DEWA signs PPA & SHA with ACWA Power & Harbin Electric consortium for Hassyan clean coal power project
Dubai Electricity and Water Authority (DEWA) has recently signed a power purchase agreement (PPA) and a shareholders agreement (SHA) with the ACWA Power and Harbin Electric consortium for the 2,400 MW Hassyan Clean Coal Power project.
The project will be supported by a 25-year PPA. Additionally, DEWA and Harbin Electric have been required to put in place a secure delivery of coal to the project over the 25-year life of the PPA.
As we reported in mid July, Hassyan Energy Company, a joint venture between Dubai Electricity & Water Authority (DEWA) (51%) and ACWA Power Harbin Holding Company (49%), signed the EPC agreement with both Harbin Electric International and General Electric (GE) for the Hassyan Clean Coal Power Phase 1.
The project will use clean coal as feedstock for electricity generation. The new clean coal fired power generation facility, with an aggregate capacity of 2,400 MW, will be located at the Saih Shuaib area on the Arabian Gulf coast in the Emirate of Dubai. DEWA also plans to carry out an additional phase for a total capacity of 3600 MW.
The first 2,400 MW phase of the project comprises four 600 MW units. The second 1,200 MW phase of the project includes two 600 MW units with ultra-supercritical technology. The project is expected to begin commercial operation in March 2023.
The Hassyan clean coal power project will be developed on a Build, Own and Operate (BOO) basis.
Mohammad Abdullah Abunayyan, Chairman of ACWA Power, stated
“Signing this agreement exemplifies the success of Public Private Partnerships and the importance of involving the private sector in enhancing efficiency, productivity and cost reduction, in addition to optimising resources, transferring the technology, and training and developing local skills in the energy industry. Moreover, signing a PPA with DEWA brings us closer to the completion of the financial close of the project to start its construction as per the stated timeframe."
Saeed Mohammed Al Tayer, MD & CEO of DEWA, said:
“DEWA’s Hassyan clean coal power project shows our commitment to achieving the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to diversify the energy mix. It also reflects DEWA’s commitment to its goals of energy diversification and sustainability of resources, and achieving the Dubai Clean Energy Strategy 2050, which focuses on producing electricity from clean coal as part of Dubai's energy mix.”
“DEWA works to achieve the fifth pillar of the Dubai Clean Energy Strategy 2050, which focuses on creating an environmentally-friendly energy mix, with 25% coming from solar energy, 7% from nuclear power, 7% from clean coal, and 61% from gas by 2030.”