meed-logo

line1 line2 line3
SIGN IN / REGISTER

Abu Dhabi to award Khazna solar IPP contract

11 March 2025

 

Register for MEED’s 14-day trial access 

Abu Dhabi state utility and offtaker Emirates Water & Electricity Company (Ewec) is expected to award the contract to develop the emirate’s fourth utility-scale solar photovoltaic (PV) project in the second quarter of this year.

French utility developer and investor Engie submitted the lowest bid for a contract to develop the Khazna solar independent power producer (IPP) project, also known as PV4, in October last year.

The solar power PV plant will have an installed capacity of 1,500MW.

MEED reported in October that Engie had offered a levelised cost of electricity (LCOE) of AEDfils 5.35502 ($c1.459) a kilowatt-hour (kWh) for the contract, beating by about 3% the second-lowest offer made by a team of China’s Jinko Power and Japan’s Jera of AEDfils 5.54126/kWh.

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

Ewec opened the bids on 30 October.

A transaction advisory team comprising UK-headquartered Ashurst and Alderbrook Finance and Norwegian engineering services firm DNV is advising Ewec on the 1,500MW Khazna IPP scheme.

Solar energy is integral to achieving Abu Dhabi’s target of producing nearly 50% of its electricity from renewable and clean energy sources by 2030.

In April last year, Ewec awarded the contract to develop PV3, the 1,500MW Al-Ajban solar IPP, to a team led by EDF Renewables and including Kowepo.

In 2020, a team comprising EDF Renewables and Jinko Power won the contract to develop the 1,500MW Al-Dhafra solar PV scheme, which was inaugurated last year.

In 2016, a team of Japan’s Marubeni and Jinko Power won the contract to develop and operate Abu Dhabi’s first utility-scale solar PV project in Sweihan, the 934MW Noor Abu Dhabi IPP.

Like the first three schemes, the Khazna solar PV project 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, the Khazna solar PV, along with Noor Abu Dhabi, the Al-Dhafra solar PV and Al-Ajban solar PV, will raise Ewec’s total installed solar PV capacity to 5.5GW and collectively reduce carbon dioxide emissions by more than 8.2 million metric tonnes a year by 2027. 

In January, Ewec issued the request for proposals for a contract to develop the emirate’s fifth solar PV scheme in Al-Zarraf, with a bid deadline set for Q2 2025.

READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF

Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:

> GULF PROJECTS INDEX: Gulf hits six-month growth streak
To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/13473614/main5248.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • War takes a rising toll on Kuwait’s oil sector

    6 April 2026

    Commentary
    Wil Crisp
    Oil & gas reporter

    The US and Israel’s ongoing war on Iran is taking a rising toll on Kuwait’s oil sector, which is likely to be felt for years, even if the war concludes relatively quickly.

    The effective closure of the Strait of Hormuz to shipping has meant that Kuwaiti oil exports have completely stopped, forcing the country to declare force majeure last month.

    The inability to export oil has led storage facilities to reach maximum capacity and forced Kuwait to stop production completely at key oil fields.

    Resuming production from these assets is not likely to be easy, and production from these fields could take months to ramp up to normal levels even if shipping is allowed to cross the Strait of Hormuz freely.

    The blockage in the Strait of Hormuz has also prevented Kuwaitis from importing equipment and materials to carry out maintenance work or projects in the oil and gas sector.

    On top of the severe negative impacts caused by the disruption to shipping through the Strait of Hormuz, the country’s energy sector is seeing increasing damage to oil and gas facilities from Iranian strikes.

    Over the past few days, a wide range of Kuwaiti oil and gas infrastructure has been hit and damaged.

    This includes strikes on Kuwait’s Al-Ahmadi oil refinery, one of the biggest in the Middle East, which was attacked on 5 April, causing fires in a “number of operational units”.

    If future operations at the refinery are limited by damage to the facility, it could potentially lead to much lower volumes of refined products being available both on the domestic market and for export.

    On 5 April, Iran also struck facilities operated by Petrochemical Industries Company (PIC) and Kuwait National Petroleum Company (KNPC), both subsidiaries of state-owned Kuwait Petroleum Corporation (KPC).

    On the same day, the building that houses the headquarters of KPC and the country’s Oil Ministry was also hit, causing a fire.

    In a statement released on 5 April, KPC said that assessments of the damage to the office building, as well as to the PIC and KNPC facilities, were ongoing.

    If the damage to the PIC and KNPC facilities is significant, it could further reduce Kuwait’s refining capacity and erode the country’s petrochemical production capacity.

    This, in turn, would negatively impact the oil and gas sector’s ability to generate future revenues.

    As the war continues, it is likely that damage to oil and gas infrastructure will continue to mount, further eroding the country’s ability to return quickly to normal operations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16265361/main.png
    Wil Crisp
  • Kuwait reports war damage on oil infrastructure

    6 April 2026

    State-owned Kuwait Petroleum Corporation (KPC) has said that some units have sustained significant damage following Iranian strikes on oil and gas infrastructure in recent days.

