Abu Dhabi Kicks Off Bidding for 1,500MW Solar Project

Abu Dhabi further cements its position as a global leader in renewable energy with the launch of a bidding process for the 1,500-megawatt (MW) Zarraf Solar Photovoltaics (PV) project. Spearheaded by the Emirates Water and Electricity Company (Ewec), this ambitious initiative underscores the emirate's commitment to clean energy and sustainability, aligning with the UAE's broader strategy for an energy transition.

It will be a greenfield IPP initiative: the Zarraf Solar PV project is to have a capability of power supply for around 160,000 homes every year upon operation and cut down a massive amount on carbon footprint. Carbon dioxide emission cuts by 2.4 million metric tons each year would further be contributing to Ewec's 2030 target with an accomplishment rate of 5 percent for attaining 36% power emission intensity reduction.

Abu Dhabi's Expanding Solar Capacity
Zarraf Solar PV, Ewec's fifth utility-scale solar PV project, will be key to meeting Abu Dhabi's goal of having at least 10 gigawatts (GW) of its solar capacity by 2030. According to Othman Al Ali, Ewec CEO, "solar energy can be transformative for the UAE, accelerating the transition to a lower-carbon future.".

“Solar power generation represents a cost-effective, sustainable, and transformative option for diversifying our energy mix,” Al Ali stated.

Ewec’s vision extends beyond 2030, forecasting that at least 18GW of solar PV will be operational by 2035, meeting 60% of Abu Dhabi’s total power demand through renewable and clean energy sources.

The Competitive Bidding Process
The RFP stage is crucial in the overall development of a project. In this case, it comes after an EoI that was recently held in October 2024. During that stage, the interest of 20 companies and consortia was put forward, from which 16 were pre-qualified for RFP.

The RFP describes technical specifications and requirements in considerable detail for the Zarraf Solar PV project. This includes development, financing, construction, operation, maintenance, and ownership of the plant and its related infrastructure. The winning bidder or consortium will take up to 40% equity in the project company, and the remaining 60% indirectly owned by the Abu Dhabi government.

The facility will have a long-term energy purchase arrangement with Ewec. This will mean the government-owned entity will only pay for the net electrical energy supplied by the plant, further aiding in better cost-effectiveness for the initiative.

Timeline and Financial Details
The RFP submissions are due by the second quarter of 2025. While no financial details about the project have been disclosed, industry observers anticipate significant interest from global energy companies, given Abu Dhabi’s reputation for successful large-scale renewable energy projects.

Broader Energy Goals
The Zarraf Solar PV project forms part of a broader Abu Dhabi effort to diversify energy production and reduce dependence on fossil fuels. By making its energy mix more solar-intensive, the emirate would be in a position to guide the GCC region towards clean energy initiatives.

In addition, the emirate is investigating other sources of renewable energy such as wind. Simultaneously, Masdar-owned Infinity Power is planning to issue an initial public offering (IPO) in Abu Dhabi, an indicator of increased investment in renewable energy in the region.

Environmental and Economic Impact
In addition to the environmental advantages, the Zarraf Solar PV project is expected to spur economic growth through job creation in construction, operation, and maintenance. The project scale also requires the application of advanced solar technologies and infrastructure, which will promote technological innovation.

The project aligns with the UAE's Net Zero by 2050 initiative and reinforces its leadership in the global energy transition. It is a model for other GCC countries seeking to balance economic growth with environmental stewardship.

FAQs

What is the Zarraf Solar PV project?
It's a 1,500 megawatts project of solar power initiated by the Emirates Water and Electricity Company from Abu Dhabi, which will enable the powering of 160,000 homes as well as curtail CO2 emissions up to 2.4 million metric tons annually.

Who may bid?
A total of 16 prequalified companies and consortia are able to bid. These companies or consortia prequalified after meeting all the requirements as expressed at the expression of interest stage in October 2024.

Why is this project important to Abu Dhabi?
The project is crucial to the achievement of at least 10GW of solar capacity by 2030 and reducing power emissions intensity by 36% in Abu Dhabi. It is also in line with the UAE's Net Zero by 2050 strategy.

How will the project operate financially?
The project will operate under a long-term power purchase agreement, wherein the government entity will pay only for the net electrical energy supplied by the plant.

When is the project scheduled to be completed?
The final submission for the RFP is due in the second quarter of 2025. The project timeline for construction and operation will be determined following the selection of the winning bidder.