Related Articles

• 
  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 (2.8 $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.

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  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
• 
  Al-Sadawi solar IPP to reach financial close

  16 April 2025

  

   

  The project company developing the 2GW Al-Sadawi solar independent power project (IPP) in Saudi Arabia is expected to reach financial close for the scheme next month.

  The expected timeline falls within the average six-month period in which IPPs generally reach financial close after the power-purchase agreement (PPA) is signed with the offtaker, in this case Saudi Power Procurement Company (SPPC).

  A developer team that includes Abu Dhabi Future Energy Company (Masdar), South Korea’s Korea Electric Power Corporation (Kepco) and China’s GD Power Development signed the project’s PPA with SPPC in November last year.

  The developer team subsequently picked China's Shanghai Electric to undertake the engineering, procurement and construction (EPC) work for the 2GW project. 

  The Masdar-led team offered a levelised cost of electricity of hals4.847 a kilowatt-hour ($c1.29/kWh) for the contract to develop the scheme, which is located in the Eastern Province.

  The second-lowest bidder was a team that includes China’s SPIC Huanghe Hydropower Development and France’s EDF Renewables, which offered to develop the project for $c1.31/kWh.

  US/India-based Synergy Consulting is providing financial advisory services to SPPC for the fifth-round tender of the National Renewable Energy Programme (NREP). Germany’s Fichtner Consulting is providing technical consultancy services.

  SPPC is procuring 30% of the kingdom’s target renewable energy by 2030. Saudi sovereign wealth vehicle the Public Investment Fund (PIF) is procuring the rest through the Price Discovery Scheme. The PIF has appointed Acwa Power, which it partly owns, as principal partner for these projects.

  The Saudi Energy Ministry last year said that the kingdom plans to procure 20GW of renewable energy capacity annually until 2030, subject to demand growth.

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  Hear directly from the gigaproject owners at the biggest construction event—The Saudi Giga Projects 2025 Summit, happening in Riyadh from 12-14 May 2025. Click here to know more

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  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/13704322/main3512.jpg

  Jennifer Aguinaldo
• 
  UAE’s Ewec extends Taweelah C power plant tender

  16 April 2025

  

   

  State utility and offtaker Emirates Water & Electricity Company (Ewec) is understood to have extended the tender closing date for the contract to develop and operate the Taweelah C combined-cycle gas turbine (CCGT) independent power project (IPP) in Abu Dhabi.

  The extension was announced after Ewec received a single bid for the contract on 28 February, according to industry sources.

  The Taweelah C IPP will have a generation capacity of up to 2.5GW and is expected to reach commercial operations in the third quarter of 2028.

  MEED previously reported that UAE-based Etihad Water & Electricity (Etihad WE) submitted a lone bid for the contract.

  The bidder, which sources say is now working with a new consortium partner, intends to resubmit a proposal by the June deadline.

  At least one more prequalified utility developer is interested in bidding, according to one of the sources.

  MEED understands that Ewec has reserved gas turbine units from German original equipment manufacturer Siemens Energy, which could help to attract more bidders to participate in the tender.

  A team of UK-based Alderbrook Finance and US-based Sargent & Lundy is providing financial and technical advisory services to Ewec for the Taweelah C IPP.

  The project will involve the development, financing, construction, operation, maintenance and ownership of the plant, with the successful developer or developer consortium owning up to 40% of the entity.

  The Abu Dhabi government will indirectly hold the remaining equity. 

  The Taweelah C IPP project’s power-purchase agreement (PPA) is expected to expire by 2049, making it several years shorter than previous PPAs, and in line with the UAE’s plan to reach net-zero carbon emissions by 2050.

  Ewec prequalified nine firms that can bid for the Taweelah C IPP contract in July last year.

  In addition to Etihad WE, the following firms passed the contract's prequalification phase:

  • Acwa Power (Saudi Arabia)
  • International Power (Engie)
  • Jera (Japan)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni Corporation (Japan)
  • Sumitomo Corporation (Japan)
  • GE Vernova (US)
  • Orascom Construction (Egypt)
  • Sojitz (Japan) 

  The Taweelah C IPP is the first CCGT project to be procured by Abu Dhabi since 2020, when Ewec awarded Japan’s Marubeni Corporation the contract to develop the Fujairah 3 (F3) IPP.

  Capacity buildout

  Ewec is undertaking a significant capacity buildout to support the emirate’s net-zero, energy diversification and artificial intelligence (AI) strategies.

  The bid evaluation process is under way for the Madinat Zayed open-cycle gas turbine (OCGT) IPP. The power plant is expected to begin commercial operations in Q3 2027. It will provide up to 1.5GW of backup generation, which can be operational at very short notice. 

  Ewec and Abu Dhabi National Energy Company (Taqa) recently signed the PPA for Al-Dhafra OCGT, while the prequalification process is under way for a 3.3GW CCGT in Al-Nouf.

  The tendering proceedings are under way for three renewable energy IPPs: the Al-Khazna and Al-Zarraf solar photovoltaic (PV) and Al-Sila wind facilities, and Abu Dhabi’s first independent battery energy storage system (bess) plant, Bess 1.

  In addition, Ewec and Abu Dhabi Future Energy Company (Masdar) plan to build a round-the-clock solar PV plus bess project. The solar PV plant will have a capacity of 5.2GW, while the bess facility is expected to have a capacity of 19 gigawatt-hours.

