Last week, the Dubai Electricity and Water Authority (DEWA) announced that the second phase of the Mohammed bin Rashid Al Maktoum Solar Park is 80% complete. It is good news for the project that broke solar pricing records when the tender was completed in 2015, as some industry onlookers questioned the viability of such low prices.
The second phase of the project is for 200 MW of solar capacity. When the tender was completed for this phase in 2015, DEWA set a world record for the lowest price obtained for solar power at $0.056 per kWh. This was a shockingly low price at the time, but prices have since fallen even more dramatically in the region, with a price of $0.0242 entered at a tender for PV power in Abu Dhabi in September 2016.
DEWA announced that 80% had actually been completed in mid-December, and that 75% od the 2.2 million PV modules had been installed at the plant. The second phase is now on course to meet its completion target of April 2017. DEWA is the majority shareholder in the project with a stake of 51%, while Saudi Arabia’s ACWA Power and Spain’s TSK holding the remaining stake.
“Completing 80% of this strategic project, with a total of 1 million man hours logged, reflects the intensive efforts made by the team,” commented Chairman of ACWA Power Mohammad Abdullah Abunayyan.
The Mohammed bin Rashid Al Maktoum Solar Park will be the world’s largest single-site solar park based on the Independent Power Producer model (IPP). The capacity targets for the park have been set at 1 GW by 2020, and 5 GW by 2030, with total investment expected to reach USD 13.6 billion.
“All projects included in the Mohammed bin Rashid Al Maktoum Solar Park adhere to the Dubai Clean Energy Strategy 2050, to transform Dubai into a global center for clean energy and green economy,” said DEWA CEO HE Saeed Mohammed Al Tayer. “The strategy sets the target to generate 5,000 MW of solar power by 230. Clean energy will generate 7% of Dubai’s total power output by 2020, 25% by 2030, and 75% by 2050.”