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
  • Dubai approves metro extension to Al-Maktoum airport

    10 November 2026

    Dubai’s Executive Council has approved a project to extend the Dubai Metro’s Route 2020 to Al-Maktoum International Airport City, with passenger services scheduled to begin operations in 2031.

    Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum, Crown Prince of Dubai, announced the decision following a council meeting held during the UAE Government Annual Meetings 2026.

    The rail project forms part of a package of strategic schemes worth over AED11bn ($3bn) approved by the council.

    The wider approvals include a comprehensive framework to upgrade community facilities and public services by 2040, with priority given to residential communities for UAE citizens.

    The project approval follows the procurement of detailed design work for the rail link. MEED exclusively reported in September that Dubai’s Roads & Transport Authority (RTA) had awarded US-based engineering consultancy Aecom the design contract for the Route 2020 extension.

    The planned extension will run for about 3 kilometres from the existing Expo 2020 terminus station to connect directly with the West Terminal of Al-Maktoum International airport. The scheme will add two new stations to the network.

    The existing Route 2020 corridor is a 15km spur that branches off the Dubai Metro Red Line at Jebel Ali station. It comprises 11.8km of elevated viaduct and 3.2km of underground track, serving five elevated and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21301168/main.png
    Yasir Iqbal
  • Egypt seeks to accelerate gas pipeline project with Libya

    10 November 2026

    Egypt aims to accelerate a range of energy projects with Libya, including gas pipeline links, according to a statement from the Egyptian Foreign Minister Badr Abdelatty.

    Other projects include a scheme to refine Libyan crude in Egypt and an electricity interconnection.

    Abdelatty’s comments came in a ministry statement after a meeting with Libya’s acting oil and gas minister, Khalifa Abdulsadek, in the Libyan capital of Tripoli.

    Egypt is currently trying to address an energy squeeze that has escalated ​due to elevated global liquefied natural gas (LNG) prices since the ​start of the US-Israeli war on Iran in February of this year.

    In his statement, Abdelatty called ‌for ⁠cooperation on petroleum products and the completion of projects to refine Libyan oil in Egypt and re-export ​it.

    He also said that Abdulsadek would ​visit ⁠Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.

    The ⁠statement ​did not provide ​details on costs or the status of the projects.

    Plans for new gas pipeline links with Libya are just one of several ambitious gas pipeline plans Egypt is pursuing.

    In October, the Italian oil and gas company Eni signed the main engineering, procurement, construction and drilling contracts for a project to export gas from reserves in Cyprus using a major pipeline to Egypt.

    The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.

    The awards included a $170m contract won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help transport gas to Egypt’s Damietta LNG facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273777/main.jpg
    Wil Crisp
  • Omani company signs Kuwait drilling contract

    10 November 2026

    Oman’s MBPS has signed a drilling rig contract worth $127.3m with state-owned upstream operator Kuwait Oil Company (KOC).

    Under the terms of the deal, MBPS will supply and operate three newly built 1,000-horsepower land rigs for drilling and workover operations, according to a company statement.

    The UAE-based oil field services company Adnoc Drilling is a majority shareholder in MBPS.

    The chief executive of MBPS, Salim Al-Harthy, said: “This is another important milestone for MBPS and a strong reflection of KOC’s confidence in our capabilities.

    “It further strengthens our presence in Kuwait and our commitment to delivering safe, reliable and efficient drilling and workover services across the region.”

    He : “My sincere appreciation to KOC for their continued trust, and to our MBPS team for their hard work and dedication in making this possible.”

    In October last year, KOC said it planned to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    The spending was part of a KD9.8bn budget, the company’s biggest ever, allocated for drilling and maintenance of up to 6,193 wells by the end of this decade.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273731/main.png
    Wil Crisp
  • Adnoc Drilling wins $315m Kuwait offshore rig deals

    10 November 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi National Oil Company (Adnoc Group) subsidiary, Adnoc Drilling, has been selected for two offshore drilling rig contracts in Kuwait with a combined maximum value of KD96.55m ($315m), according to documents published by Kuwait’s Official Gazette.

    The Higher Purchasing Committee of state-owned Kuwait Petroleum Corporation (KPC) has given approval for its subsidiary Kuwait Oil Company (KOC) to award the contracts to the Abu Dhabi-listed drilling contractor after Adnoc Drilling submitted the lowest compliant bids.

    While the maximum combined contract value has been confirmed as KD96.55m ($315m), the individual contract values, rig identities, durations and expected commencement dates have not been disclosed.

    The approval comes as Kuwait moves to expand offshore exploration and development following a series of discoveries in its territorial waters.

    It is currently unclear how Kuwait will provide security for its planned offshore oil and gas projects in the Gulf, adding uncertainty to the outlook for these plans.

    On 5 October, KPC chief executive Shaikh Nawaf Al-Sabah reiterated the company’s commitment to developing three major offshore oil discoveries in the region.

    KPC initially launched the Al-Seef project to develop the three fields in February, just weeks before the US and Israel attacked Iran, triggering a regional war that has sparked a crisis in Kuwait’s oil and gas sector.

    The regional conflict has seriously disrupted shipping through the Strait of Hormuz, a key export route for Kuwaiti oil.

    The war has also led to dozens of attacks on Kuwaiti oil and gas infrastructure, with at least one causing damage to a Kuwaiti offshore platform.

    This attack took place on 12 July, when a drone struck a KOC offshore drilling platform in Kuwaiti territorial waters, causing damage to the platform and injuring one worker.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273678/main2430.jpg
    Wil Crisp
  • Aramco-backed firm tenders logistics hub expansion

    9 November 2026

     

    Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has set a 15 November deadline for a contract to expand the logistics complex at King Salman Energy Park (Spark) in Saudi Arabia’s Eastern Province.

    The logistics hub will add over 124,000 square metres (sq m) at Spark.

    Al-Khobar-based engineering firm House of Consulting Office is the project consultant.

    The tender for the expansion works comes shortly after Asmo awarded an estimated SR820m ($218m) contract to build the logistics complex’s first phase in May this year.

    The overall project will feature a 43,000 sq m, temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemicals storage; and an open yard covering about 1.2 million sq m.

    Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings in February to deliver the project at Spark.

    Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.

    It will also be developed in line with internationally recognised sustainability standards, featuring solar photovoltaic readiness, electric-vehicle charging infrastructure and a target of Leed Gold certification.

    The development aims to support the next stage of Saudi Arabia’s logistics and supply chain expansion.

    Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.

    According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.

    Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21267403/main.gif
    Yasir Iqbal