meed-logo

line1 line2 line3
SIGN IN / REGISTER

EDF consolidates low-carbon business

27 May 2025

 

Register for MEED’s 14-day trial access 

Seven years after securing its first project in the region, the 800MW third phase of Dubai's Mohammed Bin Rashid Al-Maktoum Solar Park, the Middle East subsidiary of French utility developer group EDF now boasts a cumulative gross capacity of about 12 gigawatts of alternating current (GWac) from power generation plants that are operating and under construction.

"We have a strong technical team, and we will continue to bid for new contracts across all power generation technology types," Luc Koechlin, managing director and CEO of EDF Middle East, tells MEED.

The firm aims to continue bidding for new contracts, despite the fact that some of the more established utility developers are deliberately stepping back from bidding on new tenders in the region in line with shifts in geographic or technical focus.

We are bidding for most of the low-carbon projects in the region because we have the ability and capacity to do so

This strategy will be strengthened as the firm consolidates its two business divisions – the erstwhile EDF International and EDF Renewables, which have been merged under an entity that will be known as EDF Power Solutions.

"EDF Power Solutions will become the low-carbon energy arm of EDF worldwide," Koechlin says, adding that the new business division will cover renewables, hydro pumping storage plants, thermal plants with carbon capture, power transmission, as well as battery energy storage systems (bess).

In addition to growing its low-carbon energy fleet, which is expected to reach a global production capacity of 600 terawatt-hours in 2035, EDF Power Solutions will be focusing on opportunities in the power transmission space, the optimisation of electricity system flexibility and more efficient consumption of electricity.

"It will include battery energy storage systems, especially if they are integrated as part of grid solutions or renewable energy projects, as well as demand-side management and energy efficiency," Koechlin tells MEED.   

Alongside its partners, South Korea's Korea Electric Power Corporation (Kepco) and Japan's Kyushu Electric Power Company, EDF is implementing the $3.8bn project to connect Abu Dhabi National Oil Company's offshore sites to cleaner onshore generation plants.

Koechlin says the company expects similar projects to come up in time, as Middle Eastern countries ramp up the deployment of intermittent renewable power into their electricity grids.

On the generation front, EDF Power Solutions will be looking at adding 2GW of new low-carbon capacity every year in the Middle East region. 

"We will focus on all types of technology, so long they are low-carbon, and across the entire value chain, from the design to the operation of these assets," he says.

The executive adds that combined-cycle gas turbine plants are part of EDF Power Solution's generation spectrum, "so long as they involve committed carbon capture solutions".

Fastest-growing region

Koechlin notes that the Middle East is one of EDF's most rapidly growing regions globally – if not the fastest.

According to data from regional projects tracker MEED Projects, more than 100GW of renewable energy projects are in the planning and procurement stage in the Gulf region.

In the past three years, there has also been a major resurgence in gas-fired power plants, due to the fact that expanding intermittent renewable power necessitates the deployment of baseload capacity, in addition to storage solutions.

Besides Saudi utility developer Acwa Power, EDF is the only other developer that has been consistently bidding for contracts across a wide cross-section of power generation and transmission assets in the Middle East in recent years.

"We are bidding for most of the low-carbon projects in the region because we have the ability and capacity to do so," Koechlin says, adding that the firm has adopted an expansionary mode to match the volume of projects on the ground. 

"The Middle East region accounts for between 25% and 30% of our [global] portfolio. We expect this to continue growing. The competition is tough and … this market is extremely competitive, that's why we need to be innovative. We keep finding new ways to optimise our projects … to gain every single point of competitiveness."

Koechlin says he is aware that some of the more established international utility developers operating in the region have taken on a more selective approach when bidding for new contracts, but he is confident that finding innovative approaches will keep EDF in good standing in the coming years.

"What makes EDF different is we have strong technical teams … we like highly technical projects because that's where we can add value," he says.

