Business
Dubai’s DEWA selects Abu Dhabi’s Masdar for sixth phase of solar park worth $1.5 bln
Dubai Electricity And Water Authority (DEWA) has announced on Sunday that it has selected Abu Dhabi’s renewable energy firm Masdar to build and manage the 1,800 MW sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park at an estimated cost of $1.50 billion (Dh 5.51 billion), according to the Dubai media office.
Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority PJSC (DEWA), said that the Abu Dhabi Future Energy Company PJSC – Masdar is the preferred bidder to build and operate the 6th phase of the solar park based on the Independent Power Producer (IPP) model.
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DEWA has achieved, through this phase VI, the lowest Levelized Cost Of Energy (LCOE) of $1.6215 cents per kilowatt hour (kWh) for any of DEWA’s Solar IPP Projects so far. DEWA received 23 expressions of interest from international applicants to develop this project.
The current total production capacity of solar projects at the solar park is 2,427MW. DEWA is building another project with a total capacity of 433 MW. The 1,800MW 6th phase of the solar park will increase the total production capacity to 4,660MW.
“We are striving to achieve the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into a global hub for clean energy and green economy. We also support the Dubai Clean Energy Strategy 2050, and Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100 percent of Dubai’s total power capacity from clean energy sources by 2050,” said Saeed Mohammed Al Tayer.
“To achieve this, DEWA launched several leading renewable projects, including the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world. Using the Independent Power Producer (IPP) model, it will have a capacity of 5,000MW by 2030 with investments totaling Dh 50 billion,” said Al Tayer.
“DEWA is committed to completing the phases of the Mohammed bin Rashid Al Maktoum Solar Park according to the highest international standards using the latest solar power technologies to enhance the shift towards a green sustainable economy by increasing the share of clean and renewable energy. When completed, the solar park will reduce over 6.5 million tonnes of carbon emissions annually. The 1,800MW 6th phase of the solar park using PV solar panels based on the IPP model will become operational in stages starting from Q4 of 2024. The project documents, Power Purchase Agreement (PPA), and financial close agreements will be signed in due course,” added Al Tayer.
The total capacity of the solar energy projects commissioned at the solar park has reached 2,427MW. The share of clean energy in Dubai’s energy mix is about 16.3 percent of its total installed capacity. This percentage will reach 24 percent in 2026 with the completion of the Sixth Phase and the remaining phases under construction of the solar park,” Al Tayer said.
“The projects at the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world, are of great interest to international developers and reaffirms investor confidence in the significant projects supported by the Government of Dubai,” the DEWA CEO added.
DEWA has attracted huge investments to the UAE from the private sector and foreign banks, leading to increased cash flow to the economy of Dubai and the UAE.