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
  • Miral commits $3.2bn Yas Island investments

    14 September 2026

    Abu Dhabi’s Miral has announced plans to invest over AED12bn ($3.2bn) in Yas Island over the next five years.

    According to a statement, the investment will fund a pipeline of new projects, as well as expansions and enhancements to existing attractions, supporting Abu Dhabi’s Tourism Strategy 2030.

    The next phase of development will focus on expanding Yas Island’s theme parks and attractions, while introducing new immersive rides and experiences that reflect changing visitor expectations.

    The investment will also strengthen the island’s hospitality offering through additional hotel rooms and enhancements to its overall accommodation portfolio.

    The investment is separate from the previously announced Disney project. 

    Miral recently started the expansion works of its Harry Potter-themed expansion at the Warner Bros World Yas Island entertainment destination in Abu Dhabi.

    The scope of the Warner Bros World phase two expansion includes adding 63,000 square metres (sq m) to the existing theme park.

    This will include a Harry Potter-themed zone with three new rides called Diagon Alley, Hogwarts Castle and The Forbidden Forest, along with retail outlets and food and beverage facilities.

    Yas Waterworld

    Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island, working with several local and international contractors.

    In July last year, Miral opened a new 16,900 sq m expansion of its Yas Waterworld park to the public.

    The expansion added 3.3 kilometres of slide sections to the park. The addition of 18 new rides and attractions, bringing the total number of rides to more than 60, is expected to increase visitor capacity by 20%.

    Construction was carried out by local contractor Alec.

    Disney park

    The Walt Disney Company and Miral signed an agreement in May to build a Disney theme park resort on Yas Island.

    Disney, which is based in the US, said the Abu Dhabi site will be its seventh theme park resort. The others are in California and Florida in the US, Paris in France, Hong Kong and Shanghai in China, and Tokyo in Japan.

    In a statement, Disney noted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to one of the world’s busiest airline hubs, with 120 million passengers travelling through Abu Dhabi and Dubai each year.

    The Disney theme park resort in Abu Dhabi will include entertainment areas, themed accommodations, dining venues and retail experiences.

    In 2023, Miral opened SeaWorld Abu Dhabi, also on Yas Island. Alec was the contractor for the estimated $565m project.

    In 2018, Miral opened the Warner Bros theme park on Yas Island. Belgium’s Besix was the contractor for the estimated $531m project.

    Other Miral projects have included the Etihad Arena and the indoor climbing and skydive centre Clymb. Bam International of the Netherlands was the contractor for the arena and Germany’s Zublin was the contractor for Clymb.

    Yas Island was launched as a project in 2006 by local developer Aldar Properties. The original centrepiece attractions were the Yas Marina Circuit, which hosts Formula 1 motor racing’s annual Abu Dhabi Grand Prix, and the Ferrari World theme park.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19645816/main.jpg
    Yasir Iqbal
  • Contractors prepare bids for Oxagon wastewater plant

    14 September 2026

     

    Contractors are preparing to submit bids to build a wastewater treatment plant for Oxagon, Neom’s industrial cluster.

    The industrial wastewater treatment package will have an initial capacity of 35,000 cubic metres a day (cm/d), supplied in modular trains of 5,000 cm/d each. A separate sanitary wastewater treatment package will have a capacity of 1,000 cm/d.

    The contract is structured as a design-build-operate project and covers the supply, installation and commissioning of industrial and sanitary wastewater treatment packages, as well as three years of operation and maintenance.

    Bids are due on 2 October, a source close to the project told MEED.

    It is understood that Neom’s water utility Enowa issued the request for proposals earlier this year. The plant is designed to provide “interim wastewater treatment” capacity for Neom’s Oxagon Industrial Quarter as industrial development in the area progresses.

    Enowa has described the treatment systems as interim and de-mountable, allowing them to be installed and subsequently removed or relocated as requirements at Oxagon develop. The plant can be expanded to a maximum of 45,000 cm/d.

    The tender documents also state that Neom may consider export credit agency (ECA) financing for the project, with the strength of bidders’ ECA financing proposals forming part of the commercial evaluation.

    The project follows an earlier tender for the Oxagon Village Water Recycling Plant, which was cancelled despite contractors submitting bids in 2024.

    MEED reported at the time that Beijing-based PowerChina, the local Alfanar Company and Cairo-headquartered Orascom had submitted bids for the project. It is understood that these firms are also likely to participate in the latest tender.

    The earlier scheme included truck receiving facilities, pretreatment, biological treatment using food chain reactor technology, tertiary treatment, sludge handling and recycled-water storage.

