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.
Exclusive from Meed
-
SPPC moves Dawadmi wind bid deadline
22 May 2025
-
Local firm bids low for Kuwait grid contract
22 May 2025
-
GE Vernova confirms $14.2bn Saudi initiatives
22 May 2025
-
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends

Related Articles
-
SPPC moves Dawadmi wind bid deadline
22 May 2025
Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has extended the bid deadline for the contract to develop a wind independent power project (IPP) under the sixth round of Saudi Arabia’s National Renewable Energy Programme (NREP).
MEED reported in March that the prequalified developers had formed consortiums and were preparing their proposals for the contract, the fifth wind IPP to be tendered under the NREP.
SPPC initially expected to receive bids by 15 May, but the deadline has since been extended to 23 June, according to industry sources.
The new deadline is likely to be extended again, however, one of the sources told MEED.
The consortiums that have been formed and will likely bid for the contract include teams led separately by UAE-based Abu Dhabi Future Energy Company (Masdar) and French firms Engie and EDF Renewables, sources said.
MEED understands that Beijing-based PowerChina and one of its subsidiaries are part of separate bidding consortiums.
Located in Riyadh, the Dawadmi wind IPP will have a capacity of 1,500MW. It is the only wind scheme and the fifth package under round six of the the NREP.
Four solar photovoltaic (PV) schemes, with a total combined capacity of 3,000MW, comprise the rest of the round six projects.
In addition to the firms cited above, SPPC prequalified the following companies to bid as managing and technical members of consortiums bidding for the contract:
- Marubeni Corporation (Japan)
- Sembcorp Utilities (Singapore)
- Sumitomo Corporation (Japan)
- Total Energies Renewables (France)
- Goldwind Science & Technology (China)
- Alfanar Company
- SPIC Huanghe Hydropower Development
The following eight companies were prequalified to bid as managing members:
- Al-Jomaih Energy & Water (local)
- Jinko Power (Hong Kong)
- Saudi Electricity Company (local)
- China Power Engineering Consulting Group International Engineering Company (China)
- Posco International Corporation (South Korea)
- Korea Electric Power Corporation (Kepco, South Korea)
- Nareva Holding (Morocco)
- Jera (Japan)
Another firm, the local Nesma Renewable Company, has been prequalified as a technical member.
In addition to the Dawadmi wind IPP, the following schemes comprise round six of the NREP:
- 1,400MW Najran solar PV IPP (Najran)
- 600MW Samtah solar PV IPP (Jizan)
- 600MW Al-Darb solar PV IPP (Jizan)
- 400MW Al-Sufun solar PV IPP (Hail)
These schemes take the total capacity of solar and wind projects publicly tendered by SPPC to almost 15,000MW.
SPPC is responsible for the pre-development, tendering and subsequent offtaking of the energy from the projects.
US/India-based Synergy Consulting is providing financial advisory services to SPPC for the NREP sixth-round tender. Germany’s Fichtner Consulting and US-headquartered CMS are providing technical and legal consultancy services, respectively.
The previous wind farms that SPPC has tendered include the 400MW Dumat Al-Jandal wind IPP, which is operational.
Last year, SPPC signed the power-purchase agreements with Japan’s Marubeni Corporation for the contracts to develop and operate the 600MW Al-Ghat and 500MW Waad Al-Shamal wind IPPs. The projects reached financial close in November.
The third wind IPP, a 750MW scheme in Yanbu, is undergoing review.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13931337/main.jpg -
Local firm bids low for Kuwait grid contract
22 May 2025
Local contracting firm Power Grid Company has submitted a low bid of KD48.67m ($158.6m) for a contract to supply and install a 400-kilovolt (kV) overhead transmission line (OHTL) in Kuwait.
The project will link a substation in Shagaya to a substation in Subiya.
The two other bidders for the contract are the Kuwaiti branch of India-headquartered Larsen & Toubro, which offered KD65.9m, and Al-Khobar-based National Contracting Company, which offered KD57.7m.
Kuwait’s Ministry of Electricity & Renewable Energy (MEWRE) tendered the contract in October last year.
The planned OHTL network will link the solar energy transformer station at Shagaya to the Subiya power station, also known as SWPS-2.
Kuwait plans to expand its renewable energy capacity through a multi-phased solar programme in Shagaya.
MEWRE, through the Kuwait Authority for Partnership Projects (Kapp), prequalified six consortiums and companies to bid for the contract to develop the Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one project in August last year.
The tender for the 1,100MW solar independent power project has yet to be issued.
MEWRE, through Kapp, recently invited interested firms to prequalify for a contract to develop zone two of the renewable energy complex's third phase.
The zone two solar photovoltaic project will have a net capacity of 500MW. Utility developers are expected to submit their statements of qualifications by 24 July.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13931091/main0058.jpg -
GE Vernova confirms $14.2bn Saudi initiatives
22 May 2025
US-based energy equipment manufacturer GE Vernova announced initiatives worth up to $14.2bn in Saudi Arabia, which coincided with US President Donald Trump’s state visit to the kingdom last week.
The initiatives aim to “accelerate Saudi Arabia’s energy transition with US technology and expertise”, the firm said.
The announcements include up to $2bn in backlog or on a reservation agreement as of the first quarter of 2025, with future contracts and memorandums of understanding (MoUs) for agreements spanning across the next four years.
Among the collaborations and initiatives is a deal between Saudi Electricity Company (SEC) and GE Vernova for the supply of US-made gas turbines, synchronous condensers and balance of plant equipment.
