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GCC enters pivotal year for IPPs

26 September 2025

 

> This package also includes: MEED's 2025 power developer ranking

Almost 24.4GW of independent power generation capacity is now under tender across the GCC, spread across 29 projects that are in either the bidding or bid evaluation stages.

This highlights how the next 12 months will be decisive for contract awards. Of the total, 20 projects with 17.5GW of capacity are still in the main bid stage, while nine schemes with a combined 6.8GW are being evaluated. 

The projects under evaluation are the clearest signal of near-term awards. In Abu Dhabi, bids are being assessed for the 1.5GW Al-Zarraf and Al-Khazna solar independent power projects (IPPs). 

The Al-Zarraf solar photovoltaic (PV) scheme, Emirates Water & Electricity Company’s (Ewec) fifth utility-scale solar project, is part of the authority’s plan to build an average of 1.4GW of new solar PV capacity annually between 2027 and 2037.

Several developers are also competing for the Al-Khazna contract, with France’s Engie understood to be the frontrunner, having submitted the lowest bid last year.

Near-term awards

In Saudi Arabia, evaluation is under way for the 1.5GW Dawadmi wind IPP and the 1.4GW Najran solar PV IPP – both part of round six of the kingdom’s National Renewable Energy Programme (NREP).

Oman has four smaller IPPs, including a 280MW solar plant and two mid-scale wind projects. If evaluation cycles follow the typical two- to six-month pattern, these projects could be awarded in late 2025 or early 2026.

In the UAE capital, Abu Dhabi National Energy Company (Taqa) and Abu Dhabi Future Energy Company (Masdar) are likely to play key roles in future solar projects. Partners such as Japan’s Marubeni and Mitsui, China’s Jinko Power and France’s EDF have all worked with Taqa and Masdar in recent years, but their position in the GCC developer ranking ultimately depends on how much equity they secure.

In Saudi Arabia, the government has set a target of tendering about 20GW of renewables capacity each year, with the Public Investment Fund (PIF) leading about 70% of these schemes through the NREP. As its preferred partner, Acwa Power will likely continue to strengthen its already commanding lead in the regional developer ranking.

Other developers are also positioning themselves as credible contenders. Marubeni has built a track record in Saudi wind projects, securing the 600MW Al-Ghat and 500MW Waad Al-Shama IPPs with Ajlan & Bros in 2024 and winning the 700MW Yanbu wind IPP in July.

South Korea’s Kepco has also been a standout winner in the past year, securing stakes in four regional IPPs. Notably, it took 30% equity in both Saudi Power Procurement Company’s (SPPC) 1,800MW gas-fired power plants Nairiyah-1 and Rumah-1 in consortiums led jointly by Acwa Power and Saudi Electricity Company. It also teamed up with Masdar to take a part ownership of the 200MW Al-Sadawi 1 solar IPP.

The main bid stage still accounts for most of the pipeline, however. Saudi Arabia leads, with 14 projects totalling 12.6GW, all under the PIF and SPPC framework. These range in size from 1.5GW to 3GW and reflect the scale of Riyadh’s renewables push.  

The UAE has two projects at bid stage, led by the 3.3GW Al-Nouf 1 combined-cycle gas turbine (CCGT) scheme, which is the single largest in the pipeline. This project is being tendered as an IPP, with Ewec as the offtaker under a long-term power-purchase agreement. Kepco, Saudi Arabia’s Aljomaih and Japan’s Sumitomo have been prequalified to bid for the project, along with state-owned Etihad Water & Electricity (Etihad WE).

Revealing trends

Saudi Arabia is clearly dominant in terms of volume, while the UAE’s near-term focus is on fewer but larger projects. In total, solar makes up the largest share, with about 16.8GW in the pipeline. Developers with strong solar portfolios, such as Jinko Power, EDF, Engie and TotalEnergies, stand to gain the most as the push for solar continues apace, but the Al-Nouf 1 CCGT project in Abu Dhabi shows that conventional power is still relevant. A win here could lift the standing of Japanese or Korean entities that are seeking balance between renewables and thermal generation.

Battery storage is also emerging later in the cycle. Abu Dhabi’s 400MW battery project is the region’s first standalone large-scale battery energy storage project to be tendered under an IPP model. In Saudi Arabia, SPPC is expected to follow with its own programme, which could reach gigawatt scale. These projects may wish to bring in developers with experience in storage technology, showing how the IPP model is being extended beyond generation.

Overall, the GCC’s IPP and independent water and power project market is set for another busy round of awards. The composition of the pipeline ensures that solar developers will continue to expand their portfolios, while conventional players could still win large capacities through Abu Dhabi’s CCGT programme. 

Acwa Power’s partnership with the PIF means its position at the top of the ranking will only strengthen as more Saudi projects are awarded. For others, progress depends on equity access through partnerships.

While these projects will matter in proportion to how much equity they open to partners, this year’s movers have shown that smart bidding and strong partnerships can still shift the balance.

 MEED's 2025 power developer ranking

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Mark Dowdall

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