meed-logo

line1 line2 line3
SIGN IN / REGISTER

AI accelerates UAE power generation projects sector

10 April 2025

 

On 3 April, Abu Dhabi National Energy Company (Taqa) and Emirates Water & Electricity Company (Ewec) confirmed for the first time the UAE capital’s energy infrastructure plans to support its artificial intelligence (AI) and net-zero strategies.

The programme will require an investment of AED36bn ($9.8bn), comprising the round-the-clock 5.2GW solar plus 19 gigawatt-hour battery energy storage system (bess) plants announced in January; a 1GW open-cycle gas turbine plant in Dhafra, which Taqa will own, finance and operate; and advanced grid infrastructure.

This development followed several months of speculations concerning the UAE capital’s plans for a power generation portfolio and infrastructure projects supporting its AI strategy.

It came on the heels of the Abu Dhabi government announcing plans to embark on a three-year digital strategy, requiring the deployment of AED13bn in investment, to make it the “first government globally” to fully integrate AI into its digital services by 2027.

The Abu Dhabi Digital 2025-27 Strategy aims to 100% adopt sovereign cloud computing for government operations and digitise and automate 100% of processes “to streamline procedures, enhance productivity and improve operational efficiency”.

“One thing that strikes me about this Ewec and Taqa announcement is the question of how much of a model it can be for enabling solar with additional gas power, which should be what happens in other countries like in the US,” Karen Young, senior research scholar at Columbia University’s Centre on Global Energy Policy, tells MEED.

Young acknowledges that the ability to scale up with state-owned assets and offtake agreements gives the UAE a capacity that other markets will find difficult to replicate.

“It is certainly an advantage and one reason why the UAE is ahead of other regional markets, including Saudi Arabia, but also on a global scale,” she explains.

Staging an aggressive and energy-intensive AI programme while complying with its net-zero aspirations will keep the UAE’s utility stakeholders on their toes over the coming few years.

Robust capacity buildout

In addition to these three major project blocks, separate thermal, renewable energy and battery energy storage projects are in various construction and procurement stages in Abu Dhabi and Dubai.

Somewhat ironically and similar to Saudi Arabia, the UAE’s main utility stakeholders have stepped into what could be their busiest year in terms of capacity buildout, in order to meet their mid-term 2030 energy diversification targets while supporting the government’s industrial and economic expansion programmes.

According to MEED Projects data, the UAE power sector let an estimated $5.2bn-worth of contracts in 2024, up 70% from the previous full year.

Last year, the UAE awarded four generation contracts representing the full spectrum of fuel, except nuclear. These were the 1.5GW Al-Ajban solar independent power project (IPP), the Dhafra waste-to-energy project, the Ruwais cogeneration and utility package in Abu Dhabi, and the contract to complete the third phase of the Jebel Ali K power station in Dubai.

Expectations that Abu Dhabi Future Energy Company (Masdar) will sign the engineering, procurement and construction (EPC) contracts for the estimated $6bn round-the-clock solar plus battery facility this year, in addition to the 1GW Dhafra open-cycle gas turbine (OCGT) project, for which a contract was already awarded in April, guarantee that contract awards in the UAE’s power projects sector will further accelerate.

Upcoming projects

According to MEED Projects data, as of early April, an estimated $7.2bn-worth of generation and $1bn of transmission and distribution contracts were in the bid and bid evaluation stages across the UAE.

These include six major generation projects in Abu Dhabi that are expected to be awarded this year. These are the 2.5GW Taweelah C combined-cycle gas turbine scheme, Madinat Zayed OCGT IPP, Al-Khazna and Al-Zarraf solar photovoltaic (PV), Al-Sila wind and Bess 1.

The prequalification proceedings are under way for generation projects worth $7.2bn and transmission projects worth $180m.

The 3.3GW Al-Nouf combined-cycle gas turbine (CCGT) scheme in Abu Dhabi and phase seven of Dubai’s Mohammed Bin Rashid Solar Park are the main projects in the prequalification stage.

Last year, there were indications that Abu Dhabi could start initiating the procurement process for the next phase of the Barakah nuclear power plant this year. However, more recent developments indicate that this process could be delayed by a year or two, depending on multiple factors, including demand growth and costs.

Including the next phase of Barakah in the upcoming projects pipeline takes the estimated total value of planned and unawarded generation projects in the UAE to roughly $47bn.

