Dhabi has recently launched a $6bn project that combines 5,200MW of solar and 19 gigawatt-hours (GWh) of battery energy storage capacity to deliver 1,000MW of round-the-clock renewable power capacity, a world first. 

  The project addresses the intermittency of renewable energy, which UAE Industry & Advanced Technology Minister Sultan Al-Jaber describes as the “moonshot challenge” of our time.

  The goal is to deliver clean baseload capacity much more quickly and at a lower price than a gas or nuclear power plant.

  At approximately $60 a megawatt-hour, the project aligns with the mandate of Emirates Water & Electricity Company (Ewec) to deliver the lowest-cost energy transition.

  Abu Dhabi Future Energy Company (Masdar) will develop the project, which will help to boost its gross capacity, in line with expanding its renewable energy portfolio to 100GW by 2030.

  Located on a land area of 90 square kilometres, the solar and battery project is due to become operational by 2027, Masdar’s chief operating officer, Abdulaziz Alobaidli, said on 14 January.

  This is in addition to the 1.5GW of annual renewable capacity that Ewec intends to procure until at least the mid-2030s, in line with decarbonising the emirate’s electricity system and reaching net zero by 2050.

  Following the project’s launch, Masdar announced the preferred engineering, procurement and construction and other sub-
  contractors for the scheme. 

  AI and power link 

  In December, the US government reportedly approved the export of advanced artificial intelligence (AI) chips to a Microsoft-operated facility in the UAE, as part of the technology giant’s $1.5bn partnership with Mubadala-backed AI firm G42.

  Three months earlier, in September, Sheikh Tahnoon Bin Zayed Al-Nahyan, deputy ruler of Abu Dhabi and national security adviser, met with Jake Sullivan, US national security adviser, in Washington to seal an agreement known as the Common Principles for Cooperation on AI, following a meeting between UAE President Mohamed Bin Zayed Al-Nahyan and then-US President Joe Biden.

  The meeting took place a few days after US-based equity investment firm BlackRock announced a $100bn tech investment platform called Global AI Infrastructure Investment Partnership.

  The fund’s partners include Mubadala-backed AI fund MGX, which aims to build $100bn in assets under management; US-based Global Infrastructure Partners; and Microsoft.

  In January, MGX teamed up with US tech giant Oracle, Japan’s Softbank and ChatGPT creator Open AI to form the Stargate project, a joint venture that aims to invest $500bn in building AI infrastructure in the US over the next four years.

  Abu Dhabi has not denied the link between its clean energy capacity buildout and the UAE’s national, and perhaps international, AI strategy.

  A social media post on 14 January by President Mohamed Bin Zayed confirmed the 1GW solar plus battery project will directly support Abu Dhabi’s AI plans.

  “The project will help power advancements in AI and emerging technologies, supporting delivery of the UAE National Strategy for Artificial Intelligence 2031 and the Net Zero by 2050 strategic initiative,” he said.

  Investing in and developing AI infrastructure and applications at home and abroad is now a UAE government priority. It will create jobs and new revenues, and will boost efficiencies in every facet of governance and business.

  “The UAE is well positioned [in the developing AI industry],” says Michael Liebreich, managing partner at UK firm EcoPragma Capital, noting that it has “the energy status, geographical advantage and regulatory framework”.

  In light of a new US regulation made public in January that restricts access to US-made AI chips, he adds that “you don’t want to have a situation where the UAE will have to choose between one or the other”, referring to the ongoing power struggle over AI between China, an important energy and trade partner of the UAE, and the US, which is a vital political ally.

  Investing in and developing AI infrastructure and applications … is now a UAE government priority

  Choosing sides

  It appears that this choice has been made previously, however.

  In an interview in early 2024, G42 CEO Peng Xiao said that his firm is cutting ties with Chinese hardware suppliers in favour of US counterparts, adding: “We cannot work with both sides.”

  In addition, in December, Axios – the US media outlet that reported the clearance of AI chip exports by the US to the Microsoft and G42 facility in Abu Dhabi – suggested that the deal is part of efforts by the US government to elbow China out of the UAE’s expanding tech industry.

