Related Articles

• 
  Masdar and Etihad plan pumped hydro project

  19 April 2024

  Abu Dhabi Future Energy Company (Masdar) and Etihad Water & Electricity (Ethad WE) have signed a memorandum of understanding (MoU) to develop multiple clean energy projects in the UAE's northern emirates.

  The planned projects include a solar photovoltaic (PV) project, pumped hydro storage project and a potential battery energy storage system facility.

  The two companies signed the MoU on 18 April, the final day of the World Future Energy Summit in Abu Dhabi.

  "This agreement aims to formalise the intention of the parties to further discuss the potential areas of collaboration and possible projects," Masdar said in a social media post.

  Etihad WE is responsible for the procurement and offtake of water and power production services in Umm Al Quwain, Ras Al Khaimah, Ajman and parts of Sharjah.

  Masdar and Emirates Global Aluminium (EGA) announced an agreement to to work together on aluminium decarbonisation and low-carbon aluminium growth opportunities during the same event.

  As part of the agreement, Masdar and EGA will also work together internationally to find opportunities through which Masdar will support EGA to power new aluminium production facilities with renewable energy sources.

   

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  Jennifer Aguinaldo
• 
  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 includes 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 in 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 last year. It qualified 19 companies that could 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 implies procuring about 1.5GW of capacity annually over the next 10 years. Over the intervening period ending in 2030, Ewec envisages having an additional 5GW of solar capacity to reach 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, which included a plan to triple the nationwide renewable energy capacity to 19GW by 2030.

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  Jennifer Aguinaldo
• 
  Egypt resumes power cuts

  18 April 2024

  Power cuts resumed across Egypt on 15 April, with scheduled power outages lasting a maximum of one hour per grid zone between 11am and 5pm daily.

  The scheduled power outages began last year and were suspended during Ramadan.

  The electricity ministry has confirmed that, since no new amendments to the load reduction plan have been issued, the power cut plan will continue indefinitely, adding that the outages are expected to last "until at least the end of summer, due to increased grid demand during the hotter months".

  The government-initiated load-shedding programme initially aimed to rein in rising electricity consumption and reduce pressure on the country's gas network.

  According to the country’s Electricity & Renewable Energy Ministry, national electricity consumption reached 43,650MW in mid-July last year, up significantly from previous highs of about 31,000MW.

  While the record-high consumption level is still below the official generation installed capacity of close to 60,000MW, consumption levels of 34,000MW–36,000MW will require about 129-146 million cubic metres of gas and diesel a day.

  Barring load-shedding, any increase in consumption beyond 36,000MW will require a commensurate increase in gas and diesel, which is understood to be beyond the government’s capacity to procure.

  Crucially, the other side of the electricity rationing initiative has to do with the need to save gas for exports, to boost the government’s dollar reserves in the face of the ongoing currency crisis.

  ---

  MEED’s latest special report on Egypt includes:

  > Cairo secures a cumulative $54bn in financing
  > Egypt faces political and economic trials
  > Cairo beset by regional geopolitical storm
  > More pain for more gain for Egypt
  > Egypt oil and gas project activity declines
  > Familiar realities threaten Egypt’s energy hub ambitions
  > Egypt’s desalination projects inch forward
  > Infrastructure carries Egypt construction

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  Jennifer Aguinaldo
• 
  Ewec wants carbon-capture readiness for next gas power plant

  17 April 2024

  The request for proposals (RFPs) that will be issued for the next combined-cycle gas turbine (CCGT) plant in Abu Dhabi will explicitly require the developers or developer consortiums to accommodate the installation of carbon-capture facilities once they are commercially viable.

  "A key part of the RFP is to make a declaration that this project will be carbon-capture ready … that such facility will be installed as part of the project once carbon-capture solutions become commercially viable," Andy Biffen, executive director of asset development at Emirates Water & Electricity Company (Ewec), told the ongoing World Future Energy Summit in Abu Dhabi.

  As MEED previously reported, Ewec is considering issuing a tender in the next few weeks for its first gas-fired independent power producer (IPP) project since 2020.

  The greenfield Taweelah C gas-fired IPP is planned to reach commercial operation by 2027, according to a recent Ewec capacity procurement statement.

  "We understand that they might skip the expressions of interest and request for qualifications stage and directly invite qualified developers to bid for the contract," two sources familiar with the project previously told MEED.

  The planned Taweelah C gas-fired IPP is expected to have a power generation capacity of 2,457MW.

  Ewec awarded its last CCGT IPP nearly four years ago. Japan's Marubeni Corporation won the contract to develop the Fujairah F3 IPP in 2020.

  The state utility is considering new gas-fired capacity in light of expiring capacity from several independent water and power producer (IWPP) facilities.

  The plants that will reach the end of their existing contracts during the 2023-29 planning period include:

  •  Shuweihat S1 (1,615MW, 101 million imperial gallons a day (MIGD)): expires in June 2025
  •  Sas Al Nakhl (1,670MW, 95MIGD): expires in July 2027
  •  Taweelah B (2,220MW, 160MIGD): expires in October 2028
  •  Taweelah A1 (1,671MW, 85MIGD): expires in July 2029

  Ewec and the developers and operators of these plants are expected to enter into discussions before the expiry of the contracts to decide whether a contract extension is possible. Unsuccessful negotiations will lead to the dismantling of the assets at the end of the contract period.

  In 2022, MEED reported that Abu Dhabi had wound down the operation of Taweelah A2, the region's first IWPP. The power and water purchase agreement supporting the project expired in September 2021 and was not extended.

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  Jennifer Aguinaldo
• 
  Flooding spotlights Dubai construction quality

  17 April 2024

  Commentary
  Colin Foreman
  Editor

  Register for MEED's guest programme 

  The storm that engulfed Dubai on 16 April and the resulting flood damage will raise questions about the quality of construction in the emirate.

  Videos of extensive flood damage to property and infrastructure have been widely shared across social media, and those personally affected have questioned why the damage was so severe.

  There is not one single answer. The storm was said to be the most severe to have hit Dubai for decades, and some have described it as a 100-year storm. One other theory widely circulated during the day about it being caused by cloud seeding has been officially dismissed by the government.

  With such extreme weather, most will accept that some damage is inevitable. The question will be whether elements of the damage could have been prevented, which is where questions over construction quality will emerge.

  The two main concerns will be why buildings are not better waterproofed and infrastructure is not more effectively drained.

  Each flooding incident will have its own specific issues, but the reasons will come from three key areas: design, construction and maintenance. 

  Many projects will not have been designed to cope with such a deluge. Others will have been poorly constructed, allowing water to ingress into properties, and others will have drainage that was poorly maintained and failed when it was most needed.

  Dubai is heavily incentivised to address these concerns. In the past, Dubai has been a transient city with many expatriates living and working in the emirate for only a few years. There has been little collective memory of major weather incidents.

  As the emirate establishes itself as a permanent home for more people, including many property owners, that memory will now remain. Those memories may be painful today, but they will help guard against such severe damage in the future.

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  Colin Foreman