PPA sign-off brings progress to ultra-cheap 900MW solar project in Dubai

Facebook
Twitter
LinkedIn
Reddit
Email
A model of the Mohammed Rashid Al-Maktoum solar park. Source: DEWA

Yet another phase of what is described as the largest single-site solar project in the world lies one step closer to completion in Dubai, after the supply deal was signed online.

Saudi developer ACWA Power has penned a 25-year power purchase agreement (PPA) for the 900MW fifth phase of the 5GW Mohammed bin Rashid Al Maktoum Solar Park, contracted by the Dubai Electricity and Water Authority (DEWA).

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

Together with supranational financier the Gulf Investment Corporation (GIC), ACWA led the consortium selected by the United Arab Emirates city last November for the project, prevailing over the 60 requests for proposals DEWA had received.

Last year’s solar contract victory came after ACWA and the GIC proposed a tariff of US$0.016953/kWh. The figure – broadly in line with the €14.76/MWh bid seen in Portugal’s solar auction of July 2019 – was a “world record” at the time, DEWA said this week.

The 900MW PV-only fifth tranche will boast bifacial modules and single-axis trackers. The project, jointly owned between DEWA (60%) and the developer consortium (40%), is meant to be commissioned in batches from Q3 2021 onwards, DEWA said.

Middle Eastern solar giants join race for record tariffs

The PPA signing marks progress for the broader Mohammed bin Rashid Al Maktoum Solar Park, a scheme to have IPPs deploy 5GW of solar – both the photovoltaic and concentrated variant – by 2030. All in all, the complex is set to require up to AED 50 billion (US$13 billion) in funding.

Capacity across each segment has ballooned with every new stage. The first (13MW) was commissioned in 2013, while the second – a 200MW batch that was also contracted to ACWA – reached the same stage in March 2017.

For their part, the 800MW third stage was assigned to developer EDF, who took it to financial close in June 2017. The 950MW fourth phase, split between a parabolic basin complex (600MW), a solar tower (100MW) and a PV add-on (250MW), was too contracted to an ACWA-led consortium.

After the successive upgrades, the Mohammed bin Rashid Al Maktoum Solar Park counts today with an operational 1.013GW of PV-only systems. According to DEWA, a further 1.85GW lies under construction, featuring both PV and concentrated solar installations.

The talk of US$0.016953/kWh as a record tariff for global solar comes after a project in neighbouring Abu Dhabi made a similar claim. The 2GW Al Dhafra project, reportedly awarded to EDF and JinkoSolar, was contracted after the duo tabled joint bids of US$0.0135/kWh.

Read Next

July 12, 2024
Swiss Utility BKW Energie AG has sign a power purchase agreement with food and beverage company Nestlé in Germany.
July 11, 2024
Iberdrola has signed a power purchase agreement with fast food chain Burger King to supply power from part of a 553MW solar PV plant. 
July 10, 2024
The PPA will allow GKN Automotive to source power from Recurrent Energy's Rey I solar PV project located in Seville, Spain.
July 8, 2024
The Vietnamese government has announced to allow direct PPA between independent power producers and large electricity consumers.
July 4, 2024
Dubai-headquartered renewable energy developer Jakson Green has signed a power purchase agreement (PPA) with the state-run utility National Hydroelectric Power (NHPC) for the output of a 400MW solar PV project in India.
July 3, 2024
The European Bank for Reconstruction and Development (EBRD) will provide up to US$229.4 million to ACWA Power to develop a 200MW/500MWh solar-plus-storage project in Uzbekistan.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
July 31, 2024
1:00 PM (BST) / 2:00PM (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia
Solar Media Events
October 8, 2024
San Francisco Bay Area, USA
Solar Media Events
October 15, 2024
Santiago, Chile