Dubai Electricity and Water Authority (DEWA) has signed an agreement with both Abu Dhabi Future Energy Company (Masdar) and Électricité de France (EDF) to promote cooperation in developing and financing the 800MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park.
The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world, with a planned capacity of 5,000MW by 2030, and a total investment of AED50 billion ($13.6 billion).
The solar park is part of Dubai's target to provide 75 percent of its total power output from clean energy sources by 2050.
The 800MW third phase of the solar park, is being implemented by Shuaa Energy 2, which was established by DEWA with a 60 percent stake in the company.
Shuaa Energy 2 was launched in partnership with the Masdar-led consortium, and EDF, through its subsidiary EDF Energies Nouvelles, who own the remaining 40 percent of the company.
The international consortium led by the renewable energy contractor GranSolar from Spain, is handling the engineering, procurement, and construction (EPC). It includes Acciona from Spain and Ghella from Italy.
Saeed Mohammed Al Tayer, managing director and CEO of DEWA, said: "The MoU... is part of our efforts to achieve the objectives of the UAE Centennial 2071, the UAE Vision 2021, and the Dubai Plan 2021 to make the UAE the best country in the world, achieve sustainable development, and promote the welfare of citizens, residents, and visitors."
DEWA registered a levelised cost of electricity (LCOE) of $2.99 per kilowatt hour (kW/h) for the third phase of the solar park, which will be operational in 2020.
Upon its completion, the solar park will save approximately 6.5 million tonnes per annum in emissions. The third phase will be completed in three stages over 16 square kilometres.
The first 200MW stage is expected to be operational in the first half of 2018. The 300MW second stage will be operational in 2019, and the third 300MW stage will be completed in the first half of 2020.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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.