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  MEED’s May 2025 report on the UAE includes:

  > GOVERNMENT & ECONOMY: UAE looks to economic longevity
  > BANKING: UAE banks dig in for new era
  > UPSTREAM: Adnoc in cruise control with oil and gas targets
  > DOWNSTREAM: Abu Dhabi chemicals sector sees relentless growth
  > POWER: AI accelerates UAE power generation projects sector
  > CONSTRUCTION: Dubai construction continues to lead region
  > TRANSPORT: UAE accelerates its $60bn transport push

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13703548/main2132.gif

  Jennifer Aguinaldo
• 
  MAF to spend $1.4bn on Mall of the Emirates expansion

  16 April 2025

  Register for MEED’s 14-day trial access 

  UAE-based firm Majid Al-Futtaim (MAF) has announced a AED5bn ($1.4bn) investment to upgrade Dubai's Mall of the Emirates with new retail, dining, wellness and entertainment facilities.

  According to an official statement, the 20,000-square-metre expansion will add 100 new stores.

  The statement added that over AED1.1bn has already been allocated to undertake major enhancements that are currently under way, including a new wellness club, a cultural hub, a dining precinct and infrastructure upgrades.

  The new assets include a wellness club called Seven at Kempinski Hotel Mall of the Emirates and a cultural hub called New Covent Garden, which will be developed with Dubai Performing Arts Academy.

  New Covent Garden is due to open this year and will include a 600-seat theatre.

  A new dining precinct will also be added to the mall, which will open in 2027. 

  The client will also add four new entertainment concepts, including enhanced Vox cinemas, slated to launch by 2026.

  The investment also includes a complete revamp of the mall's west end, with infrastructure upgrades already under way. 

  In October last year, MEED reported that Beijing-headquartered construction firm China Civil Engineering Construction Corporation (CCECC) had commenced the construction works on a bridge that serves traffic going into the mall.

  The single-lane bridge, for traffic coming from the direction of Jebel Ali on Sheikh Zayed Road, provides direct access to the mall's car park.

  The project scope covers the construction of a 300-metre-long bridge and the widening of the current ramp at the Umm Suqeim intersection.

  The works also include upgrading 2.5 kilometres of roads around the mall, three intersections and the bus station at the Mall of the Emirates metro station, as well as upgrading the street next to the Kempinski hotel from one-way to two-way and improving pedestrian and cycling lanes.

  The project is being developed by Dubai’s Roads & Transport Authority (RTA).

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  MEED’s May 2025 report on the UAE includes:

  > GOVERNMENT & ECONOMY: UAE looks to economic longevity
  > BANKING: UAE banks dig in for new era
  > UPSTREAM: Adnoc in cruise control with oil and gas targets
  > DOWNSTREAM: Abu Dhabi chemicals sector sees relentless growth
  > POWER: AI accelerates UAE power generation projects sector
  > CONSTRUCTION: Dubai construction continues to lead region
  > TRANSPORT: UAE accelerates its $60bn transport push

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13703150/main0629.jpg

  Yasir Iqbal
• 
  Oman signs liquid hydrogen corridor deal

  16 April 2025

  Register for MEED’s 14-day trial access 

  Oman has signed a historic joint development agreement to establish the world’s first commercial-scale liquid hydrogen corridor linking Oman to the Netherlands and Germany.

  The corridor will enable the export of renewable fuels of non-biological origin (RFNBO)-compliant liquid hydrogen from Oman’s Port of Duqm to the Port of Amsterdam and to key logistics hubs in Germany, including the Port of Duisburg, and then onward to other European countries.

  The deal was signed during a state visit by Sultan Haitham Bin Tarik, Prime Minister of Oman, to the Netherlands.

  Hydrogen Oman (Hydrom), the sultanate’s hydrogen orchestrator, said the plan entails building the world’s largest hydrogen liquefaction, storage and export terminal, which will be established at the Port of Duqm.

  The facility will ensure upstream production is aligned with national plans, and that the project integrates seamlessly into Oman’s broader hydrogen infrastructure and policy framework.

  State-backed energy group OQ will lead the liquefaction infrastructure, which involves developing the hydrogen plant along with related storage and export facilities.

  The centralised facility will draw from Duqm’s growing renewable hydrogen developments, leveraging the port’s strategic location as a maritime hub and special economic zone. 

  The centralised liquefaction plant will be supported by maritime transportation vessels developed by Ecolog, which will ship liquid hydrogen with zero boil-off, ensuring greater efficiency and reduced losses.

  On the European side, the corridor will be anchored by re-gasification import terminals at the Port of Amsterdam, from which the hydrogen will be distributed to industrial offtakers in the Netherlands and Germany via gas pipeline networks, rail connections and barge distribution through the Dutch canal network.

  The groundbreaking deal is one of several government-to-government agreements related to Oman's ambition of developing a global hydrogen hub.

  In December, Hydrom and the Belgian Hydrogen Council signed a memorandum of understanding (MoU), setting the stage for enhanced cooperation across the hydrogen value chain.

  The MoU sought to align policies; promote knowledge exchange and technological advancements; and explore opportunities across hydrogen production, infrastructure, transportation and utilisation.

  In the first two rounds of its land auctions, Hydrom has signed land concession agreements with teams led by Denmark’s Copenhagen Infrastructure Partners, South Korea’s Posco and France’s Engie; Japan’s Marubeni; France’s EDF; and a team comprising London-based Actis and Australia’s Fortescue.

  Oman has also signed what it refers to as legacy projects with other teams led by Belgium’s Deme, BP and Shell.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13703120/main4327.jpg

  Jennifer Aguinaldo