ACWA Power Seals 900 MW Vth Phase of MbRAM Solar Park at $1.6953/kWh

ACWA Power has formally won the Vth Phase of the MbRAM Solar Park from DEWA, after submitting a winning bid tariff of USD 1.6953/kWh

Following its successful Bid Submission on the 9th of October 2019, Dubai Electricity and Water Authority (DEWA) awarded the 900 MW photovoltaic fifth phase of the Mohammed bin Rashid Al Maktoum (MbRAM) Solar Park to the consortium led by ACWA Power, a leading international developer and operator of power and water desalination projects in partnership with Gulf Investment Corporation (GIC), a GCC premier principal investor and co-developer in the Gulf.

“The winning tariff of USD 1.6953 cents/kWh establishes a new global benchmark for Solar Energy,” the firm issued in its statement. “The progress of this project even as the world is severely impacted by the COVID 19 Pandemic is a testament to DEWA’s unwavering commitment to meeting the energy demands of Dubai with an increasing share of renewable energy and reconfirms the confidence of the financial markets in the ability of DEWA and ACWA Power to successfully complete the project and reliably dispatch green electricity for the 25-year duration of the contract.”

In line with its strategy to support Dubai in its forward-thinking ambitions of becoming a low-carbon sustainable economy, the Mohammed bin Rashid Solar Park will be the largest single-site solar park in the world based on the Independent Power Producer (IPP) model when completed with a planned production capacity of 5,000 MW, with investments valued at USD 13.6 billion. When completed, the solar park will save over 6.5 million tonnes of carbon emissions annually.

The 900 MW 5th phase with an investment of USD 570 Million, will bring the production capacity of the solar park to 2,863 MW. This fifth phase alone is expected to power 270,000 homes and offset carbon emissions amounting to 1.18 million tons per year in Dubai. The project will use the latest bifacial photovoltaic solar panels, which captures sunlight on both sides of the panel and produces energy with an advanced solar tracking system to increase generation efficiency.

“To invest in clean and renewable energy projects, we sign the Power Purchase Agreement (PPA), using conference-calling, with the consortium led by ACWA Power and Gulf Investment Corporation. This is to implement the 5th phase of the Mohammed bin Rashid Al Maktoum Solar Park. This pioneering national landmark is the largest single-site solar park in the world,” HE Saeed Mohammed Al Tayer, MD & CEO of DEWA said.

“We are building major renewable and clean energy projects. The current operational capacity at the solar park is 1,013MW from photovoltaic solar panels. We have 1,850 MW under construction from photovoltaic and Concentrated Solar Power (CSP), with future phases to reach 5,000 MW by 2030. This supports our efforts to achieve the Dubai Clean Energy Strategy 2050, to provide 75 percent of Dubai’s total power output from clean energy by 2050,” added Al Tayer.

The 13 MW photovoltaic first phase became operational in 2013. The 200 MW photovoltaic second phase of the solar park, developed by ACWA Power, was launched in March 2017. The solar park’s photovoltaic third phase has a capacity of 800 MW. Work on the fourth phase 950 MW, CSP and PV hybrid Noor Energy 1 is underway and on track by ACWA Power.

DEWA will retain a 60 percent stake in this latest solar project and be the sole off-taker of power under a 25-year PPA. The 5th phase of the solar park is expected to be commissioned in phases starting Q3 2021.