ACWA Power submits low bid for Hassyan coal plant
Saudi-firm offers to develop 1,800MW project for $4.9 cents per kWh.
ACWA Power has gazumped the competition again by submitting the lowest bid for the Hassyan clean coal power project in Dubai.
The Saudi-based company has pledged to develop the 1,200MW plant for DEWA in return for just $5.177 cents per kWh. It also submitted a bid of $4.9 cents for a larger project of 1,800MW.
The bid is around $1.0 per kWh lower than ACWA Power's world record winning bid for the 200MW second phase expansion of DEWA’s solar park. DEWA had initially tendered for a 100MW expansion but accepted ACWA's lower offer to develop a larger plant at a lower price.
A total of four companies have been shortlisted to develop the project which is based on the Independent Power Producer (IPP), DEWA revealed. South Korea’s Kepco, TNB Tenaga Nasional of Malaysia and Japan’s Marubeni made up the other three bidders.
The Hassyan power plant uses ultra-supercritical technology to produce energy according to the highest international standards set by the European Union.
DEWA previously extended the bid deadline to 30 April 2015. Last year, it awarded the consultancy service contract for the first phase of the IPP project to an international consultant.
HE Saeed Mohammed Al Tayer, MD and CEO of DEWA, said the coal plant is a major step in implementing the energy diversification strategy approved by the Dubai Supreme Council of Energy.
The Dubai Integrated Energy Strategy 2030 calls for Dubai’s energy to be 71% from gas, 15% renewable, 7% from clean coal, and 7% from nuclear power.