DEWA awards phase II deal for Dubai solar project

Authority selects Saudi's ACWA Power and Spain's TSK to build 200MW independent power project

DEWA CEO HE Saeed Al Tayer reveals the winning bidder at a press conference at Dubai's Grand Hyatt hotel
DEWA CEO HE Saeed Al Tayer reveals the winning bidder at a press conference at Dubai's Grand Hyatt hotel

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Dubai Electricity and Water Authority (DEWA) has announced that it has agreed a deal with Saudi Arabia's ACWA Power to carry out the second phase of the Mohammed bin Rashid Al Maktoum Solar Park.

The deal will see ACWA Power build and operate a 200MW Independent Power Plant - double the capacity originally planned. The solar photovoltaic (PV) plant will sit on a 4.5 km2 site and be completed by April 2017.

DEWA agreed a deal with ACWA's consortium, which includes Spanish engineering company TSK, to buy electricity at a cost of around $0.0585 per kilowatt hour (kwh).

CEO HE Saeed Mohammed Al Tayer said the facility would be "one of the largest renewable energy projects in the region."

He reitereated that the long-term plan is to build a $3.3bn (AED12bn) solar park capable of generating 1,000MW of electricity by 2030. Solar energy will produce 1% of all of Dubai's energy requirements by 2020 and 5% by 2030.

He added that DEWA had received 49 qualifying bids to build the second phase of the park and shortlisted 24 of them. Ten consortia moved forwards until the winning consortium was revealed.

DEWA was advised on the bid by Lahmeyer International, KPMG and law firm Norton Rose Fulbright.

“The project will help to achieve a reduction of 250,000 tonnes of carbon emissions annually," Al Tayer said.

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