New projects offer crossroads for utility developers
29 July 2024
Commentary
Jennifer Aguinaldo
Energy & technology editor
Following four lacklustre years, projects activity has rebounded for the region's conventional power generation sector.
At least five combined-cycle gas turbine (CCGT) plants with a total generation capacity of 14.7GW are under bid in four of the GCC states, excluding the 3GW-4GW of capacity being directly negotiated by Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), and Saudi Electricity Company.
However, the robust projects activity is being met with a dwindling number of bidders in some cases.
While four consortiums submitted bids in July 2023 for the contracts to develop the Taiba 1, Qassim 1, Taiba 2 and Qassim 2 independent power projects (IPPs) in Saudi Arabia, only one consortium submitted a bid on 25 July for the contract to develop Qatar's Facility E independent water and power project.
The main differentiator appears to be the presence, or absence, of a clause to deploy carbon-capture solutions during the lifecycles of the projects.
Some international developers require the inclusion of a serious carbon-capture provision for them to bid for future conventional power generation plants, the concession agreements for which usually extend 20-30 years, depending on the jurisdiction.
Given that the construction of a utility-scale conventional power plant usually takes an average of three years, a typical 25-year power-purchase agreement (PPA) implies contract expiry not earlier than 2052, overshooting most developers' 2050 net-zero targets.
SPPC has indicated that its under-construction CCGTs, and those that it plans to procure, will be carbon-capture-ready, which indicates an intention that such technology could be in place during the projects' contract duration.
Of the five CCGT schemes under bid, however, only Abu Dhabi's Taweelah C has so far required a provision for carbon-capture solutions and a shorter PPA, in line with the UAE's plan to reach net-zero carbon emissions by 2050.
The PPA for the Taweelah C IPP is expected to expire by 2049, making it several years shorter than usual.
State utility Emirates Water & Electricity Company has prequalified nine developers that can bid for the contract, the majority of which have existing and operational CCGT assets in Abu Dhabi.
There remains uncertainty about whether some international developers will decide to bid for the Taweelah C and other future contracts, as they try to reconcile their sustainable and commercial strategies.
The others see these as major opportunities to expand their presence and win long-term contracts vital to their commercial success after years of waiting for the established developers to step back.

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The $3bn Taweelah C combined-cycle gas turbine (CCGT) project has been the UAE power sector’s standout contract award this year, accounting for the majority of the $4.17bn in awards as of early September.
The total is well below the record $12.02bn awarded in 2025, when Abu Dhabi’s $6bn round-the-clock solar photovoltaic (PV) and battery energy storage system (bess) project lifted the market to record levels. However, 2026 remains broadly consistent with recent years, compared with $5.93bn in 2024 and $3.05bn in 2023.
According to MEED Projects, generation accounted for $3.06bn across three awards, while transmission contracts totalled $1.11bn.
Gas-fired focus
Emirates Water & Electricity Company (Ewec) signed the power-purchase agreement (PPA) for Taweelah C in June with a consortium comprising Abu Dhabi National Energy Company (Taqa), Saudi Arabia’s Al-Jomaih Energy & Water Company and Singapore’s Sembcorp Industries.
The scale of the 2.5GW independent power producer (IPP) provides a useful lens through which to view the wider market. Although the UAE continues to expand solar generation and battery storage, it is still investing heavily in flexible thermal capacity to support rising electricity demand and a grid with significant renewable generation.
Major gas-fired opportunities are also moving into the Northern Emirates, with state utility Etihad Water & Electricity (EtihadWE) preparing to receive offers from five contractor groups for the 2.6GW Al-Zawra CCGT project in Ajman.
The project follows the retirement of EtihadWE’s older 200MW Al-Zawra gas plant in 2023. With Ewec acting as offtaker, the scheme also points to a wider role for EtihadWE in developing large-scale generation.
It is understood that the Ajman project will be the first of at least three planned power plant projects procured by the utility under a new long-term roadmap for future projects across both power and water.
Abu Dhabi’s 3.3GW Al-Nouf IPP is another major gas-fired plant moving towards execution. Japan’s Sumitomo Corporation is expected to formally sign the PPA by the end of the year, while the joint venture of Spain’s Tecnicas Reunidas and Egypt’s Orascom Construction is also set to be confirmed as the engineering, procurement and construction (EPC) contractor.
To put this into context, the deal would make 2026 the second most valuable year for power sector investment on record, eclipsing both 2017 and 2018, when contract awards in the UAE reached $7.39bn and $7.27bn, respectively.
Solar and storage
The UAE’s renewable procurement is increasingly combining solar generation with storage to provide electricity beyond daylight hours.
Dubai Electricity & Water Authority (Dewa) is preparing to award the seventh phase of the Mohammed Bin Rashid Al-Maktoum Solar Park, with Abu Dhabi Future Energy Company (Masdar) submitting the lowest tariff for the project in July.
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Grid expansion
Multibillion-dollar IPP schemes have driven annual award values in recent years, while transmission work continues to provide a steadier flow of opportunities for contractors and equipment suppliers.
Transmission awards fell to $1.11bn across 22 packages in 2026, from $2.98bn in 2025, reflecting the absence of a comparable large-scale package rather than a halt in network investment.
Ewec and Taqa are expanding 400kV and 132kV networks across Abu Dhabi and the Northern Emirates, while Dewa continues to reinforce its cable and substation systems in Dubai.
In September, EtihadWE received bids for a contract to carry out a techno-economic feasibility study for a proposed 2GW subsea electricity interconnector with India.
The proposed 1,400-kilometre link would be the UAE’s first direct subsea cross-border electricity interconnector, illustrating a potential longer-term ambition to connect the UAE to wider regional and international power markets.
Earlier this year, the GCC Interconnection Authority awarded Omexom, part of France’s Vinci Group, a contract to build a 400kV overhead transmission line between the UAE and Saudi Arabia.
In October, the UAE and Saudi Arabia signed a memorandum of understanding to advance cross-border electricity interconnection, paving the way for feasibility studies on power exchange, commercial electricity trading and the expansion of the wider GCC interconnection grid.
Waste-to-energy
Waste-to-energy continues to become an increasingly important part of the UAE’s infrastructure pipeline as the country seeks to reduce landfill dependence and diversify its power mix through alternative generation sources.
Dubai Municipality recently invited developers to submit expressions of interest for its planned Jebel Ali waste-to-energy public-private partnership, a greenfield facility designed to treat up to 6,000 tonnes of municipal solid waste a day.
According to a source, the municipality plans to prequalify developers later this year, then issue a request for proposals in the first quarter of 2027.
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