Dubai to fully commission 800MW solar project in April
State utility Dubai Electricity & Water Authority (Dewa) is preparing to commission the final phase of an 800MW photovoltaic (PV) solar project in April.
The 300MW final stage of the 800MW third phase of the Mohammed bin Rashid (MBR) solar park is currently undergoing initial testing before beginning full commercial operation in April.
The 800MW third phase is being developed by a consortium led by Abu Dhabi’s Masdar and France’s EDF Group. The first 200MW component of the third phase started commercial operations in May 2018, with the second 300MW stage commissioned in August of that year.
The 800MW third phase project achieved a world record tariff for PV solar production of $cents 2.99 per kilowatt-hour (kWh). Dewa established special purpose vehicle (SPV) Shuaa Energy 2 to develop and operate the plant, with the utility holding a 60 per cent stake in the company and the developer consortium owning the remaining 40 per cent.
Masdar has a 24 per cent stake in the SPV, with EDF holding 16 per cent equity in the project. An engineering, procurement and construction (EPC) consortium of Spain’s GranSolar and Acciona and Ghella from Italy are constructing the plant.
The impending 300MW addition to the grid will take the total capacity of the MBR park to 1,013MW, with 713MW currently operational. Contracts for an additional 2,150MW of capacity at the MBR park have already been awarded, which includes 700MW of concentrated solar power (CSP) capacity.
In September 2017, a consortium led by Saudi Arabia’s Acwa Power was appointed by Dewa to develop the $3.8bn fourth phase, which will include 700MW of CSP and 250MV of PV capacity. The developer had submitted a tariff of 7.3$cents/kWh for the CSP component during a competitive bidding process, the lowest unsubsidised tariff for utility-scale CSP solar in the world.
The EPC consortium for the fourth phase contains China’s Shanghai Electric and Spain’s Abengoa. The value of work to be undertaken by Abengoa is about $650m, which will include providing the technology for the planned three 200MW CSP parabolic troughs. The CSP project will also contain a 100MW CSP tower.
In October 2019, a consortium led by Saudi Arabia’s Acwa Power submitted a world-record-low tariff of $1.695 cents a kilowatt hour ($c/kWh) for the PV fifth phase of the MBR solar park.
Acwa Power, in consortium with Kuwait’s GIC, was one of only two bidders for the 900MW PV project, with a consortium of the UAE’s Masdar, France’s EDF and China’s Jinko Power submitting a tariff of $c1.725/kWh.
The Acwa Power consortium was appointed as the preferred bidder for the fifth phase in November.
When commissioned, the initial five phases will bring the total installed capacity of the MBR park to 2,863MW. Dewa has set a target for the park to have a capacity of 5,000MW by 2030, which will required a total investment of about AED50bn ($13.6bn).
Energy & Utilities - Middle East and Africa Market Outlook Report 2024.
This must-have report for industry players offers a thorough understanding of the latest developments, challenges, and opportunities in the region, supported by data, analysis, and expert insights.
E&U Podcast
Subscribe to our Market Talk podcast for the latest on the key issues and trends in the energy and utilities sector
