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
Related Articles
  • Algeria tenders 310km Tamanrasset railway

    16 October 2026

     

    Algeria’s state railway project developer, Agence Nationale d’Etudes et de Suivi de la Realisation des Investissements Ferroviaires (Anesrif), has invited national and international contractors to bid for the construction of a 310-kilometre (km) railway line between Hotel Station and Moulay Lahcen Station. 

    The planned line is a key segment of the proposed railway corridor connecting El-Menea, In-Salah and Tamanrasset across the southern wilayas of In-Salah and Tamanrasset.

    The tender notice was issued on 12 October, with bids due by 10 November.

    The tender is open to single contractors and consortiums. To qualify, single firms must have executed at least 200km of new railway lines or track-doubling works since 2010, with accepted project certificates covering sections of at least 100km, along with a cumulative 800 metres of railway bridges with individual spans exceeding 30 metres.

    Bidders must also provide at least two rail-tamping machines, two ballast regulators, and a project director with an engineering degree and at least five years of railway construction management experience.

    From a commercial and classification perspective, single bidders and consortium leaders must hold a category-nine (IX) professional qualification in public works.

    Bidders must also demonstrate an average annual turnover in construction of at least DZ260bn ($1.96bn) across the 2023-2025 financial period.

    For joint ventures, the cumulative turnover of all members must meet the $1.96bn threshold, with the consortium leader accounting for at least $1.3bn.

    Offers must be accompanied by a bid bond exceeding 1% of the total bid value for submissions exceeding $7.4m, with proposals remaining valid for 90 days beyond the submission date.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20665591/main.jpg
    Yasir Iqbal
  • Joint venture wins $246m RCRC bridges contract

    16 October 2026

     

    A joint venture of local contractor Mofarreh Group and Turkey-based Gulsan Holding has won an estimated SR923m ($246m) contract from the Royal Commission for Riyadh City (RCRC) to construct a series of grade-separated steel flyovers across the capital.

    The contract, known as Package 2 (Groups 2 and 3), is part of RCRC’s urgent bridges programme under the wider project to build steel bridges at 10 junctions across Riyadh.

    The works have a 12-month execution timeline to fast-track traffic decongestion across major arterial corridors.

    The joint venture’s scope covers the engineering and construction of grade-separated steel bridge interchanges across seven key intersections:

    • IC04: Al-Khair Road and King Salman Bin Abdulaziz Road
    • IC05: Prince Turki Road and Imam Saud Road
    • IC06: Al-Takhassosi Road and Saeed Al-Sulami Road
    • IC07: Khurais Road and Al-Hareth Bin Abdullah Road
    • IC08: Khurais Road and Ash-Sharq Road
    • IC09: Khurais Road and Marmar Road
    • IC10: Al-Kharj Road and Al-Hilla Road

    The total length of the flyovers is 8.86 kilometres, excluding Junction IC10.

    In addition to the structural steel superstructures, concrete bridge foundations, decks and approach ramps, the contract includes retaining walls, utility diversions, temporary phased traffic arrangements, associated roadworks, drainage networks, roadway lighting, intelligent transportation systems and landscaping.

    The client received commercial proposals from several local and international contractors. Other bidders included:

    • Masco
    • Nesma & Partners
    • Al-Omaier Trading & Contracting Company 
    • Yuksel Saudia 
    • Batco 
    • Modern Building Leaders
    • Sapac

    The urgent bridges initiative is part of Riyadh’s rapid transport infrastructure programme to improve traffic throughput, enhance safety and ease vehicular congestion across central and ring-road corridors ahead of major events, including Expo 2030 and the 2034 Fifa World Cup.

    In July, Mofarreh Group and Turkiye’s Gulsan Holding formed a joint venture to bid for and deliver transport infrastructure projects in Riyadh for RCRC.

    The joint venture said it will target road, bridge, viaduct and interchange projects.

    Mofarreh will provide local market access and operational capacity, while Gulsan will contribute international experience in large-scale transport projects.

