meed-logo

line1 line2 line3
SIGN IN / REGISTER

UAE power sector shapes up ahead of Cop28

3 April 2023

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

> Ewec rules out solar in desalination projects

> Dewa receives K station bid

> Dewa briefs 1.8GW solar bidders

> Italian firms pursue energy transition roles

> Majid al-Futtaim signs 36MW clean energy agreement

> Abu Dhabi eyes power and water contracts extension

There will be no shortage of milestones once November’s Cop28 turns the spotlight onto the UAE’s power generation sector.

Already, Abu Dhabi-based Emirates Water & Electricity Company (Ewec) has announced that, on 10 February at 2.26 pm, it met 80 per cent of total power demand using renewable and clean energy from its solar and nuclear power plants – supplying roughly 6.2GW of its total 7.7GW system power demand.

Before this, Bruce Smith, Ewec’s executive director for strategy and planning, told MEED that the company was working towards implementing control systems to enable clean and renewable energy to meet up to 100 per cent of power demand “under specific parameters or conditions”.

As things stand, Ewec is set to become the first offtaker in the region to build a utility-scale battery energy storage system (BESS), a key tool to address the intermittency of solar energy production. The company sought advisers for the development of its first two BESS facilities earlier this year.

The two projects will have a minimum capacity of 300MW plus one-hour of reserve-optimised BESS. The facilities are expected to come on-stream by 2026.

From being nearly wholly dependent on thermal power generation as recently as four years ago, these developments offer compelling evidence of the UAE’s commitment to its energy diversification strategy

Higher peak demand not only requires additional thermal and solar generation capacity, but also batteries to enhance system reliability, Ewec noted in a presentation in March.

Based on its latest statement of future capacity requirements, Ewec foresees a 30 per cent peak demand increase from 16.7GW in 2022 to 21.6GW by 2029.

This year’s commissioning of a new power plant in Sharjah – the 1,800MW Hamriyah independent power producer (IPP) – is expected to reduce Ewec’s electricity exports. However, this will be offset by the addition of offshore demand starting in 2026 from Abu Dhabi National Oil Company (Adnoc).

In spite of rising demand warranting expansion in installed generation capacity – and with substantial contracted thermal capacity approaching expiry – Ewec forecasts halving its total carbon dioxide (CO2) emissions from 43 million tonnes a year (t/y) in 2019 to 22 million t/y by 2035.

Ewec needs to install 7.3GW of solar capacity by 2029 and 16GW by 2036, which implies procuring roughly 1GW to 1.5GW of new capacity annually during the period.

By the end of 2023, Ewec’s solar fleet will comprise the 935MW Noor Abu Dhabi project in Sweihan and the 1.5GW Al-Dhafra solar photovoltaic (PV) plant, which is nearing completion.

The procurement process is under way for the emirate’s third utility-scale solar PV IPP, also with a capacity of 1.5GW, in Al-Ajban.

Tendering for a fourth solar PV project, likely to be located in A-Ain, is also expected to begin in the third or fourth quarter of 2023.

This ambitious programme, including an aspiration to enable Ewec’s solar fleets to produce dispatchable loads similar to conventional power plants, makes the BESS projects of paramount importance.

Dubai green story

Dubai’s long-term capacity procurement plan is less clear, although state utility Dubai Electricity & Water Authority (Dewa)  has reported a 5.5 per cent increase in demand in the emirate in 2022, to reach 53,180 gigawatt-hours (GWh).

This is half of the 10 per cent growth in 2021, which marked the emirate’s resurgence from the Covid-19 pandemic. 

As of early 2023, over 2GW of clean energy from the Mohammed bin Rashid solar park accounted for 14 per cent of Dewa’s electricity production capacity, which stood at 14.5GW.

Based on the initial plan of 5GW of capacity once the solar park is complete, and with some 1GW still under construction, Dewa is expected to procure at least 2GW more.

The 1.8GW sixth phase of the solar park, which is currently being tendered, accounts for most of the outstanding capacity.

Unlike Abu Dhabi, which plans to expand its thermal generation capacity in light of the demand increase and expansion of intermittent renewable energy, Dubai has already ruled out gas as a feedstock for future greenfield generation capacity.

“We have a relatively new and modern fleet [of thermal power generation plants] that would be operational for another 20 to 30 years,” Saeed Mohammed al-Tayer, Dewa CEO and managing director, said in a forum in Dubai in 2020.

The Dubai Economic Agenda 2033 (D33), which aims to double the size of Dubai’s economy over the next decade and consolidate its position among the top three global cities, is expected to drive power and water demand within the emirate, without compromising its carbon abatement strategy and emissions reduction targets.

Diversification

The UAE already has the GCC’s most diversified electricity production installed capacity, with fleets deriving electricity from solar PV, thermal and nuclear power plants. The region’s first hydroelectric power plant in Hatta in Dubai will further expand the country’s power sources.

The completion of the 1.5GW Al-Dhafra solar IPP in Abu Dhabi and roughly 1GW from the fourth and fifth phases of the MBR solar park in Dubai will drive solar’s share from 8 per cent at the start of the year to 12 per cent by the end 2023. This will cause the overall share of thermal power generation to retreat by three percentage points to 79 per cent, in spite of the completion of the remaining units at Hassyan in Dubai, the Hamriyah IPP in Sharjah and the Fujairah F3 facility.

The three reactors at the Barakah nuclear power plant in Abu Dhabi also contribute an estimated 4.2GW of installed capacity, or roughly 9 per cent of Abu Dhabi, Dubai and Sharjah’s combined overall capacity, and 18 per cent in Abu Dhabi alone.

From being nearly wholly dependent on thermal power generation as recently as four years ago, these developments offer compelling evidence of the UAE’s commitment to its energy diversification strategy.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10723958/main.jpeg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Firms submit Jebel Ali sewage PPP prequalifications

    24 July 2026

     

    Dubai Municipality received statements of qualification on 23 July from firms interested in delivering phase three of the Jebel Ali sewage treatment plant (STP) expansion project.

    Known as DS150/3, the project will be delivered under a public-private partnership (PPP) model on a design, build, finance, own, operate and transfer basis.

    The project involves the development of a new water resource recovery facility with an ultimate treatment capacity of up to 1 million cubic metres a day (cm/d).

    It is being procured through Dubai Municipality’s sewerage and recycled water projects department and will be delivered via a two-stage operational approach over a 30-year concession period.

    It is understood that the following firms are among those likely to qualify for the project:

    • Acciona (Spain)
    • Alkhorayef (Saudi Arabia)
    • Besix (Belgium)
    • Etihad WE (UAE)
    • GS Inima (Spain)
    • Metito (UAE)
    • Miahona (Saudi Arabia) 
    • Samsung E&A (South Korea)
    • Saur (France)
    • Suez (France)
    • Taqa Water Solutions (UAE)
    • Veolia (France)

    The municipality issued a request for qualifications notice in May with an intial bid submission deadline of 18 June. UK-headquartered Deloitte is acting as financial adviser, Aecom is the project's technical adviser and CMS is the legal adviser.

    Dubai Municipality said the project will also include additional land uses and community-focused amenities as part of broader sustainability and urban integration objectives.

    Phase one and two expansion

    On 9 July, firms submitted bids for an engineering, procurement and construction contract covering the expansion of the Jebel Ali STP phases one and two.

    Located on a 670-hectare site in Jebel Ali, the original wastewater facility has a treatment capacity of about 675,000 cm/d, following the completion of phase two in 2019, combining approximately 300,000 cm/d from phase one and 375,000 cm/d from phase two.

    The upgraded facility will be capable of treating an additional sewage flow of 100,000 cm/d, with the expansion estimated to cost $300m.

    UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17735401/main.jpg
    Mark Dowdall
  • Contractors submit interest for Riyadh Expo substructure

    24 July 2026

     

    Contractors have submitted expressions of interest on 23 July for a contract to deliver the early works and substructure works for several assets at the Expo 2030 Riyadh site.

    Expo 2030 Riyadh Company (ERC) is tasked with delivering the Expo 2030 Riyadh venue. Saudi sovereign wealth vehicle, the Public Investment Fund, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for the event.

    The assets include the Icon; the convention centre; and thematic pavilions, including the Culture of Wisdom, Place & Planet and Adaptation & Innovation pavilions.

    The Icon will be located at the entrance of the Expo 2030 Riyadh site, within the Collaboration Precinct.

    The structure will be connected to the metro station and will serve as a gateway to the event.

    It will be 66 metres tall and will comprise an observation platform, food and beverage (F&B) outlets and other features.

    The convention centre will cover about 22,000 square metres. It will be the first point of arrival for visitors to the expo.

    The Culture of Wisdom pavilion will be a 25-metre-tall building that will feature exhibition galleries, innovation laboratories and conference and learning spaces.

    The Place & Planet building will also be 25 metres tall, and will include indoor and outdoor exhibition spaces, F&B and retail facilities and support areas.

    The Adaptation & Innovation pavilion will be located within the Loop of Nations precinct and will comprise a 29-metre-tall building.

    Construction progress

    The tendering of the pavilion structures followed progress on the site’s infrastructure development works.

    In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Al-Yamama Company.

    The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.

    These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners. That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems, and electric vehicle charging stations.

    The overall infrastructure works – covering the construction of main utilities and civil works at Expo 2030 Riyadh – are split into three packages:

    • Lot 1 covers the main utilities corridor;
    • Lot 2 includes the northern cluster of the Nature Corridor;
    • Lot 3 comprises the southern cluster of the Nature Corridor. 

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17739044/main.jpg
    Yasir Iqbal
  • Oil price rises above $100 a barrel after Red Sea attacks

    24 July 2026

    Oil prices rose to their highest level in nearly two months on 23 July after the latest escalation in the US-Iran conflict threatened severe new disruptions to global energy supplies.

    Global benchmark Brent crude closed 7% higher, at $100.69 a barrel on 23 July. Earlier in the trading day, it rose as high as $102 a barrel. That is its highest level in eight weeks, since the end of May.

    Brent was trading at over $100 a barrel in the early hours of 24 July, but later pared gains to settle around $99.63 a barrel as of 11am Gulf Standard Time (GST).

    The surge in the Brent price came after Iran-backed Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea following their announcement of a naval blockade on Saudi Arabia.

    It appeared to be the first time since the regional war began that attacks on oil tankers and other commercial ships had extended beyond the Strait of Hormuz, opening up a new front in the volatile conflict.

    The Houthi threat is unsettling to oil markets because millions of barrels a day pass through the Bab El-Mandeb Strait to reach global markets.

    ALSO READ: Opec+ holds the line on unwinding of production cuts

    About 12%-15% of global maritime trade, worth more than $1tn, transits the waterway every year.

    It has also served as an alternative to the Strait of Hormuz, where traffic remains largely at a standstill, with ship crossings falling to single digits on 21 July.

    Since the start of July, oil prices have risen about 35%. Those prices are more than 60% higher than at the start of the year. This has erased much of the progress made in bringing prices down after the US and Iran signed a memorandum of understanding in mid-June.

    The interim peace deal has now collapsed, with US President Donald Trump threatening on 22 July to blow up an Iranian bridge or power plant for every vessel Tehran attacks.

    This was followed by the Houthi claim to have hit two tankers in the Red Sea.

    The UK’s Maritime Trade Office reported a tanker “struck by an unknown projectile” north of the Bab El-Mandeb Strait, and state-run Saudi Press Agency (Spa) reported that a vessel named Encelia was set ablaze by an attack while it was sailing overnight in the Red Sea, citing an unidentified source from the General Authority of Transport. Spa did not mention the other vessel, which is understood to be called Layla.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17739553/main4051.jpg
    Indrajit Sen
  • Qiddiya tenders Dragon Ball theme park package

    24 July 2026

     

    Qiddiya Investment Company (QIC) has tendered a contract to undertake the back-of-house works on the Dragon Ball theme park in Qiddiya, Saudi Arabia.

    The scope covers the construction of plant rooms, facilities management buildings, workshops, storage warehouses and central processing kitchens.

    It also includes a monorail service depot, a fire station, parking, utilities and other associated infrastructure.

    The bid submission deadline is 13 September.

    The Dragon Ball theme park will cover more than 500,000 square metres and will have seven themed zones inspired by the Japanese media franchise, including Kame House, Capsule Corporation and Beerus’ Planet.

    The park will offer more than 30 rides with five main attractions, including a rollercoaster that passes through a 70-metre landmark based on the series’ wish-granting dragon Shenron. 

    The development will also include themed hotels.

    In September 2024, US-based firm Falcon’s Creative Group announced that it is undertaking the masterplan and attraction design and is the creative lead for the theme park.

    QIC formally launched the Dragon Ball theme park in March 2024.

    The announcement came after QIC signed an agreement with Japanese firm Toei Animation, the producer of the Dragon Ball anime series.

    The Dragon Ball theme park is one of several major projects within the wider Qiddiya development. Other projects include an e-games arena, Prince Mohammed Bin Salman Stadium, a horse racing venue, a performing arts centre, the Speed Park and Six Flags theme parks and Aquarabia waterpark.

    The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17738622/main.jpg
    Yasir Iqbal
  • Saudi Arabia appoints developer for hybrid power plant

    24 July 2026

     

    Saudi Arabia-based Lamar Holding has signed a contract to develop a hybrid power plant at the Empty Quarter (Rub Al-Khali) land port in Saudi Arabia, according to a source.

    The public-private partnership (PPP) project aims to reduce diesel fuel use with renewable energy and ensure a long-term power supply at the Empty Quarter land port. It includes the construction of 15MW of total hybrid installed capacity, installation of a 7 megawatt-peak solar photovoltaic system and eight 1MW internal combustion engines.

    In March, MEED exclusively reported that Lamar had been given preferred bidder status and was in advanced discussions with Saudi Arabia’s Zakat, Tax & Customs Authority (Zatca) for the contract.

    MEED understands that the proposed plant will have the capacity to produce 25 gigawatt-hours of electricity annually. It will be implemented under a design, build, finance, operate, maintain and transfer contract model for 25 years, excluding the construction period.

    US/India-based Synergy Consulting is acting as financial advisor to Lamar on the project. Egyptian firm Eternal Consultation Engineering Services is acting as the technical support consultant and Dubai-headquartered Aktech is the technical consultant for the project.

    Lamar Holding and Dubai’s SirajPower submitted bids for the Empty Quarter hybrid power plant project in July 2025, as previously reported by MEED.

    Zatca, in collaboration with the National Centre for Privatisation & PPP, had previously prequalified the following four companies to bid for the contract in October 2024:

    • Alfanar Company (Saudi Arabia)
    • Lamar Holding (Saudi Arabia)
    • Olayan Energy (Saudi Arabia) / Enerwhere Sustainable Energy (UAE)
    • Siraj Power for Renewable Energy (UAE)

    Prior to that, in July 2024, 12 Saudi companies and local branches of international companies, along with 11 overseas-based companies, submitted statements of qualifications for the contract.

    In addition to building and operating the power plant, the project scope includes ensuring the facility operates to defined requirements and output specifications. It also involves managing power generation and the connection to the Zatca interface point for the entire project term.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17733327/main.jpg
    Mark Dowdall