Emirates Water and Electricity Company (EWEC) has announced that a consortium led by Abu Dhabi National Energy Company (Taqa) with key members - Saudi group Aljomaih Energy and Water Company and China's Sembcorp Industries - has secured a major contract for the development of Taweelah C Independent Power Producer (IPP) project, in Abu Dhabi.
The project, which comprises a 2.6 gigawatt (GW) Combined Cycle Gas Turbine (CCGT) plant, is designed to enable the possible utilisation of carbon capture technologies in the future.
Following the award, EWEC signed the project’s Power Purchase Agreement (PPA) with the partners, which will run through to 2050.
Under the terms of the agreement, EWEC will act as the sole procurer of electricity, purchasing the net electrical energy generated by the plant. Taqa, the local and majority shareholder of the project, will own a 60 per cent stake, with the international consortium holding 40 per cent.
On the contract award, Mohamed Almarzooqi, Chief Assets Officer, said: "As EWEC transforms the UAE’s energy sector through our strategically planned, comprehensive approach that balances rapid decarbonisation with the security of supply, Taweelah C represents a key milestone in our long-term strategic roadmap. The project serves as a bridge that empowers us to accelerate our world-leading renewable energy capacity, expected to exceed 30GW of solar PV by 2035."
"Taweelah C also delivers sustainability and cost benefits, with one of the region’s lowest capital expenditure rates per kilowatt-hour and the lowest levelised cost of electricity. This advanced transitional infrastructure enables us to accelerate our decarbonisation timeline while continuing to deliver the electricity powering Abu Dhabi and the nation’s economic growth and prosperity. We are pleased to be working with Taqa, Aljomaih Energy and Water Company, and Sembcorp Industries to advance this important project," he added.
As per the deal, Taqa will also own a 40 per cent stake in the operations and maintenance (O&M) company, while the international consortium will own 60 per cent. Taqa and the consortium will be responsible for the design, finance, construction, operation, and maintenance of the facility under Abu Dhabi’s successful IPP programme.
Dr. Frank Possmeier, Chief Investment Officer, Taqa Generation, said: "Taweelah C is a key addition to our low-carbon power and water portfolio in Abu Dhabi as we accelerate execution of our growth strategy to reach 150GW of power capacity internationally by 2030. Flexible and baseload gas-powered generation will make up to 50GW of our 150GW target in our 2030 portfolio, and it will continue to play a critical role in supporting the integration of renewables and advancing the UAE’s net-zero aspirations."
"This greenfield project will deliver flexible, efficient gas generation and support Taqa’s ESG and emission reduction targets. Taqa continues to strengthen its position as a partner of choice for utility-scale power projects, delivering reliable, sustainable energy while supporting the energy transition and driving profitable growth for our shareholders," he added.
Adnan Abdulhadi Buhuligah, Chief Executive Officer of Aljomaih Energy and Water Company, said: "This project represents an important step in the Company’s journey to strengthen its regional presence and expand its portfolio of energy and infrastructure projects. It reflects our commitment to developing reliable and efficient energy solutions that meet evolving market needs, in collaboration with strategic partners. Our partnership with Emirates Water and Electricity Company (EWEC) reflects our commitment to working with leading institutions to deliver reliable, efficient, and future-ready power infrastructure continuing to support the broader transition taking place across the region."
Koh Chiap Khiong, President & CEO, Gas and Related Services, Sembcorp Industries, said: "The Taweelah C project underscores Sembcorp’s commitment to supporting the UAE’s energy transition through long-term partnerships and disciplined project execution. This project builds on our strong track record in the region and our successful partnership with Taqa on the Fujairah 1 Independent Water and Power Plant, which has operated reliably for more than two decades in support of the UAE’s power and water needs."
"Taweelah C brings together well-established institutions with aligned long-term objectives and a strong track record of execution. This partnership is anchored by a robust project structure and contractual framework. Together with EWEC and our partners, we are focused on delivering a reliable and efficient power asset that supports the UAE’s energy system over the long term," he added.-TradeArabia News Service