GE and Japanâ€™s Sumitomo Corp. have announced a public-private partnership by signing a 25-year power purchase agreement (PPA) with the Sharjah Electricity and Water Authority (SEWA) to develop, build and operate a 1.8 gigawatt (GW) combined cycle power plant in Hamriyah.
Equipped with GEâ€™s HA heavy-duty gas turbine technology, the project is expected to be among the most efficient power plants in the Middle Eastâ€™s utilities sector upon completion and is anticipated to substantially improve SEWAâ€™s overall efficiency. The project will consist of three combined cycle blocks, the first of which is expected to come online in May 2021.
â€œWe are committed to strengthen Sharjahâ€™s electricity infrastructure and provide seamless, affordable power,â€ said Dr. Rashid Alleem, chairman of SEWA. â€œThe 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 utilization of natural resources.â€
Under the scope of the project, co-sponsors Sumitomo and GE Capitalâ€™s Energy Financial Services will partner with Shikoku Electric Power Co. and Sharjah Asset Management (SAM, the investment arm of the government of Sharjah), to form an equity consortium for the project. This will establish the project as the first independent combined cycle power plant in Sharjah. SEWA will purchase power from the consortium over 25 years under the PPA.
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.
â€œSEWA has a clear vision for Sharjahâ€™s power sector, and GE is honored to partner with Sumitomo to deliver more efficient, reliable and sustainable power for residential and industrial users in Sharjah,â€ said Scott Strazik, president and CEO of GE Gas Power. â€œThe project brings together GEâ€™s combined strengths in best-in-class technology, local presence, infrastructure and finance capabilities with our expertise in power plant construction, operations, and management.â€
The agreement builds on a history of collaboration between GE and SEWA. GE has contributed to the growth of the Gulf Cooperation Councilâ€™s (GCCâ€™s) power sector for over 80 years and GE-built technologies generate up to 60% of Sharjahâ€™s electricity today.