APICORP provides US$70.5mn in financing to development of Phase 5 of the Mohammed bin Rashid Al Maktoum Solar Park

The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has signed an agreement with Shuaa Energy 3 P.S.C sponsored by Dubai Electricity and Water Authority (DEWA), ACWA Power, and Gulf Investment Corporation, to provide US$70.5 million in financing for the fifth phase of development of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, UAE.

Part of a larger project finance facility amounting to US$420.2 million provided by a number of local, regional and international banks, the funds will be used in the development, construction, ownership, operation, and maintenance of a USD564 mn 900MW state-of-the-art solar photovoltaic (PV) plant. Utilizing bi-facial panels with tracking technology, the plant will produce the lowest Levelized cost of electricity in the world at just under US$0.017 (1.7 cents) per kWh.

The project is aligned with Dubai’s Integrated Energy Strategy 2030 as well as Clean Energy Strategy 2050, aimed at securing a sustainable supply of energy and diversifying energy supply sources. Phase 5 of the development of the Park, the single-site solar park in the world, is expected to power 270,000 homes and offset 1.18 million tons of CO2 emissions annually. It also marks a crucial milestone for Dubai as the city aims to reduce its reliance on imported natural gas by achieving 7% of installed capacity from solar energy by 2020 and 25% by 2030