EWEC issues RFP for 1500 MW Khazna Solar PV Project

EWEC issues RFP for 1500 MW Khazna Solar PV Project

EWEC has issued a RFP to qualified developers and consortiums expressing interest in developing the 1,500-MW Khazna Solar PV project. It is located in the Al Khazna area of Abu Dhabi.

The entity is a leading company in the integrated planning, purchasing, and supply of water and electricity across the UAE. The RFP has issued to 19 bidders who passed the qualification process following the EOI stage in September 2023. The RFP provides detailed requirements for the project to support companies and consortiums in developing their submissions. However, responses to the RFP are expecting to be received in Q3 2024.

Khazna Solar PV Project:

The development of solar PV is a strategic pillar in EWEC’s mission to decarbonize electricity supply in the UAE. Moreover, it is one of the most cost-effective and low-carbon intensive solutions for electricity generation. Khazna Solar PV is a significant milestone in EWEC’s planned development of new solar PV capacity. Also, in between 2027-2037 it is to lead the UAE’s transition to a sustainable future. It is in alignment with the nation’s Net Zero by 2050 Strategic Initiative. Once fully operational, Khazna Solar PV – along with Noor Abu Dhabi, Al Dhafra Solar PV, and Al Ajban Solar PV – will raise EWEC’s total installed solar PV capacity to 5.5 GW. It will collectively reduce CO2 emissions by more than 8.2 million metric tonnes per year by 2027.

Khazna alone will generate enough electricity for approximately 160,000 homes across the UAE. It will also reduce CO2 emissions by more than 2.4 million metric tonnes per year. It is equivalent to removing approximately 470,000 cars from the road.

Project Details:

The Khazna Solar PV 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 entity. While, the remaining equity will held indirectly by the Abu Dhabi Government. The developer will enter into a long-term PPA with EWEC, the single buyer of power and water capacity and output in the Emirate of Abu Dhabi. The PPA will structure as an energy purchase agreement whereby EWEC will pay only for the net electrical energy supplied by the plant.

Conclusion:

The UAE’s total capacity was 42 GW (end of 2022) and is dominating by gas-fired (82%), following by nuclear (10%), solar (7%), and oil (1%). Solar energy is integral to achieving EWEC’s target of producing nearly 50% of its electricity from renewable and clean energy sources by 2030, given its low generation cost and its contribution to reducing carbon dioxide (CO2) emissions from the electricity generation process. However, EWEC’s Khazna Solar PV project is a significant move to achieve this target.

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