The Abu Dhabi Future Energy Company (Masdar) has been selected by the Dubai Electricity and Water Authority (DEWA) as the leading candidate to construct the 1800MW (1.8GW) sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, United Arab Emirates.
In an official announcement, HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, noted that Masdar will build and operate the project based on the Independent Power Producer (IPP) model, costing up to $1.50 billion (AED 5.51 billion).
Commenting on the collaboration, HE Al Tayer, said: “We are striving to achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into a global hub for clean energy and green economy. We also support the Dubai Clean Energy Strategy 2050, and Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power capacity from clean energy sources by 2050.
“To achieve this, DEWA launched several leading renewable projects, including the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world. Using the Independent Power Producer (IPP) model, it will have a capacity of 5,000MW by 2030 with investments totalling AED 50 billion ($13.61 billion).”
Masdar will develop the $1.5 billion project based on an IPP model
HE Al Tayer emphasised DEWA’s unwavering dedication to the successful execution of the Mohammed bin Rashid Al Maktoum Solar Park’s phases and highlighted DEWA’s adherence to the most esteemed international standards and the deployment of the latest advancements in solar technology.
This, he noted, is in a bid to accelerate Dubai’s transition to a greener, sustainable economy by augmenting the incorporation of clean and renewable energy. HE Al Tayer projected that once the solar park reaches completion, it will curtail over 6.5 million tonnes of annual carbon emissions.
He further elaborated that the 1.8GW 6th phase is scheduled for phased operational commencement from Q4 of 2024. Essential project documents, including the Power Purchase Agreement (PPA), are poised to be finalised and signed shortly.
HE Al Tayer also shared an impressive milestone, stating that the solar park has amassed a total capacity of 2,427MW from its commissioned solar projects. Concluding his remarks, he pointed out that clean energy’s contribution to Dubai’s energy configuration currently stands at 16.3% of its total capacity.
He optimistically envisions this proportion rising to 24% by 2026, in tandem with the completion of the Sixth Phase and the continued progression of the solar park’s subsequent phases.
DEWA achieves lowest Levelised Cost Of Energy through phase VI
DEWA has achieved, through this phase VI, the lowest Levelised Cost Of Energy (LCOE) of USD 1.6215 cents per kilowatt hour (kWh) for any of DEWA’s Solar IPP Projects so far. DEWA has received 23 expressions of interest from international applicants to develop this project. Subsequently, the Request for Qualification (RFQ) was released to market on 15th November 2022.
The initiatives underway at the Mohammed bin Rashid Al Maktoum Solar Park have garnered considerable attention from global developers, according to the utility provider. This showcases the robust investor trust in the prominent projects championed by the Dubai Government.
Through these endeavours, DEWA has channelled substantial investments from the private sector and international banks into the UAE, thereby bolstering the financial inflow into Dubai and the broader UAE economy.
Presently, the solar park boasts a production capacity of 2,427MW from its solar projects. DEWA is also in the process of constructing an additional project with a capacity of 433MW. With the forthcoming 1.800GW 6th phase, the solar park’s aggregate production capacity is set to reach 4,660MW.