Clean coal IPP for Dubai?

15 April 2014

Dubai Electricity & Water Authority (DEWA) has announced a competitive tender process to select a suitable developer (or developer consortium) to own 49% of a project company to build and operate a 1200 MWe clean coal IPP project. The proposed plant would be located in the Saih Shuaib area on the Arabian Gulf coast in the Emirate of Dubai, with commissioning before the summer of 2020.
The power generated will be purchased by DEWA under a long-term power purchase agreement. Interested parties, with experience of undertaking similar projects, are invited to submit an expression of interest (EOI) to DEWA by no later than 12pm on 24 April 2014.

Reporting the tender in its energy and natural resources e-briefing, law firm Eversheds notes that the project is significant not just because of its choice of feedstock, for which there are no existing supply arrangements or infrastructure, but because this is the first independent power project to be launched in Dubai since the Hassyan project (a gas fired IPP), which was suspended late into procurement in April 2012 following a revised assessment of demand forecasts.

To date the Emirate of Dubai has used a traditional EPC procurement route for its power plants, Eversheds notes, in contrast to its neighbour Abu Dhabi, which has been running a successful IW/PP programme for a number of years.
DEWA is also calling for expressions of interest in relation to a 100 MW solar PV IPP. This will constitute phase 2 of second stage of its planned 1 GW Sheikh Mohammed Bin Rashid Al Maktoum solar park following the successful commissioning of a 13 MW EPC scheme by First Solar in October 2013.


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