The state-owned electricity supplier Dubai Electricity and Water Authority (DEWA) has decided to award a 700 MW CSP plant to Schanghai Electric and ACWA Power, as the consortium offered the lowest bid of about $0,073 per kWh in its competitive auction.
Announced as the largest single-site solar park in the world based on the Independent Power Producer (IPP) model, with the central tower reaching 260 meters, the CSP project is the fourth phase of the Mohammed bin Raschid al-Maktum solar park, which sits around 50 km south of Dubai.
As reported by the UAE state press agency WAM, the project’s is expected to be commissioned in stages, starting from the fourth quarter of 2020, and its estimated investment cost is to stand at $ 3.8 billion.
“The implementation of the largest CSP plant in the world demonstrates the UAE leadership’s commitment to the production of clean and renewable energy, and entrenches our place among the most advanced countries in this industry,” said Sheikh Mohammed hailing the project’s launch.
The third phase of the project, which consists of 800 MW solar capacity, is currently being developed by a consortium formed by Masdar, the Abu Dhabi-based developer of renewable energy, Spain-based GranSolar and Saudi-owned Fotowatio Renewable Ventures, which quoted the lowest price of $ 0.0299/kWh.
Construction of the 800 MW phase three commenced in January and is set to be completed in three stages, with the first 200 MW expected to be operational by the first half of 2018, and then two 300 MW stages to come in the two years following.
The second 200 MW phase of the huge solar park was completed by Saudi Arabian group Acwa Power and Spanish engineering services provider TSK in late March, while the first phase of the project is a 13 MW PV plant completed by First Solar in late 2013.
The capacity targets for the Mohammed bin Rashid Al Maktoum Solar Park have been set at 1 GW by 2020, and 5 GW by 2030, with total investment expected to reach $13.6 billion.