Dubai Electricity and Water Authority (Dewa) has announced that Abu Dhabi energy group Masdar has emerged as the preferred bidder for the construction and operation of the 1,800MW 6th phase of the Al Maktoum Solar Park project.
The major project is being developed on a independent power producer (IPP) model at a total cost of AED5.51 billion ($1.5 billion).
Dewa has achieved, through this phase, the lowest Levelised Cost Of Energy of $1.6215 cents per kilowatt hour (kWh) for any of its solar IPP projects so far.
The Dubai utility has received 23 expressions of interest from international applicants to develop this project. Subsequently, the Request for Qualification (RFQ) was released to market in November last year.
Announcing the preferred bidder, Saeed Mohammed Al Tayer, MD and CEO of Dewa, said: "The 1,800MW 6th phase of the solar park using PV solar panels based on the IPP model will become operational in stages starting from Q4 of 2024. The project documents, Power Purchase Agreement (PPA), and financial close agreements will be signed in due course."
The total capacity of the solar energy projects commissioned at the solar park has reached 2,427MW. When completed, the solar park will reduce over 6.5 million tonnes of carbon emissions annually, stated Al Tayer.
The share of clean energy in Dubai’s energy mix is about 16.3% of its total installed capacity. This percentage will reach 24% in 2026 with the completion of the Sixth Phase and the remaining phases under construction of the solar park, he added.
According to him, the projects at the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world, are of great interest to international developers and reaffirms investor confidence in the significant projects supported by Dubai.
Dewa, he stated, has attracted huge investments to the UAE from the private sector and foreign banks, leading to increased cash flow to the economy of Dubai and the UAE.
"We are building another project with a total capacity of 433 MW. The 1,800MW 6th phase of the solar park will increase the total production capacity to 4,660MW," he added.
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