The 200MW second phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai has achieved a financial close.
The emirate’s electricity and water authority, DEWA, confirmed the landmark on Sunday.
Saudi power engineering firm ACWA Power and Spain’s TSK Engineering won the tender process for the plant with a bid under US$0.06/kWh, believed at the time to be the lowest winning solar bid in an independent power producer project. The original procurement had been for a 100MW project but it was decided to double the size of the deal after bidding was complete.
In March this year ACWA’s CEO Paddy Padmanathan said the company had a 27-year loan agreement for US$344 million. The finance is being provided by Abu Dhabi-based First Gulf Bank and the National Commercial Bank and Samba Financial Group, both of Saudi Arabia. The interest rate is 4%, according to reports.
The ACWA and TSK consortium will take a 49% stake in the Shuaa Energy 1 project company with DEWA taking a 51% interest. Shuaa is the Arabic word for beams or rays. A power purchase agreement with DEWA has already been signed.
HE Saeed Mohammed Al Tayer, managing director and CEO of DEWA said the project was part a UAE-wide effort to conserve the country’s “precious resources”.
“The solar park supports the Dubai Integrated Energy Strategy 2030 developed by the Dubai Supreme Council of Energy to diversify Dubai’s energy mix. Solar energy will account for 7% of the total energy production by 2020 and 15% by 2030,” said Al Tayer.
“This project is also in alignment with the Dubai Plan 2021 to enhance sustainability and create a happy society that meets the aspirations of citizens and residents. Solar Park will produce more than 3000MW of electricity when completed in 2030,” added Al Tayer.
Commercial operation is scheduled for April 2017.
First Solar modules have been selected for the project.
Parnell, John. “Dubai’s 200MW Solar Farm Reaches Financial Close.”Dubai’s 200MW Solar Farm Reaches Financial Close. PVTECH, 20 July 2015. Web. 23 July 2015.