meed-logo

line1 line2 line3
SIGN IN / REGISTER

Local firms rise in GCC Power Developer Ranking

24 September 2024

 

Two Saudi Arabia-headquartered firms have joined Acwa Power in the top 10 of MEED’s 2024 GCC Power Developer Ranking.

Aljomaih Energy & Water Company and Ajlan & Bros have entered the list, occupying the sixth and ninth spots, respectively.

The latest developer ranking included a survey of 109 privately owned and financed power generation plants in the six GCC states, including those with attached water desalination facilities. These plants have a collective gross electricity generation capacity of approximately 112,400MW.

These projects include seven solar, two wind and two gas-fired plants, as well as one industrial steam and cogeneration facility, with a total combined gross capacity of 19,635MW, for which contracts were awarded between September 2023 and August 2024.

Of the total capacity awarded during the 12-month period, solar photovoltaic (PV) and wind capacity accounted for 58%, or 11,400MW. Three solar PV contracts with a total capacity of 5,500MW, directly negotiated between Saudi Arabia’s Public Investment Fund (PIF) and a team led by Riyadh-headquartered Acwa Power, comprised nearly half of the awarded renewable IPP capacity.

These three contracts, along with a fourth for the development and operation of the 3,800MW Taiba 1 and Qassim 1 combined-cycle gas turbine (CCGT) IPP, helped boost Acwa Power’s dominance over its competitors.

Acwa Power's 35.1% stake in the 2,000MW Haden, the 2,000MW Muwayh and 1,500MW Al-Khushaybi solar PV projects, and its 40% share in Taiba 1 and Qassim 1, increased the company's total net capacity by 3,200MW, up 23% from last year’s 13,340MW. This figure takes into account the dilution of its shares in Rabigh Arabian Water & Electricity Company. As a result of the contracts it won, Acwa Power’s gross capacity also rose by 8,800MW to reach a total of 45,150MW.

Acwa Power has occupied the top spot in MEED’s GCC Power Developer Ranking in terms of net capacity since 2021, but it overtook its main rival, French utility developer and investor Engie, in terms of gross capacity only the following year.

Excluding the capacity of the directly negotiated solar IPP contracts that Acwa Power secured with the PIF in the past
three years does not change the company’s dominant position in the ranking, although it decreases its net and gross capacities by 25% and 24%, respectively.

Contenders

With no new contracts won, Engie still managed to retain second place in the ranking, with a net capacity of close to 8,000MW.

The successful bids of a team comprising Japan’s Marubeni Corporation and Ajlan & Bros for the contracts to develop and operate the 600MW Al-Ghat and 500MW Waad Al-Shamal wind schemes in Saudi Arabia increased Marubeni’s net capacity to 4,257MW, up 555MW compared to the previous year.

As with Engie, Japan’s Mitsui did not win any new contracts but retained its fourth place in the ranking, just above EDF, which climbed two positions to claim this year’s fifth spot and registered a net capacity that nearly doubled to reach 2,047MW.

EDF’s impressive performance accrued from its equities in three contracts: the 1,100MW Hinakiyah solar PV and the 3,960MW Taiba 2 and Qassim 2 CCGT projects in Saudi Arabia, and Abu Dhabi’s 1,500MW Al-Ajban solar PV scheme.

EDF knocked Japanese developer Sumitomo down the ranking; it landed in the seventh spot this year. Saudi Arabia’s Aljomaih Energy & Water Company – which was not part of the top 10 last year – rose past Sumitomo to claim sixth position.

Aljomaih’s 30% shareholding in the Taiba 2 and Qassim 2 IPP increased its net capacity by close to 1,200MW from just 775MW in the previous 12-month period.

Previously ranked sixth, Japan’s Jera fell to eighth place, despite having won the contract to develop the Najim cogeneration plant catering to Saudi Arabia’s Amiral petrochemicals complex, which it secured along with Abu Dhabi National Energy Company (Taqa).

Below Jera in the ranking is Ajlan & Bros, which is Marubeni’s partner for the contract to develop the Al-Ghat and Waad Al-Shamal wind IPPs. Ajlan is also understood to have taken a 30% stake in the consortium that won the contract to develop the Taiba 2 and Qassim 2 CCGT project.

China’s Jinko Power rounded out the top 10. It led the team that won the contract to develop the 400MW Tubarjal solar IPP in Saudi Arabia in November last year.

