UAE's ADPower solar project receives world's lowest tariff bid

Levelised Cost of Electricity bid for Al Dhafra solar project is 20 percent lower than the previous world record, also held by the UAE

  
Photo used for illustrative purposes.

Photo used for illustrative purposes.

Getty Images/Getty Images

Abu Dhabi Power Corporation (ADPower) has received a bid of AED 4.97 fils/kWh (1.35 US cents/kWh) for its 2 GW Al Dhafra Solar Photovoltaic (PV) Independent Power Producer (IPP) project, located in Al Dhafra, Abu Dhabi.

The tariff bid received for the Abu Dhabi solar project, which is currently the world’s largest standalone PV solar project, is the lowest tariff globally for a solar PV plant. 

ADPower told Zawya that the bidders were EDF and Jinko Power (first-ranked bidder); ACWA (second- ranked bidder); International Power (Engie); Marubeni and Total Solar; and Softbank Energy Global and Eni.

The Build-Own-Operate (BOO) contract is expected to be awarded in the third quarter of 2020, according to Refinitiv Projects database.

The Levelised Cost of Electricity (LCOE) for the Al Dhafra Solar PV project is approximately 44 percent lower than the tariff set three years ago on the 1.2 GW Noor Abu Dhabi project, the first large-scale solar PV project Abu Dhabi and a world record tariff-setter at the time, according to the statement.

The Al Dhafra project’s tariff is also 20 percent lower than the lowest bid of 1.6953 US cents per kW/h received by Dubai in November last year for the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park. The 900 MW solar PV IPP was awarded by Dubai Electricity and Water Authority (DEWA) to a consortium led by ACWA Power and Gulf Investment Corporation.

However, ADPower’s statement didn’t clarify whether the lowest tariff bid for Al Dhafra also includes battery storage. In November 2019, ADPower said that as part of the tender issued in July 2019, an optional bid for significant battery storage was allowed.

Jasim Husain Thabet, Chief Executive Officer and Managing Director of ADPower said on Tuesday that the Al Dhafra solar PV project will play a critical role meeting’s Abu Dhabi’s target of generating 50 percent of its energy needs from renewable and clean energy sources by 2030.

Othman Al Ali, Chief Executive Officer of ADPower’s subsidiary, Emirates Water and Electricity Company (EWEC) added that the project would be delivered in the second quarter of 2022.

In July 2019, EWEC had received 48 expressions of interest from potential bidders in respect of the Al Dhafra Solar PV project, out of which 24 bidders were qualified to bid for the project after submitting Statements of Qualification.

In November 2019, five bids were received for the Al Dhafra Solar PV project.

(Writing by Anoop Menon anoop.menon@refinitiv.com, editing by Seban Scaria)

#UAE #ADPOWER #SOLAR #TARIFF

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© ZAWYA 2020


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