Battery

The deployment of substantial battery energy storage capacity is crucial in ensuring grid flexibility as the UAE’s electricity grids take on an increasing amount of renewable power.

Ewec received two bids for the contract to develop Bess 1, which will be built in two locations with a total capacity of 400MW.

The project will closely follow Abu Dhabi’s IPP model, in which developers enter into a long-term energy storage agreement with Ewec as the sole procurer.

The first plant will be in Al-Bihouth, about 45 kilometres (km) southwest of Abu Dhabi, and the second plant will be in Madinat Zayed, about 160km southwest of the city.

According to industry sources, the companies that submitted bids for the contract in March include:

  • EDF Renewables (France)
  • Engie (France) / Saudi Electricity Company (SEC, Saudi Arabia) / Hajj Abdullah Alireza Company (Haaco, Saudi Arabia)
  • Jinko Power (China) / Alghanim International (Kuwait)

In Dubai, the prequalification process is under way for the seventh phase of the MBR Solar Park, which will include a solar PV plant with a capacity of 1.6GW and a 1GW bess plant intended to produce six hours of storage capacity.

The $6bn round-the-clock solar plus bess project in Abu Dhabi boasts 19GWh of battery storage capacity, which is envisaged to enable renewable power to be dispatched similar to a baseload capacity, which gas or nuclear plants typically supply.

Fittingly, the UAE’s Minister of Industry and Advanced Technology Sultan Al-Jaber described the project as Abu Dhabi’s response to the “moonshot challenge of our time”, which is the intermittency of renewables.

Masdar has already selected the preferred EPC, solar PV and battery technology subcontractors for the project.

India’s Larsen & Toubro and Beijing-headquartered PowerChina will undertake the project’s EPC contracts, while Shanghai-based Jinko Solar and Beijing-headquartered JA Solar will supply solar PV modules. 

Another Chinese firm, Fujian-based Contemporary Amperex Technology Company), will supply its Tener product line for the bess plant.

The project will be structured as a classic public-private partnership (PPP), funded by equity and syndicated debt.

It is being deployed on a fast-track basis, with financial close expected by the second quarter of this year and commercial operations set for 2027.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13655568/main.jpg
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Adnoc Onshore selects contractors for well tie-ins project

    27 October 2026

     

    Abu Dhabi National Oil Company’s onshore operating arm (Adnoc Onshore) has selected contractors for a major project to tie in wells across the Bab and North East Bab oil field developments in Abu Dhabi.

    Located 84 kilometres southwest of Abu Dhabi city, the Bab field has been in production since 1960 and is the emirate’s first oil-producing asset. The North East Bab cluster comprises the Al-Nouf, Rumaitha and Shanayel fields. 

    The Bab and North East Bab One Tie-In project is central to Adnoc Onshore’s contribution to Adnoc Group’s target of expanding crude oil production capacity to 5 million barrels a day (b/d) by 2027, an initiative known as the Accelerated Integrated Programme 5. The state energy company’s total production capacity currently stands at approximately 4.85 million b/d.

    According to industry sources, Adnoc Onshore has selected local contractor Robt Stone Middle East and China’s Jereh Group to carry out engineering, procurement and construction (EPC) works on the project. While both firms have been notified of their selection, a formal project kick-off meeting has yet to take place.

    Adnoc Onshore is understood to have started the tendering process for the Bab and North East Bab One Tie-In project last year, with contractors submitting technical and commercial bids earlier this year.

    Following the evaluation of bids, Adnoc Onshore sought best commercial offers from the bidders, which contractors submitted in May, MEED previously reported.

    The project budget is estimated at $1.2bn.

    Bidders for the contract are understood to have included:

    • Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
    • Jereh (China)
    • Kalpataru Projects International (India)
    • Matrix Construction (UAE)
    • Robt Stone Middle East (UAE)
    • Target Engineering Construction Company (UAE)

    The project scope covers residual engineering, procurement of materials not supplied as free-issue items, site surveys, construction, installation, inspection, testing, and pre-commissioning and commissioning support. The works will deliver new wellsite facilities, including a new mini-pad, well bays and clusters across the Bab and North East Bab developments.

    Adnoc Onshore is Adnoc Group’s largest production subsidiary, accounting for roughly 2 million b/d of crude and about 7 billion cubic feet a day of associated gas from four primary onshore asset clusters: Bab, Bu Hasa, North East Bab and South East.

