Saudi Arabia’s ACWA Power and China’s Shanghai Electric have signed an EPC contract for the 700MW fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, a concentrated solar power (CSP) project in Dubai, UAE.
Dubai Electricity and Water Authority (DEWA) managing director and CEO Saeed Mohammed Al Tayer was present at the signing of the contract in Shanghai, China.
Under the contract, Shanghai Electric will serve as the main contractor for the project.
The $13.6bn (AED50bn) Mohammed bin Rashid Al Maktoum Solar Park has a planned capacity of 5,000MW by 2030.
Touted be the largest CSP investment project in the world, the power plant will be based on the independent power producer (IPP) model.
The project will feature the world’s tallest solar tower, measuring 260m, with the world’s largest thermal energy storage capacity.
The plant will provide clean energy to more than 270,000 residences in Dubai, reducing 1.4 million tonnes of carbon emissions a year.
The CSP project will use two technologies to generate clean energy. The 600MW parabolic basin complex and the 100MW solar tower will cover 43km².
This project involves an investment of $3.9bn. It has achieved the world’s lowest Levelised Cost of Electricity (LCOE) of $7.3 per kilowatt hour (kW/h) for concentrated solar power.
Al Tayer said: “I am pleased to be here today in Shanghai for the signing of the engineering, procurement, and construction (EPC) contract for the 700MW fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, the largest Concentrated Solar Power (CSP) investment project in the world.
“We are here today to show the strong ties between our two great nations, which have been formed because of our shared values and our trading and economic interests.
“Bilateral trade between the United Arab Emirates and the People’s Republic of China has already exceeded $35bn dollars in the first nine months of 2017.”