ACWA Power consortium bags $3.9 bln solar contract in Dubai

The Dubai Electricity and Water Authority (DEWA) has awarded an AED 14.2 billion ($3.9 billion) solar energy contract to a consortium comprising Saudi Arabia’s ACWA Power and China’s Shanghai Electric, it said on Sunday.

The contract is for the 700 megawatt (MW) fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park.

The consortium bid the lowest Levelised Cost of Electricity (LCOE) of $7.3 cents per kilowatt hour (kW/h), the statement said.

The project will be commissioned in stages, starting from Q4 of 2020. It will feature the world’s tallest solar tower, measuring 260 meters.

The power purchase agreement and financial close are due to be completed shortly, DEWA said.

Under the Dubai Clean Energy Strategy 2050, the emirate aims to increase the share of clean energy in its total power output to 7 percent by 2020, 25 percent by 2030, and 75 percent by 2050.

The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world, based on the independent power producer (IPP) model.

The solar park will generate 1,000MW by 2020 and 5,000MW by 2030.

The 13MW photovoltaic first phase became operational in 2013, while the 200MW photovoltaic second phase of the solar park was launched in March 2017.

The 800MW photovoltaic third phase will be operational by 2020, and the first stage of the 700MW concentrated solar power (CSP) fourth phase will be commissioned in Q4 of 2020.