    ALSO READ:

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20951928/main.jpg
    Indrajit Sen
  • Ashghal tenders Al-Udeid air base access road works

    27 October 2026

     

    Qatar’s Public Works Authority (Ashghal) has invited contractors to bid on a contract to build roads and related infrastructure around Al-Udeid Air Base.

    The project is located in Zone 95 of Al-Wakra Municipality, adjacent to Al-Majd Road. 

    The tender was issued on 22 October, with a submission deadline of 22 November.

    The scope includes the construction of a dual-lane carriageway to improve access to the air base, together with three roundabouts. The alignment will connect to Al-Majd Road to the east and tie into Street 203 in Zone 95 to the west. The contractor will also resurface and maintain connections to the existing road network.

    Associated works include street lighting, intelligent transport systems, directional signage and a surface-water drainage collection system.

    The contractor will provide crossing ducts, protect and relocate conflicting existing utilities, and complete detailed utility designs as required by relevant stakeholders through the Qatar Design Review System.

    The project also includes the design and construction of two electrical substations. The contractor must secure the necessary stakeholder and authority approvals before starting these works.

    The scheme will be delivered on a remeasurable, build-only basis using designs approved by others. It will also include designated contractor-designed elements and design-and-build packages for the substations.

    Bidders must submit two commercial pricing options: a base offer subject to material price-fluctuation provisions, and an alternative authority option without such provisions.

    The contract has a 550-day completion period from the commencement date, including mobilisation, followed by a 400-day maintenance period after the completion certificate is issued.

    Participation is restricted to local and international contractors registered under the Ministry of Finance classification system in Grade A or Grade B for road specialisation.

    Unclassified foreign firms may submit equivalent certified documentation from their country of origin, attested by Qatari diplomatic missions. They must obtain Ministry of Finance registration before contract award.

    For joint-venture bids, the lead partner must hold the required classification grade.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20950810/main.jpg
    Yasir Iqbal
  • Saudi Arabia gauges interest for Al-Ula wastewater expansion

    27 October 2026

     

    Saudi Arabia’s Royal Commission for Al-Ula (RCU) is conducting market sounding for the first phase of the Mughayra wastewater treatment plant (WWTP) expansion before formally starting its tendering process, according to industry sources.

    The project is valued at SR400m ($107m) and is intended to increase the Mughayra plant’s wastewater treatment capacity to 62,000 cubic metres a day.

    RCU is gauging interest from potential contractors and has not yet issued a prequalification questionnaire, a source said.

    The scheme forms part of Saudi Arabia’s broader investment drive to develop its cultural and tourism offering across Al-Ula.

    The commission launched its Journey Through Time Masterplan in April 2021, with implementation scheduled in three phases through 2035. The masterplan covers infrastructure development, water management and irrigation, alongside the regeneration of a 9-kilometre cultural oasis.

    French engineering firm Artelia previously noted in its 2025 annual corporate report that it is involved in the design phase of the Mughayra WWTP.

    RCU is also developing strategic potable-water storage infrastructure in Al-Ula, including a design-and-build project covering a 50,000-cubic-metre reservoir at Hub 06 and a 15,000-cubic-metre reservoir at Hub 08.

    Local contractor Bin Omairah previously confirmed that it is serving as the engineering, procurement and construction contractor for the storage facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20950333/main.jpg
    Mark Dowdall
  • Qatari firm wins $147m Syria road deal

    27 October 2026

    Qatari contractor Al-Mohannadi for Roads, Trading & Contracting has signed a $147m contract with Syria’s General Directorate of Roads to rehabilitate and expand a 215-kilometre (km) highway corridor connecting to the Iraqi border.

    The project covers the rehabilitation and dualisation of a 170km section linking the Al-Busairi junction to the Al-Tanf border crossing, alongside the construction of a 45km link between the Al-Sabaa Biyar junction and Al-Busairi. Work is scheduled for completion within 900 days.

    The agreement was signed in Damascus by Moaz Najjar, director-general of the General Directorate of Roads, and Abdullah Adnan Al-Zattam, chief executive of Al-Mohannadi, in the presence of Syrian Transport Minister Yarob Badr and Finance Minister Mohammad Yusr Barnieh.

