Abu Dhabi appoints Japanese developer for major power project
Abu Dhabi-based Emirates Water & Electricity Company (Ewec) has awarded a contract to Japan’s Marubeni Corporation to develop the 2.4GW Fujairah 3 (F3) independent power project (IPP)
Abu Dhabi-based Emirates Water & Electricity Company (Ewec) has awarded a contract to Japan’s Marubeni Corporation to develop the 2.4GW Fujairah 3 (F3) independent power project (IPP).
The Japanese developer signed the power purchase agreement (PPA) and Shareholder’s agreement with Ewec on 16 February.
Marubeni will hold a 40 per cent stake in the special purpose vehicle (SPV) set up to develop and operate the plant, with the Abu Dhabi government to hold the remaining 60 per cent stake.
First power from the project is scheduled to come online in summer 2022, with the full capacity to come online by the summer of 2023.
Energy & Utilities reported in early February that Marubeni had been selected as the preferred bidder for the F3 IPP.
Marubeni submitted the second lowest bid in October last year during a competitive tendering process. The Japanese developer’s bid of 16.812 7901 fils a kilowatt hour (fils/kWh) was slightly higher than the AED16.7901 fils/kWh second lowest bid submitted by France’s Engie.
Ewec was established in 2018 to replace Abu Dhabi Water & Electricity Company (Adwec) as part of plans to unify water production and power generation between Abu Dhabi and the Northern Emirates. Ewec falls under the umbrella of Abu Dhabi Power Corporation.
The F3 IPP will add additional capacity to ADPower’s generation asset portfolio. Energy & Utilities recently reported that ADPower had offered to transfer billions of dollars-worth of power and water assets to Abu Dhabi National Energy Company (Taqa) as part of a takeover deal.
Under the proposal submitted by ADPower, the utilities company would transfer the majority of its water, electricity generation and transmission and distribution assets in return for 106 billion convertible shares.
If completed, the combined companies would have power generation assets of 49GW and a total desalination capacity of 58 million imperial gallons a day (MIGD).
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