The equipment deal will support grid stability by providing voltage regulation, reactive power and system strength, supplying inertia to maintain reliable operations as more variable renewable energy is integrated into the system. The deal with SEC also includes capital parts, maintenance and repair services.
Saudi Arabia's principal buyer, Saudi Power Procurement Company, and GE Vernova are understood to have entered into several MoUs for the supply of advanced power generation equipment and services for future projects; the commercialisation of carbon capture technologies; and training and investments in power sector research and development activities, manufacturing and repairs.
Saudi utility developer Acwa Power and GE Vernova also signed framework agreements to collaborate on identifying and exploring potential opportunities to supply high-efficiency gas turbines and electrification equipment for future projects in Saudi Arabia.
State-backed Saudi Aramco and GE Vernova also announced collaborations to provide maintenance services, repairs and spare parts to support the operations of several power plants in the kingdom.
Scott Strazik, chief executive of GE Vernova, said that deploying “world-class technology” will help deepen the relationship between the US and Saudi Arabia, advance energy security and strengthen both nations' economic prosperity and competitiveness.
GE Vernova, or GE, is understood to have been operating in Saudi Arabia for 90 years, with a power generation installed capacity of about 50GW in the kingdom running on its gas turbines.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13931061/main2152.jpg -
May deadline for King Salman International airport terminals
22 May 2025
King Salman International Airport Development Company (KSIADC), which is backed by Saudi sovereign wealth vehicle the Public Investment Fund, has allowed firms until 28 May to submit proposals for a contract to develop the first phase of Terminal 6 and the Iconic Terminal at King Salman International airport (KSIA) in Riyadh.
The tender notice was issued on 17 April. The previous bid submission deadline was 15 May.
The client plans to deliver the package on an early contractor involvement (ECI) basis.
The ECI process requires selected contractors to submit methodologies for the project and a design proposal.
Earlier in May, MEED reported that US firm Bechtel Corporation had been appointed as the delivery partner for the terminals at KSIA in Riyadh.
Bechtel will manage the delivery of three new terminals, including the terminal for commercial carriers, Terminal 6 for low-cost carriers and a new private aviation terminal with hangars.
This was followed by an announcement by another US-based firm, Parsons Corporation, confirming its appointment as the delivery partner for the airside and landside packages at KSIA.
In February, MEED exclusively reported that KSIADC had received prequalification statements from firms on 28 January for the project.
The client prequalified firms in September 2024 for the main engineering, procurement and construction packages; early and enabling works; specialist systems and integration; materials and equipment; engineering and design; professional services; health, safety, security, environment and wellbeing services; modular installation and prefabrication; environmental, social and governance services; local content; and other services.
The entire scheme is divided into eight assets. These are:
- Iconic Terminal
- Terminal 6
- Private aviation terminal
- Central runway and temporary apron
- Hangars
- Landside transport
- Cargo buildings
- Real estate
In August last year, KSIADC confirmed that it had signed up several architectural and design firms for the various elements of the project.
KSIADC said that UK-based Foster+Partners will design the airport’s masterplan, including the terminals, six runways and a multi-asset real estate area.
US-based engineering firm Jacobs will provide specialist consultancy services for the masterplan and the design of the new runways.
The client also confirmed the appointment of UK-based engineering firm Mace for the delivery partner role on the project.
The airspace design consultancy contract was awarded to local firm Nera.
Project scale
The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.
If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.
The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.
Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation, aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.
It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13930956/main.jpg -
Petrofac oil bid in Kuwait is double proposed budget
22 May 2025
The low bid submitted by UK-based engineering company Petrofac for the Kuwaiti oil project focused on the installation of a separation gathering centre (SGC) known as SGC-2 has come in at more than double the project’s proposed budget, according to industry sources.
Petrofac submitted a bid of KD422.45m ($1.37bn) and the provisional budget for the project is KD207m ($670.2m), according to industry sources.
Petrofac’s bid beat that of India-based Larsen & Toubro, which was the only other bidder with a price of KD441.07m.
The project is located in the eastern region of Kuwait referred to as EK-2 and its scope also includes debottlenecking work, in addition to the installation of the main units.
The client on the project is state-owned upstream operator Kuwait Oil Company.
When the project was originally tendered in June 2024, the following companies were prequalified to bid:
- Hyundai Engineering & Construction Company (South Korea)
- Samsung Engineering (South Korea)
- Saipem (Italy)
- Sinopec Luoyang Engineering Company (China)
- Sinopec Engineering Incorporation (China)
- Tecnicas Reunidas (Spain)
- Larsen & Toubro (India)
- Daewoo Engineering & Construction (South Korea)
- Petrofac International (UK)
- GS Engineering & Construction (South Korea)
Petrofac’s problems
Two weeks ago, Petrofac’s shares on the London Stock Exchange were temporarily suspended after the beleaguered engineering and construction contractor failed to publish its 2024 results on time.
This suspension was enacted at the same time that Wood, another engineering and construction company, was also forced to suspend trading in its stock because it was unable to publish its annual report by 30 April.
In March, Petrofac said that it would defer publication of its 2024 results amid its long-running restructuring process.
Earlier this month, Petrofac received formal approval from the High Court of England & Wales to implement its restructuring plan.
The company, which has billions of dollars-worth of projects in the Middle East and North Africa region, has said that the approved plan will unlock $355m in new funding for its operations.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13930355/main.gif