•260MWp photo voltaic plant at Mohammed bin Rashid Al Maktoum Solar Park sets a worldwidemilestonefor utility scale solar power generation with a landmark levelized tariff of5.84 USD cents/kWh.
•Project supports the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote renewable energy sources and is part of the Dubai Integrated Energy Strategy 2030.
•ACWA Power to finance, build and operatethe power plant, and receivea 25-year power purchase agreement (PPA) starting in 2017.
•Largest photovoltaic IPP tender in the world.
Dubai - A consortium led by ACWA Power, a leading water and power developer, owner and operator based in Riyadh, Saudi Arabia with international operations in 9 countries, and TSK, the Spanish engineering and construction company as technology provider, was announced by Dubai Electricity and Water Authority (DEWA) as first rank bidder to develop, construct, own and operate the solar photovoltaic independent power project ofa net power capacity of 200 MW (260MWp installed) for thePhase II of the Middle East's largest renewable energy power plant located at Mohammed bin Rashid Al Maktoum Solar Park, Dubai.
The winning bid has set a new global benchmark as it reduces the cost of electricity produced by solar energy by over20 percent. ACWA Power will receive a levelized tariff of 5.84 USD cents/kWh for a 25-year power purchase agreement (PPA) starting in 2017.
The 200MW facility is the largest utility scale solar plant in the worldcompetitivelytendered in a single phase,and the first and largest in the Middle East. It will produce enough electricity to power 30,000 homes every year, using photovoltaic (PV) solar panels to generate electricity. It is estimated that the project will also reduce carbon emissions by469,650 tons of CO2 equivalent emissions for every year of operation.
Paddy Padmanathan, president and CEO, ACWA Power, commented: "Dubai has a clear strategy to diversify its energy mix with renewable energy, and specifically solar, playing a key role. This when combined with a politically stable environment and the availability of low-cost finance means that solar PV technology becomes commercially cost-effective.
"We have established ACWA Power as the leading renewable energy developer in the region, and this project demonstrates once again that we live up to our commitment of delivering reliable and sustainable electricity at the lowest kWh tariff."
The public tender for constructing Phase II of the Mohammed bin Rashid Al Maktoum Solar Park was launched in Spring 2014 using a build-own-operate (BOO) model. 24 independent power producers (IPPs) prequalified with bids from ten consortia being opened on November 20, 2014.
The ground breaking landmark tariff,which has been achieved using USA-based Firstsolar's photovoltaic thin film PV panels,secured the project for ACWA Power who will finance and construct the power plant, and then receive the fixed tariff under the 25-year PPA. DEWA will take a 51 percent equity stake in the project and the developer will take 49 percent (ACWA Power and TSK in the proportion of 85/15).
Thamer Alsharhan, managing director, ACWA Power, said: "This project supports the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote renewable energy sources. A capital intensive project of this type with a 25-year commitment necessitates a sustainable approach, a shared vision and common ambition.
"DEWA has demonstrated through its transparent, competitive tender process that it has those qualities which make it a world class utility. I hope this project creates the momentum for renewable energy to pick up significantly in the region."
The project is the second phase of the development located on a 40 square kilometer site to the south-east of Dubai and further enhances the Green Economy for Sustainable Development initiative of His Highness Sheikh Mohammed bin Rashid Al Maktoum. Subsequent expansion will see the facility grow to produce 1,000 MW of electricity.
Rajit Nanda, chief investment officer, ACWA Power, said: "Having accumulated solid experience in the development of complex and cutting-edge fuel-efficient power and water plants of very large capacities across geographies, ACWA Power has now integrated its visionto encompass sustainability and deliver electricity at grid parity tariffs with the use of only the light of the sun."
-Ends-
About ACWA Power
ACWA Power is a developer, investor, co-owner and operator of a portfolio of plants across 9 countries with a capacity to generate 15.5 GW of power and produce 2.5 million m3/day of desalinated water, and which has an investment value in excess of USD 22 billion.
ACWA Power was born out of the policy decision by the Kingdom of Saudi Arabia to increase private sector involvement in power generation and desalinated water production to include ownership and operation of assets, and has now grown to be an investor, developer and operator of power generation and desalinated water producing plants in which it has a meaningful economic interest and exercises management control.
The company was incorporated in the Kingdom of Saudi Arabia and has a paid-up capital of over USD 1.4 Billion. It is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).
From its base in Saudi Arabia, ACWA Power has already expanded into the GCC, Jordan and Egypt and further afield to Turkey, Morocco, the southern cone of Africa and South East Asia. It has:
•Regional offices in Dubai, Istanbul, Rabat, Johannesburg, Maputo, Hanoi and Beijing
•A customer base that includes state utilities and industrial majors
The current portfolio of assets and investments delivers:
•6,058 MW of power, 2.2 million m³/day of desalinated water and 1,230 tons/hour of steam capacity in Saudi Arabia
•1,277 MW of power in Jordan
•427 MW of power and over 136,000 m³/day of desalinated water in Oman
•60MWp of power using Photo Voltaic (PV) technology in its solar plant in Bulgaria.
New capacity under construction includes:
•6,147 MW of power, 55,000 m³/day of desalinated water and 1,015 tons/hour of steam capacity in Saudi Arabia.
•160 MWe Concentrated Solar Power (CSP) plant at Ouarzazate and in Morocco
•50 MWe CSP plant at Bokpoort in South Africa
•926 MW CCGT plant at Kirikkale in Turkey
New capacity under financial close includes:
•100MW Redstone Concentrated Solar Power (CSP) plant in South Africa
•120MW Wind Project in Morocco
•275MW Coal Project in Mozambique.
ACWA Power lives by its mission statement - to reliably deliver electricity and desalinated water at the lowest possible cost in our target countries and operates the business according to its values which are: Diversity, Rigor, Ingenuity, Fairness and Integrity.
The energy portfolio of the group consists of power plants that use both traditional fuels (oil, natural gas, and coal) as well as renewable energy sources such as solar, wind, and waste.
www.acwapower.com
Editorial contacts:
Naif Abu Saida
Executive Director of Marketing & Corporate Communications
ACWA Power
M:+966.55.881.1461
E:nabusaida@acwapower.com
Khalil Hussein
Hill+Knowlton Strategies
M:+971 50 7080122
E:Khalil.Hussein@hkstrategies.com
© Press Release 2015
