Saudi Arabia's ACWA Power and China's Shanghai Electric win contract for Mohammed bin Rashid Al Maktoum Solar Park
Dubai Electricity and Water Authority (DEWA) said on Saturday it has awarded the 700MW AED14.2 billion ($3.87 billion) fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park.
The contract for the largest single-site concentrated solar power (CSP) project in the world was awarded to a consortium comprising Saudi Arabia’s ACWA Power and China’s Shanghai Electric, a statement said.
The consortium tabled the lowest bid of 7.3 US cents per kilowatt hour (kW/h), it added.
The project will have the world’s tallest solar tower, measuring 260 metres and the power purchase agreement and the financial close are due to be finished shortly.
The project will be commissioned in stages, starting from the fourth quarter of 2020.
Saeed Mohammed Al Tayer, managing director and CEO of DEWA, 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.
"This vision is supported by the Dubai Clean Energy Strategy 2050 to increase the share of clean energy in Dubai’s total power output to 7 percent by 2020, 25 percent by 2030, and 75 percent by 2050.
“Our focus on renewable energy generation has led to a drop in prices worldwide and has lowered the price of solar power bids in Europe and the Middle East. This was evident today when we received the lowest CSP project cost in the world,” he added.
The Mohammed bin Rashid Al Maktoum Solar Park will generate 1,000MW by 2020 and 5,000MW by 2030. The 13MW photovoltaic first phase became operational in 2013. The 200MW photovoltaic second phase of the solar park was launched in March 2017.
The 800MW photovoltaic third phase will be operational by 2020, and the first stage of the 700MW CSP fourth phase will be commissioned in Q4 2020.