The financing for phase 3 of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai has been completed, it was announced on Wednesday.
This marks the latest milestone for the Masdar-led consortium, with EDF Group’s subsidiary, EDF Energies Nouvelles, which is developing the 800-megawatt (MW) project in partnership with Dubai Electricity and Water Authority (DEWA).
A financing structure has been developed which includes seven institutions - the Union National Bank, the Islamic Development Bank and the Arab Petroleum Investments Corporation (APICORP); commercial banks Natixis, Siemens Financial Services, Korea Development Bank and Canada's export credit agency, Export Development Canada (EDC).
Saeed Mohammed Al Tayer, managing director and CEO of DEWA, said: “The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world based on the IPP model, and is instrumental to the Dubai Clean Energy Strategy 2050."
“The financing of the third phase of the Mohammed bin Rashid Al Maktoum Solar Park clearly demonstrates the confidence that the multinational lender community has in this important project, and underlines the compelling business case for renewable energy today,” added Mohamed Jameel Al Ramahi, CEO of Masdar.
“Construction of the third phase of the Dubai Solar Park is progressing as scheduled,” he added.
The 16 sq km 800MW photovoltaic plant will be the largest of its kind in the world on completion, generating around 2.5 million megawatt-hours of electricity per annum. Unlike conventional solar power arrays, the third phase of the solar park will use tilting panels that track the sun, thereby maximising output.
The plant is being delivered in three stages. Completion of Stage A is due in 2018, the 300MW Stage B in 2019, and the final 300MW Stage C in 2020.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.