DEWA and ACWA Power consortium sign solar park PPA
The 25-year power purchase agreement kicks in from 2017.
Dubai Electricity and Water Authority (DEWA) has signed a Power Purchase Agreement (PPA) and a Shareholder Agreement for the 200MW expansion of the Mohammed bin Rashid Al Maktoum Solar Park.
The deal was signed by Saeed Mohammed Al Tayer, MD and CEO of DEWA and Mohammad A. Abunayyan, chairman of ACWA Power which is leading the consortium to develop the solar photovoltaic (PV) project.
“The Mohammed bin Rashid Al Maktoum Solar Park is creating a shining opportunity for Dubai on so many levels,” said Al Tayer.
“DEWA is aggressively working to bring solar power to the citizens and residents of Dubai by working with the most capable and efficient stakeholders. The signing of the PPA with the ACWA Power and TSK consortium is yet another step forward in our efforts to create a brighter future for Dubai.”
The second phase is based on the Independent Power Producer model and will be operational by April 2017.
The project, which occupies 4.5 square kilometres, will help to achieve a reduction of 400,000 tonnes of carbon emissions.
DEWA recently tripled its solar energy target to 15% of its installed power production capacity by 2030.
“The Solar Park will produce 3,000MW of electricity when completed in 2030,” said Al Tayer. “It is one of the biggest strategic new Independent Power Producer (IPP) projects in the renewable energy market worldwide,” he added.
ACWA Power’s Mohammad A. Abunayyan, said: “Dubai has a clear strategy to diversify its energy mix with renewable energy with specifically solar, playing a key role. This when combined with a politically stable environment and the availability of low-cost finance means that solar PV technology becomes commercially cost-effective.
“We have established ACWA Power as the leading renewable energy developer in the region, and this project demonstrates our commitment of delivering reliable and sustainable electricity at the lowest kWh tariff.
“ACWA Power will finance, build and operate 200 MW photovoltaic plant at the Mohammed bin Rashid Al Maktoum Solar Park and will receive a 25-year PPA starting in 2017. This plant also sets a worldwide milestone for utility-scale solar power generation with a landmark level tariff of 5.84 USD cents/kWh,” he added.
The ACWA Power led consortium was awarded preferred-bidder status on 15 January 2015 based on a level tariff, which has set a global benchmark for utility-scale solar photovoltaic power plants.
The signing of the PPA within 70 days of the award is a testament to the commitment shown towards the project by both DEWA and the ACWA Power - and TSK-led consortium.