EDF, JinkoPower and partners close financing for 2GW solar project in Abu Dhabi

Facebook
Twitter
LinkedIn
Reddit
Email
Al Dhafra will supersede the 1.2GW Abu Dhabi Noor project (pictured) as the Emirate’s largest solar installation. Image: EWEC.

Construction work on the 2GW Al Dhafra solar project in Abu Dhabi is set to begin as the consortium behind the development announces it has reached financial closing.

An approximately US$1 billion transaction has been funded via project financing with BNP Paribas as bookrunner together with Bank of China, Crédit Agricole, HSBC, MUFG, Sumitomo Mitsui Banking Corporation and Standard Chartered as mandated lead arrangers.

Abu Dhabi National Energy Company (TAQA) will own 40% of the project, while the remaining partners – Masdar, EDF Renewables and JinkoPower – will have a 20% stake each.

The consortium was announced as the party behind the winning US$0.0135/kWh tariff price for the project earlier in the year – a world record-low price at the time. TAQA revealed this week that upon financial closing, the tariff was lowered to US$0.0132/kWh, primarily driven by “hedging and financing cost improvements, in addition to other optimisation efforts”.

Located in the region of Al Dhafra, 35 kilometres south of Abu Dhabi city, Al Dhafra will span 20 square kilometres of desert and feature 4 million solar panels, supplying power to Emirates Water and Electricity Company.

According to TAQA, the plant will deploy “the latest in crystalline, bifacial solar technology”, helping it to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million tonnes per year when operational.

The four partners behind the project have a 30-year power purchase agreement in place, with the facility expected to come online in 2022.

Mohamed Jameel Al Ramahi, CEO of Masdar, said achieving financial close for the “monumental” solar project “underlines the growing appeal of renewable energy from both a commercial and environmental perspective”.

Construction of the park follows on from the Emirate’s debut utility-scale solar project, the 1.2GW Abu Dhabi Noor plant that was developed by Japan’s Marubeni and the Abu Dhabi Water and Electricity Authority and began commercial operations in 2019.

Al Dhafra will be “the next generation of solar plant in Abu Dhabi”, according to EDF Renewables CEO Bruno Bensasson. “The achievement of financial close with our partners and the investment community is a major milestone for the project. We are now fully mobilised to support the construction of the solar plant.”

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

Read Next

November 29, 2024
Masdar acquired 70% of Terna Energy’s outstanding shares at €20 per share, valuing the company at an enterprise value of €3.2 billion.
November 21, 2024
Masdar plans to develop including over 6GW of new solar capacity and 4GW of new solar manufacturing capacity in Egypt.
November 20, 2024
Saudi Arabia has awarded the 2GW Al Sadawi solar project to a consortium led by Masdar, and signed a PPA to acquire power from the project.
November 18, 2024
The financing covers two solar PV plants, which include the 445MW Bilasuvar PV plant and the 315MW Neftchala solar project.
November 13, 2024
Masdar and the Albania Power Corporation (KESH) have announced plans to build a “gigawatt-scale” renewable power portfolio in Albania.
October 23, 2024
The fifth round of the National Renewable Energy Programme (NREP) sought proposals for 3.6GW of solar PV capacity across four projects.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
December 12, 2024
9am GMT / 10am CET
Solar Media Events, Upcoming Webinars
December 18, 2024
9am GMT / 10am CET
Solar Media Events
February 4, 2025
London, UK
Solar Media Events
February 17, 2025
London, UK