UAE closes ranks ahead of Cop28

11 October 2023

This package on the UAE’s power sector also includes: 

> Abu Dhabi to tap Kezad for hydrogen plan
> Market expects Abu Dhabi hydrogen policy
> Masdar to develop 10GW projects in Malaysia

> Firms sign 60MW Sharjah captive solar plant
> Masdar and Ewec sign wind power agreement
> Firms submit 400MW battery storage interest


 

State-backed utility companies and off-takers in the UAE are preparing a cachet of projects to boost their green energy credentials in the weeks before the start of Cop28.

In September, Dubai Electricity & Water Authority (Dewa) signed agreements for the 1,800MW sixth phase of the Mohammed bin Rashid Solar Park.

Abu Dhabi state utility Emirates Water & Electricity Company issued the expression of interest (EoI) requests for its fourth utility-scale solar photovoltaic (PV4) project and its first two battery energy storage systems shortly after that.

Ewec is also expected to award the contract for the 1,500MW Al-Ajban solar project and inaugurate the 1,500MW Al-Dhafra solar plant prior to or during the climate summit.

The financial investment decision for the green hydrogen project in Ruwais, owned by France’s Engie, the UAE’s Fertiglobe and Abu Dhabi Future Energy Company (Masdar), is likely to be announced right before the start of Cop28.

Crucially, in early October, Adnoc Gas awarded UK-headquartered Petrofac the $615m main engineering, procurement and construction (EPC) contract for a project to develop a carbon capture facility at its Habshan gas processing complex in Abu Dhabi.

The plant will have the capacity to capture and permanently store 1.5 million tonnes a year (t/y) of carbon dioxide.

In Dubai, commercial agreements were reached on 3 October for the emirate’s first independent water project (IWP).

The Hassyan 1 seawater reverse osmosis (SWRO) project will have the capacity to treat 818,280 cubic metres of water a day (cm/d), only slightly lower than Abu Dhabi’s Taweela RO plant’s capacity of 919,000 cm/d –  the world’s largest at the time of construction.

The timing of the announcement of these milestones is critical. They help counter the massive scrutiny that the country, particularly Abu Dhabi, faces as it hosts Cop28.

A key area of focus among climate advocates, including the Pope, has been Adnoc Group’s well-documented plan to increase its oil production capacity from 4.5 million barrels a day (b/d) to 5 million b/d by 2027 as part of its “accelerated growth strategy”.

UAE ramps up decarbonisation of water sector

Not just about Cop28

The country’s renewable energy capacity build-up, in fact, began much earlier. It established the UAE Energy Strategy 2050 in 2017, four years before it set a target to achieve net-zero carbon emissions by 2050.

The 2017 strategy was intended to steer the country in a direction where the share of fossil fuels – mainly gas – in its energy mix shrank to 38 per cent, while clean energy expanded to 44 per cent.

The same year, the country put in place a water strategy to the year 2036 that aimed to reduce total demand for water resources by 21 per cent, lower the water scarcity index by three degrees and increase reuse of treated water to 95 per cent, among other goals.

Notably, the award of the second phase of Dubai’s MBR solar park, the first solar independent power producer (IPP) scheme in the GCC region, predated the 2017 strategy by two years.

A multibillion-dollar power plant project in Dubai, initially built to run on clean coal, has been converted to run on natural gas, showing the degree of compliance with the national 2050 net-zero plan.

The UAE has taken major steps to manage demand as well.

“The UAE has shown leadership in phasing out fossil fuel subsidies, having been the first country in Mena to do so back in 2015,” says Cornelius Matthes, CEO of Dubai-based Dii Desert Energy.

“It has an unparalleled track record in building some of the largest solar PV plants in the world at record low prices,” he adds.

Rounding out the country’s clean energy milestones is the completion of three units of the Barakah nuclear power plant, contributing 4,200MW of carbon emission-free electricity to the grid.

The UAE’s first utility-scale 100MW wind power projects, spread across four locations in Abu Dhabi and the northern emirate of Fujairah, were also unveiled by Ewec and Masdar in early October.

Future projects

For utility developers, investors and contractors, the UAE presents a long-term source of future opportunities.

Abu Dhabi’s Ewec aims to procure 1,500MW of solar PV capacity annually over the next 10 years at least, based on its most recent capacity planning forecast.

In addition to increasing solar capacity and battery energy storage, Ewec will also require additional thermal capacity to address an expected 30 per cent increase in gross power peak demand, from 16.7GW in 2022 to 21.6GW in 2029.

This is due to the scheduled expiry between 2025 and 2029 of offtake contracts for four integrated water and power plants with a combined power generation capacity of over 7,000MW.

While Ewec is considering a combination of either new-build, contract-extension or reconfiguration of existing assets to address the expiring capacity, it is understood to have decided to initiate the procurement of two gas-fired plants sooner rather than later.

