Developers to submit Dubai 1.8GW solar bids

5 June 2023

State utility Dubai Electricity & Water Authority (Dewa) has extended until 7 June the tender closing date for the contract to develop the 1,800MW sixth phase of Dubai's Mohammed bin Rashid Solar Park project.

Dewa issued the request for proposals for the solar photovoltaic (PV) independent power producer (IPP) contract in December and initially expected to receive bids by the end of May.

Abu Dhabi-based Masdar, Saudi utility Acwa Power and France's EDF are among those qualified to bid for the contract, as MEED previously reported.  

The state utility briefed bidders about the project in March.

The sixth package of the MBR Solar Park project is expected to be commissioned in phases between 2024 and 2026.

Dewa's transaction advisory team on the project includes UK-headquartered Ernst & Young (EY) as financial adviser and  Norway's DNV and UK-headquartered DLA Piper as technical and legal advisers, respectively.

MBR solar park

A total of 2,327MW of clean energy capacity, derived from solar PV and concentrated solar power plant (CSP) facilities at MBR Solar Park, is now operational.

This takes renewable energy's share of the state utility’s overall capacity of 14,817MW to 15.7 per cent.

MBR Solar Park project’s phases and construction statuses are as follows:

  • 13MW solar PV phase one: completed in 2013
  • 200MW solar PV phase two: commissioned in 2017
  • 800MW solar PV phase three: commissioned in 2020
  • 950MW hybrid CSP/solar PV phase four: first 217MW from the solar PV panels and 200MW from CSP using parabolic basins are connected to the Dewa electricity grid as of January, the rest is under construction 
  • 900MW solar PV phase five: 800MW operational, 100MW under construction

The complex's fourth phase features the word’s tallest solar power tower at 262.4 metres. On its completion, the project will have the largest thermal storage capacity in the world of 15 hours, allowing for energy availability around the clock, according to Dewa managing director and CEO Saeed Mohammed Al-Tayer

The solar park’s planned total production capacity of 5,000MW will require investments valued at $13.6bn when complete in 2030.

RELATED READ: GCC’s top renewable energy clients

Energy demand in Dubai reached 53,180 gigawatt-hours (GWh) in 2022, up 5.5 per cent compared to 50,401 GWh in 2021, Dewa said earlier this year.

This growth is half of what was achieved in 2021, at 10 per cent, which marked the emirate's resurgence from the Covid-19 pandemic. 

Al-Tayer said his agency will continue to contribute to developing an infrastructure that is among “the most efficient worldwide”, in line with Dubai’s economic agenda.

The Dubai Economic Agenda 2033 (D33) aims to double the size of Dubai’s economy over the next decade and consolidate its position among the top three global cities.

The Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 aim to provide 100 per cent of Dubai’s total power production capacity from clean energy sources by 2050.

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Jennifer Aguinaldo
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    Abu Dhabi National Energy Company (Taqa) completed its full 2024 fiscal year with a net income of AED7.1bn ($1.9bn) on the back of revenues that reached AED55.2bn.

    The previous year’s net income is only 1.5% higher compared to the prior year, excluding one-off items worth AED10.8bn related to the acquisition of a 5% stake in Adnoc Gas and AED1.1bn deferred tax charge due to the introduction of the UAE corporate tax.

    The company’s ebitda rose 5.9%, to AED21.4bn, in 2024. However, this declined by 31% compared to the prior year if the AED10.8bn acquisition of a 5% stake in Adnoc Gas is considered.

    The firm’s capital expenditure rose by 63.8% due to the construction of the Mirfa 2 and Shuweihat 4 seawater reverse osmosis (SWRO) plants, as well as the “timing and phasing of project execution” within its transmission and distribution (T&D) division and the inclusion of Taqa Water Solutions, formerly known as SWS Holding before its acquisition by Taqa last year.

    Taqa’s free cash flow generation dipped from AED13.9bn in 2023 to AED2.6bn last year, reflecting “increased investments in Masdar, capital investment across generation, T&D and water solutions, and the acceleration of decommissioning activities within oil and gas”.

    Gross debt rose from AED61.7bn at the end of 2023 to AED64.1bn due to the issuance of an aggregate AED6.4bn in seven-year and 12-year dual-tranche corporate bonds, consolidation of AED1.5bn in project debt from the acquisition of SWS Holding and AED1.4bn for the construction of the Mirffa 2 and Shuweihat 4 desalination projects.