    The companies said the new venture will support knowledge transfer and localisation, and promote the use of international engineering and construction standards aligned with Saudi Arabia’s Vision 2030 infrastructure and sustainability goals.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20663255/main.png
    Yasir Iqbal
  • Humain tenders 100MW Riyadh AI data centre

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    Saudi artificial intelligence infrastructure developer Humain has issued a request for proposals for an engineering, procurement and construction (EPC) contract to deliver a 100MW artificial intelligence (AI) data centre facility in Riyadh’s Al-Saad area.

    The tender was issued on 17 September, with bids due by 8 November.

    The contract includes core-and-shell works; civil works; mechanical, electrical and plumbing installation; testing and commissioning; and site infrastructure across a 350,200-square-metre plot.

    The project also includes an optional expansion phase that could raise total site capacity to 200MW.

    The initial 100MW development is split into two equal 50MW phases, structured across two single-storey IT buildings housing four 25MW data halls.

    Phase one targets a ready-for-service date by October 2028, followed by phase two in January 2029.

    Under the optional phase three, an additional 100MW facility would be brought online by July 2029.

    The data centre will be designed to support high-density graphics processing unit clusters and AI-compute workloads, with rack densities of 240kW to 250kW.

    The facility will be built to Uptime Institute Tier III topology and LEED Silver standards as a baseline, targeting LEED Gold.

    The operational design targets an annualised power usage effectiveness below 1.35.

    Power will be delivered through four 33kV connections supplied by Saudi Electricity Company from two separate high-voltage/medium-voltage primary substations. The scope requires 15 transformers, 15 static 2,250kW IT uninterruptible power supply (UPS) units, and 450kW mechanical UPS systems with lithium-ion battery storage for each 25MW block. 

    Backup emergency diesel generators will be provided on an owner-furnished, contractor-installed basis, with the EPC contractor handling their installation, connection and testing. Fuel storage will provide 24 hours of autonomous run-time, split between on-site underground bulk tanks and generator belly tanks.

    Thermal management combines air and liquid cooling. High-density server racks will be equipped with direct-to-chip liquid cooling loops using coolant distribution units and technical water distribution, paired with air-cooled chillers operating in dual high- and low-temperature loops, alongside fan-wall units.

    The total construction timeline is capped at 25 months from site handover or contract signing, with pre-execution early mobilisation scheduled to start in January 2027.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20661045/main.jpg
    Yasir Iqbal
  • Adnoc Onshore seeks bids for Bu Hasa field EOR project

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    The onshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Onshore) has sought bids from contractors for a key project to increase the oil production capacity of the Bu Hasa oil field, primarily through enhanced oil recovery (EOR) techniques.

    The main objective of the Bu Hasa-Shuaiba EOR Unit 1 (Phase 1) project is to achieve a targeted 70% increase in oil production, extend the Bu Hasa field development’s production plateau and maximise the field’s potential in an economical manner.

    The project aims to confirm and validate the optimum EOR technology for the top-ranked reservoirs/units; assess incremental recovery on top of the improved oil recovery (IOR) wedge; extend the field plateau for as long as is economically feasible; and achieve an ultimate recovery factor of 70% from the Shuaiba reservoir. It will evaluate and execute the recommended EOR option through pattern phasing for any technology proven by Adnoc.

    Adnoc Onshore is understood to have issued the tender for the project on 20 September, with an initial technical bid submission deadline of 8 October, according to sources. The client later extended the technical bid submission deadline to 17 October, sources told MEED.

    The chosen contractor will execute the project under a hybrid contracting strategy comprising:

    • A lump sum (turnkey) EPC scope covering the complete pipeline system from East Hub to the separation plant
    • A call-out-based scope for execution of all WAG injector and WSW tie-in works

    Unless otherwise specified, all activities defined under the contractor’s scope will be deemed included within the lump-sum contract price. This will cover engineering, procurement, construction, testing, pre-commissioning and support to commissioning for a complete and operable system.

    At the Bu Hasa field development, three remote degassing stations (RDS-1/2/3) and two satellite stations, Bida Al-Qemzan and Huwaila, are currently in operation. Production from oil wells completed in Shuaiba, Thamama B, Thamama F, Bida Al-Qemzan and Huwaila is routed via individual flowlines to the three remote degassing stations and the Bida Al-Qemzan and Huwaila stations across different parts of the field.