Local developers

The rise of Aljomaih and Ajlan & Bros, which led to South Korea’s Korea Electric Power Corporation (Kepco) and Singapore’s Sembcorp dropping out of the power developer ranking’s top 10 this year, confirms the improving profile of regional utility developers.

The resurgence of gas-fired power generation IPPs – in part due to Saudi Arabia’s liquid fuel displacement programme and the overall demand for baseload to address rising renewable energy capacity – is helping local developers to strengthen their footing.

“The reduced interest from European and Japanese contractors in bidding for gas-fired power generation projects could present an opportunity for local developers and investors,” says a senior executive with an international developer.

“As these firms are less constrained by their 2040-50 net-zero targets, they might focus on efficiency and quick deployment rather than on adhering to decarbonisation timelines, allowing for more flexibility in CCGT projects.”

The fact that only two teams submitted bids for the contracts to develop the next pair of CCGT IPPs in Saudi Arabia supports this observation. Similarly, Qatar’s General Electricity & Water Corporation (Kahramaa) received only one bid from a team led by Sumitomo for the contract to develop the Facility E independent water and power producer (IWPP) project earlier this year.

Conscious of its own net-zero targets, and those of its partners, Abu Dhabi state utility Emirates Water & Electricity Company (Ewec) is adopting a slightly different approach for its next CCGT project in Taweelah by announcing that a carbon-capture facility will be installed as part of the project once such solutions become commercially viable.

In addition, the power-purchase agreement (PPA) for Taweelah C 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.

So far, the market has responded positively, with nine companies having met Ewec’s prequalification requirements for Taweelah C.

However, the scale and volume of gas and renewable energy projects planned by Saudi Arabia, which has said it could procure up to 20GW of renewable energy capacity annually starting this year, is expected to continue to boost the net capacity of local developers and their less net-zero-constrained counterparts for the foreseeable future.

There is also an expectation that the exclusion of Acwa Power from the latest round of tenders for Saudi Arabia’s National Renewable Energy Programme (NREP) could further open up opportunities for other companies, regardless of their origin and net-zero targets.   

Tariffs

There are mixed expectations in terms of how levelised electricity costs (LCOE) will behave over the next 12 months. Compared to the preceding decade, when unsubsidised renewable energy production costs consistently and sharply declined, tariffs have become less predictable since 2022.

In the region, solar PV tariffs in particular have trended upward since Acwa Power offered to develop the Shuaibah 1 solar IPP scheme for $cents 1.04 a kilowatt-hour (kWh) in 2020-21.

These tariffs have remained highly competitive relative to those seen in other, less renewable energy-intense regions, however, disincentivising some developers that felt they could not compete on price.

The next six to 12 months could prove decisive, according to one industry expert.

“It is possible that the surge in renewable projects could limit the availability of competent engineering, procurement and construction (EPC) contractors. The combination of aggressive national targets and competition for EPC services may drive up prices and slow project timelines,” the Dubai-based executive tells MEED.

“With raw materials and commodity prices trending downward, it's feasible that renewable energy tariffs could remain low in the short term. However, sustained record-low tariffs will also depend on the availability of financing, local regulations and grid integration costs.”

The LCOE trend for gas-fired power generation schemes seems more predictable.

According to the executive, the limited capacity of original equipment manufacturers, particularly for turbines and other key components of CCGT plants, will likely push tariffs up over the next 12 months.

“Limited availability of high-efficiency equipment will increase procurement costs and construction timelines, influencing the overall project cost.”

This extends to CCGTs incorporating carbon capture, where the LCOE will likely increase due to additional capital and operational expenses. “Whether these costs are absorbed through renegotiation or passed on to the state offtaker will depend on the power-purchase agreement structure,” he says.

Brisk pace of IPP awards set to continue

https://image.digitalinsightresearch.in/uploads/NewsArticle/12556220/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Adnoc builds long-term oil and gas production potential

    7 April 2026

     

    Between 2023 and 2024, Abu Dhabi National Oil Company (Adnoc Group) spent an estimated $37bn on projects critical to achieving its upstream targets: increasing oil production capacity to 5 million barrels a day (b/d) by 2027 and attaining gas self-sufficiency by the end of the decade.

    The state energy company spent more than $22.5bn in 2023 alone, marking the highest annual oil and gas project spending on record in the UAE. The Hail and Ghasha sour gas development – accounting for approximately $17bn – remains the single-largest contract award in the country’s hydrocarbons sector.

