The Abu Dhabi Water and Electricity Authority (Adwea) has called tender for building a 350MW solar photovoltaic (PV) project in Sweihan.
This would be Adwea’s first such project in the region, which already has 110MW of solar power facilities.
Adwea expects to select a developer for the project by mid next year.
The tender stated that the developer to be selected would own up to 40% stake in the project, while the remaining 60% would be owned by Adwea.
The energy to be produced at the plant will be able to supply power to 50,000 households.
The plant, constructed as an independent power project, will have a power purchase agreement.
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By GlobalDataAs per the tender announcement, Adwea will only pay for the net electrical energy supplied by the plant.
Solar Insight manager Jenny Chase was quoted by The National as saying at Bloomberg New Energy Finance: "Adwea did dip a toe in the solar market by co-investing with Masdar in a 2.3MW PV portfolio in Abu Dhabi in 2011.
"However, the scale-up to 350MW is probably due to low prices being bid in solar tenders around the region.
"At these prices, building solar seems like a sensible energy diversification strategy and not a painful financial sacrifice."
According to Gus Schellekens, a partner at the clean energy division of consultancy EY, shortage in gas supply and falling oil prices might have led Adwea to focus in solar power.
Abu Dhabi has committed to produce 7% of its total power requirements from renewable energy sources by 2020.
In October, UAE energy minister Suhail Al Mazroui stated that investment in nuclear, solar and other clean energy sector in the country is expected to reach $35bn by 2021, according to renewables.seenews.com.
