EWEC, TAQA, ENGIE, and Sumitomo Corporation Signs Agreement for Shuweihat 1 (S1) Power Project

EWEC (Emirates Water and Electricity Company), UAE, 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.

The PPA was signed with the consortium of Abu Dhabi National Energy Company (TAQA), ENGIE and Sumitomo.

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.

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.

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