    A slowdown in capital expenditure (capex) following two years of elevated spending is therefore in line with expectations. While engineering, procurement and construction (EPC) contract awards for upstream projects declined in 2025 and into this year, Adnoc has still committed close to $10bn over the past 15 months.

    The largest award during this period came from Adnoc Offshore, which let contracts worth $7.5bn for three EPC packages under the Lower Zakum Long-Term Development Plan (LTDP-1). Spain’s Tecnicas Reunidas and Abu Dhabi-based NMDC Energy and Target Engineering Construction Company were selected last February to execute the works.

    The Lower Zakum field, located 65 kilometres northwest of Abu Dhabi, is majority-owned by Adnoc Offshore (60%). Other stakeholders include an Indian consortium led by ONGC Videsh (10%), Japan’s Inpex (10%), China National Petroleum Corporation (10%), Italy’s Eni (5%) and France’s TotalEnergies (5%).

    Adnoc Offshore aims to increase production capacity at Lower Zakum to 520,000 b/d by 2027 and sustain that level through 2034.

    Offshore contracts in 2026

    So far this year, Adnoc Offshore has awarded contracts for two key projects: the Satah Al-Razboot (Sarb) deep gas development and the expansion of the Nasr oil field.

    Adnoc achieved final investment decision (FID) on the Sarb project in January and awarded the main EPC contract to US-based McDermott International. The contract is estimated to be worth around $500m, sources told MEED.

    The project is expected to deliver 200 million cubic feet a day (cf/d) of gas by the end of the decade – enough to power more than 300,000 homes.

    The scope includes the EPC of an offshore wellhead tower with four gas production wells, which will be connected to Das Island for processing through Adnoc Gas facilities. Works also include the installation of pipelines and intra-field connections linking the Sarb field to Das Island.

    Also in January, Adnoc Offshore awarded McDermott a $942m contract for the Nasr-115 project, which will increase production capacity at the Nasr offshore field to 115,000 b/d. The field is located about 130km northwest of Abu Dhabi.

    McDermott’s scope covers full EPCI services for two topside structures, a new manifold tower, a jacket, a bridge, associated pipelines, subsea cables and brownfield modifications.

    Strategic projects in queue

    Over the next 12-18 months, Adnoc’s upstream spending is expected to shift from meeting near-term production targets –now largely within reach – to building longer-term capacity beyond 2030.

    Following $1.3bn in EPC awards in 2024 for the Upper Zakum expansion to 1.2 million b/d, Adnoc Offshore is advancing the next phase, which will increase capacity to 1.5 million b/d.

    Located 84km offshore, Upper Zakum is the world’s second-largest offshore oil field. Adnoc Offshore has divided the EPC scope into three packages, with contractors submitting commercial bids for the UZ1.5MMBD project in February.

    Adnoc Offshore is also progressing the Umm Shaif gas cap and surface pressure boosting project, aimed at increasing gas production by 550 million cubic feet a day (cf/d) and condensate output by 50,000 b/d. About 520 million cf/d of additional gas is expected to be fed into Adnoc’s sales gas network.

    The first phase of the project has been split into three EPC packages:

    • Offshore package 1: fabrication of a 30,000-tonne gas compression system
    • Offshore package 2: fabrication of a 30,000-tonne gas compression system
    • Onshore package: EPC of gas inlet and processing systems at Das Island

    Adnoc Offshore is currently evaluating commercial bids submitted in February for these packages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16285814/main.gif
    Indrajit Sen
  • Contractor wins Oman housing substation contract

    7 April 2026

    Oman’s Public Authority for Social Insurance has awarded a contract for the supply, installation, execution and maintenance of a main power substation for its affordable housing project.

    The contract was awarded to Kuwait-based Al-Ahleia Switchgear Company.

    The project comprises a 400/132/11kV main substation for the Affordable Housing Project, known locally as Al-Masaken Al-Muyassara.

    The tender was announced last November, with the bid envelopes opened on 16 December 2025.

    Al-Ahleia Switchgear submitted another bid in March for a contract to build three 132/11kV main transformer stations for Kuwait’s Public Authority for Housing Welfare (PAHW).

    As reported by MEED, the company’s price of KD10.5m ($34.1m) was the lowest of two offers for the engineering, procurement and construction (EPC) contract.

    Separately, in December, Al-Ahleia Switchgear submitted the lowest bid of KD33.9m ($110.3m) for a contract to build a 400/132/11 kV substation at the South Surra township for Kuwait’s PAHW.

