The Emirati state-owned power utility Emirates Water and Electricity Company (EWEC) has invited developers or developer consortiums to submit an Expression of Interest (EOI) for the development of a new solar photovoltaic (PV) independent power project (IPP) with a capacity of 1,500 MW to be located in the Ajban area in Abu Dhabi (United Arab Emirates). Bids are open until 27 May 2022 for the first stage of the tender process. Following review of the EOIs, EWEC will issue the request for qualifications (RFQ) to proceed to the next stage. The RFQ will provide additional details regarding the project, pre-qualification criteria and the bidding process.
The project will involve the development, financing, construction, operation, maintenance and ownership of the plant, and associated infrastructure. The successful developer or developer consortium will own up to 40% of the project, while the remaining equity will be held indirectly by the Abu Dhabi government. The developer will sign a long-term power purchase agreement (PPA) with EWEC, the single buyer of power and water capacity and output in the Emirate of Abu Dhabi. The PPA will be structured as an energy purchase agreement whereby EWEC will pay only for the net electrical energy supplied by the plant.
The United Arab Emirates targets a 20% share of CO2-free power plants in installed capacity by 2024 and, under its Net Zero 2050 Strategic Initiative launched in December 2020, aims to achieve carbon neutrality by 2050. The total capacity reached 41 GW at the end of 2021 and was dominated by gas-fired (90%), followed by solar (7%), nuclear (3%), coal (22%), and oil (1%). The solar capacity increased from 0.6 GW in 2018 to 2.9 GW in 2021.
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