To illustrate, he points to the multi-utility package for the Amaala tourism development project in Saudi Arabia, which EDF is developing in partnership with Abu Dhabi Future Energy Company (Masdar).

Understood to be worth $2bn, the total package entails the development of solar power, battery energy storage, transmission, water desalination and wastewater treatment facilities under one long-term contract.

Project finance

The wave of new generation, storage and transmission projects in the region – particularly in Saudi Arabia, where at least 44GW of gas-fired and renewable energy plants are under construction – does not impact the ability of investors to attract project finance, according to Koechlin.

"We never faced any liquidity issues, certainly not with our projects. First, we deploy long-term project finance, and lenders tend to prefer to work with experienced developers like EDF. Second, the region enjoys a stable public-private partnership regulatory framework, with little to no political risks. This makes our projects in the region very attractive for lenders," he says.

Data centres

The explosion of demand for data centres, both globally and in the Gulf region in particular, where countries are racing to establish global artificial intelligence hubs, offers major opportunities, Koechlin notes.

He says that there are three reasons why data centres are good news for utility developers like EDF. First, they use a lot of electricity; second, the electricity used by data centres is stable baseload capacity, making them suitable for small modular reactors (SMRs) or small-scale nuclear power plants; and third, they open up new opportunities for solar-plus-bess combinations.

In addition, most data centre end users, such as Amazon Web Services, Microsoft, Google and other technology companies, are now requiring low-carbon electricity, which aligns with EDF Power Solutions' generation assets portfolio, Koiechlin says, adding that SMRs can offer advantages, especially in jurisdictions with less developed grids and without large-scale nuclear power plant capacity. 

Green hydrogen

Having won one of the green hydrogen land blocks that Oman auctioned last year, EDF is understood to be in the early stages of studying and designing a large-scale green ammonia project.

Koechlin says that green hydrogen will play a role in the overall energy transition, and in delivering net-zero targets, although perhaps "not on the same scale as originally envisaged by some stakeholders or developers".

"Net-zero will need some green hydrogen, but the main question is the price at which offtakers are willing to purchase the product," he says.

In the interim, EDF is undertaking projects in several geographies to prepare the market and assess the willingness of offtakers to buy and use green hydrogen. "We will be ready once the market is ready," Koechlin concludes.   

https://image.digitalinsightresearch.in/uploads/NewsArticle/13949402/main2609.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Chinese firm wins Emaar Address Zabeel contract

    17 October 2025

    Beijing-headquartered China State Construction Engineering Corporation has been awarded a contract by UAE-based developer Emaar Properties to build a multi-tower complex in Dubai’s Zabeel area called Address Residences Zabeel.

    The development will comprise four towers offering more than 1,700 one- to four-bedroom residential units, 2,600 square metres of retail space and parking for 2,000 cars. The towers will be 50, 58, 52 and 54 storeys high.

    The project is expected to be completed in 2027.

    The latest contract award from Emaar follows the start of construction activity at the Dubai Square mall, which will be connected to the upcoming Dubai Creek Harbour tower within Emaar's Dubai Creek Harbour development.

    MEED recently reported that Dubai-based contractor Dutco Construction had started mobilising for the main works on the project.

    Dubai’s heightened real estate activity has led to record-breaking announcements from several UAE-based real estate firms. 

    In February this year, Emaar reported a total revenue of AED19.1bn ($5.2bn) in 2024, a 61% increase from 2023. It said it recorded a net profit before tax of about AED10.2bn ($2.8bn), a 20% rise compared to 2023.

    According to data published earlier this year by the Emirates News Agency (Wam), the total value of real estate transactions in the UAE reached AED893bn, with more than 331,300 transactions recorded last year.

    UK analytics firm GlobalData forecasts that the UAE construction industry will register an annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects.

