Abu Dhabi plans next 1.5GW solar project

28 March 2025

Abu Dhabi is expected to initiate the procurement process for its sixth utility-scale solar photovoltaic (PV) independent power project (IPP) this year.

A Fitch Ratings media update in February indicated that the 1,500MW Al-Faya project is in the expression of interest (EoI) stage.

However, industry sources tell MEED it might take a few months before the state utility issues the EoI request for two utility-scale solar PV projects, each potentially with a capacity of 1,500MW.

This development comes as firms start preparing bids for a contract to develop Abu Dhabi’s fifth utility-scale solar PV IPP project.

State utility Emirates Water & Electricity Company (Ewec) expects to receive bids on 12 June for the contract to develop the 1,500MW Al-Zarraf solar IPP, also known as PV5.

Like the first four solar IPPs tendered by Ewec, the Al-Zarraf solar IPP will involve the development, financing, construction, operation, maintenance and ownership of the solar PV plant and associated infrastructure.

The successful bidder or consortium will enter into a long-term power-purchase agreement with Ewec as the sole procurer of electricity.

Ewec opened the bids for its fourth utility-scale solar project, the Al-Khazna solar IPP or PV4, on 30 October.

Engie offered a levelised cost of electricity (LCOE) of AED fils 5.35502 ($c1.459) a kilowatt-hour (kWh) for the contract, beating by roughly 3% the second-lowest offer made by a team of China’s Jinko Power and Japan’s Jera of AED fils 5.54126/kWh.

A team of France’s EDF Renewables and its partner, Korea Western Power Company (Kowepo), emerged with the highest offer of AED fils 5.86311/kWh. 

Ewec is expected to award the Al-Khazna solar IPP contract to Engie around the second quarter of this year, as MEED reported.

Ewec forecasts that at least 18,000MW of solar PV will be in operation by 2035, supporting the realisation of the Abu Dhabi Department of Energy’s Clean Energy Strategic Target 2035.

The programme envisages renewable and clean energy sources meeting 60% of the emirate’s total power demand at the end of the forecast period. 

Correction: This article was updated on 28 March. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/13570234/main.jpg
Jennifer Aguinaldo
Related Articles