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Masdar in talks for $800m loan to fund solar project

Middle East Business

Dubai: A consortium led by Abu Dhabi’s Masdar is aiming to raise an $800 million loan to help fund the building of the 800-megawatt (MW) third phase of Dubai’s solar park, the company’s chief executive told reporters yesterday.

The consortium, which also includes Spanish companies Fotowatio Renewable Ventures (FRV) and Gransolar Group, was selected to complete the third phase of Shaikh Mohammed bin Rashid Al Maktoum Solar Park,
Dubai Electricity and Water Authority (DEWA) said in a statement.

The consortium is in talks with banks including National Bank of Abu Dhabi, First Gulf Bank and Union National Bank to provide project finance, said Mohamed Al Ramahi, chief executive of green energy firm Masdar, wholly owned by Abu Dhabi investment fund Mubadala.

The funding should be finalised by November or December, he said. DEWA didn’t name the other bidders, but sources previously said that China’s Jinko Solar, France’s EDF and Saudi Arabia’s ACWA Power were among companies either bidding alone or as part of different consortia.

Dewa had received 95 Expressions of Interest from international energy companies, in response to its tender request over the period from September 8 to 29 last year.

According to DEWA, five bids had come from international organisations. 

The Masdar-led consortium submitted the lowest generation price to build the plant at 2.99 cents per kilowatt-hour (kWh), DEWA said.

The third phase of the park will be operational by 2020, it added.

It is planned to be the largest single-site solar park in the world, producing 5,000MW by 2030 with a total investment of 50 billion dirhams ($13.6bn), DEWA said.

Dubai is aiming to generate 25 per cent of its total power from clean energy sources by 2030.