The consortium composed by ACWA Power and TSK has signed a power purchase agreement (PPA) for the 260 MWp Second phase of Mohammad Bin Rashid Al Maktoum Solar Park in Dubai.
The PPA has been signed between the consortium and the Dubai Electricity and Water Authority (DEWA). The contract will be for a period of 25 years.
The 200 MW - 260MWp - solar plant is the largest photovoltaic independent power project (IPP) tender in the country to date. The new facilities will be located about 50 km south of the city of Dubai.
The total project investment is estimated at US$400 million.
Paddy Padmanathan, President and CEO of ACWA Power, commented:
"We are very excited that our first project in the UAE is a partnership with DEWA for such a pace setting project of a global scale which also is the foundation of DEWA 's vision to develop a green economy in Dubai and place renewable energy at the center of a diversified fuel mix to provide reliable and cost competitive electricity for this Emirate."
Rajit Nanda, Chief Investment Officer at ACWA Power, stated:
"This project reinforces our commitment to participating in the provision of sustainable energy security for Dubai. We cherish the trust placed on us by DEWA and look forward to delivering a plant that we can all be proud of which will then enable us to reliably deliver the contracted renewable energy over the full 25 year term of contract."
Two weeks ago we reported that ACWA Power was negotiating a loan of about US$344 million from three banks to finance the project. The 27-year amortising loan is expected to be provided by Abu Dhabi’s First Gulf Bank and two Saudi banks, National Commercial Bank and Samba Financial Group.