EWEC Reconfigures Shuweihat (1) Power Project
- Business Agreement Companies Regional
Global Business Magazine- 4 minutes read
Emirates Water and Electricity Company (EWEC), a leading company in the integrated planning, purchasing, supply, and system despatch services of water and electricity across the UAE, on Monday said that it has signed a Power Purchase Agreement (PPA) for the Shuweihat 1 (S1) power project.
In support of EWEC’s strategic acceleration of Abu Dhabi and the UAE’s energy transition, under the terms of the PPA, S1 will be reconfigured from a cogeneration power and water desalination facility to a power plant only, providing flexible reserve supply to support the increased integration of renewable and clean energy sources.
Located in Al Dhafra region, approximately 250 km from Abu Dhabi City, S1 has been in operation since 2005, under a 20-year Power and Water Purchase Agreement which was due to conclude in 2025.
Abu Dhabi National Energy Company (TAQA) owns 60% of the plant, with ENGIE, a French multinational electric utility company, and Sumitomo, a leading Japanese integrated trading company, each holding 20%.
The companies will also continue to take on the operations and maintenance (O&M) of the plant, with TAQA owning 30% of the O&M company, while ENGIE and Sumitomo will own 35% each.
Under the new PPA, and in support of EWEC’s decoupling of power and water supply, the water desalination, fuelled by natural gas, will be decommissioned. S1 will then be converted to a natural gas-fired open-cycle power plant only, providing up to 1.1 GW of flexible reserve supply for 15 years, with commercial operations beginning from 2027.
Efficient Use of Assets
Mohamed Al Marzooqi, Chief Asset Development & Management Officer of EWEC, said that the S1 extension project highlights their collaboration with international partners to enable continued investment in utility-scale assets that support EWEC’s pivotal role in driving the UAE’s energy transition to a more sustainable future.
He also said that by strategically reconfiguring this power plant, they were maximising the efficient use of existing infrastructure to deliver reliable, flexible power supply while reducing carbon emissions associated with the project.
Andreas Collor, Chief Operations Officer, of TAQA’s Generation Business, said that S1, a critical utility project in Abu Dhabi, will continue to provide flexible and reliable power supply to the grid. Flexible gas power generation plays a critical role in the energy mix as a more diverse mix of renewables and clean power sources is brought online.
S1 will provide power as and when needed to support increased demand spikes and the integration of renewables as Abu Dhabi works towards accelerating the energy transition whilst ensuring a reliable supply of power, he added.
ENGIE’s GCC Managing Director Niko Cornelis said that the S1 project marks a significant milestone in their historical presence in the UAE as it perfectly aligns with their Group’s vision that flexible, low-carbon intense gas-powered assets are key to ensure grid security amidst the remarkable advance of renewable power generation.
The extension reinforces EWEC’s continued efforts to diversify Abu Dhabi and the UAE’s total energy mix. By 2030, EWEC is aiming to provide more than 50 per cent of Abu Dhabi’s electricity from renewable and clean energy sources.
