DEWA and Masdar reach financial closure of the 1800 MW sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park
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Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Future Energy Company (Masdar)announced the financial closing of the 1,800-megawatt sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, the world’s largest single-site solar park.
The solar park capacity will exceed 5,000 megawatts by 2030, with investments totaling approximately AED 50 billion. This is a new milestone in promoting the use of clean and renewable energy in the UAE.
Abu Dhabi Future Energy Company (Masdar) was selected as the preferred bidder to build and operate the 1,800 MW sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park using photovoltaic solar panels based on the independent power producer (IPP) model, with costs of up to AED 5.5 billion . This phase will provide clean energy to approximately 540,000 residences and reduce around 2.36 million tons of carbon emissions per year. The project will cover an area of 20 square kilometers. Additionally, the sixth phase has achieved the lowest Levelized Cost of Energy (LCOE) of US$1.6215 cents per kilowatt hour (kWh) in the Solar Park.
HE Saeed Mohammed Al Tayer, Director General and CEO of DEWA, noted that this achievement is in line with the guidelines of the wise management of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates; and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the United Arab Emirates and Ruler of Dubai. This project also supports the UAE Year of Sustainability 2024 objectives to protect and preserve the environment for the benefit of future generations. The Mohammed bin Rashid Al Maktoum Solar Park supports the UAE’s position as a leading global center for clean energy. It is aligned with the UAE Net Zero by 2050 strategic initiative, Dubai Clean Energy Strategy 2050 and the Dubai’s net zero carbon emissions strategy by 2050 provide 100% of Dubai’s total electricity capacity from clean energy sources by 2050.
“DEWA is implementing the sixth phase of the solar park in cooperation with Masdar, Abu Dhabi Future Energy Company, based on the Independent Power Producer (IPP) model, using the latest bifacial solar photovoltaic technologies with single-axis tracking. The current production capacity of the solar park is 2,627MW and the total capacity under construction is 2,033 MW. The 1,800 MW sixth phase of the solar park will increase total production capacity to 4,660 MW by 2026. DEWA will have around 27% of the generation mix coming from clean energy sources by 2030.”
saying Al-Tayer.
For the sixth phase of the Solar Park, DEWA established Shuaa Energy 4 in partnership with Masdar. DEWA owns 60% of the company, while Masdar owns the remaining 40%.
Mohamed Jameel Al-Ramahi, CEO of Masdar, saying:
“Today’s announcement builds on our long-standing partnership with DEWA, driving the UAE’s energy leadership in building the world’s largest multi-phase solar plant. The UAE continues to demonstrate leadership in delivering cutting-edge clean energy solutions that have attracted the interest and trust of the investment community, locally and internationally.
Accessing capital is critical to accelerating the global energy transition and this expansion of the Mohammed bin Rashid Al Maktoum Solar Park is an important milestone for the UAE in its own clean energy journey. “Masdar looks forward to further deepening our partnership with DEWA as we collectively work to support the country’s National Energy Strategy 2050 and the UAE Consensus.”
The lending pool for the project includes Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Abu Dhabi Islamic Bank and Warba Bank.
News source: Dubai Press Office
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