UAE's EWEC Signs Power Purchase Agreement For Shuweihat 1 Energy Project

EWEC has signed a Power Purchase Agreement (PPA) for the Shuweihat 1 (S1) power project. This agreement is part of EWEC's strategy to accelerate Abu Dhabi and the UAE's energy transition. The S1 facility will shift from cogeneration to solely power production, supporting renewable energy integration.

The S1 plant, located in Al Dhafra, about 250 kilometres from Abu Dhabi City, has been operational since 2005. It was initially under a 20-year Power and Water Purchase Agreement set to end in 2025. The new PPA extends its operation as a natural gas-fired open-cycle power plant until 2042.

Abu Dhabi National Energy Company (TAQA) holds a 60% stake in S1. ENGIE and Sumitomo each own 20%. These companies will continue managing the plant's operations and maintenance. TAQA owns 30% of the O&M company, while ENGIE and Sumitomo each hold 35%.

The reconfiguration supports EWEC’s goal of separating power and water supply systems. The water desalination unit, powered by natural gas, will be decommissioned. This change allows S1 to provide up to 1.1 gigawatts of flexible reserve supply starting in 2027.

The transformation of S1 aids the UAE’s journey towards net zero emissions while ensuring reliability during peak demand times. The plant's flexible operations support renewable energy sources like solar and wind, helping reduce carbon emissions.

Mohamed Al Marzooqi from EWEC stated, "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."

Andreas Collor from TAQA expressed satisfaction with extending S1 operations, emphasizing its role in providing reliable power amid increasing renewable energy integration. He noted that flexible gas power generation is crucial as diverse clean power sources are added to the grid.

Niko Cornelis from ENGIE highlighted their commitment to the UAE's energy transition goals. He said, "ENGIE is proud to reaffirm our commitment to the UAE and its forward-looking approach to the energy transition."

Jun Minase from Sumitomo expressed honour in contributing to the S1 extension project, which aligns with the UAE's Net Zero by 2050 ambitions. The collaboration aims at developing efficient low-carbon energy systems through innovation and expertise.

This initiative underscores EWEC's efforts in reducing carbon intensity within its energy systems while reinforcing sustainable energy leadership in the region.

With inputs from WAM