    READ THE OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

    Distributed to senior decision-makers in the region and around the world, the October 2025 edition of MEED Business Review includes:

    > AGENDA 1: A new dawn for PPPs
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14892821/main.jpg
    Yasir Iqbal
  • Chinese company to build tyre plant in Morocco

    17 October 2025

    Chinese tyre manufacturer Shandong Yongsheng Rubber has launched a $675m project to build a tyre factory in Morocco.

    The plant will initially produce 6 million semi-steel radial tyres annually, with plans to gradually increase capacity to 12 million units per year, according to a company statement.

    The tyres manufactured will be primarily destined for export to European, African and American markets.

    Shandong Yongsheng Rubber also plans to capitalise on preferential tariffs offered through Morocco’s free trade agreements with numerous jurisdictions, including the European Union, the US and several West African countries, the company said.

    The factory, to be developed in Morocco’s Diouch province, will produce tyres that meet technical standards for developed markets.

    Preliminary administrative procedures, including regulatory registration, have already been completed for the project.

    Increased investment

    Chinese companies in the automotive sector have increased investments in Morocco and neighbouring Algeria in recent years.

    In August, Chinese automotive interior materials manufacturer Kuntai announced plans to establish a production facility in Morocco through its subsidiary Kuntai Hongjing.

    The project represents a total investment of RMB100m ($13.7m) and will focus on manufacturing car floor mats and carpets for vehicles.

    In March, Great Wall Motor, one of China’s top 10 car manufacturers, announced plans to build its first factory in Algeria, joining other companies in the country, including Fiat, Peugeot and Kia.

    Last November, the Algerian Ministry of Industry & Pharmaceutical Production announced that it had granted permits for six new vehicle manufacturing factories in the country.

    In March 2023, Dutch carmaker Stellantis announced plans to spend more than €200m ($213m) to manufacture several Fiat models in Algeria.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14889877/main.jpg
    Wil Crisp
  • Two cement plants to be built in Egypt

    17 October 2025

    Egypt is planning to issue two new cement plant licences before the end of the year, with the aim of cubing rising prices in the country.

    The two new licences were approved during a recent meeting between local cement producers and Kamel El-Wazir, Egypt’s minister of trade and industry, according to a news report by Asharq Business, which cited an anonymous official.

    “The two permits are expected to be released before the end of the year, with each licence including its own production line,” the official said.

    The two new plants are expected to add 1.5-2 million tonnes a year of production to Egypt’s cement output.

    The cement project approvals from Egypt’s government come amid heightened concerns about the cost of construction projects in the country.

    Importing materials and equipment for projects has become increasingly expensive over recent years due to Egypt’s currency weakening. Over the past 12 months, the price of cement has increased by almost 50%.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14889881/main2139.jpg
    Wil Crisp
  • Kuwaiti contractor submits lowest bid for oil project

    17 October 2025

    Ahmadi-based Spetco International has submitted a low bid of KD88.2m ($288.7m) for the contract to develop the planned Mutriba remote boosting facility in Kuwait.

    The project was originally tendered by Kuwait Oil Company (KOC) earlier this year, with a bid submission deadline of 29 June.

    The deadline was extended several times before three Kuwait-based companies submitted bids.

    The details of the bids submitted for the project are as follows:

    • Spetco International – KD88,209,236 ($288.7m)
    • Combined Group Contracting – KD123,000,000 ($402.5m)
    • Alghanim International General Trading & Contracting – KD129,450,000 ($423.7m)

    The project’s scope includes:

    • Development of the Mutriba oil field
    • Installation of the degassing station
    • Installation of manifolds
    • Installation of condensate facilities
    • Installation of wellhead separation units
    • Installation of the pumping system
    • Installation of wellhead facilities
    • Installation of oil and gas treatment plants
    • Installation of a natural gas liquids plant
    • Installation of a water and gas injection plant
    • Construction of associated utilities and facilities

    The onshore Mutriba oil field is located in northwest Kuwait and is being developed as part of Kuwait’s wider strategy to boost the country’s upstream capacity.