    The latest procurement appears to represent a reworked approach to wastewater treatment at Oxagon Industrial Quarter, with the previous engineering, procurement and construction scheme replaced by an interim, modular and de-mountable facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19640903/main.jpg
    Mark Dowdall
  • Saudi Arabia shuts East-West oil pipeline after drone strikes

    14 September 2026

    Saudi Arabia has temporarily closed its 1,200-kilometre East-West pipeline after it was targeted by multiple drones launched from Iraq, disrupting one of the kingdom’s most critical energy export routes and threatening global oil supplies already strained by conflict across the region.

    The Ministry of Energy said the pipeline, which connects the Abqaiq oil field in the east to the Red Sea port of Yanbu, was hit in the Riyadh and Medina regions on 12 September. Specialised teams have begun securing the facility and assessing damage. A Foreign Ministry statement said the attack resulted in injuries and “some damage that is currently being addressed”.

    The closure removes about 4 million barrels a day from the global market, representing 4% of world oil supply. The pipeline’s role has become increasingly critical since the US-Iran conflict forced a near-complete shutdown of flows through the Strait of Hormuz in March.

    Saudi Arabia has been using the East-West route to bypass the chokepoint, but the assault has left the kingdom dependent on substantially reduced Hormuz exports and Red Sea shipping routes now threatened by Iran-backed Houthi forces in Yemen.

    Iraqi Prime Minister Ali Al-Zaidi’s office confirmed the drone strike on the East-West Pipeline originated in the Maysan province, which borders Iran. The government formally condemned the attack, announced an investigation into the Maysan operations command and dismissed its commander. No armed group has claimed responsibility, but security analysts attribute the strike to Iran-backed militias operating from Iraqi territory.

    Riyadh said it was not retaliating “at this stage”, choosing instead to support Iraqi efforts to prevent further strikes from its territory. 

    The attack comes amid wider regional upheaval. Houthi forces have rapidly advanced along Yemen’s coast, seizing the strategic Mokha port and the Zuqar Island in the southern Red Sea, moving closer to the Bab El-Mandab strait. Saudi authorities said the group simultaneously launched dozens of drones and missiles at the southern kingdom on 11 September, striking civilian and economic targets and injuring 73 people.

    Oil analysts and traders reported that Yanbu’s storage capacity, estimated at around 35 million barrels, now holds supplies sufficient for only five to seven days of exports without pipeline operations. Storage facilities at Egypt’s Ain Sokhna and Sidi Kerir ports have similar constraints. Repair timelines remain uncertain, with sources citing estimates ranging from days to five or six weeks.

    The dual disruption of both the pipeline and Red Sea shipping has compressed global energy supplies. Energy analysts warned that without pipeline repairs, oil prices could return to the $120-a-barrel peak reached earlier in the regional conflict.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19641513/main.gif
    Colin Foreman
  • WSP wins Dammam airport expansion design works

    14 September 2026

    WSP Middle East, the regional arm of Canadian engineering firm WSP, has won a design contract to expand King Fahd International airport in Dammam, Saudi Arabia.

    Dammam Airports Company (DACO) awarded the contract.

    The scope includes designing passenger terminal expansions, facility upgrades, and improvements to airport entrances and access roads.

    It also covers the development of baggage-handling systems, digital services and other associated infrastructure.

    The expansion works will be carried out in line with the airport’s approved masterplan, which targets serving more than 19 million passengers a year by 2030.

    The plan also aims to increase air cargo capacity to more than 600,000 tonnes a year and raise aircraft operational capacity to 77 movements per hour, supported by comprehensive expansions to infrastructure, runways and general aviation facilities.

    This contract forms part of DACO’s ongoing efforts to strengthen the airport ecosystem, enhance operational efficiency, and support the Aviation Programme and Saudi Vision 2030 objectives.

    King Fahd International airport is the kingdom’s third-largest airport by annual passenger traffic, behind Jeddah’s King Abdulaziz International and Riyadh’s King Khaled International.

    DACO was formed in July 2017 to manage, operate and develop King Fahd International airport in Saudi Arabia’s Eastern Province.

    It was established as part of the broader Saudi Vision 2030 privatisation and economic reform programme to corporatise the aviation sector, increase operational efficiency, upgrade infrastructure, and transition state-run airports into commercially viable, world-class regional aviation hubs.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19639910/main.jpg
    Yasir Iqbal
  • Dubai seeks contractors for multibillion-dollar road scheme

    14 September 2026

     

    Register for MEED’s 14-day trial access 

    Dubai’s Roads & Transport Authority (RTA) is seeking contractors to design and build a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.

    MEED understands that the scope covers the construction of about 30 kilometres (km) of works.

    These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.

    The RTA floated the expression of interest notice to contractors in early September, with a submission deadline of 10 October.

    The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.

    Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.

    The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through-traffic while the existing at-grade lanes served local access.

    The plans ultimately progressed as standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.

    The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.

    Planning for growth

    Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

    In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

    In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

    The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19639621/main.gif
    Yasir Iqbal