HomeNewsKepco to build 1600 MW gas fired power plant in UAE

Kepco to build 1600 MW gas fired power plant in UAE

A consortium headed by Korea Electric Power Corporation (Kepco) has signed a $1.43bn deal to build a combined-cycle gas turbine power plant in the UAE and sell its output for 25 years.

Under the deal with the Abu Dhabi Water & Electricity Authority (Adwea), the power station will be built in Shuweihat, a city 260 km west of Abu Dhabi, Kepco said in a statement. Work on the plant, which will have a capacity of 1600 MW is scheduled to begin next month for completion in March 2014, Kepco, South Korea’s state power company, said.

The construction of the power plant will be farmed out to South Korea’s Daewoo Engineering & Construction and Siemens of Germany. The consortium, which includes Japanese trading company Sumitomo, has signed a deal to sell electricity to be produced at the plant to Abu Dhabi Water and Electricity Company (ADWEC), a wholly-owned unit of Adwea, for 25 years, the South Korea power firm said. The consortium was picked as the preferred bidder for the plant in October 2010.

DEWA invites bids for its first IWPP

Dubai Electricity and Water Authority (DEWA) has floated a tender for its planned large-scale Hassyan power and seawater desalination complex, which will be developed by the private sector.

The Hassyan complex will be implemented on an independent water and power project basis. The project will help DEWA meet rising electricity and water requirements in Dubai and, through the involvement of the private sector, reduce its capital expenditure requirements.

The 1500 MW power station and 120m imperial gallons a day desalination complex will be built by 2014 near the Abu Dhabi border and use natural gas as feedstock.

Masdar secures $615m financing for 100 MW concentrating solar plant

UAE renewable energy firm Masdar has secured $615m of bank financing for what could become the world’s largest concentrated solar power (CSP) plant and $153m equity from its Spanish and French partners.

France’s Total, Spain’s Abengoa and Abu Dhabi-based Masdar plan to build a $600m plant, named Shams 1, which will have a 100 MW capacity by 2013.

Meanwhile, Masdar is expected to invite bids to build its next solar project, Noor 1, by early May.

IPSA agrees PPA to restart CHP plant in South Africa

Independent power producer IPSA has agreed a power purchase agreement with South African state utility Eskom from its Newcastle gas fired combined heat and power plant.

The UK-based company’s power plant in Newcastle, KwaZulu Natal, has been forced to stand idle.

IPSA said it had managed to raise à‚£1m ($1.6m) by placing à‚£12.5m new shares at à‚£0.08 each, which will form 11.6 per cent of the enlarged share capital, and announced it had secured a gas supply from Spring Lights Gas.

The funds will be used to restart IPSA’s subsidiary Newcastle Cogeneration (NewCogen), which was hit first by Eskom’s refusal to buy its electricity and then by a à‚£4m “take or pay” penalty from Sasol for the gas that it had been unable to consume.

Tanzania to secure 200 MW coal plant loan

Tanzania is close to concluding a $400m loan to finance a 200 MW coal fired power project amid chronic energy shortages in East Africa’s second largest economy.

The government has extended nationwide power rationing after a prolonged drought led to a 230 MW deficit on the national grid. It was first announced in 2009, when officials said they were in talks with China for the loan.

President Jakaya Kikwete said Tanzania was in talks with private investors for a separate 300 MW gas fired power plant in the southern town of Mtwara.

Jordan to seek partner for $5bn nuclear project

Jordan Atomic Energy Commission (JAEC) is to issue a request for a strategic partner for its planned $5bn nuclear plant.

Khaled Toukan, JAEC’s chairman, said the strategic partner’s stake in the project will range between 50 and 75 per cent.

The signing of the project’s contract is expected to take place in 2012, then the construction phase would begin in 2014/2015, with commissioning due in 2019.

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à‚ GCC: The GCC Grid Authority plans to complete the GCC power grid by the end of 2011, according to chairman Isa bin Hilal Al Kuwari.

Israel: The Palestine Power Generating Company (PPGC) has a licence from the Palestinian Authority to build and operate a 600 MW power station in the Jenin area. The power station will initially generate 200 MW.

Jordan: Kepco; AES; Acwa Power/Man Diesel & Turbo; Malakoff International/Jordan Dubai Capital/Consolidated Contractors Group; Saudi Oger/Korea East-West Power; and Sithe Global Power Ventures have prequalified to build a 500-600 MW heavy fuel oil IPP in Amman East.

Saudi Arabia: Siemens has received a $1bn order from Al Arrab and Sepco III Electric Power to supply equipment for the 2400 MW Ras Az Zawr power plant. The scope includes 12 SGT6-5000F gas turbines.

Syria: A €280m ($390m), 300 MW gas fired power plant built by Iran’s Mapna International will be commissioned in the second half of 2011. The plant is an expansion of the Jandar plant near Homs. An additional 50 MW unit will be commissioned next year.

Turkey: Wärtsilä is to build a 135 MW power plant for Odas Elektrik Uretim, an independent power producer (IPP), at Urfa. The plant, featuring seven 18V50SG gas engines, is scheduled for completion this autumn.

Uganda: The 18 MW Mpanga hydropower plant in Kamwenge district has been commissioned. The $26m plant is owned by South Asia Energy Management Systems, based in California, USA.

Yemen: India’s BHEL has secured a $436m contract to build the 400 MW Marib Gas Power Plant Project (Phase II). The project is scheduled to be implemented within 33 months.

Yemen: Russia’s Inter RAO UES plans to modernize the oil fired Al Hiswa power plant by increasing its capacity from 50 MW to 125 MW.

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