Fewa invites interest in 500MW solar IPP
Federal Electricity & Water Authority has invited developers to submit expressions of interest for a 500MW photovoltaic solar independent power producer project.
The Federal Electricity & Water Authority (Fewa) has invited developers to submit expressions of interest (EOI) for a 500MW photovoltaic (PV) solar independent power producer (IPP) project in the Northern Emirate of Umm al-Quwain.
The client has set a closing date of 23 January for EOI submission.
The winning developer consortium will form a special purpose vehicle (SPV) to develop and operate and maintain with IPP. The developer will hold a 40 per cent stake in the SPV, with Fewa and the Umm al-Quwain government holding the remaining 60 per cent.
The SPV will enter into a long-term power-purchase agreement (PPA) agreement with Fewa, which will be the offtaker for all of the power produced.
The solar IPP is part of the UAE’s ambitious goal for clean energy resources to contribute 50 per cent of its energy requirements by 2050.
The planned IPP is the second utilities project Fewa is seeking to develop in partnership with the private sector. In November, a consortium of Saudi Arabia’s Acwa Power and Abu Dhabi-based Mubadala reached financial close for a 150 million imperial gallon a day (MIGD) independent water project (IWP) in Umm al-Quwain.
The $800m project will be funded on a debt to equity ratio of 85 per cent to 15 per cent. The $680m senior debt will be provided by seven lenders, including Korea Development Bank, MUFG Bank, Siemens Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation (SMBC), First Abu Dhabi Bank and Samba Financial Group.
The appointed developer consortium has signed a 35-year water purchase agreement (WPA) with the Federal Electricity & Water Authority (Fewa), the offtaker for the project. The plant is due to be operational by July 2022.
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