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ACWA Power, DEWA Announce Financial Closing of Solar Park

ACWA Power, DEWA Announce Financial Closing of Solar Park

Monday, 25 March, 2019 - 12:00
DEWA CEO Saeed Mohammed al-Tayer and ACWA Power Chairman Mohammed Abunayyan during the press conference (Asharq al-Awsat)
Dubai- Musaid Al-Zayani
Dubai Electricity and Water Authority (DEWA) and the consortium led by Saudi Arabia’s ACWA Power and Chinese government-owned Silk Road Fund announced the financial closing of the 950-megawatt fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park.

The solar park will produce 5,000 megawatts by 2030 with investments totaling $13.6 billion.

DEWA CEO Saeed Mohammed al-Tayer announced that DEWA is implementing the fourth phase of the park in cooperation with ACWA Power and China’s Silk Road Fund.

He announced that this phase is the largest single-site investment project in the world, which uses both Concentrated Solar Power (CSP) and photovoltaic solar technologies based on the Independent Power Producer (IPP) model with investments up to $4.2 billion.

This phase will provide clean energy for 320,000 residences and will reduce 1.6 million tonnes of carbon emissions annually, noted Tayer.

The project, which will cover an area of 44 square kilometers, achieved several world records including world’s lowest CSP Levelised Cost of Electricity of 7.3 US cents per kilowatt-hour and the lowest Levelised Cost of Electricity for photovoltaic technology of 2.4 US cents per kilowatt-hour.

He also announced that the project will feature the tallest solar tower in the world at 260 meters and the largest thermal storage capacity of 15 hours; allowing for energy availability round the clock.

“Through this model, we achieved several world records in solar electricity prices through competitive bids that contributed to reducing its costs globally and attracted large investments to the UAE from the private sector and foreign banks.”

DEWA CEO explained that the solar power projects currently operational in the solar park have a capacity of 413MW.

DEWA currently has three more projects under implementation with a capacity of 1,550 megawatts. The Authority recently announced the 900-megawatt 5th phase using photovoltaic solar panels, bringing the total capacity of the five phases announced so far to 2,863MW.

“We are on our way to reaching 5,000MW by 2030 and achieving the objectives of the Dubai Clean Energy Strategy 2050 to produce 75 percent of Dubai's total power output from clean energy and make Dubai the city with the lowest carbon footprint in the world by 2050,” stated Tayer.

ACWA Power Chairman Mohammed Abunayyan noted that since the beginning of the company’s partnership with DEWA, the Noor Energy 1 project has grown in both scale and in its ability to revolutionize the global energy landscape.

The successful closure of the project with renowned international players corroborates the potential of Noor Energy 1 and also maintains its reputation as a partner of choice, delivering projects that contribute to the growth and development of vibrant economies such as that of Dubai, he indicated.

Last year, ACWA Power and DEWA made a decision to expand the project’s production capacity from 700MW to 950MW through a hybrid Concentrated Solar and Photovoltaic plant to ensure maximum productivity.

“Our use of the hybrid model is an indication of our marked expertise in the market, focusing on the way we have reduced costs for both technologies and marking yet another innovation.”

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