  In Abu Dhabi, Ewec is tasked not only with decarbonising its electricity system by integrating solar and nuclear plants into its gas-dominated power-generation fleets, but also with ensuring 24×7 clean and cheap baseload capacity gets delivered to a project that is a national priority.

  An expanding AI industry will also increase the scope for environmental, social and governance (ESG) compliance.

  While it is widely accepted that the use of advanced AI solutions such as large- or small-language models or agentic AI for industrial applications can enable some sectors to cut emissions, AI requires hyperscale data centres, and data centres generally are as polluting as the airline industry.

  Although the high temperatures and water scarcity of the Middle East can be addressed by another ESG-sensitive industry – seawater desalination – these factors can lead data centres in the region to be more carbon positive than those in other geographies.

  For this reason, Abu Dhabi’s 5.2GW/19GWh project is considered a major milestone, potentially blazing a trail that other regions can follow – assuming it is implemented on time and within budget, and despite opposing opinions on its technical and commercial feasibility.

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  Main image: Sheikh Tahnoon Bin Zayed Al-Nahyan, deputy ruler of Abu Dhabi and national security adviser, and Jake Sullivan, US national security adviser, signed a cooperation agreement on AI in September 2024. Credit: Wam

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  Trump 2.0 targets technology

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  READ MEED’s YEARBOOK 2025

  MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

  Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

  > ECONOMY: Trump factor weighs on the region’s economies > POLICY: Region eyes Trump’s return amid growing instability > PROJECTS: Another bumper year for Mena projects > GIGAPROJECTS INDEX: Gigaproject spending finds a level > INFRASTRUCTURE: Dubai focuses on infrastructure > US POLITICS: Donald Trump’s win presages shake-up of global politics > REGIONAL ALLIANCES: Middle East’s evolving alliances continue to shift > UPSTREAM: Region to continue robust spending on oil and gas > DOWNSTREAM: Regional downstream sector prepares for consolidation > POWER: Power sector awards momentum accelerates > WATER: Water sector braces for likely slowdown > CONSTRUCTION: Bigger is better for construction > TRANSPORT: Transport projects driven by key trends > INDUSTRY: Industrial projects enjoy sustained rise in spending > PROJECTS: Gulf projects index continues ascension > CONTRACTS: Mena projects market set to break records in 2024 > AWARDS: MEED Projects Awards 2024 winners announced

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  Jennifer Aguinaldo
• 
  Abu Dhabi forms mining investment joint venture

  31 January 2025

  Abu Dhabi’s ADQ has announced a new joint venture with US-based Orion Resource Partners to invest in the metals and mining sector.

  The 50-50 joint venture, named Orion Abu Dhabi, will be based in Abu Dhabi Global Market and will focus on strategic investments in mining companies across emerging markets in Africa, Asia, and Latin America.

  With an initial capital commitment of $1.2bn over the first four years, Orion Abu Dhabi aims to enhance supply chain security by sourcing essential minerals such as copper and high-grade iron ore. The joint venture will utilise various investment instruments, including equity, senior debt, and production-linked instruments like royalties and offtakes.

  The establishment of Orion Abu Dhabi is part of ADQ’s Infrastructure & Critical Minerals cluster, which aims to contribute to the resilience of the local economy and support the growth of the wider investment portfolio.

  According to GlobalData, the global mining industry experienced a slight improvement in business sentiment in 2024, with a reported increase of 0.2% compared to the previous year, indicating a cautious optimism among companies.

  Mining companies continued to explore and invest in mineral-rich areas, focusing on efficient extraction methods and improved waste management technologies. Despite these advancements, the industry still faces challenges, particularly in meeting the rising demand for essential minerals like copper, lithium, nickel, and cobalt.

  Forecasts suggest that production will not keep pace with demand, with annual production increases projected at 2.8% for copper, 16.2% for lithium, 3.9% for nickel, and 4.7% for cobalt through 2030, while demand is expected to grow significantly faster.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13353151/main.jpg

  Colin Foreman