    The bid was marginally lower than the two other offers submitted by Saudi Arabia’s National Contracting Company (NCC) and India’s Larsen & Toubro.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16285335/main5555.jpg
    Mark Dowdall
  • UAE reviews $1.63bn fourth federal road project

    7 April 2026

    UAE authorities on 6 April unveiled details of the AED6bn ($1.63bn) fourth federal corridor scheme, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

    The project comprises a 68-kilometre corridor with 10 major interchanges, four flyovers and six to eight lanes in each direction.

    Officials provided technical updates on the corridor, including revised connection points and coordination with local authorities to finalise route alignments in line with broader development plans.

    Suhail Mohamed Al-Mazrouei, minister of energy and infrastructure, said the programme underscores the central role of infrastructure in the UAE’s development agenda and competitiveness. He was speaking while chairing the first meeting of the UAE Infrastructure and Housing Council this year.

    The council also reviewed progress on federal infrastructure initiatives aimed at improving transport efficiency and strengthening coordination between federal and local authorities.

    Al-Mazrouei said the next phase will focus on accelerating the delivery of high-impact projects to enhance transport system performance and support the shift towards smart and sustainable mobility in line with population growth and urban expansion.

    The council also assessed progress on linking Ajman to the third and fourth federal corridors, which is expected to provide alternative routes, improve traffic flow and further enhance mobility between the emirates.

    On public transport, the council reviewed a study on transport links between Dubai, Sharjah and Ajman to address rising commuting demand.

    The proposed plan includes 10 priority routes incorporating bus rapid transit and dedicated lanes, with connections to key hubs such as the Dubai Metro and city centres.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16285296/main.jpg
    Yasir Iqbal
  • Kingdom Holding Company signs Riyadh project deal

    7 April 2026

    Saudi Arabia’s Kingdom Holding Company has signed an agreement with Sumou Real Estate Company under which Sumou will manage the development, marketing and sale of a 3-million-square-metre land plot in Riyadh.

    The scheme is expected to generate about SR4bn ($1bn) in total sales.

    In a Tadawul disclosure, Kingdom Holding Company said its subsidiaries, Kingdom Real Estate Development Company and Trade Centre Company, have appointed Sumou as the exclusive development manager for the site.

    The project is scheduled to be implemented over 36 months, starting once the masterplans are approved by the relevant authorities.

    In a separate stock exchange statement, Sumou said it will be paid 6.5% of total infrastructure development costs and 2.5% of project sales, in addition to the brokerage commission paid by buyers.

    Kingdom Holding Company said the agreement aligns with its long-term strategy for its Riyadh landbank, which originally totalled around 20 million sq m and is being developed in phases.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16284668/main.jpg
    Yasir Iqbal
  • Saudi Arabia’s Jubail industrial city hit by missile debris

    7 April 2026

    Explosions were reported in Saudi Arabia’s Jubail industrial city on 7 April. Saudi authorities said the country’s air defence systems intercepted seven ballistic missiles targeting the Eastern Province, with debris landing near energy facilities, primarily in Jubail.

    Jubail is one of the world’s largest petrochemical production hubs, with an annual output of about 60 million tonnes, accounting for an estimated 6% to 8% of global supply.

    The incident places renewed focus on the kingdom’s flagship petrochemical cluster, where majority state-owned Saudi Basic Industries Corporation (Sabic) is a key investor.

    Jubail also hosts major downstream oil, gas and petrochemical assets operated by Saudi Aramco, US-based Dow and France’s TotalEnergies, underscoring the industrial zone’s international significance.

    Saudi officials said damage assessments are ongoing.

    The developments follow an Israeli strike on 6 April targeting a major petrochemical complex in Iran’s southern Asaluyeh region, described as the country’s largest industrial hub.

    Separately, authorities closed the King Fahd Causeway – the main bridge linking Saudi Arabia and Bahrain – early on 7 April as a precaution amid heightened security concerns.

    The King Fahd Causeway Authority said in a post on X that vehicle movement had been “suspended as a precautionary measure” due to Iranian attacks targeting Saudi Arabia’s Eastern Province.

    The 25-kilometre bridge is Bahrain’s only road link to the Arabian Peninsula.

    US President Donald Trump has issued an ultimatum for Iran to reopen the Strait of Hormuz and threatened to bomb Iranian power plants and bridges if Tehran does not comply by 8pm EDT on 7 April.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16283711/main2424.jpg
    Indrajit Sen