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Ewec signs Ajban solar PV contract

19 April 2024

Abu Dhabi state utility Emirates Water & Electricity Company (Ewec) has signed an agreement for the development and operation of Abu Dhabi’s third utility-scale solar photovoltaic (PV) independent power project (IPP).

A team led by French utility developer EDF Renewables and including South Korea's Korea Western Power Company (Kowepo) won the 1,500MW Al Ajban solar PV IPP contract.

Ewec announced the official signing of the contract on 18 April, the final day of the World Future Energy Summit in Abu Dhabi.

As with previous solar PV projects in the emirate, Abu Dhabi Future Energy Company (Masdar) will own a stake in the special purpose vehicle that will implement the project.

It is the second major contract won by the French-South Korean team in the GCC since March last year. The team previously won the contract to develop and operate the 500MW Manah 1 solar IPP in Oman.

EDF, along with Masdar and Saudi contracting company Nesma, also won the contract to develop and operate the 1,100MW Hinakiyah solar IPP project in Saudi Arabia in November.

The EDF-led team submitted the lowest levelised electricity cost of 5.1921 fils a kilowatt-hour (kWh) or about 1.413 $cents/kWh for the Al Ajban solar PV IPP contract, as MEED reported in July 2023.

Japan’s Marubeni submitted the second-lowest bid of 5.3577 fils/kWh.

Ewec requested proposals for the contract in January 2023 and received bids in late June 2023. It qualified 19 companies to bid for the contract in September 2022.

Delivering goals

The Al Ajban project – similar to the 1,584MW Al Dhafra solar IPP, which was inaugurated in November, and the operational 935MW Noor Abu Dhabi plant – supports the UAE Energy Strategy 2050 and the UAE Net-Zero by 2050 strategic initiative.

Ewec aims to install up to 17GW of solar PV capacity by 2035.

The plan will require the procurement of about 1.5GW of capacity annually over the next 10 years. Over the intervening period, ending in 2030, Ewec plans to have an additional 5GW of solar capacity, reaching a total solar installed capacity of 7.3GW by 2030.

Ewec expects its first battery energy storage system to come online in the late 2020s to boost balancing the grid's load as more renewable energy enters the system.

The UAE published its updated national energy strategy in July last year. It includes a plan to triple the nationwide renewable energy capacity to 19GW by 2030.

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Jennifer Aguinaldo

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