Record low CSP rates expected in Dubai
The lowest bid for the concentrated solar power (CSP) project came in at 9.45 US cents per kilowatt-hour (kWh), nearly 40 per cent below the previous world-record low price for electricity generated from this technology
The Dubai Electricity and Water Authority (Dewa) has announced prices from four consortiums for the 200-megawatt fourth phase of the Mohammed bin Rashid Al Maktoum solar park.
The lowest bid for the concentrated solar power (CSP) project came in at 9.45 US cents per kilowatt-hour (kWh), nearly 40 per cent below the previous world-record low price for electricity generated from this technology. The three other bids ranged from 10.58 cents to 17.35 cents per kWh.
"The UAE’s focus on renewable energy generation has led to a drop in prices worldwide and has lowered the price of solar and wind power bids in Europe and the Middle East," said Saeed Al Tayer, the managing director and chief executive of Dewa.
The utility will now review the bid submissions to determine the project winner, a process that usually takes a month, reported The National.
Consortiums include Saudi Arabia’s Acwa Power and China’s Shanghai Electric, followed by the Abu Dhabi clean energy company Masdar with partners EDF of France and Abengoa of Spain.
Masdar and EDF confirmed their participation, but said in a joint statement that this was an "active bid, with the technical and commercial proposals under evaluation by Dewa".
Power China, Engie of France and Solar Reserve of the US also submitted bids as well as the Chinese firm Suncan with Al Fanar of Saudi Arabia, according to The National.
Florence Fontani, Engie regional executive vice president of strategy, said that the company would continue to bid for UAE projects for both gas and solar tenders. "Our low carbon strategy remains well-aligned with the capacity-adding plans in the UAE, so our group will continue to position for upcoming projects," she said.