Two bid for Madinat Zayed IPP contract
28 March 2025
Abu Dhabi-based utility and offtaker Emirates Water & Electricity Company (Ewec) has received bids for a contract to develop and operate the Madinat Zayed open-cycle gas turbine (OCGT) power generation plant project in the emirate.
According to industry sources, two teams led separately by France’s Engie and Saudi Arabia’s Aljomaih Energy & Water submitted bids for the Madinat Zayed OCGT independent power producer (IPP) project on 28 March.
Aljomaih is understood to have partnered with the local Etihad Water & Electricity (Etihad WE) for its bid.
The Madinat Zayed IPP is expected to begin commercial operations in Q3 2027. It will provide up to 1,500MW of backup generation, which can be operational “at very short notice”.
“Gas-fired plants like Madinat Zayed are key to ensuring a reliable energy supply while the country transitions to a decarbonised water and electricity system,” Ewec said when it issued the tender for the project in July last year.
“[This type of plant] will be particularly important for supporting the growth of solar power, providing crucial flexibility during peak power demand periods and acting as a bridge to a future powered exclusively by clean and renewable sources.”
Capacity buildout
Abu Dhabi’s current electricity generation installed capacity sits at about 22GW, with gas-fired plants accounting for 68.7% of the total, and renewable and nuclear power contributing 12% and 19%, respectively.
Construction work is under way for a 1,500MW solar photovoltaic (PV) power plant and a 2,457MW combined-cycle gas turbine (CCGT) plant.
Two solar IPPs with a combined capacity of 3,000MW are under bid evaluation or main contract bid, while the tendering proceedings are under way for the Taweelah C CCGT IPP, in addition to the Madinat Zayed OCGT.
The procurement processes are also under way for the 140MW Al-Sila wind IPP, the emirate’s first independent battery energy storage system plant, and another major CCGT, the 3.3GW Al-Nouf 1 project.
In January, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for a 5,200MW solar PV plant with a 19 gigawatt-hour battery energy storage system, which is expected to provide round-the-clock solar power.
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