In its latest capacity planning statement, Ewec said: “The otherwise consistent increase in peak and total energy demand from 2022 is impacted, on the one hand, by a reduction in exports to Sharjah Electricity & Water Authority (Sewa) over 2022- 2023 due to the commissioning of their new power plant, while being offset, on the other, by the addition of new Abu Dhabi National Oil Company (Adnoc) Offshore demand from 2026.”

While Dubai has not published a similar long-term capacity procurement plan, Dewa has indicated plans for multiple solar PV projects, each with a capacity of 300MW, between 2025 and 2030. 

The emirate also launched the Dubai Economic Agenda 2033 (D33) in January. The plan aspires to generate up to AED32tn ($8.7tn) over the next 10 years and double the size of Dubai’s economy, which will inevitably drive gross power peak demand over the next decade.

This creates an opportunity mainly for renewable energy developers and contractors, given that the emirate does not plan to procure additional thermal power plants in the future.

While an initial plan to build a 500MW solar power plant in the northern emirates has been scuppered, small to medium captive or distributed solar facilities present opportunities in those regions.

Sharjah National Oil Company (SNOC) and Emerge, a joint venture of France’s EDF and Masdar, have agreed to develop a 60MW solar PV project at SNOC’s Sajaa gas complex.

The plant will supply power to SNOC’s operations and be connected to the main power grid. Under the agreement, any excess solar power generated from the plant will be taken by the state utility, Sharjah Electricity & Water Authority (Sewa),  which will provide the required power for SNOC operations at night.

Photo: Noor Abu Dhabi

https://image.digitalinsightresearch.in/uploads/NewsArticle/11199493/main.jpg
Jennifer Aguinaldo
Related Articles
  • Algeria tenders 310km Tamanrasset railway

    16 October 2026

     

    Algeria’s state railway project developer, Agence Nationale d’Etudes et de Suivi de la Realisation des Investissements Ferroviaires (Anesrif), has invited national and international contractors to bid for the construction of a 310-kilometre (km) railway line between Hotel Station and Moulay Lahcen Station. 

    The planned line is a key segment of the proposed railway corridor connecting El-Menea, In-Salah and Tamanrasset across the southern wilayas of In-Salah and Tamanrasset.

    The tender notice was issued on 12 October, with bids due by 10 November.

    The tender is open to single contractors and consortiums. To qualify, single firms must have executed at least 200km of new railway lines or track-doubling works since 2010, with accepted project certificates covering sections of at least 100km, along with a cumulative 800 metres of railway bridges with individual spans exceeding 30 metres.

    Bidders must also provide at least two rail-tamping machines, two ballast regulators, and a project director with an engineering degree and at least five years of railway construction management experience.

    From a commercial and classification perspective, single bidders and consortium leaders must hold a category-nine (IX) professional qualification in public works.

    Bidders must also demonstrate an average annual turnover in construction of at least DZ260bn ($1.96bn) across the 2023-2025 financial period.

    For joint ventures, the cumulative turnover of all members must meet the $1.96bn threshold, with the consortium leader accounting for at least $1.3bn.

    Offers must be accompanied by a bid bond exceeding 1% of the total bid value for submissions exceeding $7.4m, with proposals remaining valid for 90 days beyond the submission date.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20665591/main.jpg
    Yasir Iqbal
  • Joint venture wins $246m RCRC bridges contract

    16 October 2026

     

    A joint venture of local contractor Mofarreh Group and Turkey-based Gulsan Holding has won an estimated SR923m ($246m) contract from the Royal Commission for Riyadh City (RCRC) to construct a series of grade-separated steel flyovers across the capital.

    The contract, known as Package 2 (Groups 2 and 3), is part of RCRC’s urgent bridges programme under the wider project to build steel bridges at 10 junctions across Riyadh.

    The works have a 12-month execution timeline to fast-track traffic decongestion across major arterial corridors.

    The joint venture’s scope covers the engineering and construction of grade-separated steel bridge interchanges across seven key intersections:

    • IC04: Al-Khair Road and King Salman Bin Abdulaziz Road
    • IC05: Prince Turki Road and Imam Saud Road
    • IC06: Al-Takhassosi Road and Saeed Al-Sulami Road
    • IC07: Khurais Road and Al-Hareth Bin Abdullah Road
    • IC08: Khurais Road and Ash-Sharq Road
    • IC09: Khurais Road and Marmar Road
    • IC10: Al-Kharj Road and Al-Hilla Road

    The total length of the flyovers is 8.86 kilometres, excluding Junction IC10.

    In addition to the structural steel superstructures, concrete bridge foundations, decks and approach ramps, the contract includes retaining walls, utility diversions, temporary phased traffic arrangements, associated roadworks, drainage networks, roadway lighting, intelligent transportation systems and landscaping.