    Strikes hit facilities operated by its subsidiaries Petrochemical Industries Company (PIC) and Kuwait National Petroleum ​Company (KNPC).

    Strikes also hit the offices of KPC and the Oil Ministry, as well as power and water desalination plants.

    In a statement released on 5 April, KPC said: “On 5 April, 2026, the oil sector complex located in Shuwaikh, which houses the KPC building and the Ministry of Oil, was attacked by drones, resulting in a fire at the building and significant material damage.

    “Several operational facilities belonging to the corporation, both at KNPC [sites] and PIC [sites], were also subjected to similar drone attacks, leading to fires at a number of these facilities, and causing significant material damage.

    “Emergency and firefighting teams from the concerned companies, with the support of the General Fire Force, implemented the approved response plans.

    “The teams continue to work to control the fires and prevent their spread to adjacent facilities.

    “The corporation confirmed, thanks be to God, that no human casualties were recorded as a result of these attacks.”

    In a television address, Hisham Ahmed Al-Rifai, a spokesperson for the company, said that the offices of KPC and the Oil Ministry were targeted at dawn on 5 April.

    He called the attack “reprehensible” and said that Iran used drones to carry it out.

    Al-Rifai said that KPC is still assessing damage to the office building and to the PIC and KNPC facilities.

    The past few days have seen significant damage dealt to a range of oil and gas infrastructure.

    On 3 April, early-morning strikes hit Kuwait’s Al-Ahmadi oil refinery, causing fires in a “number of operational units”.

    The strikes on 3 April were the third time that the refinery had been hit since the regional conflict started.

    The refining facility is one of the largest in the Middle East and is an important source of refined products for both the domestic market and exports.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16265360/main.gif
    Wil Crisp
  • Safety and security matters

    3 April 2026

    Commentary
    Colin Foreman
    Editor

    Read the April issue of MEED Business Review

    Employment and investment opportunities in a low or no-tax environment have been key attractions for people and businesses located in the GCC for decades. Another crucial factor has been safety and security.

    That reputation has been tested by the missile and drone attacks that began on 28 February. Whether the GCC’s safe haven status has been damaged depends on perspective. 

    For some, the fact that attacks occurred fundamentally changes how the region is viewed. For others, the ability to absorb a serious shock, respond quickly, and keep daily life and businesses functioning demonstrates resilience.

    Any assessment of safety is also relative. Many people and businesses that relocate in the GCC do so not only for opportunity, but because of dissatisfaction elsewhere. Common reasons include limited economic prospects, high taxation, distrust in political leadership and concerns about personal safety. Even with the recent conflict, the GCC may still compare favourably for those considering these factors.

    There is no doubt that missile and drone attacks are extremely dangerous, and the fear of further incidents can linger. Even if attacks are infrequent, the uncertainty matters. It can influence personal decisions, travel advice, and the cost of insurance and risk management. These perceptions will shape the region’s attractiveness.

    Safety concerns vary. In many parts of the world, higher levels of crime are an everyday worry for residents and businesses. For some, the GCC may still feel like the better option, provided the current tensions do not become the new normal.

    How this question is answered will play an important role in how the region’s economies perform in the period ahead. If confidence returns quickly and the risk is seen as contained and manageable, investment and hiring will likely rebound faster than many expect. If uncertainty persists or escalates, the road to recovery will be a long one.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16250747/main.gif
    Colin Foreman
  • Saudi forecast remains one of growth

    3 April 2026

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16250096/main.gif
    MEED Editorial
  • Dubai seeks consultants for Al-Khawaneej stormwater project

    3 April 2026

    Dubai Municipality has issued a consultancy tender to assess and upgrade the stormwater drainage system serving the Al-Khawaneej First residential district in northeastern Dubai.

    The project, listed as TF-22-E1, covers the upgrading and rehabilitation of the stormwater system in the area. The tender has been issued by the municipality’s Sewerage and Recycled Water Projects Department.

    The bid submission deadline is 23 April.

    The works form part of Dubai’s wider efforts to strengthen flood resilience and support sustainable urban infrastructure development.

    Two separate consultancy tenders were issued in March as part of a broader review of the emirate’s water and wastewater infrastructure to support future population growth.

    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. 

    The Al-Khawaneej First consultancy role will include data collection, site investigations and an assessment of existing drainage conditions.

    Additionally, the consultant will be required to identify flooding hotspots and evaluate the performance of the current system. 

    The project covers the preparation of preliminary and detailed designs, tender documents and construction packages as well as construction supervision through to project handover.

    The municipality added that integrated drainage solutions are to be developed as part of the package, including sustainable drainage systems (SuDS) and nature-based approaches to address current and future stormwater demand.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16249098/main.jpg
    Mark Dowdall