In September 2023, the Emirates Water and Electricity Company (EWEC) made an official statement to initiate the bidding process for the new 1.5GW Khazna solar photovoltaic independent power producer (IPP) project. The project will follow Abu Dhabi's independent power producer program, whereby developers will sign long-term power purchase agreements with EWEC, the sole power purchaser.
The Khazna solar photovoltaic project is a significant step towards achieving the UAE's goal of increasing the share of renewable energy to 50% by 2050. The project will be developed in the province of Abu Dhabi, which has abundant solar energy resources. Khazna's plant capacity will be sufficient to power approximately 170,000 homes and will reduce carbon dioxide emissions by around 3.6 million metric tonnes per year.
The Khazna project will be an excellent opportunity for energy developers to showcase their expertise and contribute to the UAE's clean energy goal. Furthermore, the project provides a long-term revenue stream for the selected developer, enabling them to secure financing and invest in local infrastructure and talent.
Through the IPP program in Abu Dhabi, the UAE ensures a transparent and competitive bidding process. The program promotes a level playing field and encourages developers to submit their most attractive offers while maintaining high-quality standards. This has resulted in cost-efficient energy generation while providing investors with the desired returns.
In conclusion, the Emirates Water and Electricity Company's decision to launch the tender process for the Khazna solar photovoltaic independent power producer project is a positive step towards achieving the UAE's clean energy targets. The project is an opportunity for developers to showcase their capabilities while contributing to the nation's renewable energy goals. The UAE continues to lead the way in generating clean and sustainable energy while ensuring a transparent procurement process.