Shanghai Electric, ACWA win US$3.9 billion CSP tender in Dubai

An ACWA Power, Shanghai Electric consortium has been awarded the fourth phase of the Mohammed Bin Rashid Al Maktoum Solar Park, the largest single-site CSP plant in the world.

With a capacity of 700 MW, the project has set a new global record for the lowest levelised cost for renewable base load electricity at US$7.3 cents/KWh in an IPP tender without the benefit of any subsidy including any carbon credit.  

This plant which will be commissioned in stages will cover 3,750 hectares and will feature a combination of a tower and a field of troughs, which will all collect heat and store that heat in molten salt medium to supply electricity on demand at all hours of the day and night, even when the sun is not shining.

The estimated total cost of the CSP plant is US$3.86 billion.

The PPA and the preparation to achieve financial close are already at an advanced stage to enable construction to commence in 2018.

ACWA Power Chairman Mr. Mohammad Abunayyan said:

“The confirmation of our 700 MW CSP bid for the Sheikh Mohammad Bin Rashid Solar Park represents a pivotal moment for the solar industry and the efforts in the region to reach a clean energy future. ACWA Power is proud to continue to be recognised as a partner of choice by DEWA and to support the efforts of making Dubai Clean Energy Strategy 2050 a reality.”

This 700 MW CSP project represents phase IV of the Mohammed bin Rashid Al Maktoum solar power complex. The park is planned to reach 1 GW by 2020 with the commissioning of an 800-MW phase III photovoltaic (PV) power plant. The 200-MW phase II was put online earlier this year. Phase I, of 13 MW developed in 2013. The complex is expected to reach 5GW of capacity by 2030.

As we reported in early April, Dubai Electricity and Water Authority (DEWA) issued a Request for Proposal (RFP) for a 200 MW Concentrated Solar Power (CSP) Power Plant, which involved the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park. ACWA consortium submitted the lowes price of US$9.45 cents/KWh.

We have lately informed about other energy projects in the United Arab Emirates:

• 1,177 MW Sweihan solar project in Abu Dhabi
• 800 MW third phase of the Mohammed bin Rashid Al Maktoum solar PV park
• 1,507 MW Fadhili combined heat and power plant
• 30 MW waste-to-energy plant in Sharjah
• 2,400 MW Hassyan Clean Coal Power
• 10 MW solar plant at Umm Gudair oilfield
• 6.8 MW combined roof and carpark solar system in Dubai