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A consortium led by Saudi Arabia’s ACWA Power has been awarded the tender to develop, construct, own and operate the 200MW solar photovoltaic (PV) independent power project at Mohammed bin Rashid Al Maktoum Solar Park in Dubai
The consortium, which also comprises Spanish construction company TSK, has been chosen to handle the solar park, expected to be the largest renewable energy plant in the Middle East.
Saeed Mohammed Al Tayer, CEO of DEWA said, “To establish the position of Dubai as a global hub for trade, finance, tourism, and sustainability, and a role model worldwide in achieving the highest standards in energy efficiency and increasing the share of renewable energy, I am pleased to announce that the production capacity of the second phase of the Mohammed binRashid Al Maktoum Solar Park has been increased from 100MW to 200MW. It is one of the biggest strategic new Independent Power Producer (IPP) projects in the renewable energy market worldwide.”
The winning bidders are expected to receive a levelised tariff of US$5.84/kWh for a 25-year power purchase agreement (PPA) starting in 2017. The solar park will produce enough electricity to power 30,000 homes every year and reduce carbon emissions by 469,650 tonnes for every year of operations. Subsequent expansion will see the facility grow to produce 1,000 MW of electricity.
Paddy Padmanathan, president and CEO of ACWA Power, said, “Dubai has a clear strategy to diversify its energy mix with renewable energy, and specifically solar, playing a key role. This when combined with a politically stable environment and the availability of low-cost finance means that solar PV technology becomes commercially cost-effective. We have established ACWA Power as the leading renewable energy developer in the region, and this project demonstrates once again that we live up to our commitment of delivering reliable and sustainable electricity at the lowest kWh tariff.”
The project is the second phase of the development located on a 40 sq km site to the southeast of Dubai and enhances the Green Economy for Sustainable Development initiative of His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice-president and Prime Minister of the UAE, and Ruler of Dubai.