    This was offset by the repayment of AED3.5bn in matured corporate bonds, AED2.9bn in scheduled loan repayments and AED500m of other minor movements.

    Some of the firm’s highlights in 2024 included merging Abu Dhabi Distribution Company (ADDC) and Al-Ain Distribution Company (AADC) into one brand, known as Taqa Distribution.

    Taqa also continued to focus on Saudi Arabia, having reached financial close with its partners last year for the Juranah independent strategic water reservoir project and the Najim cogeneration plant project.

    Along with partners Japan’s Jera and the Saudi firm Albawani, Taqa signed two 25-year power-purchase agreements with the Saudi principal buyer last year for the Rumah 2 and Nairiyah 2 combined-cycle gas turbine power plants, which have a combined generation capacity of 3.6GW.

    Global expansion

    Last year, Taqa acquired a 50% stake in US-based Terra-Gen Power Holdings II, while in Europe and through Abu Dhabi Future Energy Company (Masdar), it completed the acquisition of Saeta Yield from Brookfield Renewable.

    Masdar and Spain’s Endesa finalised a partnership agreement last year, with Masdar acquiring a 49.99% stake in EGPE Solar, an Endesa subsidiary. Masdar also acquired Greece’s Terna Energy, which had an operating capacity of 1.2GW at the time of acquisition and is targeting 6GW of operational renewable capacity by 2029.

    Oil and gas

    In terms of the firm’s oil and gas business, it concluded the sale of its stake in the Atrush oil field in the Kurdish Region of Iraq in 2024.

    The firm said it is also making “significant progress” in the UK, transitioning its focus towards safe and efficient decommissioning.

    The firm ended production in the Northern North Sea with the cessation of production at its North Cormorant, Cormorant Alpha, Eider and Tern platforms.

    Onshore gas production in the Netherlands also ceased in 2024, 50 years after the start of production in the Dutch Alkmaar region, said Taqa. 

     

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    13 February 2025

     

    Saudi Aramco and Korea Electric Power Corporation (Kepco) are understood to be undertaking talks to expand the capacity of the $500m Jafurah cogeneration independent steam and power plant (ISPP) in Saudi Arabia.

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    At the time of its procurement, the plant's first phase was to have a power capacity of 270-320MW, and a low-pressure (LP) steam demand of 77-166 thousand pounds an hour (klb/hr) and high-pressure (HP) steam demand of 29-126 klb/hour by 2023.

    The LP and HP steam demand will increase to 283-373 klb/hr and 66-321 klb/hr, respectively, by 2027.

    The oil giant issued the letter of award to Kepco for the contract to develop the Jafurah ISPP scheme in July 2022.

    The South Korean utility developer and investor saw off competition from two Saudi-headquartered firms, Acwa Power and Al-Jomaih, to win the contract.

    Kepco subsequently awarded South Korea’s Doosan Heavy Industries & Construction the project’s engineering, procurement and construction (EPC) contract.

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  • Ewec invites Al-Sila wind bids

    13 February 2025

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    Abu Dhabi state offtaker Emirates Water & Electricity Company (Ewec) has invited prequalified developers to submit their proposals for a contract to develop a 140MW wind power project in Abu Dhabi.

    The Al-Sila wind independent power project is a greenfield renewable energy project with a generation capacity of up to 140MW. When fully operational, it will more than double the existing wind generation capacity in the UAE.

    Ewec said it expects to receive bids by Q2 2025.

    Companies understood to have expressed interest in bidding for the contract include Japan’s Marubeni Corporation and Jera, France’s Engie and EDF Renewables, Saudi Arabia’s Acwa Power and Alfanar, and Beijing-based PowerChina, among others.

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    Together with the existing UAE wind assets, the new project will increase the UAE’s wind generation capacity to approximately 240MW, laying the foundation for further wind energy expansion, according to Ewec’s Statement of Future Capacity Requirements report.

    In October last year, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for several wind power plants in Abu Dhabi and Fujairah, with a combined capacity of over 100MW.

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    • Delma Island (Abu Dhabi): 27MW
    • Al-Sila Abu Dhabi: 27MW
    • Al-Halah (Fujairah): 4.5MW

    Masdar developed the 103.5MW wind power projects, which use “the latest technology and innovation to capture low wind speeds at utility scale, adopting advances in material science and aerodynamics to make wind power possible in the country”.

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    • Al-Khazna solar IPP: 1,500MW
    • Al-Zarraf solar IPP: 1,500MW
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    MEED understands that the proposals for the project, known as the Oasis Project, were submitted on 10 February.

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    It was reported that Alat would have seven business units focusing on areas such as semiconductors, artificial intelligence, next-generation infrastructure, and smart appliances and smart buildings.

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    Saudi Arabia’s Matarat Holding, through the National Centre for Privatisation & PPP (NCP), invited firms to express interest in bidding for the contract in early December.

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    • Al-Sharif Contracting & Commercial Development (local)
    • Al-Yamama Company for Trading & Contracting (local)
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    • Middle East Tasks (local)
    • Modern Airports (local)
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    • Munich Airport International (Germany)
    • Namaya Investment Company (local)
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    • National Transportation Solution Company (local)
    • Nesma & Partners (local)
    • Nesma Company (local)
    • Pini Group (Switzerland)
    • Ports Projects Management & Development Company (local)
    • Salso & Associates (Greece)
    • Samsung C&T Corporation (South Korea) 
    • Sarh Developments (local)
    • Saudi Arabian Trading & Construction Company (local)
    • Saudi Binladin Group (local)
    • Saudi Building Technic Maintenance Company (local)
    • Skilled Engineers Contracting (local)
    • Sumou Real Estate Company (local)
    • Tamasuk Holding Company (local)
    • Tatweer Buildings Company (local)
    • Tav Airports Holding (Turkiye)
    • Technical Development Company for Contracting (local)
    • Terminal Yapi Ve Ticaret (Turkiye) 
    • Vantage Group (Australia)
    • Vision International Investment Company (local)
    • WCT International (Malaysia)
    • Zamil Group (local)

    The new Taif International airport will be located 21 kilometres southeast of the existing Taif airport, with a capacity to accommodate 2.5 million passengers by 2030.

    The clients opted for a 30-year build-transfer-operate (BTO) contract model, including the construction period.

    In addition to a new airport terminal, the proposed design features a runway with a full-length parallel taxiway connecting to a single commercial apron.

    The scope includes facility buildings, utility networks, car parks and access roads, as well as provisions for additional expansions to meet future subsystem requirements.

    The new Taif International airport is expected to meet the projected increase in demand by 2055 and contribute to the economic development of Taif city and its surrounding areas, in line with the kingdom’s National Aviation Strategy.

    It is also expected to meet the needs of Umrah pilgrims as a viable alternative within the region’s multi-airport system, which includes King Abdulaziz Airport in Jeddah, Prince Mohammed Bin Abdulaziz Airport in Medina and Prince Abdulmohsen Bin Abdulaziz Airport in Yanbu.

    Other airport PPPs

    In addition to the Taif International project, three other airports comprise the first stage of Saudi Arabia’s latest plan to modernise and privatise its international and domestic airports.

    The other planned airport public-private partnership (PPP) schemes are in Abha, Hail and Qassim.

    Matarat and NCP recently tendered the contract to develop and operate a new passenger terminal building and related facilities at Abha International airport. They expect to receive bids by April.

    Located in Asir province, the first phase of the Abha International airport PPP project is set for completion in 2028. It will increase the airport terminal area from 10,500 square metres (sq m) to 65,000 sq m. 

    The contract scope includes a new rapid-exit taxiway on the current runway, a new apron to serve the new terminal, access roads to the new terminal building and a new car park area. The scope also includes support facilities such as an electrical substation expansion and a new sewage treatment plant.

    The transaction advisory team for the client on the Abha airport PPP scheme comprises UK-headquartered Deloitte and Ashurst as financial and legal advisers, respectively, and ALG as technical adviser.

    Previous tenders

    The Taif, Hail and Qassim airport schemes were previously tendered and awarded as PPP projects using a BTO model.

    Saudi Arabia’s General Authority of Civil Aviation (Gaca) awarded the contracts to develop four airport PPP projects to two separate consortiums in 2017.

    A team of Tukey’s TAV Airports and the local Al-Rajhi Holding Group won the 30-year concession agreement to build, transfer and operate airport passenger terminals in Yanbu, Qassim and Hail.

    A second team, comprising Lebanon’s Consolidated Contractors Company, Germany’s Munich Airport International and local firm Asyad Group, won the BTO contract to develop Taif International airport.

    However, these projects stalled following the restructuring of the kingdom’s aviation sector.

    Saudi Arabia has already privatised airports, including the $1.2bn Prince Mohammed Bin Abdulaziz International airport in Medina, which was developed as a PPP and opened in 2015.

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