DEWA bags $0.016953/kWh tariff for 900MW of Dubai solar park

Facebook
Twitter
LinkedIn
Reddit
Email
The 5GW Mohammed bin Rashid solar park. Source: DEWA

The Dubai Electricity and Water Authority (DEWA) has confirmed that it fielded a tariff of US$1.6953 cents per kWh in a recent tender for a 900MW plot of its 5GW Mohammed bin Rashid (MbR) solar parks – a bid it claims sets a world record for the indepedent power producer (IPP) model.

The tariff comes very close to the record bid of €1.476 cents per kWh – or US $1.644 cents per kWh by today’s exchange rate – lodged in a Portuguese government auction in August.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

DEWA’s chief executive officer Saeed Mohammed Al Tayer said in a statement on Tuesday that the utility had achieved “a world record in getting the lowest price for PV solar power projects based on the IPP model.”

Al Tayer added that the 900MW tranche of the solar park will increase production capacity of the park to 2,863MW and help the emirate reach its aim of generating 75% of Dubai’s total power output from clean energy by 2050.

DEWA did not reveal who has lodged the bid. Industry journal IJGlobal reported last week that the lowest tariff was submitted by a consortium led by Saudi-Arabian energy giant ACWA – a formula that has won in other tender phases of the MBR solar park.

The winning bid will be announced next month, according to Tuesday’s announcement. DEWA will award a 25-year power purchase agreement (PPA) to the winning bidder and retain 60% ownership of the project.

The utility released the tender in February. It said it invited nine consortiums and companies to submit bids after receiving 60 requests for qualification (RFQs) from developers.

The capacity in question is the fifth phase of development of the solar park.

Work on the solar park began in 2012. First Solar won the first phase of the project and phase two, which was awarded to a consortium led by ACWA, is being constructed by Spain’s EKS. A Masdar-led consortium and EDF won the third phase of development.

Phase four, which comprises 600MW from a parabolic basin complex, a 100MW solar tower, and 250MW of PV, was awarded to a consortium that includes ACWA, the Silk Road Fund. China’s Shanghai Electric is the EPC contractor.

DEWA wants the park to roll out 5GW of capacity by 2030.

Read Next

April 18, 2024
The Bank of China has supplied ACWA Power with a US$80 million equity bridge loan for the latter’s Tashkent solar-plus-storage portfolio.
February 23, 2024
Masdar and DEWA establish a joint venture, Shuaa Energy 4, to develop the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park.
February 20, 2024
ACWA Power has secured loan financing of US$2.3 billion (SAR8.6 billion) to support the construction of three new solar projects in the state.
January 30, 2024
Indian conglomerate Larsen & Toubro has been contracted to build a 1.8GWac solar PV project as part of Dubai's Mohammed bin Rashid Al Maktoum Solar Park.
January 3, 2024
Solar Module Super League member (SMSL) JA Solar has shipped 240MW of n-type modules to a solar PV project in Tashkent, capital of Uzbekistan.
December 20, 2023
Saudi-based IPP ACWA Power has signed a PPA with government bodies in South Africa for a 442MW solar PV project.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Upcoming Webinars
July 10, 2024
9am (BST) / 10am (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland