Abu Dhabi tenders 1.5GW Khazna solar contract

17 April 2024

 

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State utility Emirates Water & Electricity Company (Ewec) has issued the request for proposals (RFP) for a contract to develop and operate the UAE capital'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 expects to receive bids for the contract "in the third quarter of 2024".  

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

Parties or companies that are prequalified as managing members are free to bid either 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 (Jena, 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 (Turkey)
  • Korea Western Power Company (Kowepo, South Korea)
  • Orascom Construction (Egypt)
  • PowerChina International Group
  • SPIC Huanghe Hydropower Development (Spic, China)

Ewec's PV1, or Noor Abu Dhabi, has a capacity of 935MW and has been operational since 2019.

PV2, the 1,584MW Al Dhafra solar IPP, was inaugurated in November 2023. 

Ewec is understood to have recently 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).

Ewec said solar energy is integral to achieving its target of producing nearly 50% of its electricity from renewable and clean energy sources by 2030.

This is due to its "low generation cost and its contribution to reducing carbon dioxide (CO2) emissions from the electricity generation process".

Like the first three schemes, 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, Khazna solar PV, along with Noor Abu Dhabi, 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. 

UAE-wide target and capacity

The UAE published its updated national energy strategy in July last year. It includes a plan to triple the nationwide renewable energy capacity to 19GW by 2030.

The total installed renewable energy capacity of both Ewec and Dubai Electricity & Water Authority (Dewa) stood at about 5.5GW at the start of 2024.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11687552/main.jpg
Jennifer Aguinaldo
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