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DEWA, Masdar Ink Dh5.5B Solar Deal

The agreement is to build and operate the 1,800 megawatt (MW) sixth phase of the landmark Mohammed bin Rashid Al Maktoum Solar Park…reports Asian Lite News

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, witnessed the signing of an agreement between the Dubai Electricity and Water Authority (DEWA) and Masdar, Abu Dhabi Future Energy Company, to build and operate the 1,800 megawatt (MW) sixth phase of the landmark Mohammed bin Rashid Al Maktoum Solar Park, featuring a cost of up to AED5.51 billion.

The agreement was signed in the presence of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Minister of the Presidential Court; H.H. Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior; H.H. Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs; and Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs.

Sheikh Mohammed bin Rashid said, “Today, I witnessed with Mansour bin Zayed the signing of an agreement between the Dubai Electricity and Water Authority and Masdar, Abu Dhabi Future Energy Company, to implement the sixth phase of the world’s largest single-site solar park, at a cost of AED5.5 billion. This phase will power over half a million residences while reducing carbon emissions by 2.36 million tonnes annually. All phases of this landmark project are expected to be completed by 2030, with a total investment of AED50 billion. We’re on track to achieve our ambitious goal – 100 percent clean energy for Dubai by 2050.”

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President-Designate; and Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of DEWA, signed the agreement in Abu Dhabi.

The UAE’s clean energy powerhouse was selected from 23 high-calibre international bidders and offered a Levelised Cost of Energy (LCOE) of US$1.6215 cents per kilowatt hour (kWh), the lowest of any of DEWA’s solar Independent Power Producer (IPP) model projects to date. The current total production capacity of solar projects at the solar park is 2,427MW. DEWA is building another project with a total capacity of 433 MW. The 1,800MW sixth phase of the solar park will increase total production capacity to 4,660MW.

Dr. Sultan Al Jaber said, “Being awarded this landmark renewable energy project on the world’s largest single-site solar park is another significant milestone for Masdar. It is a testament to Masdar’s track record in pioneering clean energy projects as we continue to support the UAE’s Net Zero by 2050 strategic initiative. Ahead of our nation hosting COP28 later this year, it is vital that the world triples global renewable energy capacity by 2030 to keep the ambition of 1.5 degrees within reach. This landmark project demonstrates definitive action in our shared journey towards a cleaner, greener future.”

Saeed Mohammed Al Tayer stated, “In line with the vision and directives of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, we are committed to achieving a balance between development and environmental sustainability across social, economic and environmental plans. This underscores the UAE’s prominent status as one of the world’s largest investors in clean and renewable energy projects. It also affirms our support for the UAE’s hosting of the COP28 at Expo City Dubai, aligning our strategies and policies with the UN Sustainable Development Goals 2030 in sustainability, innovation and future-making.”

Al Tayer added, “Dubai is a pioneer in launching programmes, projects and initiatives that promote sustainability, a green economy and preserving natural resources for future generations. Masdar was selected as the Preferred Bidder to build and operate the 1,800MW sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park for using photovoltaic solar panels based on the Independent Power Producer (IPP) model, costing up to AED5.51 billion.

When completed, this phase will provide clean energy to approximately 540,000 residences and reduce 2.36 million tonnes of carbon emissions annually. Through phase VI, DEWA has achieved the lowest Levelised Cost Of Energy (LCOE) of US$1.6215 cents per kilowatt hour (kWh). At DEWA, we have a proven track record of clean and renewable energy, emission reduction, and attracting competitive global prices for clean and renewable energy projects. We enhance sustainability in all our projects and initiatives to achieve the goals of the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy to provide 100 percent of Dubai’s total power capacity from clean energy sources by 2050.”

Mohammed Jameel Al Ramahi, Masdar CEO, added, “Following our successful delivery of phase three of the Mohammed bin Rashid Al Maktoum Solar Park as part of an international consortium, this latest award once again shows that Masdar is a global leader in clean energy as we move forwards from 20GW capacity today to reach 100GW of clean energy capacity by 2030 driving decarbonisation at home and abroad.”

When fully completed, the solar park will reduce over 6.5 million tonnes of carbon emissions annually. The 1,800MW sixth phase will become operational in stages starting from Q4 of 2024.

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