GE and the Sumitomo Corporation have signed a 25-year power purchase agreement (PPA) with the Sharjah Electricity and Water Authority (SEWA). The PPP deal will see the development and operation of a 1.8GW combined-cycle power plant in Hamriyah.
The project will feature GE’s HA technology is expected to be the most efficient power plant in the region’s utilities sector once it is complete. The plant will enable SEWA to improve the overall efficiency of its operations, the statement said.
“We are committed to strengthening Sharjah’s electricity infrastructure and provide seamless, affordable power. The proposed plant underlines our focus to promote public-private partnerships to drive a robust power production and management plan that is aligned with local energy needs, as well as the optimal utilisation of natural resources,” said SEWA chairman Dr Rashid Alleem.
As per the terms of the deal, co-sponsors Sumitomo and GE Capital’s Energy Financial Services will partner with Shikoku Electric Power Company, and Sharjah Asset Management (SAM) to form an equity consortium. This will set-up theproject as the first independent combined-cycle power plant in Sharjah. SEWA will then purchase power from the consortium over 25 years under the PPA.
The contract also stipulated that GE will supply three HA gas turbines, three steam turbines, six generators, three heat recovery steam generators (HRSG) and turnkey engineering, procurement and construction (EPC) services for the power plant. GE will also provide parts, repairs and maintenance services for the power generation assets at the site for a period of 25 years.
“SEWA has a clear vision for Sharjah’s power sector, and GE is honoured to partner with Sumitomo to deliver more efficient, reliable and sustainable power for residential and industrial users in Sharjah,” said Scott Strazik, president and CEO of GE Gas Power. “The project brings together GE’s combined strengths in best-in-class technology, local presence, infrastructure and finance capabilities with our expertise in power plant construction, operations, and management,” Alleem concluded.