meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11143965/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • H&H continues to deliver Dubai projects

    29 October 2026

     

    Dubai-based developer H&H has launched Water Gardens, a mixed-use development in Dubai International Financial Centre (DIFC), and expects to award most of the construction contracts for its wider pipeline before summer 2027.

    Water Gardens comprises four buildings designed by UK architect David Chipperfield, arranged around a central garden and pedestrian-friendly public realm. The scheme combines offices, residences, hospitality and retail offerings, including the Four Seasons Private Residences Dubai at DIFC and residences under H&H’s Eden House brand.

    Construction is under way, and the developer says the project is scheduled for completion in 2028. DIFC Investments describes it as one of the final components of the original Gate District masterplan.

    Speaking to MEED at the launch, H&H chairman Shahab Lutfi said the office building and Eden House are due for completion in about 18 months. The Four Seasons residences are scheduled for delivery at the end of 2028, with a five-star hotel following later.

    Water Gardens is one of several projects H&H has under way. The company undertakes a selective portfolio of high-end real estate developments in prime locations in Dubai. These include the Carlyle Residences in DIFC; an Eden Hills villa community in Mohammed Bin Rashid City; and Dubai Peninsula, a waterfront scheme in the Jumeirah area that will include hotels operated by Aman and Rosewood.

    “We are awarding day in, day out,” says Lutfi. “I think we are awarding most of our contracts from now until summer next year.”

    Most of the company’s construction volume is in DIFC and Dubai Peninsula, with the Eden Hills villas accounting for a smaller share. Lutfi says H&H is talking to several of the emirate’s biggest contractors about upcoming packages.

    We are awarding [contracts] day in, day out

    Staged procurement

    H&H is managing cost pressures by splitting up its procurement. It awards main contracts covering concrete works with a large number of provisional sums, then tenders further packages as designs are completed. “We are taking on some of the risk, but we know how to manage the risk instead of just offloading it on the contract,” says Lutfi.

    He does not expect construction costs to fall in the next 12 months. Global inflation, driven by fuel prices and logistics costs, is already factored into the company’s plans. 

    “Waiting and trying to award at a cheaper price is not an option for us,” he says.

    Lutfi says rising costs need not erode margins for developers that keep unsold stock to sell at higher prices later in a project. Developers that sell out early are more exposed. “If you have already sold out two years ago, you are hurting your profitability,” he says.

    H&H is comfortable leaving 15%-20% of a project to sell on completion. The market usually expects developers to sell out before handover. 

    The company has not revised its masterplans or product mix in response to market conditions and continues to focus on large units.

    Supply chains have been a challenge this year, but Lutfi says the company is over that hurdle. H&H has sourced more materials locally and planned logistics further in advance. 

    Materials are reaching Dubai through bonded routes from Oman, Fujairah and Khor Fakkan in the UAE, and Jeddah in Saudi Arabia. 

    “It takes a little bit longer, but at least things are coming in,” he says.

    H&H relies on a relatively small group of contractors that work on most of its projects, and treats them as long-term partners. 

    Lutfi says contractors are attracted by the company’s financial stability and volume of work. “That can keep some people busy for the next five or six years,” he says.

    Lutfi notes that sales in the Dubai market have dropped, although enquiries have picked up since the summer as buyers weigh whether it is the right time to purchase. The distressed sales that some had expected have not materialised.

    “A 5% discount in some units is not really a distress sale,” he says. “It is just someone trying to get a discount because of the region’s situation, which actually builds confidence.”

    For Water Gardens, H&H has sold 85% of Four Seasons Private Residences Dubai at DIFC since sales began in 2024. The company launched sales at the Carlyle Residences before the regional disruption and has since sold units one-to-one to selected clients. More Four Seasons units have been sold in the past two weeks. 

    “Branding makes a big difference,” says Lutfi.

    The company markets its branded residences through a global network of brokers rather than via public campaigns or launch events. Eden Hills, which is aimed mainly at Dubai residents, is marketed more widely.

    Lutfi expects buyers to be more cautious about buying off-plan. H&H is building new sales centres at Dubai Peninsula and in DIFC so that clients can see the product before they commit. 

    “People have to come in, know exactly what they are buying, and they will feel comfortable paying the price – instead of just having a pretty brochure,” he says.

