New Power Purchase Agreement extends Shuweihat 1 to provide flexible reserve supply for the next 15 years
The extension enables EWEC to maintain security of supply and system stability, while continuing the transition to net zero
EWEC (Emirates Water and Electricity Company), a leading company in the integrated planning, purchasing, supply, and system despatch services of water and electricity across the UAE, today announced the signing of 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 kilometres 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 per cent of the plant, with ENGIE, a French multinational electric utility company, and Sumitomo, a leading Japanese integrated trading company, each holding 20 per cent. The companies will also continue to take on the operations and maintenance (O&M) of the plant, with TAQA owning 30 per cent of the O&M company, while ENGIE and Sumitomo will own 35 per cent 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 gigawatts of flexible reserve supply for 15 years, with commercial operations beginning from 2027.
The reconfiguration and extension of S1 facilitates the UAE’s transition towards net zero whilst also maintaining reliability during peak power demand periods. The flexible operation of the plant in support of increased renewable and clean energy sources also ensures minimal carbon emissions.
Mohamed Al Marzooqi, Chief Asset Development & Management Officer of EWEC, said: “The S1 extension project highlights our 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. By strategically reconfiguring this power plant we are maximising the efficient use of existing infrastructure to deliver reliable, flexible power supply while reducing carbon emissions associated with the project. Utilising natural gas as a flexible transition fuel enables the accelerated integration of renewable and clean energy projects, such as solar and wind, into the energy mix, and preserves resources. Through these initiatives, EWEC is accelerating substantial reductions in the carbon intensity of our energy systems and reinforcing the UAE’s leadership in sustainable energy innovation and resilience.”
Andreas Collor, Chief Operations Officer, of TAQA’s Generation business said: “We are pleased to extend the operations of the S1 Independent Power Plant, a critical utility project in Abu Dhabi that 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.”
Commenting on the announcement, ENGIE’s GCC Managing Director, Niko Cornelis said: “ENGIE is proud to reaffirm our commitment to the UAE and its forward-looking approach to the energy transition. The S1 project marks a significant milestone in our historical presence in the UAE as it perfectly aligns with our 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. Through collaboration with our partners, we are leveraging innovation and expertise to drive the development of efficient and affordable low-carbon energy systems.”
Jun Minase, Head of Overseas Energy Solution Strategic Business Unit, Sumitomo Corporation said: “We are deeply honoured to continuously be involved and play a pivotal role in the S1 extension project, which is expected to be crucial for the energy transition in the UAE, a country pursuing Net Zero by 2050. Sumitomo Corporation has been involved in the existing S1 project in 2008, and EWEC has provided invaluable support not only for our stable plant operation but also for the development of this extension project, which we deeply appreciate. We will continuously strive to contribute to the development of local communities and economies.”
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.
# # #
About Emirates Water and Electricity Company
EWEC (Emirates Water and Electricity Company) is the sole procurer and supplier of water and electricity in the emirate of Abu Dhabi. EWEC drives the planning, forecasting, purchasing, and system despatch services of water and electricity. EWEC fulfils these vital responsibilities through the short-term and long-term balancing of bulk supply and demand for distribution companies and authorities in Abu Dhabi and other Emirates. EWEC is supporting the government of Abu Dhabi and the government of the UAE by enabling the reduction of cost whilst also providing the increased security of supply that comes from a cleaner, larger, and more integrated system.
EWEC is mandated to implement strategic initiatives that will achieve the 60 per cent clean energy target outlined in the Abu Dhabi Department of Energy's (DoE) Clean Energy Strategic Target 2035 for Electricity Production in Abu Dhabi, in addition to enabling the achievement of UAE Water Security Strategy 2036, UAE Energy Strategy by 2050, and the UAE Net Zero by 2050 strategic initiative. EWEC is accelerating Abu Dhabi and the UAE’s energy transition by diversifying the country’s energy mix through developing and deploying renewable and clean energy as well as low-carbon intensive water desalination capacities. EWEC is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy. For more information, please visit www.ewec.ae.
For EWEC media enquiries, please contact:
About TAQA
Established in 2005, TAQA is a diversified utilities and energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA). TAQA has significant investments in power and water generation, water treatment and reuse, transmission and distribution assets, as well as upstream and midstream oil and gas operations. The company's assets are in the United Arab Emirates as well as Canada, Ghana, India, Morocco, Oman, the Netherlands, Saudi Arabia, the United Kingdom and the United States. For more information, please visit: www.taqa.com and follow us @TAQAGroup on LinkedIn, Twitter, Instagram and YouTube.
For TAQA media enquiries, please contact:
About ENGIE
ENGIE is a major player in the energy transition, whose purpose is to accelerate the transition towards a carbon-neutral economy. With 98,000 employees in 30 countries, the Group covers the entire energy value chain, from production to infrastructures and sales. ENGIE combines complementary activities: renewable electricity and green gas production, flexibility assets (notably batteries), gas and electricity transmission and distribution networks, local energy infrastructures (heating and cooling networks) and the supply of energy to individuals, local authorities and businesses. Every year, ENGIE invests more than €10 billion to drive forward the energy transition and achieve its net-zero carbon goal by 2045.
Turnover in 2024: €73.8 billion. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris - Europe 120 / France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).
For ENGIE media enquiries, please contact:
About Sumitomo Corporation
Sumitomo Corporation (TYO: 8053) is an integrated trading and business investment company with a strong global network comprising 128 offices in 65 countries and regions. The Sumitomo Corporation Group consists of approximately 900 companies and 80,000 employees on a consolidated basis. The Group's business activities are spread across the following nine groups: Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions and Energy Transformation Business. Sumitomo Corporation is committed to creating greater value for society under the corporate message of "Enriching lives and the world," based on Sumitomo’s business philosophy passed down for over 400 years.
For Sumitomo Corporation media enquiries, please contact:
communication-team@sumitomocorp.com