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Abu Dhabi to award Khazna solar IPP contract

11 March 2025

 

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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

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