DEWA & ACWA Power Reach Financial Closing on 950MW 4th Phase of MbRAM Solar Park

The solar park will produce 5,000 MW by 2030 with investments totaling AED 50 billion.

Dubai Electricity and Water Authority (DEWA) and the consortium led by Saudi Arabia’s ACWA Power and Silk Road Fund, which is owned by the Chinese Government, announced the financial closing of the 950 MW fourth phase of the Mohammed bin Rashid Al Maktoum (MbRAM) Solar Park, the largest single-site solar park in the world.

The announcement was made by HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, and Mohammad Abdullah Abunayyan, Chairman of ACWA Power, at a press conference that was attended by a number of officials from the UAE, Saudi Arabia, and China.

Al Tayer noted that this achievement supports DEWA’s efforts to increase the share of renewable and clean energy in Dubai and strengthen the UAE’s position as a leading global hub for clean energy and green economy.

“DEWA is implementing the fourth phase of the solar park in cooperation with Saudi Arabia’s ACWA Power and China’s Silk Road Fund. This phase is the largest single-site investment project in the world. It uses both Concentrated Solar Power (CSP) and photovoltaic solar technologies based on the Independent Power Producer (IPP) model with investments up to AED 15.78 billion. It will use 700MW of CSP; 600MW from a parabolic basin complex and 100MW from a solar tower; and 250MW from photovoltaic solar panels. This phase will provide clean energy for 320,000 residences and will reduce 1.6 million tonnes of carbon emissions annually. The project, which will cover an area of 44 square kilometers, achieved several world records. These include the world’s lowest CSP Levelised Cost of Electricity of USD7.3 cents per kilowatt-hour and the lowest Levelised Cost of Electricity for photovoltaic technology of 2.4 US cents per kilowatt-hour. The project will feature the tallest solar tower in the world at 260 meters and the largest thermal storage capacity of 15 hours; allowing for energy availability round the clock,” said Al Tayer.

“Since its inception, the MbRAM Solar Park’s projects have received considerable attention from global developers. Financing the fourth phase of the solar park is the largest equity bridge loans in the region, in cooperation with a number of leading local and international banks. This reflects the confidence of financial institutions in the major projects adopted by the Government of Dubai, especially in light of the regulatory framework that stimulates innovation and attracts investments and the transparency we deal with in all our projects, as well as DEWA’s strong financial position,” added Al Tayer.

“The solar power projects currently operational in the solar park have a capacity of 413MW. DEWA currently has 3 more projects under implementation with a capacity of 1,550 MW. We recently announced the 900 MW 5th phase using photovoltaic solar panels, bringing the total capacity of the five phases announced so far to 2,863MW. We are on our way to reaching 5,000MW by 2030 and achieving the objectives of the Dubai Clean Energy Strategy 2050 to produce 75% of Dubai’s total power output from clean energy and make Dubai the city with the lowest carbon footprint in the world by 2050,” noted Al Tayer.

“Since the beginning of our partnership with the DEWA, the Noor Energy 1 project has grown in both scales and in its ability to revolutionise the global energy landscape. The successful closure of the project with renowned international players corroborates the potential of Noor Energy 1 and also maintains our reputation as a partner of choice, delivering projects that contribute to the growth and development of vibrant economies such as that of Dubai. It is an honour to help fulfill the ambitious vision of Dubai’s leadership and to work with DEWA in their admirable efforts to serve the community in which they operate,” said Abunayyan.