    Combined production from the wells at each of these stations is routed to the central degassing stations (CDS) via transfer lines ranging from 16 inches to 24 inches in diameter. In addition, some wells in the central part of the field are connected directly to the CDS.

    Previous studies have identified carbon dioxide (CO2) flooding as a promising tertiary recovery mechanism in the Shuaiba reservoir, delivering incremental recovery on top of the IOR wedge (P5 project), extending the field plateau as long as economically feasible, and achieving an ultimate recovery factor of 70% from the Bu Hasa Shuaiba units.

    Located 200 kilometres south of Abu Dhabi city, Bu Hasa is Adnoc Onshore’s westernmost producing field. It is one of Abu Dhabi's biggest onshore assets, with crude oil production capacity of 650,000 b/d. It is also one of the Adnoc Group’s oldest oil fields, having been discovered in 1962 and in production since May 1965.

    As part of the ongoing Bu Hasa Integrated Field Development Project (BUIFDP), 13 new well pads and two pad hubs have been added to the field. Oil, gas and water produced at these sites will be collected at a central gathering facility, then sent through production headers and transfer lines to the CDS for processing.

    Adnoc Onshore is the Adnoc Group’s largest oil-producing subsidiary, accounting for 2 million b/d of oil and about 7 billion cubic feet a day of associated gas production from four main onshore field developments in Abu Dhabi: Bab, Bu Hasa, North East Bab and South East.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20639750/main0548.jpg
    Indrajit Sen
  • OTTCO issues tender for Oman oil storage park expansion

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    Oman Tank Terminal Company (OTTCO) has issued the main tender for a major project related to the expansion of the Ras Markaz crude oil storage complex at Duqm, on the sultanate’s Arabian Sea coast.

    The project, titled Trade Bridge, involves the engineering, procurement and construction (EPC) of eight large storage tanks, each with a capacity of 650,000 barrels. This will increase the Ras Markaz terminal’s total storage capacity by 5.2 million barrels.

    The project represents the next expansion phase (phase 1.4) of the Ras Markaz oil storage terminal within the Special Economic Zone at Duqm (Sezad).

    State-owned OTTCO issued the prequalification notice for the project on 28 July, with contractors submitting initial responses by 4 August and final responses by 19 August, MEED previously reported.

    According to sources, OTTCO issued the main tender for EPC works on Project Trade Bridge in the weeks following completion of the prequalification exercise.

    The following contractors, among others, are understood to have been prequalified by OTTCO to bid for Project Trade Bridge:

    • China Petroleum Pipeline Engineering Company (China)
    • China Tianchen Engineering Corporation (China)
    • Daqing Oilfield Construction Group Company (China)
    • Enppi Muscat (local branch of Egypt-based Enppi)
    • Gulf Petrochemical Services & Trading (Oman)
    • Hualu Engineering & Technology Company (China)
    • Rotary Engineering (Singapore)
    • Sinopec Ningbo Engineering Company (China)

    OTTCO commissioned the first phase of the Ras Markaz crude oil storage park, covering 10 square kilometres and with a capacity of 26.7 million barrels, in December 2022.

    The storage facility has two parts. The first is a marine services area, which includes a floating station for crude imports and exports. This zone is about 7 kilometres offshore and is connected via two 42-inch pipelines and associated facilities.

    In water depths of up to 42 metres, the floating station can accommodate very large crude carriers. It is linked to four main pumps that transfer crude oil to the storage area, which is located more than 120 metres above sea level. OTTCO could add pumps at a later stage to keep pace with future demand for oil storage.

    The second part of the storage facility features oil pumping systems, water treatment facilities, reservoirs, power station networks and other associated systems.

    Region’s largest oil storage park

    OTTCO will build the Ras Markaz oil storage facility in five phases over several years across an area of about 40 square kilometres, for which it signed a land agreement with Sezad in July 2017.

    It will be able to hold 200 million barrels of crude a year. Total investment in the scheme is understood to be $5.2bn.

    The storage terminal in the first phase of the Ras Markaz facility is connected to the estimated $7bn Duqm refinery and other oil-derivatives production plants at Sezad via a pipeline that will supply crude feedstock to the refinery when required.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20638090/main0749.jpg
    Indrajit Sen