Abu Dhabi sets target for PPA signing for 2GW solar project
World record low tariff was submitted in April for the planned Al-Dhafra PV solar IPP in Abu Dhabi
Abu Dhabi’s Electricity & Water Electricity Company (Ewec) is targeting for the power-purchase agreement (PPA) for the planned 2GW Al-Dhafra photovoltaic (PV) solar project to be signed in June.
Energy & Utilities reported in April that a consortium led by France’s EDF and China’s Jinko Power submitted the lowest tariff for the planned 2GW Al-Dhafra photovoltaic (PV) solar project in Abu Dhabi.
The consortium submitted a weighted levelised electricity cost (WLEC) tariff of AEDfils3.2046/kWh ($cents0.8732/kWh) and an evaluated weighted levelised electricity cost (EWLEC) tariff of AEDfils2.9117/kWh ($c0.7934/kWh), with the second lowest bidder, Saudi Arabia’s Acwa Power, submitting a WLEC tariff of $c0.921/kWh and an EWLEC tariff of $c0.9254/kWh.
The client later announced that the lowest levelised cost of electricity (LCOE) tariff was $cents1.35/kWh, although LCOE for other bidders was not revealed.
According to sources close to the project, the client is planning to sign the PPA in June, with a target of the project reaching financial close by the end of the third quarter.
The project will involve the financing, construction, operation and maintenance of the solar plant under a long-term power purchase agreement. The successful developer will form a special-purpose vehicle (SPV) company in partnership with Ewec. The successful developer will own up to 40 per cent of the SPV, with the Abu Dhabi government to hold the remaining 60 per cent stake.
The project will be Abu Dhabi’s second major PV solar scheme.
In February 2017, the emirate awarded a contract to a consortium led by Japan’s Marubeni Corporation and China’s Jinko Solar to develop a 1,177MW PV solar IPP at Sweihan, the world’s largest single-site solar project. The Sweihan IPP was fully commissioned in June 2019.
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