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Engie submits lowest bid for Madinat Zayed power plant

16 April 2025

 

French utility developer Engie has submitted the lowest bid for the contract to develop and operate the Madinat Zayed open-cycle gas turbine (OCGT) power generation plant project in Abu Dhabi.

Engie offered a levelised cost of electricity of 103.9544 fils (28 $cents) a kilowatt-hour (kWh) for the contract.

A consortium of Saudi Arabia's Aljomaih Energy & Water and a subsidiary of the local Etihad Water & Electricity submitted the second-lowest bid of 107.86846 fils/kWh.

The third bidder, a consortium of Egypt's Orascom Construction and Belgium's Besix, submitted the highest bid of 126.980 fils/kWh.

The three teams submitted their proposals for the contract on 28 March.

The Madinat Zayed independent power project is expected to begin commercial operations in Q3 2027. It will provide up to 1,500MW of backup generation, which can be operational “at very short notice”. 

“Gas-fired plants like Madinat Zayed are key to ensuring a reliable energy supply while the country transitions to a decarbonised water and electricity system,” state utility and offtaker Emirates Water & Electricity Company (Ewec) said when it issued the tender for the contract in July last year.

“[This type of plant] will be particularly important for supporting the growth of solar power, providing crucial flexibility during peak power demand periods and acting as a bridge to a future powered exclusively by clean and renewable sources.”

Major capacity buildout

Abu Dhabi’s current electricity generation installed capacity is about 22GW, with gas-fired plants accounting for 68.7% of the total and renewable and nuclear power contributing 12% and 19%, respectively.

Construction work is under way for the 1.5GW Al-Ajban solar photovoltaic (PV) power plant and a 2.5GW combined-cycle gas turbine (CCGT) plant in Fujairah.

Six major generation projects in Abu Dhabi are expected to be awarded this year. These are the 2.5GW Taweelah C CCGT scheme, the Al-Khazna and Al-Zarraf solar PV schemes, the Al-Sila wind facility and Bess 1, in addition to the Madinat Zayed OCGT scheme.

In January, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for a 5,200MW solar PV plant with a 19 gigawatt-hour battery energy storage system (bess), which is expected to provide round-the-clock solar power.

The project is expected to reach financial close this year.

Correction: The fils to $cents conversion is edited on 23 April.

MEED’s April 2025 report on Saudi Arabia includes:

> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING: Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> DATABANK: Saudi Arabia’s growth trend heads up

https://image.digitalinsightresearch.in/uploads/NewsArticle/13706588/main3447.jpg
Jennifer Aguinaldo

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