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Teams prepare bids for UAE’s first energy storage IPP

25 October 2024

 

Teams comprising infrastructure investors, developers and contractors are preparing to submit their proposals for a contract to develop and operate the UAE's first battery energy storage system (bess) project in Abu Dhabi.

State offtaker Emirates Water & Electricity Company (Ewec) issued the tender to prequalified companies on 25 July. It expects to receive bids on 30 November, said sources.

MEED understands that at least two consortiums are being formed that may bid for the contract.

Called Bess 1, the 400MW project will closely follow the model of Ewec's independent power project (IPP) programme, in which developers enter into a long-term energy storage agreement (ESA) with Ewec as the sole procurer.

The first plant will be in Al-Bihouth, about 45 kilometres (km) southwest of Abu Dhabi, and the second plant will be in Madinat Zayed, about 160km southwest of the city.  

MEED previously reported that Ewec prequalified 11 managing partners that can bid either individually or as part of a consortium with other prequalified bidders. These are:

  • Acwa Power (Saudi Arabia)
  • China Electrical Equipment International (CEEI)
  • EDF (France)
  • International Power (Engie)
  • Jera (Japan)
  • Jinko Power (China)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni (Japan)
  • Sembcorp Utilities (Singapore)
  • SPIC Huanghe Hydropower Development Company (China) 
  • Sumitomo Corporation (Japan)

Ewec prequalified 18 other companies that can bid as part of a consortium. These are:

  • Abrdn Investcorp Infrastructure Investments Manager (UK)
  • AGP Capital (US)
  • Al-Masaood (UAE)
  • Al-Fanar Company (Saudi Arabia)
  • Alghanim International (Kuwait)
  • Aljomaih Energy & Water Company (Jenwa, Saudi Arabia)
  • Amplex-Emirates (local)
  • ATGC Transport & General Trading (local)
  • Amea Power (local)
  • China Electric Power Equipment & Technology (China)
  • China Machinery Engineering Corporation (China)
  • GE Capital EFS Financing (US)
  • Itochu (Japan)
  • Korea Western Power Company (Kowepo, South Korea)
  • Pacific Green (US)
  • Samsung C&T (South Korea)
  • Swift Energy (Malaysia)
  • X-Noor Energy Equipment Trading  (UAE)

Some 93 companies submitted expressions of interest to bid for the contract in April this year.

The planned facility is expected to provide up to 800 megawatt-hours (MWh) of storage capacity.

The ESA will be for 15 years, commencing on the project's commercial operation date, which falls in the third quarter of 2026. 

Carbon reduction

According to Ewec, the bess project will provide additional flexibility to the system and ancillary services such as frequency response and voltage regulation.

“Ewec is deploying bess to enhance the flexibility and stability of Abu Dhabi’s energy network, allowing for the effective management of peak demand and integration of increasing amounts of renewable energy,” the utility said in a media statement on 25 July.

It added: “Bess technology will also provide crucial ancillary services such as frequency response and voltage regulation, further reinforcing the security of supply and supporting Ewec to increase its solar photovoltaic capacity to 7.5GW by 2030.

“This accelerated growth in renewables will significantly reduce the carbon dioxide intensity of Ewec's power supply, from 330 kilograms a megawatt hour (kg/MWh) in 2019 to an estimated 190 kg/MWh by 2030.”

Global bess market

The overall capacity of deployed bess globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to a recent GlobalData report.

The report named Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12792785/main.jpg
Jennifer Aguinaldo

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