ACWA Power-led consortium reaches financial close for phase 4 of Dubai solar park

A consortium consisting of Saudi Arabia’s ACWA Power, China’s Silk Road Fund, and the Dubai Electricity and Water Authority (DEWA) has reached the financial closing of the 950 megawatt (MW) fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park.

The park will produce 5,000 MW by 2030 with investments totalling AED 50 billion, considered to be a new milestone in promoting the use of clean and renewable energy in Dubai.

“DEWA is implementing the fourth phase of the solar park in cooperation with Saudi Arabia’s ACWA Power and China’s Silk Road Fund. This phase will provide clean energy for 320,000 residences and will reduce 1.6 million tonnes of carbon emissions annually,” said Saeed Mohammed Al Tayer, chief executive officer of DEWA.

The project, which will cover an area of 44 square kilometres, will feature the tallest solar tower in the world at 260 meters. It will also have the largest thermal storage capacity of 15 hours, allowing for energy availability round the clock, he added.

“Financing the fourth phase of the solar park is the largest equity bridge loans in the region, in cooperation with a number of leading local and international banks,” Al Tayer said.

In partnership with DEWA, Acwa Power made a decision last year to expand the project’s production capacity from 700MW to 950MW through a hybrid Concentrated Solar and Photovoltaic plant, to ensure maximum productivity, said Mohammad Abdullah Abunayyan, chairman of ACWA Power.

The consortium established Noor Energy 1 to build the 4th phase of the Mohammed bin Rashid Al Maktoum Solar Park.

The lending group to the project includes Agricultural Bank of China, Bank of China, China Everbright Bank, China Minsheng Bank, Commercial Bank of Dubai, Commercial Bank International, Industrial and Commercial Bank of China, Natixis, Standard Chartered Bank and Union National Bank.

In addition, Bank of China, Commercial Bank of Dubai, Emirates NBD Bank, First Abu Dhabi Bank, Mashreq bank and Union National Bank have provided long-term loans.