April 17, 2024

Initiation of Abu Dhabi’s 1.5GW Solar PV Project on the Horizon

Requests for Proposals (RFPs) for the 1,500 MW Khazna Solar PV project in Abu Dhabi have been sent out by Emirates Water and Electricity Company (EWEC) to eligible developers and developer consortiums.

19 Firms and Partnerships Qualified for the RFP Stage

The RFP is being sent to bidders who have successfully completed the qualification process after the expression of interest stage that was held in September of last year, according to EWEC, a leading company in the integrated coordination of planning, purchasing, and supply of water and electricity throughout the United Arab Emirates.

According to Trade Arabia’s report, 19 firms and partnerships qualified for the RFP stage after submitting statements of qualification, of the total 27 companies and consortiums that submitted EOIs.

In order to assist businesses and consortiums in creating their responses, the RFP provided comprehensive specifications and suggested technical parameters for the project, according to the statement.

Khazna Solar PV Project is Part of a Bigger Plan

CEO of Emirates Water and Electricity Company (EWEC), Othman Al Ali emphasized that advancing solar PV technology is crucial in their efforts to reduce carbon emissions in the UAE, given its cost-effectiveness and low carbon footprint compared to other electricity generation methods.

He highlighted the significance of the Khazna Solar PV project as their fourth large-scale solar endeavour, marking a key step in their plan to increase solar PV capacity between 2027-2037, aligning with the UAE's Net Zero by 2050 Strategic Initiative.

Al Ali expressed eagerness to collaborate with top-tier partners to leverage their expertise and innovation in building a cleaner, more sustainable energy landscape in Abu Dhabi and the UAE.

He continued, "We're excited to work on this project with world-class partners, bringing our knowledge and creativity together to create the groundwork for a cleaner, greener, and more sustainable energy landscape in Abu Dhabi and the UAE."

EWEC highlighted the importance of solar energy in their aim to generate nearly 50% of their electricity from renewable and clean sources by 2030, emphasizing its cost-effectiveness and role in cutting down carbon dioxide (CO2) emissions from electricity production. 

The Project Raises EWEC’s Solar PV Capacity to 5.5GW

When Khazna Solar PV becomes fully operational, along with Noor Abu Dhabi, Al Dhafra Solar PV, and Al Ajban Solar PV, EWEC's total installed solar PV capacity will reach 5.5 gigawatts (GW), resulting in a collective reduction of over 8.2 million metric tons (MT) of CO2 emissions annually by 2027.

Khazna's output will power around 160,000 homes throughout the UAE and is projected to cut CO2 emissions by over 2.4 million metric tons annually, equivalent to taking approximately 470,000 cars off the roads.

EWEC stated that the project's responsibilities encompass development, financing, construction, operation, maintenance, and ownership of the plant and its related infrastructure. 

EWEC to Share Ownership with the Developer

EWEC explained in a statement that the successful developer or developer consortium will hold a maximum of 40% ownership in the entity, with the Abu Dhabi Government indirectly holding the remaining equity.

Additionally, as part of the arrangement, the developer will engage in a long-term power purchase agreement (PPA) with EWEC, the sole purchaser of power and water capacity and production in Abu Dhabi.

This PPA will be structured as an energy purchase agreement, with Ewec paying solely for the net electrical energy supplied by the plant, as outlined in Ewec's statement.

With a mandate to achieve clean energy targets outlined by the Abu Dhabi Department of Energy, EWEC drives initiatives to diversify the energy mix, deploying renewable energy and low-carbon water desalination capacities.

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