The Federal Electricity & Water Authority (Fewa), utility provider for the Northern Emirates in the UAE, is planning to develop a major 1.8GW coal-fired power plant.

According to sources close to the project, Fewa has selected advisers for the project, which will be developed using an independent power producer (IPP) model, and is expected to sign the contract with the three firms imminently.

The selected advisers are the UK’s Deloitte as financial adviser, the local office of Austria’s ILF Consulting Engineers as technical consultant and the UK’s Trowers & Hamlins as legal adviser.

Feasibility studies for the project are expected to begin within the next few months, with the utility planning to begin the procurement process for the plant in early 2018. According to sources close to the scheme, the utility is considering locations at either Umm al-Quwain or Ras al-Khaimah, due to the requirement for coal import facilities.

The proposed plant would be the second major coal-fired power plant in the UAE, with the GCC’s first coal power plant under execution in Dubai.

In November 2016, a consortium led by Saudi Arabia’s Acwa Power and China’s Harbin Electric started construction work on the 2,400MW Hassyan coal-fired power plant in Dubai.

The GCC’s first coal-fired power plant is being developed under the independent power project (IPP) model, with the developer consortium having signed a 25-year power purchase agreement (PPA) with Dubai Electricity & Water authority (Dewa).

MEED reported in September that the project company had reached financial close for the $3.4bn scheme. The coal project will be funded by debt of $2.5bn and equity of $650m, according to sources close to the scheme.

The developer consortium signed the PPA in June 2016 for a 2,400MW coal-fired facility, which will comprise of four 600MW units.

Dewa had selected the team as preferred bidder for the originally tendered 1,200MW Hassyan coal independent power project (IPP) in October 2015 on a levelised cost of energy tariff (LCOE) of 4.501 cents a kilowatt hour (kWh). However, the developer reached an agreement with the Dubai utility to expand its remit and develop the first two phases of the Hassyan scheme, doubling the capacity to 2,400MW.