A consortium led by Abu Dhabi’s Masdar has closed the financing for the third phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.
The 800MW project is being financed under a sophisticated structure with seven different institutions: Union National Bank, the Islamic Development Bank, Arab Petroleum Investments Corporation, Natixis, Siemens Financial Services, and Korea Development Bank and Canada’s export credit agency.
The deal makes the project the largest in the Middle East to receive Sharia-compliant financing, according to Dubai Electricity and Water Authority (DEWA).
“The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world based on the IPP model, and is instrumental to the Dubai Clean Energy Strategy 2050,” said DEWA managing director and CEO Saeed Mohammed Al Tayer.
“The solar park’s production capacity will reach 5,000MW by 2030 with investments totalling AED 50 billion. It will eventually save over 6.5 million tonnes of carbon emissions every year, supporting Dubai’s objectives to promote its sustainable goals.”
Construction of the project is underway with drilling and piling works progressing.
EDF Group recently joined Masdar as a co-partner in the project.
Upon completion, the 16km photovoltaic plant will be the largest of its kind in the world, generating 2.5 million MW/H of electricity per annum at $0.299 per KW/H.