    The upgrade is intended to restore and expand one of Syria’s primary overland arteries to Iraq, which has suffered significant deterioration and capacity bottlenecks following years of conflict. The Al-Tanf corridor represents the most direct overland link between Damascus, central Syrian industrial centres and Baghdad.

    The project is designed to accommodate heavier commercial freight vehicles and reduce transit times between the two countries.

    The investment also forms part of broader efforts to re-establish Syria’s role as a regional transit corridor connecting Mediterranean ports with landlocked trade routes into Iraq and the wider region.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20950332/main.gif
    Yasir Iqbal
  • Adnoc showcases $16.3bn local manufacturing potential

    27 October 2026

    Abu Dhabi National Oil Company (Adnoc Group) has identified more than AED60bn ($16.3bn) in local manufacturing opportunities through 2030.

    The Abu Dhabi energy company also announced changes to its procurement, supplier registration and In-Country Value (ICV) localisation frameworks.

    The measures were announced at the second Make it with Adnoc Forum, held in Abu Dhabi on October 25. They are intended to give manufacturers, suppliers and investors greater visibility of future demand and a faster, clearer route to compete for Adnoc contracts, the company said.

    The more than 200 manufacturing opportunities cover products required for Adnoc’s projects and operations, including:

    • Rotating equipment and power
    • Electrical, control and automation systems
    • Drilling and completion equipment
    • Chemicals and catalysts
    • Piping, fabrication and heavy equipment
    • Spare parts and advanced manufacturing

    Many of the identified products are currently imported, Adnoc said. “Manufacturing them in the UAE shortens lead times, reduces exposure to global supply disruptions and strengthens the resilience of Adnoc’s operations,” it said in its statement.

    Adnoc, the UAE Ministry of Industry & Advanced Technology and the Abu Dhabi Investment Office (Adio) will work together to connect manufacturers with these opportunities. The collaboration will combine visibility of Adnoc’s demand, access to the national industrial database and financing through the National Industrial Resilience Fund, the company said.

    Adnoc also signed two memorandums of understanding on the sidelines of the forum with Adio and Kezad Group.

    ICV scheme expansion

    Adnoc announced the expansion of its Local+ programme, part of its ICV framework, to more than 100 UAE manufacturers, compared with 70 at its launch in May. The programme gives UAE-made products priority in Adnoc projects by requiring engineering, procurement and construction (EPC) contractors bidding for new tenders to source relevant products from manufacturers approved under the programme.

    Separately, Adnoc announced a redesign of its supplier registration and prequalification process. The company is targeting a reduction of up to 80% in the time required for suppliers to complete the process and become eligible to compete for Adnoc opportunities.

    The new model halves the number of required documents and removes prequalification requirements for 60% of service categories.

    A single window brings together registration, qualification and compliance, with requirements tailored to the nature of the work and its level of risk. Artificial intelligence will support document verification and the reuse of existing data, reducing repetitive submissions and administrative processing.

    ALSO READ:
    Adnoc steps up crude oil capacity expansion
    Adnoc funnels billions into boosting gas processing

    “Adnoc’s enhanced ICV model will more closely connect procurement decisions with commercial value and suppliers’ contribution to the UAE economy. Under the new model, commercial and ICV offers will be integrated into a single evaluation model,” the company said.

    “The previous bid-matching approach will be retired, encouraging suppliers to submit their most competitive commercial and ICV offers from the outset. Requirements will be proportionate to contract size and scope.

    “The model also enhances the administration of ICV-related retention payments. Where retention applies, automated calculation and release processes through the Adnoc Supplier Hub will improve transparency, reduce manual follow-up and support suppliers’ cash flow as obligations are met.”

    Alongside the ICV and registration enhancements, Adnoc outlined a new commercial approach built around four strategic shifts: agile, competitive, strategic and forward-looking.

    “The approach will advance simpler procurement and faster decision-making, contracting models aligned with project and market dynamics, targeted commercial negotiations and earlier visibility of Adnoc’s future demand.”

    Since its launch in 2018, Adnoc’s ICV programme has directed more than AED307bn ($83.6bn) into the UAE economy, the company said. By the end of 2025, it had also supported the localisation of more than 130 products, the development of 95 UAE factories, and employment opportunities for more than 27,500 Emiratis at participating private sector companies.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20948385/main5518.jpg
    Indrajit Sen