Lowest ever PV tariff signed for 900 MW solar project in Dubai
ACWA Power in partnership with Gulf Investment Corporation (GIC) have signed 25-year PPA agreement for the output of the fifth phase of the 900MW photovoltaic fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the world’s largest single site solar park. The winning tariff was USD 16.95 per MWh - lowest ever PV tariff.
Dubai Electricity and Water Authority (DEWA) has awarded the PPA to the consortium on October 9, 2019, and has signed the agreement on April 29, 2020.
The 900 MW 5th phase with an investment of USD 570 Million, will bring the production capacity of the Mohammed bin Rashid Al Maktoum Solar Park to 2,863 MW. This fifth phase alone is expected to power 270,000 homes and offset carbon emissions amounting to 1.18 million Tons per year in Dubai. The project will use the latest bifacial photovoltaic solar panels, which captures sunlight on both sides of the panel and produces energy with an advanced solar tracking system to increase generation efficiency.
In line with its strategy to support Dubai in its forward-thinking ambitions of becoming a low-carbon sustainable economy, the Mohammed bin Rashid Solar Park will be the largest single-site solar park in the world based on the Independent Power Producer (IPP) model when completed with a planned production capacity of 5,000 MW, with investments valued at USD 13.6 billion. When completed, the solar park will save over 6.5 million tonnes of carbon emissions annually.
This solar park will be a key pillar in fulfilling Dubai Clean Energy Strategy 2050 to increase the share of clean energy in Dubai’s total power output to 75% by 2050.
DEWA announced the tender for the project in February 2019, upon which ACWA Power submitted the lowest bid in November 2019 at USD 16.953 cents/MWh.
DEWA will retain a 60% stake in this latest solar project and be the sole off-taker of power under a 25-year PPA. The 5th phase of the solar park is expected to be commissioned in phases starting Q3 2021.