    Commercial output from Mutriba officially began on 15 June this year, after several wells were connected to KOC’s production facilities.

    The field, in a previously undeveloped part of Kuwait, covers more than 230 square kilometres and lies outside the area of fields already operated by KOC.

    In September, Kuwait’s Oil Minister Tareq Al‑Roumi said that the country’s oil production capacity had reached 3.2 million barrels a day (b/d), its highest level in more than 10 years.

    Despite the higher capacity, Kuwait says it will continue to abide by Opec+ agreements and will produce 2.559 million b/d.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14892763/main.png
    Wil Crisp
  • Power market reshapes contractor landscape

    16 October 2025

    Commentary
    Mark Dowdall
    Power & water editor

    Register for MEED’s 14-day trial access 

    The number of UAE-based power projects awarded under the traditional engineering, procurement and construction (EPC) model has fallen to its lowest level in the past decade.

    Admittedly, this does not include the Covid year of 2020, but the point stands. Across the GCC, capital is still flowing into the sector at record levels. What has changed is how that capital is being deployed.

    In a recent analysis, I revealed 2025 to be a record-breaking year, with the UAE’s power market recording its highest annual total for contract awards on record. Yet instead of a broad spread of smaller contracts, governments and utilities are concentrating investment in fewer larger and more complex schemes that are reshaping how the region’s energy systems are built and financed.

    In 2025, a single solar and battery storage independent power project (IPP) in Abu Dhabi accounts for 67% of the country’s total power contract value. EPC contracts, once the mainstay of the market, have been eclipsed by developer-led models as the preferred route for large-scale power generation.

    Saudi Arabia is moving in the same direction, albeit at a different pace. While EPC work remains central to grid expansion, the kingdom’s largest investments are now in utility-scale IPPs backed by the Public Investment Fund.

    In my recent annual ranking of private power developers across the GCC, the surge in power generation capacity owned by Saudi Arabia’s Acwa Power was telling. Not only did the firm’s net equity grow by 70% in a single year, but it now eclipses the combined equity of the other leading developers in the region, a direct result of its dominant role in PIF-backed schemes. These projects, including multi-gigawatt solar and wind developments, are redefining the scale and structure of procurement.

    Behind this shift is a combination of market maturity, financing strategy and energy transition goals. Developer-led projects concentrate capital and risk in fewer hands, streamline procurement timelines and align closely with long-term policy objectives.

    For governments, they deliver capacity without requiring large upfront capital commitments. For developers, they offer stable, long-term returns through secure offtake agreements.

    But this concentration also narrows the field of opportunity. Where dozens of smaller EPC packages once supported a broad ecosystem of contractors and suppliers, today’s market is increasingly revolving around a handful of mega deals.

    Competition is intensifying for fewer projects, and entry barriers, ranging from balance sheet strength to technical capabilities, are rising.

    Smaller EPC contractors, once central to power delivery across the GCC, risk being pushed to the margins. Some will adapt by partnering with larger developers, but others may find fewer opportunities to participate.

    Which takes me back to the UAE. In the water sector, 2026 is already shaping up to be a landmark year, with nearly $31bn-worth of projects in tender. A single project, Dubai’s $22bn Strategic Sewerage Tunnel scheme, accounts for over 70% of this total.

    It will follow a public-private partnership (PPP) delivery model that consolidates the entire scope under one consortium, streamlining delivery. However, this approach significantly reduces the number of prime contracting opportunities, with smaller EPC firms more likely to find themselves competing for limited subcontracting roles rather than leading bids.

    It is important to note that while large-scale projects tend to dominate during major build-out phases, attention inevitably turns to smaller, more distributed schemes.

    However, this alone does not necessarily mean a return to the EPC-heavy landscape of the past. For now, as these large projects set the pace, the region’s energy transition may accelerate, but it will also decide who gets to reshape and build it.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14884161/main.jpg
    Mark Dowdall