Acwa Power widens equity gap in power developer league
2 October 2023
The equity gap between Saudi utility developer Acwa Power and the other private utility developers in the GCC region has continued to widen, according to MEED’s annual GCC power developer ranking.
Acwa Power’s net capacity reached 13,340MW. This has doubled its lead to 67 per cent over France’s Engie, whose net capacity of 7,987MW has remained unchanged.
Over the past 12 months, power-purchase agreements were signed for six solar independent power producer (IPP) projects, as well as for a multi-utility public-private partnership contract and a cogeneration plant.
The seven contracts have a total combined power generation capacity of more than 8,000MW.
Acwa Power gained more than 2,900MW in net capacity over this period. This was due in large part to a 35 per cent equity share in the 2,060MW Shuaibah 2 solar power project and a 50 per cent shareholding in each of the Saad 2, Ar-Rass 2 and Kahfah solar photovoltaic (PV) projects.
These contracts were procured by the kingdom's Public Investment Fund (PIF) through the Saudi renewable energy price discovery scheme.
Notably, the 600MW Shuaibah 1 solar IPP scheme, which was publicly tendered and awarded to an Acwa Power-led consortium under the second round of the National Renewable Energy Programme (NREP) in 2021, has been combined with the PIF’s Shuaibah 2.
Under the final scheme, which reached financial close this year, Acwa Power’s shares in Shuaibah 1 decreased from 50 per cent to 35 per cent. The shares of its partners Gulf Investment Corporation and Al-Babtain, which originally maintained 30 per cent and 20 per cent, respectively, have been bought by PIF subsidiary the Water & Electricity Holding Company (Badeel) and Saudi Aramco Power Company (Sapco).
As with Engie, the net and gross capacities of Japanese firms Marubeni, Mitsui, Sumitomo and Jera also remained unchanged, with no new contract wins in the period.
Ranked 10th in the previous year’s listing, France’s EDF rose three spots this year to claim seventh place, which was previously held by Korea Electric Power Corporation (Kepco).
EDF’s rise came as a result of winning contracts for two major schemes. It was selected together with South Korea’s Korea Western Power Company (Kowepo) to develop Oman’s 500MW Manah 1 solar IPP project, and was also awarded a multi-utility contract with the UAE’s Abu Dhabi Future Energy Company (Masdar) for the Amaala development in Saudi Arabia, which includes a 250MW solar power farm.
EDF overtook Kepco despite the South Korean firm’s successful bid for the Jafurah cogeneration plant, where it maintains a 60 per cent equity. The scheme’s power generation plant has a capacity of 320MW.
Singapore’s Sembcorp and China’s Jinko Power, which comprise the team that won the Manah 2 solar IPP contract in Oman, occupy the ninth and 10th spots, respectively.
Saudi utility developer Aljomaih Energy & Water Company relinquished its 10th spot last year.
Power tariffs have scope to improve
A different view
Saudi Arabia’s renewable energy price discovery tool is becoming a potential game-changer for the competitive landscape of GCC power developers.
It allows Acwa Power to submit a proposal to match the most recent prices obtained through each round of the NREP public tendering process, which is overseen by the state-backed principal buyer, Saudi Power Procurement Company (SPPC).
Under the price discovery scheme, the PIF will only invite other developers to bid for a contract if Acwa Power fails to match prices achieved through the public tenders.
Acwa Power has so far won all five of these contracts, which have a total combined capacity of 8,110MW.
Since the PIF is tasked with procuring 70 per cent of Saudi Arabia’s 58,700MW renewable energy capacity target by 2030, the Saudi sovereign wealth vehicle is expected to procure a further 32,000MW of renewable capacity over the coming years using the price discovery scheme.
Given the scale of the PIF’s programme, and the extent to which it has expanded Acwa Power’s renewables portfolio this year, a separate league table that includes only IPPs and independent water and power producer (IWPP) projects that have been publicly tendered, or simultaneously tendered to a pool of qualified private utility developers, offers interesting insights.
