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The final negotiations for a contract to build an open-cycle gas turbine (OCGT) power generation plant in Abu Dhabi's Al-Dhafra region are expected to conclude soon, an industry source has said.

The Al-Dhafra OCGT plant project is being tendered on a fast-track basis and is expected to have an installed capacity of 1,000MW-1,100MW.

MEED reported in December that the project client, Abu Dhabi National Energy Company (Taqa), was expected to imminently award a contract to build the power plant. 

Engineering, procurement and construction (EPC) contractors are understood to have submitted their proposals for the contract in September last year. 

MEED reported in the same month that Taqa plans to procure an estimated 5,000MW of gas-fired power plant capacity, mainly to support the UAE’s artificial intelligence (AI) strategy.

In addition to Al-Dhafra, sources said a second site is being considered in Al-Nouf.

It is understood that the Abu Dhabi state utility and offtaker Emirates Water & Electricity Company (Ewec) is working with both Taqa and Abu Dhabi Future Energy Company (Masdar) to implement the power plant projects that will support the UAE government’s AI strategy.

Related read: Masdar meets renewable’s moonshot challenge

In January, Ewec and Masdar announced a project to build a solar photovoltaic (PV) and battery energy storage system (bess) project that will enable the round-the-clock supply of 1GW of solar power. It will comprise a 5GW solar PV plant and 19 gigawatt-hour bess plant.

Taqa fiscal standing

Taqa completed its full 2024 fiscal year with a net income of AED7.1bn ($1.9bn), on the back of revenues that reached AED55.2bn.

The previous year’s net income was only 1.5% higher than the year before, excluding one-off items worth AED10.8bn related to the acquisition of a 5% stake in Adnoc Gas and a AED1.1bn deferred tax charge due to the introduction of corporate tax in the UAE.

The company’s earnings before interest, taxes, depreciation and amortisation rose 5.9%, to AED21.4bn, in 2024. However, this declined by 31% compared to the year before if the AED10.8bn acquisition of a 5% stake in Adnoc Gas is considered.

READ THE FEBRUARY MEED BUSINESS REVIEW

Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes: