ACWA Power selected for Dubai solar park contract
Saudi firm named preferred bidder to build project upsized to 200MW.
An ACWA Power-led consortium has been selected as the preferred bidder to build the first expansion phase of Dubai’s solar park which has been doubled in capacity to 200MW.
Dubai Electricity and Water Authority (DEWA) announced on Thursday that the Saudi Arabian company and Spain’s TSK is its first choice to develop the project after submitting the lowest bid in December.
ACWA made headlines last month when it was revealed it had offered to build the first expansion phase for just under $6 cents per kWh, a record for photovoltaic (PV) project.
Reports suggested that ACWA had also offered to build the entire 1,000MW at a lower price of $5.4 per kWh.
And today it was revealed that the winning bid for developing the upsized 200MW was $5.85 cents per kWh.
“Today, DEWA adds another solar facility at the Mohammed bin Rashid Al Maktoum Solar Park, which is one of the largest renewable energy projects in the region,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA.
“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 bin Rashid 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 consortium led by ACWA and TSK was selected as a preferred bidder based on its proposal for 200MW with a LCOE (Levelised Cost of Energy) of approximately 5.85 (5.84869) USD cents/kWh,” noted Al Tayer
“Bids were reviewed and we selected the best bid according to the criteria developed by the advisory committee that oversees the project.
Phase II of the Mohammed bin Rashid Al Maktoum Solar Park will be based on the Independent Power Producer (IPP) model and will be operational by April 2017.
DEWA plans to gradually scale the capacity of the plant up to 1,000MW by 2030 as part of its strategy to deliver 7% of Dubai’s energy needs from renewable sources.
The news comes at the end of an eventful week for ACWA in the sphere of solar energy. The company clinched a $2bn deal to develop the next 350MW phase of Morocco’s Noor concentrated solar power (CSP) project and was named preferred bidder for the 100MW Redstone CSP project in South Africa.