Abu Dhabi mulls Taweelah C tender

17 January 2024

State utility Emirates Water & Electricity Company (Ewec) is understood to be considering issuing a tender for its first gas-fired independent power producer (IPP) project since 2020.

The greenfield Taweelah C gas-fired IPP is planned to reach commercial operation by 2027, according to a recent Ewec capacity procurement statement.

"We understand that they might skip the expressions of interest and request for qualifications stage, and directly invite qualified developers to bid for the contract," two sources familiar with the project tell MEED.

Both sources said the invitation to bid could be issued as early as April this year.

The planned Taweelah C gas-fired IPP is expected to have a power generation capacity of 2,457MW.

Ewec awarded its last combined-cycle gas turbine (CCGT) IPP nearly four years ago. Japan's Marubeni Corporation won the contract to develop the Fujairah F3 IPP in 2020.

MEED reported in February last year that Abu Dhabi plans to procure a new gas-fired IPP project in Sweihan.

The proposed 2,457MW Sweihan IPP will have either a CCGT or open-cycle gas turbine configuration.

At the time, it was suggested that the Sweihan IPP was the first of several gas-fired plants that Ewec was considering procuring between 2023 and 2031, followed by Taweelah C. 

Three other new CCGT plants are under consideration until 2031.

The state utility is considering new gas-fired capacity in light of expiring capacity from several independent water and power producer (IWPP) facilities.

The plants that will reach the end of their existing contracts during the 2023-29 planning period 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 enter into discussions before the expiry of the contracts to decide whether a contract extension is possible. Unsuccessful negotiations will lead to the dismantling of the assets at the end of the contract period.

In 2022, MEED reported that Abu Dhabi wound down the operation of Taweelah A2, the region's first IWPP. The power and water purchase agreement supporting the project expired in September 2021 and was not extended.


MEEDs November 2023 special report on the UAE includes: 

> COMMENT: UAE eyes global leadership role
> POLITICS: Abu Dhabi networks on the global stage
>
ECONOMY: UAE economy maintains robust growth
> BANKING: UAE banks enjoy the good times
> UPSTREAM: Hail and Ghasha galvanises UAE upstream market
> DOWNSTREAM: Adnoc spurs downstream gas expansions
> POWER: UAE closes ranks ahead of Cop28

> WATER: UAE ramps up decarbonisation of water sector
> PROJECTS: Top 10 UAE clean energy projects

> CONSTRUCTION: UAE construction sector returns to form
> TRANSPORT: UAE aviation returns to growth

 

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Jennifer Aguinaldo
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