Middle East

"Emirates Water and Electricity" A request for proposals has been issued for the development of Al Khazna solar photovoltaic power station project

ABU DHABI, 16 APRIL / WAM / The Emirates Water and Electricity Company announced the issuance of a request for proposals for companies and a consortium of qualified companies to develop the Al Khazna solar photovoltaic station project, with a capacity of 1,500 megawatts, in the Al Khazna area in Abu Dhabi.

A request for proposals will be issued to companies and consortia that have passed the qualification process after the expressions of interest stage that took place in September 2023.

27 companies and consortia submitted requests to express interest in implementing the project, while 19 companies and consortia qualified for the bidding stage after submitting the required qualification data.

The RFP includes detailed requirements and proposed technical standards for the project to support companies and consortia in preparing their proposals.

Othman Juma Al Ali, CEO of the Emirates Water and Electricity Company, said: The photovoltaic solar energy stations that the Emirates Water and Electricity Company is developing contribute to achieving the company’s strategic aspirations aimed at removing carbon from electricity production in the United Arab Emirates, given that these stations are among the most important solutions. Cost-effective, in addition to the low carbon content resulting from the process of generating electricity through these stations.

He added: The development of the Al Khazna solar photovoltaic project is the fourth solar energy project for the Emirates Water and Electricity Company at the public utility level, and would enable the company to move forward in implementing its development plans that aim to increase the capabilities of solar photovoltaic energy during the years 2027-2037, and to play a major role. In achieving the UAE’s transition plan to a sustainable future in line with the country’s strategic initiative to achieve climate neutrality by 2050.

He expressed Emirates Water and Electricity Company’s aspiration to cooperate with the best companies to implement this project, and to employ its experience in this field and its ability to innovate to contribute together to laying the foundation for a cleaner and more sustainable energy scene in Abu Dhabi and the United Arab Emirates.

It is noteworthy that solar energy plays an essential role in achieving the goals of the Emirates Water and Electricity Company, which aims to produce about 50% of electricity through renewable and clean energy sources by 2030, due to the low cost of production and its contribution to reducing carbon dioxide emissions resulting from the electricity generation process.

Once the Al Khazna solar photovoltaic power plant begins full commercial operation, the Al Khazna solar photovoltaic power plant, along with the previous Noor Abu Dhabi, Al Dhafra and Al Ajban solar photovoltaic power plants, will raise the total solar photovoltaic energy production at the Emirates Water and Electricity Company to 5.5 gigawatts, so that the four plants combined will reduce more than 8.2 million metric tons per year of carbon dioxide emissions by 2027, meanwhile the new Al Khazna plant will generate enough to supply electricity to about 160,000 homes across the country.

The plant alone is expected to contribute to reducing more than 2.4 million metric tons annually of carbon dioxide emissions, equivalent to removing about 470,000 cars from the road.

The Al Khazna solar photovoltaic project includes the development, financing, construction, operation, maintenance and ownership of the station, in addition to the necessary infrastructure works.

The developer or consortium of developers winning the project will have a 40% share of the SPV, while the Abu Dhabi government will indirectly own the remaining percentage.

The winning developer of the project will enter into a long-term agreement with the Emirates Water and Electricity Company to purchase energy, as it is the sole buyer of the quantities of water and electricity produced in the Emirate of Abu Dhabi.

The power purchase agreement will be structured such that Emirates Water and Electricity Company pays only for the net electrical energy produced by the plant.

The companies’ offers are expected to be received in the third quarter of 2024, after which the Emirates Water and Electricity Company will organize a public event during which the names of the companies and consortiums submitting the offers will be announced.

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