Dubai Electricity and Water Authority (DEWA) announced on Wednesday that it has signed a 25-year Power Purchase Agreement (PPA) for the 900 megawatt (MW) 5th phase of the Mohammed bin Rashid Al Maktoum Solar Park.
In November 2019, DEWA had appointed a consortium of ACWA Power and Gulf Investment Corporation as the preferred bidder for the solar photovoltaic (PV) Independent Power Producer (IPP) project.
The PPA was signed by Saeed Mohammed Al Tayer, MD & CEO of DEWA, and Mohammad Abunayyan, Chairman of ACWA Power, via video conferencing, the Dubai utility said in a press statement, adding that the project would be commissioned in stages starting from the third quarter of 2021.
DEWA had received a world record low tariff of 1.6953 US cents per kilowatt hour (kWh) for the project.
The PPA was signed via video conferencing
The project would be implemented by Shuaa Energy 3, a special purpose vehicle owned 60 percent by DEWA and 40 percent by the consortium, the statement added.
The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site renewable energy project in the world and is expected to have a total capacity of 5,000 MW by 2030, based on the IPP model, with investments totalling 50 billion UAE dirhams ($13.6 billion), according to the statement.
Abu Dhabi Power Corporation (ADPower) had announced on Tuesday that it received a world record low tariff bid of 1.35 US cents/kWh for its 2 GW Al Dhafra Solar PV IPP project, located in Al Dhafra, Abu Dhabi.
(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)
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