Meed | Taqa to award Dhafra open-cycle gas power plant contract

Taqa to award Dhafra open-cycle gas power plant contract

20 December 2024

Abu Dhabi National Energy Company (Taqa) is expected to imminently award a contract to build an open-cycle gas turbine (OCGT) power generation plant project in Abu Dhabi.

The Al-Dhafra OCGT plant is being tendered on a fast-track basis and is expected to have an installed capacity of between 1,000MW and 1,100MW.

“We expect news of an award perhaps next week,” a source close to the tender proceedings tells MEED.

Engineering, procurement and construction (EPC) contractors are understood to have submitted their proposals for the contract in late September.

MEED reported in the same month that Taqa plans to procure an estimated 5,000MW of gas-fired power plant capacity, mainly to support the UAE’s artificial intelligence (AI) strategy.

In addition to Al-Dhafra, sources said a second site is being considered for the projects in Al-Nouf.

Earlier this month, MEED reported that Abu Dhabi state utility and offtaker Emirates Water & Electricity Company (Ewec) is working with both Taqa and Abu Dhabi Future Energy Company (Masdar) to implement the power plant projects that support the UAE capital’s AI strategy.

According to an industry source, the planned Al-Dhafra OCGT power generation plant is designed to provide backup power to the round-the-clock (RTC) solar independent power project (IPP) that Masdar is developing.

Related read: Region plays high-stakes AI game

The solar IPP capacity being considered is about 5,000MW, and the battery energy storage system (bess) is approximately 20 gigawatt-hours. This would enable approximately 1,000MW of RTC or 24×7 power between April and October of every year, industry sources tell MEED.

One of the sources said these fast-track projects comprise the AI strategy’s first phase, with Ewec planning to publicly tender the succeeding phase or phases of the project.

The UAE National Artificial Intelligence Strategy 2031 has set eight strategic objectives, including building a reputation as an AI destination, deploying AI in priority sectors, attracting AI talent and ensuring strong governance and effective regulation.

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Jennifer Aguinaldo