Cheaper materials save Masdar millions

Masdar City in Abu Dhabi.

Masdar said it will save about US $105 million (AED386 million) on the construction of a solar power plant being built in the capital because of declining material costs.

The sustainable energy body, also, known as the Abu Dhabi Future Energy Co, is due to award the main construction contracts for its Shams 1 Concentrating Solar Power (CSP) plant this month, Masdar senior project manager Olaf Goebel told Reuters.

"When we first asked for bids in October we could not believe the cost estimates...we told the contractors we don't want to start negotiating with you on this bid. Costs have come down by about 20%."

He said the plant was now estimated to cost between $520-$550 million.

CSP uses mirrors to concentrate sunlight receivers that produce electricity.

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Bids for Masdar’s Shams 2 CSP plant are due to be launched in December, Goebel said.

Masdar is behind the world’s first zero-carbon, zero-waste city that share’s its name. The first phase of Masdar City is under construction and includes the Masdar Institute of Science and Technology (MIST). The project will be developed in seven phases and is expected to be completed by 2022.