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23 April 2024

DEWA and Masdar reach financial closing on 1800MW 6th phase of Mohammed bin Rashid Al Maktoum Solar Park

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By E247

Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Future Energy Company (Masdar), announced the financial closing of the 1800-megawatt sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world. The solar park’s capacity will exceed 5,000 megawatt by 2030, with investments totalling approximately AED 50 billion. This is a new milestone in promoting the use of clean and renewable energy in the UAE.


Abu Dhabi Future Energy Company (Masdar) was selected as the Preferred Bidder to build and operate the 1,800MW 6th phase of the Mohammed bin Rashid Al Maktoum Solar Park using photovoltaic solar panels based on the Independent Power Producer (IPP) model, with costs up to AED 5.5 billion. This phase will provide clean energy for approximately 540,000 residences and will reduce around 2.36 million tonnes of carbon emissions annually. The project will cover an area of 20 square kilometres. In addition, the 6th phase has achieved the lowest Levelized Cost Of Energy (LCOE) of US$1.6215 cents per kilowatt hour (kWh) in the Solar Park.

HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, noted that this achievement is in line with the directives of the wise leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE; and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai. This project also supports the goals of the UAE's Year of Sustainability 2024 to protect and preserve the environment for the benefit of future generations. The Mohammed bin Rashid Al Maktoum Solar Park supports the UAE’s position as a leading global hub for clean energy. It is aligned with the UAE Net Zero by 2050 strategic initiative, the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power capacity from clean energy sources by 2050.


“DEWA is implementing the sixth phase of the solar park in cooperation with Masdar, Abu Dhabi Future Energy Company based on the Independent Power Producer (IPP) model, using the latest solar photovoltaic bifacial technologies with single-axis tracking. The current production capacity at the solar park is 2,627MW and the total capacity under construction is 2033 MW.  The 1,800MW sixth phase of the solar park will see the total production capacity increase to 4,660MW by 2026. DEWA will have around 27% of the generation mix sourced from clean energy sources by 2030,” said Al Tayer


For the 6th phase of the Solar Park, DEWA established Shuaa Energy 4 in partnership with Masdar. DEWA owns 60% of the company, whereas Masdar owns the remaining 40%.
Mohamed Jameel Al-Ramahi, Masdar CEO, said: “Today’s announcement builds on our long-standing partnership with DEWA, advancing the UAE’s energy leadership in the construction of the world’s largest multi-phase solar plant. The UAE continues to demonstrate leadership in delivering cutting edge clean energy solutions which have attracted the interest and confidence of the investment community, locally and internationally.

 

Accessing capital is fundamental to accelerating the global energy transition and this expansion of the Mohammed bin Rashid Al Maktoum Solar Park is an important milestone for the UAE in its own clean energy journey. Masdar looks forward to further deepening our partnership with DEWA as we work collectively to support the country’s National Energy Strategy 2050 and the UAE Consensus.”

The lending group to the project includes Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered Bank , Abu Dhabi Islamic Bank and Warba Bank.