    He expects demand for villas to become more local and regional, while branded residences will continue to attract international buyers. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21012636/main.gif
    Colin Foreman
  • Riyadh Expo sets November bid deadline for Souq construction

    29 October 2026

     

    Expo 2030 Riyadh Company (ERC), responsible for delivering the Expo 2030 Riyadh venue, has allowed contractors until 11 November to submit bids for a contract to deliver the Souq areas within the Expo site.

    The tender was floated on 30 July, with an initial submission deadline of 9 October.

    The Souq areas are divided into five distinct precincts, with a total development area of about 300,000 square metres (sq m).

    The scope includes the five precincts and their associated vertical elements, infrastructure and public realm works. 

    The precincts comprise:

    • Precinct 1 – The Icon: 41,417 sq m
    • Precinct 2 – Place & Planet: 62,306 sq m 
    • Precinct 3 – Culture of Wisdom: 67,112 sq m  
    • Precinct 4 – Kingdom of Saudi Arabia: 45,967 sq m  
    • Precinct 5 – Adaptation & Innovation: 82,358 sq m

    The package will interface with three public parks. It will also tie into the Natural Corridor, including bridges.

    The Souq areas will form a mixed-use destination at the centre of Expo 2030 Riyadh, connecting the site’s iconic and thematic assets.

    The development will include rented and partnership pavilions, alongside a range of food and beverage, retail and visitor-experience offerings.

    Site progress

    Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.

    Earlier this month, Saudi Arabia’s Royal Commission for Riyadh City awarded a design-and-build contract to build a new metro station serving the Expo 2030 site.

    In April, ERC awarded two contracts to local firm Al-Yamama Company for the next phase of infrastructure works at the site.

    The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.

    These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.

    That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems, and electric vehicle charging stations.

    The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.

    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20998514/main.jpg
    Yasir Iqbal
  • Iraq oilfield water scheme to hit milestone next year

    29 October 2026

     

    China Petroleum Pipeline Engineering (CPP) expects to start laying pipeline for Iraq’s Common Seawater Supply Project (CSSP) in Basra in mid- or late next year, according to industry sources.

    The project is behind schedule, partly because importing sections of pipeline is proving challenging due to disruptions to shipping through the Strait of Hormuz.

    The project is being managed by state-owned Basra Oil Company (BOC), with Australia’s ILF acting as a project management consultant after completing the front-end engineering design (feed).

    Under current plans, the pipelines will be buried, which is expected to make them more secure than if they were installed on the surface.

    Phased development

    The client for the first phase of the CSSP is France’s TotalEnergies in partnership with QatarEnergy and BOC.

    The first phase is split into two packages currently under execution and will ultimately have the capacity to transport 5 million barrels a day (b/d) of water.

    The first package focuses on developing pipelines, and the second on developing a water treatment facility.

    CPP is executing the pipeline package contract.

    It signed a $2.5bn contract with BOC for the package in September last year.

    Also in September 2025, South Korea’s Hyundai announced that it had signed a contract worth 4.39tn won ($3.16bn) for the processing plant package.

    In September this year, MEED reported that early groundworks had started for both packages of the first phase of the CSSP.

    Phase one of the project is scheduled to start up in late 2028 or early 2029.

    Earlier this month, US-headquartered Exxon Mobil signed a memorandum of understanding related to the project’s second phase, which is expected to add 2.5 million b/d of water capacity.

    The CSSP will inject processed water into several of Iraq’s biggest oil fields. These include Rumaila, Zubair, West Qurna 1, West Qurna 2 and Majnoon. Water from the project will also be used in the Maysan and Dhi Qar fields.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20981033/main.jpg
    Wil Crisp
  • Dubai tenders Al-Awir sewerage and stormwater works

    29 October 2026

     

    Dubai Municipality has invited contractors to bid for a contract to build sewerage and stormwater infrastructure in New Al-Awir 1st.

    The project (DS317-C1) comprises about 95 kilometres of sewerage gravity network, excluding house connections, and about 105km of stormwater pipelines. The scope also includes house connection pipes, a stormwater pond and oil interceptors.

    According to tender documents seen by MEED, the tender was issued on 23 October, with a bid submission deadline of 12 November.

    The project comes amid wider residential and infrastructure development in Al-Awir 1. In January 2025, Dubai’s Roads & Transport Authority (RTA) announced plans to build 16.5km of internal roads in the area, including a new entrance from Emirates Road.

    In February 2025, MEED exclusively reported that the RTA had selected a local firm to undertake the road construction works.

