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Firms prepare Al-Zarraf solar PV bids

17 March 2025

 

Prequalified firms have approximately three months to form consortiums and prepare proposals for a contract to develop Abu Dhabi’s fifth utility-scale solar photovoltaic (PV) independent power project (IPP).

State utility Emirates Water & Electricity Company (Ewec) prequalified 16 companies that can bid for the Al-Zarraf solar IPP, also known as PV5, which will have a capacity of 1,500MW.

Industry sources say up to five consortiums are being formed to bid for the contract as of mid-March.

The 10 firms that may bid as managing members of the bidding consortiums are: 

  • AlJomaih Energy & Water (Saudi Arabia)
  • EDF Renewables (France)
  • International Power (Engie)
  • Jera Nex (Japan)
  • Jinko Power (Hong Kong)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Korea Western Power Company (Kowepo)
  • Marubeni Corporation (Japan)
  • SPIC Hunaghe Hydropower Development Company (China)
  • Sumitomo Corporation (Japan)

The following six companies may bid as consortium members:

  • Alfanar Company (Saudi Arabia)
  • Alghanim International General Trading & Contracting (Kuwait)
  • China Power Engineering Consulting Group International Engineering Company (CPECC, China)
  • Etihad Water & Electricity (UAE)
  • Orascom Construction (Egypt)
  • PowerChina International Group (China)

Ewec received expressions of interest for the contract from 20 companies and consortiums in October last year and issued the tender in January.

It expects to receive bids for the contract by 12 June, one of the sources said.

Like the first four solar IPPs tendered by Ewec, the Al-Zarraf solar IPP will involve the development, financing, construction, operation, maintenance and ownership of the solar PV plant and associated infrastructure.

The successful bidder or consortium will enter into a long-term power-purchase agreement with Ewec as the sole procurer of electricity.

Ewec opened the bids for its fourth utility-scale solar project, the Al-Khazna solar IPP or PV4, on 30 October.

Engie offered a levelised cost of electricity (LCOE) of AED fils 5.35502 ($c1.459) a kilowatt-hour (kWh) for the contract, beating by roughly 3% the second-lowest offer made by a team of China’s Jinko Power and Japan’s Jera of AED fils 5.54126/kWh.

A team of France’s EDF Renewables and its partner, Korea Western Power Company (Kowepo), emerged with the highest offer of AED fils 5.86311/kWh. 

Ewec is expected to award the Al-Khazna solar IPP contract to Engie around the second quarter of this year, as MEED reported.

Successful PV bidders

In 2016, a team of Japan’s Marubeni and Jinko Power won the contract to develop and operate Abu Dhabi’s first utility-scale solar PV project in Sweihan, the 934MW Noor Abu Dhabi IPP.

Four years later, in 2020, a team comprising EDF Renewables and Jinko Power won the contract to develop the 1,500MW Al-Dhafra solar PV, which was inaugurated last year.

In April 2024, Ewec awarded the contract to develop PV3, the 1,500MW Al-Ajban solar IPP, to a team led by EDF Renewables and including Kowepo.

Ewec forecasts that at least 18,000MW of solar PV will be in operation by 2035, supporting the realisation of the Abu Dhabi Department of Energy’s Clean Energy Strategic Target 2035.

The programme envisages renewable and clean energy sources meeting 60% of the emirate’s total power demand at the end of the forecast period. 

MEED’s April 2025 report on Saudi Arabia includes:

> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> BANKING: Saudi banks work to keep pace with credit expansion

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Jennifer Aguinaldo

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