Excluding the PIF contracts reveals that the ranking of the private utility developers based on their net capacity – or the capacity commensurate to a developer’s equity shareholding in each power generation asset – is unchanged. Acwa Power remains at the top, with a total equity capacity of more than 9,800MW, compared to Engie’s nearly 8,000MW.
However, their gross capacity rankings reverse when the PIF contracts are excluded. Engie leads by 4 per cent in terms of gross capacity, or the total capacity of power plants that they are developing alone or with consortium partners.
Gas revival
No new gas-fired IPP or IWPP projects have been let in the GCC since 2021, when most principal buyers and utilities began to focus on increasing their renewable energy capacity in line with their countries’ decarbonisation agendas.
With the exception of the UAE's Fujairah F3 and Saudi Aramco’s Tanajib and Jafurah cogeneration plants, solar and wind power plants have accounted for the majority of private power generation capacity that has been procured since 2020.
This is set to change in the next 12-24 months as renewed demand for combined-cycle gas turbine (CCGT) plants is driven by the need to decommission old fleets that burn liquid fuel, or to replace expiring baseload capacity.
As of September this year, gas-fired power plants account for approximately 60 per cent of the GCC region's planned power generation plants that are likely to be awarded in the next 24 months, according to MEED research.
The bid evaluation process is under way for four gas-fired IPPs in Saudi Arabia with a total combined capacity of 7,200MW. These are the first gas-fired IPP schemes to be procured by the kingdom since 2016.
A further three IWPP schemes – Kuwait's Al-Zour North 2 & 3 and Al-Khiran 1 and Qatar’s Facility E – are in the procurement stage. These schemes have a total combined power generation capacity of 6,800MW.
Next year, SPPC is expected to begin the procurement process for two gas-fired IPPs: the PP15 in Riyadh and another in Al-Khafji. Each is expected to have power generation capacity of 3,600MW.
Abu Dhabi’s Emirates Water & Electricity Company (Ewec) is also expected to initiate the procurement process for two CCGT plants with a total combined capacity of 2,500MW before the end of 2023.
Renewable arena
The revival of gas-fired schemes will not necessarily come at the expense of renewables, however.
The region’s largest market has ramped up its issuance of solar and wind tenders over the past 12 months and is expected to sustain or even accelerate the pace of its renewables procurement.
Saudi Arabia needs to procure at least 43,000MW of renewable energy capacity through public tenders and direct negotiations over the next six years to meet its 2030 target. This equates to about 7,200MW a year – twice its current average.
Overall, the future strength of the market for private utility developers is ensured by a growing clientele in Saudi Arabia that includes Neom and its subsidiary Enowa, in addition to the utilities in the other five GCC states, and the large conglomerates and organisations that aim to build captive power plants.
A case in point is the 35,000MW of solar and wind energy projects are in the pre-development stage for Neom, which aims to be powered 100 per cent by renewable energy by 2030.
Abu Dhabi also plans to procure at least 1,500MW of solar PV capacity annually over the next 10 years, in line with its goals for decarbonising its electricity system.
Developers’ dilemma
A Dubai-based executive with one of the international developers active in the region says: “It has been a very busy year for us. If all of these plans come through in the next 12-24 months, it will be even busier.”
The executive is unsure whether all the planned gas-fired projects will materialise, however. “We have been here before, and some of these projects have experienced major delays in the past for reasons that are not even related to decarbonisation or net-zero targets.”
Given the GCC states' carbon emissions reduction targets and the recent easing of supply chain constraints, solar and wind IPPs appear to offer greater certainty for utility developers, many of which are also beholden to internal decarbonisation targets that include a reduction of their existing thermal fleets.
The contracts for five solar and three wind IPPs in the region are expected to be awarded soon.
Masdar has outpriced Acwa Power for the 1,800MW sixth phase of Dubai’s Mohammed bin Rashid al-Maktoum Solar Park project. A team of EDF and Kowepo has also submitted the lowest bid for the 1,500MW Al-Ajban solar PV IPP in Abu Dhabi.
In addition, SPPC has shortlisted bidders for two solar PV IPPs with a total combined capacity of 1,500MW under the NREP fourth round. It also expects to receive bids soon for three wind IPPs with a total combined capacity of 1,800MW.
Tenders for the NREP’s fifth round and Abu Dhabi’s fourth utility-scale solar PV farm are also expected imminently.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
-
Brookfield to double down on Gulf investment5 May 2026
-
Oman seeks adviser for hydrogen-based IPP5 May 2026
-
NCP seeks firms for healthcare PPP project5 May 2026
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Hormuz crisis revives 1970s-style energy shock
5 May 2026
Commentary
Colin Foreman
EditorRead the May issue of MEED Business Review
The conflict with Iran is threatening to recalibrate the global energy system. The effective closure of the Strait of Hormuz has caused an energy security crisis reminiscent of the shocks of the 1970s – both in scale and in its potential long-term implications.
The 1973-74 energy crisis, triggered by an Opec oil embargo, sent prices soaring and altered the trajectory of the global economy. It spurred the creation of the International Energy Agency, the development of strategic petroleum reserves and a wave of energy-efficiency policies. It also cemented energy-for-security arrangements between the West and the Gulf – relationships now being tested again by the latest conflict.Today’s disruption – 11 million barrels of oil a day and around 20% of global liquefied natural gas (LNG) shipping capacity – creates a deficit that far exceeds the roughly 5 million barrels a day removed from the market in 1973.
While the shocks of the 1970s ushered in a decade of stagflation and a lasting shift towards diversified supply, the current crisis could accelerate demand destruction and a pivot towards energy sovereignty.
The story is a developing one. From Vietnam’s cancellation of LNG projects in favour of renewables to the surge in electric vehicle adoption across Europe, the perceived unreliability of traditional supply routes is forcing an unprecedented reorientation of capital.
The Middle East – long the indispensable heartbeat of global industry – now risks sustained challenges to its market share as producers in the US, Russia, Africa and South America develop new projects unencumbered by reliance on the Strait of Hormuz.
The structural changes taking root in 2026, like those in 1974, will outlive the conflict itself. Even a swift cessation of hostilities may not allow markets to return to their pre-conflict norms.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/16685390/main.gif -
Brookfield to double down on Gulf investment
5 May 2026
Brookfield CEO Bruce Flatt has said the asset and alternative investment management company intends to increase its investments in the Gulf, despite the ongoing conflict in the region.
When asked whether the war is changing the way he thinks about the Gulf region during an interview with CNBC at the Milken Institute Global Conference on 4 May, he said: “No, short answer no – in fact, [we’re] doubling down, we are doing more.
“When you find great businesses, countries, great people, and the market offers you an opportunity to invest when others are not, it is always the best opportunity in the world, so we are doing more. We have been there for 25 years; we are continuing to do all of the investments we have there, and we are going to do more.”
Flatt suggested the current period of geopolitical stress could accelerate long-term economic strengthening across the Gulf, arguing that governments and businesses will respond by investing in self-sufficiency and strategic infrastructure. “They will eventually build better countries because of this,” he said.
Flatt added: “They’re going to build resiliency in all their systems. They’re going to build their own artificial intelligence (AI). They’re going to build their own pipelines to the coast. They’re going to do things they didn’t do before. They have to do it. They probably should have, but they’re going to now, and they’re going to be more resilient.”
UAE meetings
Flatt has also travelled to the region since the conflict began on 28 February, meeting senior UAE officials to discuss investment opportunities and deepen cooperation. In Abu Dhabi on 9 April, he met Sheikh Khaled Bin Mohamed Bin Zayed Al-Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council. The meeting explored ways to strengthen cooperation in investment and asset management between UAE-based institutions and Brookfield, in line with global economic trends and evolving market demands.
