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$3bn, 3.3GW Al-Nouf 1 Power Project Makes Headway as State-Owned EWEC Selects Contractors

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Al-Nouf 1 Power Project in Abu Dhabi

The Al-Nouf 1 power project in Abu Dhabi is making headway as state-owned EWEC selects developer and contractor for project. State utility Emirates Water & Electricity Company (Ewec) has selected its preferred team for the 3.3GW project. Located within the newly established Al-Nouf complex, the facility will be the largest single-site, carbon-capture-ready, combined-cycle gas turbine plant in the UAE. Japan’s Sumitomo Corporation has been selected as the preferred developer.

Moreover, the power-purchase agreement (PPA) is expected to be signed in the coming weeks, sources said. It is also understood that a joint venture of Spain’s Tecnicas Reunidas and Egypt’s Orascom Construction has been picked. They come into the project as the preferred engineering, procurement and construction (EPC) contractor.

Three developer consortiums submitted bids earlier this year, along with Sumitomo as the only company to bid individually. The bidders included a consortium of Aljomaih Energy & Water (Saudi Arabia) / Sembcorp Industries (Singapore) / EDF Power Solutions (France). It also includes a consortium with Engie (France) / Korea Overseas Infrastructure & Urban Development Corporation (Kind) / Korea Western Power Company (Kowepo).

Outlook on the Al-Nouf 1 Power Project in Abu Dhabi

EWEC issued a request for proposals for the Al-Nouf 1 power project in Abu Dhabi last August. It had previously received statements of qualifications for the contract in April 2025. This follows confirmation earlier this month that Ewec has signed a PPA with a developer consortium for the 2.5GW Taweelah C IPP project. A team of UK-based Alderbrook Finance and US-based Sargent & Lundy is providing financial and technical advisory services to Ewec for the Taweelah C IPP.

Both projects are following the model of Abu Dhabi’s IPP programme. In this, developers enter into a long-term agreement with Ewec as the sole procurer. This involves the development, financing, construction, operation, maintenance and ownership of the plant. Moreover, the successful developer or developer consortium owning up to 40% of the entity. The remaining equity will be held indirectly by the Abu Dhabi government.

The project site for the Al-Nouf plant was selected for its ability to accommodate both seawater-cooled power generation and reverse osmosis desalination technologies. The plant will have the capacity to support several utility-scale energy and desalination projects in the future. The facility is scheduled to begin commercial operations in the third quarter of 2029.

Project Factsheet:

  • Project Name: Al-Nouf 1 Independent Power Project (IPP)
  • Location: Al-Nouf Complex, Abu Dhabi, United Arab Emirates
  • Estimated Investment Value: $3 Billion
  • Project Type: Combined-Cycle Gas Turbine (CCGT) Power Plant

Timeline

  • Request for proposals (RFP) issued: August 2025
  • Statements of qualifications received: April 2025
  • Preferred developer and EPC contractor selected: 2026
  • Commercial operations target: Q3 2029

Site & Scale

  • Total generation capacity: 3.3 GW
  • Largest single-site CCGT power plant planned in the UAE
  • Carbon-capture-ready facility design
  • Also located within the newly established Al-Nouf energy complex
  • Site designed to support future desalination and utility-scale energy projects

Key Contractors/Stakeholders

  • Project owner/procurer: Emirates Water & Electricity Company (EWEC)
  • Preferred developer: Sumitomo Corporation (Japan)
  • Preferred EPC contractor: Técnicas Reunidas (Spain) & Orascom Construction (Egypt) Joint Venture
  • Financial advisor: Alderbrook Finance (UK)
  • Technical advisor: Sargent & Lundy (USA)
  • Abu Dhabi Government: Majority equity stakeholder

Infrastructure Scope

  • Development of a 3.3 GW combined-cycle gas turbine power plant
  • Carbon capture-ready power generation infrastructure
  • Long-term power transmission and grid connection facilities
  • Also seawater-cooling systems for plant operations
  • Future integration capability for reverse osmosis desalination facilities

Strategic Objectives

  • Strengthen Abu Dhabi’s long-term electricity supply capacity
  • Also support growing industrial, commercial, and residential power demand
  • Provide a flexible, high-efficiency power generation asset
  • Create a foundation for future energy and also desalination developments

Current Status

  • Preferred developer and EPC contractor have been selected
  • Power Purchase Agreement (PPA) expected to be signed in the coming weeks
  • Project progressing under Abu Dhabi’s Independent Power Producer (IPP) model
  • Development and financing structure being finalized

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