    The Mohammed Bin Rashid Housing Establishment has also reported progress on housing projects in Al-Awir as part of a wider programme to develop residential communities across Dubai.

    The sewerage and stormwater project is relatively large compared with recent stormwater tenders, with the total cost estimated at up to AED1bn ($272m).

    The works will include approximately 69.2km of house connection pipes and 4,630 inspection chambers. The sewerage network will also include about 1,511 manholes, while the stormwater network will comprise approximately 1,247 manholes.

    Contractors will also be required to use no-dig construction methods for sections of the pipeline. The scope includes ground investigations, utility protection and traffic management.

    The bill of quantities specifies a stormwater pond with a composite volume of approximately 1.2 million cubic metres.

    Earlier this week, Dubai Municipality confirmed it had awarded contracts worth AED3bn ($817m) to expand the emirate’s stormwater drainage network by about 100 square kilometres under phase three of the Tasreef programme.

    The projects are part of Dubai’s AED30bn Tasreef programme and will cover Jumeirah, Umm Suqeim, Al-Quoz, Al-Barsha, Al-Wasl and Al-Marmoom. 

    The overall programme aims to increase the emirate’s stormwater drainage capacity by 700% and reduce costs associated with pumping stations, network operations and maintenance by 20%.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20977734/main.jpg
    Mark Dowdall
  • Contractors bid for QatarEnergy’s North Field West topsides

    28 October 2026

     

    QatarEnergy has received technical bids from contractors for a key tender covering the engineering, procurement, construction and installation (EPCI) of large platforms for the North Field gas field in Qatari waters.

    Contractors submitted their technical bids by the 26 October deadline, according to sources.

    Commercial bids are currently due on 10 November.

    The following contractors, among others, are understood to be bidding for the North Field West (NFW) production deck modules (PDMs) tender:

    • China Offshore Oil Engineering Company (China)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • McDermott (US)
    • Saipem (Italy)

    The core scope comprises the EPCI of four PDMs and associated structures. The modules will increase gas production from North Field reservoirs and supply additional gas feedstock to the NFW liquefied natural gas (LNG) development.

    Issued earlier this year, the tender forms part of the wider NFW project, the third and final phase of QatarEnergy’s North Field LNG expansion programme.

    The technical-bid deadline has been extended several times, from 30 August to 15 September, 28 September, 12 October and 19 October. Commercial bids were previously due on 25 October, as MEED reported.

    Before issuing the PDMs tender, QatarEnergy awarded US firm McDermott an EPCI contract for four offshore jackets to support gas feedstock supply for the NFW LNG project. The contract is estimated to be worth about $200m, MEED reported in January.

    North Field LNG expansion

    QatarEnergy is advancing the three phases of its estimated $40bn North Field LNG expansion project. EPC works on all three projects are progressing.

    QatarEnergy is understood to have committed nearly $30bn to the first two phases – North Field East (NFE) and North Field South (NFS) – which will lift Qatar’s LNG production capacity from 77.5 million tonnes a year (t/y) to 126 million t/y by 2028.

    QatarEnergy awarded the main EPC contracts for NFE in 2021. The project was intended to raise LNG output to 110 million t/y by 2025. The $13bn EPC package – covering the EPCI of four LNG trains, each with a capacity of 8 million t/y – was awarded in February 2021 to a consortium of Japan’s Chiyoda and France’s Technip Energies.

    In May 2023, QatarEnergy awarded the $10bn main EPC contract for NFS to a consortium of Technip Energies and Consolidated Contractors Company (CCC). The contract includes two LNG trains, each with a capacity of 7.8 million t/y.

    Once fully operational, the first two phases are expected to add 48 million t/y of LNG supply to the global market.

    QatarEnergy took the final investment decision on NFW earlier this year, awarding an EPC contract estimated at $8bn to a joint venture comprising Technip Energies, CCC and Gulf Asia Contracting in February.

    Chiyoda carried out the front-end engineering and design work for the NFW LNG project.

    The NFW scope covers the EPC of two LNG trains with a combined capacity of 16 million t/y, as well as associated facilities for gas treatment, natural gas liquids recovery and helium extraction.

    In addition to LNG, NFW is expected to produce about 175,000 barrels of oil equivalent a day of condensate, ethane and liquefied petroleum gas.

    With all three phases under EPC execution – and NFE scheduled for commissioning later this year – QatarEnergy is positioning itself to remain one of the world’s largest LNG suppliers in the long term.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20973187/main.jpg
    Indrajit Sen