The Dubai Water and Electricity Authority has announced the financial close for the phase II project of its mega upcoming Mohammed bin Rashid Al Maktoum Solar Park development.
The second phase includes a 200MW photovoltaic plant, which occupies 4.5 square kilometres and aims to reduce roughly 400,000 tonnes of carbon emissions by 2020.
The project is based on an Independent Power Producer (IPP) model, and the power purchase agreement for it was signed on March 26.
A new project company Shuaa Energy 1 has been formed as per UAE law with DEWA as the 51 per cent stakeholder and the bidder ACWA & TSK having the remaining 49 per cent, official news agency WAM quoted MD and CEO of DEWA Saeed Mohammed Al Tayer as saying.
“DEWA will work closely with the company to achieve the commercial operation date in April 2017,” he said.
“A large number of international organisations were interested in this project. The wide participation in the bid reflects the trust and interest of international investors to invest in in this vital field, which is supported by the government of Dubai.”
He added: “The tender for this project, which will be implemented in partnership with the private sector, is a key step towards achieving the objectives of the Dubai Integrated Energy Strategy 2030, in which solar-powered electricity is set to become part of Dubai’s energy portfolio.”
Under the strategy, solar energy will account for seven per cent of the total energy production by 2020 and 15 per cent by 2030.
The overall solar park, with an estimated cost of Dhs 30bn, is slated to produce more than 3,000MW of electricity when completed in 2030.