ACWA Power, Shanghai Electric win $3.86bn UAE solar power plant contract


A consortium comprising Saudi Arabia-based ACWA Power and Shanghai Electric has won an AED14.2bn ($3.86bn) contract to build fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park located in Seih Al-Dahal in Dubai.

Awarded by the Dubai Electricity and Water Authority (DEWA), the Mohammed bin Rashid Al Maktoum Solar Park will feature the world’s tallest solar tower, measuring 260 metres.

Based on the Independent Power Producer (IPP) model, the project is touted to be the largest single-site concentrated solar power (CSP) project across the globe. 

The consortium bid the lowest Levelised Cost of Electricity (LCOE) of $7.3 cents per kilowatt hour (kW/h).

Based on the IPP model, the Mohammed bin Rashid Al Maktoum Solar Park is expected to generate 1,000MW by 2020 and 5,000MW by 2030.

The 13MW photovoltaic first phase and 200MW photovoltaic second phase became operational in 2013 and in March 2017, respectively.

The 800MW photovoltaic third phase will be operational by 2020 while the first stage of the 700MW CSP fourth phase will become operational in fourth quarter of 2020.

DEWA MD and CEO Saeed Mohammed Al Tayer said: “Awarding this strategic project supports the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote sustainability, and make Dubai a global centre for clean energy and a green economy.

“This vision is supported by the Dubai Clean Energy Strategy 2050 to increase the share of clean energy in Dubai’s total power output to 7% by 2020, 25% by 2030, and 75% by 2050.

“Our focus on renewable energy generation has led to a drop in prices worldwide and has lowered the price of solar power bids in Europe and the Middle East. This was evident today when we received the lowest CSP project cost in the world.”

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