ACWA Power wins $3.9 billion Dubai solar energy contract


ACWA Power wins $3.9 billion Dubai solar energy contract

The consortium bid the lowest Levelised Cost of Electricity, LCOE, of US$7.3 cents per kilowatt hour (kW/h). The first part of the new plant is scheduled to be commissioned by year-end 2020. The project will have the world's tallest solar tower, measuring 260m.

By GCR Staff0 CommentsThe Dubai Electricity and Water Authority (DEWA) announced on Saturday that it was awarding a $3.8bn contract for the fourth phase of its flagship solar park to Shanghai Electric and ACWA Power of Saudi Arabia.

Thamer al-Sharhan, Managing Director of ACWA Power International, said that the project's added economic value for Saudi Arabia and UAE goes in tandem with Saudi Vision 2030 that aims to expand Saudi investments overseas.

The Mohammed bin Rashid Al Maktoum Solar Park is one of Dubai's energy diversification initiatives to increase the share of renewable resources and aims to have a total capacity of 5GW.

The financial close and the power purchase agreement are expected to be completed soon, said the utility.

DEWA MD and CEO Saeed Mohammed Al Tayer said: "Awarding this strategic project supports the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to promote sustainability and make Dubai a global centre for clean energy and a green economy". It will generate 1,000MW by 2020 and 5,000MW by 2030.

Paddy Padmanathan, president and CEO of ACWA Power, in a news release said "This project is a game changer in our quest to decarbonize electricity generation by making available renewable energy at a price that competes with fossil fuel-generated electricity without subsidy not just when the sun is shining but at any time of the day and night".

Mohammed bin Rashid Al Maktoum Solar Park sits around 50 km (31 mi) south of Dubai and its first phase was inaugurated back in 2013.

Abunayyan added on Sunday that ACWA Power International is willing to continue its support to relentless efforts and ambitious visions of the states in the region to reap the utmost benefit of renewable energy sources, especially after the company's success in this field.

The CSP project is being planned to be commissioned in phases, commencing from the fourth quarter of 2020.