    The client received commercial proposals from several local and international contractors. Other bidders included:

    • Masco
    • Nesma & Partners
    • Al-Omaier Trading & Contracting Company 
    • Yuksel Saudia 
    • Batco 
    • Modern Building Leaders
    • Sapac

    The urgent bridges initiative is part of Riyadh’s rapid transport infrastructure programme to improve traffic throughput, enhance safety and ease vehicular congestion across central and ring-road corridors ahead of major events, including Expo 2030 and the 2034 Fifa World Cup.

    In July, Mofarreh Group and Turkiye’s Gulsan Holding formed a joint venture to bid for and deliver transport infrastructure projects in Riyadh for RCRC.

    The joint venture said it will target road, bridge, viaduct and interchange projects.

    Mofarreh will provide local market access and operational capacity, while Gulsan will contribute international experience in large-scale transport projects.

    The companies said the new venture will support knowledge transfer and localisation, and promote the use of international engineering and construction standards aligned with Saudi Arabia’s Vision 2030 infrastructure and sustainability goals.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20663255/main.png
    Yasir Iqbal
  • Humain tenders 100MW Riyadh AI data centre

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    Saudi artificial intelligence infrastructure developer Humain has issued a request for proposals for an engineering, procurement and construction (EPC) contract to deliver a 100MW artificial intelligence (AI) data centre facility in Riyadh’s Al-Saad area.

    The tender was issued on 17 September, with bids due by 8 November.

    The contract includes core-and-shell works; civil works; mechanical, electrical and plumbing installation; testing and commissioning; and site infrastructure across a 350,200-square-metre plot.

    The project also includes an optional expansion phase that could raise total site capacity to 200MW.

    The initial 100MW development is split into two equal 50MW phases, structured across two single-storey IT buildings housing four 25MW data halls.

    Phase one targets a ready-for-service date by October 2028, followed by phase two in January 2029.

    Under the optional phase three, an additional 100MW facility would be brought online by July 2029.

    The data centre will be designed to support high-density graphics processing unit clusters and AI-compute workloads, with rack densities of 240kW to 250kW.

    The facility will be built to Uptime Institute Tier III topology and LEED Silver standards as a baseline, targeting LEED Gold.

    The operational design targets an annualised power usage effectiveness below 1.35.

    Power will be delivered through four 33kV connections supplied by Saudi Electricity Company from two separate high-voltage/medium-voltage primary substations. The scope requires 15 transformers, 15 static 2,250kW IT uninterruptible power supply (UPS) units, and 450kW mechanical UPS systems with lithium-ion battery storage for each 25MW block. 

    Backup emergency diesel generators will be provided on an owner-furnished, contractor-installed basis, with the EPC contractor handling their installation, connection and testing. Fuel storage will provide 24 hours of autonomous run-time, split between on-site underground bulk tanks and generator belly tanks.

    Thermal management combines air and liquid cooling. High-density server racks will be equipped with direct-to-chip liquid cooling loops using coolant distribution units and technical water distribution, paired with air-cooled chillers operating in dual high- and low-temperature loops, alongside fan-wall units.

    The total construction timeline is capped at 25 months from site handover or contract signing, with pre-execution early mobilisation scheduled to start in January 2027.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20661045/main.jpg
    Yasir Iqbal
  • Adnoc Onshore seeks bids for Bu Hasa field EOR project

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    The onshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Onshore) has sought bids from contractors for a key project to increase the oil production capacity of the Bu Hasa oil field, primarily through enhanced oil recovery (EOR) techniques.

    The main objective of the Bu Hasa-Shuaiba EOR Unit 1 (Phase 1) project is to achieve a targeted 70% increase in oil production, extend the Bu Hasa field development’s production plateau and maximise the field’s potential in an economical manner.

    The project aims to confirm and validate the optimum EOR technology for the top-ranked reservoirs/units; assess incremental recovery on top of the improved oil recovery (IOR) wedge; extend the field plateau for as long as is economically feasible; and achieve an ultimate recovery factor of 70% from the Shuaiba reservoir. It will evaluate and execute the recommended EOR option through pattern phasing for any technology proven by Adnoc.

    Adnoc Onshore is understood to have issued the tender for the project on 20 September, with an initial technical bid submission deadline of 8 October, according to sources. The client later extended the technical bid submission deadline to 17 October, sources told MEED.

    The chosen contractor will execute the project under a hybrid contracting strategy comprising:

    • A lump sum (turnkey) EPC scope covering the complete pipeline system from East Hub to the separation plant
    • A call-out-based scope for execution of all WAG injector and WSW tie-in works

    Unless otherwise specified, all activities defined under the contractor’s scope will be deemed included within the lump-sum contract price. This will cover engineering, procurement, construction, testing, pre-commissioning and support to commissioning for a complete and operable system.