Two days later in Dubai, Flatt met Sheikh Maktoum Bin Mohammed Bin Rashid Al-Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the Dubai International Financial Centre (DIFC). During the meeting, both sides explored opportunities to expand cooperation, highlighting the UAE and Dubai’s value proposition for global investors, including an integrated financial system, a flexible and advanced regulatory environment and world-class digital infrastructure. Discussions also covered Dubai’s role as a bridge between East and West, and the emirate’s emphasis on long-term partnerships and a transparent, business-friendly environment.
Qatar partnership
Brookfield’s regional activities are not limited to the UAE. In late 2025, the firm and Qai – Qatar’s AI company and a subsidiary of Qatar Investment Authority – announced a strategic partnership to establish a $20bn joint venture focused on AI infrastructure in Qatar and select international markets. The venture is expected to support Qatar’s ambition to become a hub for AI services and infrastructure in the Middle East. It is slated to be backed through Brookfield’s Artificial Intelligence Infrastructure Fund, part of a broader AI infrastructure programme targeting up to $100bn in global investment.
Brookfield Infrastructure maintains a vast and diversified global portfolio characterised by high-barrier-to-entry assets across five core sectors. The data infrastructure segment has become a primary growth engine, currently comprising 150 data centres with significant operating capacity and about 308,000 operational telecom sites. In the utility and energy midstream space, the firm manages over 1,900 miles of electric transmission lines and a network of 2,100 miles of gas pipelines. The transport sector is another cornerstone of the portfolio, anchored by 22,500 miles of rail operations.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16686052/main.gif -
Oman seeks adviser for hydrogen-based IPP
5 May 2026
Oman’s Nama Power & Water Procurement Company (PWP) has issued a tender for technoeconomic consultancy services for power generation using green hydrogen.
The offtaker said it intends to appoint a consultant to undertake an initial assessment for the development of a new independent power project (IPP).
The plant is expected to be capable of operating on up to 100% hydrogen with an indicative generation capacity in the range of 800MW to 1,000MW.
The bid submission deadline is 21 June.
To date, hydrogen deployment has focused mainly on production and export projects, while power generation activity remains largely limited to pilot schemes rather than utility-scale, fully hydrogen-fired plants.
According to a typical IPP development timeline spanning feasibility, procurement, financing and construction, the potential plant would be unlikely to enter operation before the early 2030s.
Nama PWP also recently issued a separate consultancy tender seeking services to support ESG policy development.
The deadline for firms to submit offers is 10 May.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16683857/main.jpg -
NCP seeks firms for healthcare PPP project
5 May 2026
Saudi Arabia’s Ministry of Health, the Ministry of Defence and the National Centre for Privatisation & PPP (NCP) have issued an expression of interest and request for qualification (RFQ) notice for the Chronic Kidney Disease Care and National Dialysis Services project.
The notice was issued on 4 May, with a submission deadline of 15 June.
The project will be delivered as a public-private partnership (PPP) under a design, repurpose, finance and maintain (DRFM) model, with a six-year contract term.
NCP said the initiative supports Saudi Vision 2030 by increasing private sector participation in the healthcare sector.
The project is structured into four packages, each covering a minimum number of patients across multiple regions to ensure wide geographic reach and improved access.
Selected operators will be required to provide the necessary facilities, equipment and information technology systems, as well as supply qualified personnel. They will also manage clinical services – including in-centre haemodialysis, home haemodialysis, peritoneal dialysis, vascular access and outpatient services – alongside non-clinical operations.
In January, Saudi Arabia launched a National Privatisation Strategy, which aims to mobilise $64bn in private sector capital by 2030.
The strategy builds on the privatisation programme first introduced in 2018. It will focus on unlocking state-owned assets for private investment and privatising selected government services.
In a statement, NCP said the new strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16683825/main.gif -
Iranian drone attack on Fujairah oil hub injures three
5 May 2026
The UAE has accused Iran of attacking the country with a new barrage of missiles and drones, setting an oil facility ablaze in the emirate of Fujairah and wounding three Indian nationals.
