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Madinat Zayed project has three bidders

11 April 2025

 

A team comprising Belgium’s Besix and Egypt’s Orascom Construction is understood to have submitted a third bid for the contract to develop and operate the Madinat Zayed open-cycle gas turbine (OCGT) power generation plant project in Abu Dhabi.

Two other teams, led separately by France’s Engie and Saudi Arabia’s Aljomaih Energy & Water, submitted bids for the Madinat Zayed OCGT independent power producer (IPP) project on 28 March, as MEED reported.

Aljomaih is understood to have partnered with the local Etihad Water & Electricity (Etihad WE) and China Energy Engineering Corporation (CEEC) for its bid, while Engie has partnered with China’s Sepco 3, according to industry sources.

The Madinat Zayed IPP 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, which is expected to provide round-the-clock solar power.

The project is expected to reach financial close this year.

Related read: AI accelerates UAE power generation projects sector

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Regional construction heads underground; Riyadh reaps both diplomatic and economic success; Luxury GCC hospitality projects drive tourism

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Jennifer Aguinaldo

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