    At the Bu Hasa field development, three remote degassing stations (RDS-1/2/3) and two satellite stations, Bida Al-Qemzan and Huwaila, are currently in operation. Production from oil wells completed in Shuaiba, Thamama B, Thamama F, Bida Al-Qemzan and Huwaila is routed via individual flowlines to the three remote degassing stations and the Bida Al-Qemzan and Huwaila stations across different parts of the field.

    Combined production from the wells at each of these stations is routed to the central degassing stations (CDS) via transfer lines ranging from 16 inches to 24 inches in diameter. In addition, some wells in the central part of the field are connected directly to the CDS.

    Previous studies have identified carbon dioxide (CO2) flooding as a promising tertiary recovery mechanism in the Shuaiba reservoir, delivering incremental recovery on top of the IOR wedge (P5 project), extending the field plateau as long as economically feasible, and achieving an ultimate recovery factor of 70% from the Bu Hasa Shuaiba units.

    Located 200 kilometres south of Abu Dhabi city, Bu Hasa is Adnoc Onshore’s westernmost producing field. It is one of Abu Dhabi's biggest onshore assets, with crude oil production capacity of 650,000 b/d. It is also one of the Adnoc Group’s oldest oil fields, having been discovered in 1962 and in production since May 1965.

    As part of the ongoing Bu Hasa Integrated Field Development Project (BUIFDP), 13 new well pads and two pad hubs have been added to the field. Oil, gas and water produced at these sites will be collected at a central gathering facility, then sent through production headers and transfer lines to the CDS for processing.

    Adnoc Onshore is the Adnoc Group’s largest oil-producing subsidiary, accounting for 2 million b/d of oil and about 7 billion cubic feet a day of associated gas production from four main onshore field developments in Abu Dhabi: Bab, Bu Hasa, North East Bab and South East.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20639750/main0548.jpg
    Indrajit Sen
  • OTTCO issues tender for Oman oil storage park expansion

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    Oman Tank Terminal Company (OTTCO) has issued the main tender for a major project related to the expansion of the Ras Markaz crude oil storage complex at Duqm, on the sultanate’s Arabian Sea coast.

    The project, titled Trade Bridge, involves the engineering, procurement and construction (EPC) of eight large storage tanks, each with a capacity of 650,000 barrels. This will increase the Ras Markaz terminal’s total storage capacity by 5.2 million barrels.

    The project represents the next expansion phase (phase 1.4) of the Ras Markaz oil storage terminal within the Special Economic Zone at Duqm (Sezad).

    State-owned OTTCO issued the prequalification notice for the project on 28 July, with contractors submitting initial responses by 4 August and final responses by 19 August, MEED previously reported.

    According to sources, OTTCO issued the main tender for EPC works on Project Trade Bridge in the weeks following completion of the prequalification exercise.

    The following contractors, among others, are understood to have been prequalified by OTTCO to bid for Project Trade Bridge:

    • China Petroleum Pipeline Engineering Company (China)
    • China Tianchen Engineering Corporation (China)
    • Daqing Oilfield Construction Group Company (China)
    • Enppi Muscat (local branch of Egypt-based Enppi)
    • Gulf Petrochemical Services & Trading (Oman)
    • Hualu Engineering & Technology Company (China)
    • Rotary Engineering (Singapore)
    • Sinopec Ningbo Engineering Company (China)

    OTTCO commissioned the first phase of the Ras Markaz crude oil storage park, covering 10 square kilometres and with a capacity of 26.7 million barrels, in December 2022.

    The storage facility has two parts. The first is a marine services area, which includes a floating station for crude imports and exports. This zone is about 7 kilometres offshore and is connected via two 42-inch pipelines and associated facilities.

    In water depths of up to 42 metres, the floating station can accommodate very large crude carriers. It is linked to four main pumps that transfer crude oil to the storage area, which is located more than 120 metres above sea level. OTTCO could add pumps at a later stage to keep pace with future demand for oil storage.

    The second part of the storage facility features oil pumping systems, water treatment facilities, reservoirs, power station networks and other associated systems.

    Region’s largest oil storage park

    OTTCO will build the Ras Markaz oil storage facility in five phases over several years across an area of about 40 square kilometres, for which it signed a land agreement with Sezad in July 2017.

    It will be able to hold 200 million barrels of crude a year. Total investment in the scheme is understood to be $5.2bn.

    The storage terminal in the first phase of the Ras Markaz facility is connected to the estimated $7bn Duqm refinery and other oil-derivatives production plants at Sezad via a pipeline that will supply crude feedstock to the refinery when required.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20638090/main0749.jpg
    Indrajit Sen