The UAE’s Ministry of Defence said its air defences “engaged” a total of 12 ballistic missiles, three cruise missiles and four drones launched from Iran on 4 May.
The country’s Ministry of Foreign Affairs condemned “in the strongest terms the renewed terrorist, unprovoked Iranian attacks targeting civilian sites and facilities”.
The foreign ministry statement added that the UAE will not tolerate any threat to its security and sovereignty, and warned that the country reserves the “full and legitimate right to respond” to the attacks.
Earlier in the day, a crude oil tanker affiliated with Abu Dhabi National Oil Company (Adnoc) was hit by two drones in waters off the UAE and Oman, while transiting the Strait of Hormuz.
The attacks on 4 May mark the first on the UAE since Iran and the US agreed to a ceasefire on 8 April, with peace talks remaining deadlocked.
Iran has maintained a stranglehold on the strategic Strait of Hormuz, and the US has imposed a naval blockade in response.
On 3 May, US President Donald Trump said the US would begin escorting ships through the strait from the following day. US Central Command said it would use guided-missile destroyers, more than 100 land- and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.
Iran’s unified military command warned commercial ships against accepting the US offer and said American forces “will be attacked if they intend to approach and enter the Strait of Hormuz”.
Fujairah Oil Industry Zone attacks
The Fujairah Oil Industry Zone (FOIZ) has suffered at least half a dozen attacks since March, after the war between Iran and the US broke out on 28 February.
Fujairah benefits from its strategic geopolitical location outside the Strait of Hormuz, through which about a fifth of the world’s oil and gas supplies normally passes.
Major midstream oil and gas companies operate key storage and export hubs for oil and refined products in Fujairah, including Abu Dhabi National Oil Company (Adnoc Group), Saudi Aramco – through its subsidiary Aramco Trading – Vopak Horizon, VTTI, Shell, Fujairah Oil Terminal, Brooge Petroleum & Gas Investment Company (BPGIC), Emirates National Oil Company (Enoc), Ecomar, Mount Row and GPS Chemoil.
Fujairah is crucial to the operations of Adnoc Group subsidiary Adnoc Onshore, which operates a main oil terminal (MOT) there. Located approximately 300 kilometres north of Abu Dhabi, the terminal facilitates the import and export of various crude oil grades, particularly Murban, from the company’s onshore and offshore fields.
Additionally, the Abu Dhabi Crude Oil Pipeline (Adcop) connects milestone pole (MP) 21 at the Habshan oil facility in Abu Dhabi, where stabilised crude produced from Adnoc Onshore fields is gathered for dispatch, to the Fujairah MOT.
BPGIC is an oil storage and services firm that was established in 2013 in Fujairah and started operations with a capacity of 400,000 cubic metres spanning 14 tanks. In March 2022, it announced its intention to increase the storage capacity of four of those storage tanks in the first phase complex.
Separately, in September 2021, BPGIC began operations at the second phase of its Fujairah oil storage complex, adding 600,000 cubic metres of storage capacity across eight tanks. As a result of that expansion, BPGIC’s storage capacity more than doubled to 1 million cubic metres, or 6.3 million barrels, from 400,000 cubic metres.
BPGIC then undertook a third expansion phase of its oil storage facility, which is understood to have been commissioned in 2023.
The third phase increased BPGIC’s oil storage capacity by 3.5 times, raising it to 3.5 million cubic metres, or 22 million barrels, and making the firm the largest oil storage services provider in the UAE emirate of Fujairah.
The third-phase expansion project consists of an oil storage facility with a capacity of 2.5 million cubic metres, a modular 25,000-barrel-a-day (b/d) refinery, and a larger 180,000-b/d conventional refinery.
BPGIC also co-owns a topping refinery in Fujairah with Nigeria-based Sahara Energy Resources, which produces low-sulphur bunker fuel for ships and vessels. It is understood that the new naphtha upgradation unit could be integrated with the existing topping refinery unit.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16683608/main.jpg