Financial close for Mohammed bin Rashid Al Maktoum Solar Park Phase II

Dubai Electricity and Water Authority (DEWA) yesterday announced the successful financial close for 200MW Phase II of the Mohammed bin Rashid Al Maktoum Solar Park, which is a photovoltaic plant that will be based on the Independent Power Producer (IPP) model and will be operational by 2017.

In March we reported that the project company was negotiating a loan of about US$344 million from three banks to finance the project. The 27-year amortising loan was expected then to be provided by Abu Dhabi’s First Gulf Bank and two Saudi banks, National Commercial Bank and Samba Financial Group.

The project company Shuaa Energy 1 is formed as per UAE law. With DEWA as 51% stakeholder and remaining 49% by the bidder ACWA Power & TSK, DEWA will work closely with the project company to achieve the commercial operation date in April 2017.

HE Saeed Mohammed Al Tayer said:

“Today, DEWA adds another milestone in history at the Mohammed bin Rashid Al Maktoum Solar Park, which is one of the largest renewable energy projects in the region. This is in line with the directives of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, to produce renewable energy locally to sustain our precious resources and support growth of a new promising sector. It also supports the Green Economy for Sustainable Development initiative, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The vision of His Highness sets the roadmap for our developmental initiatives and projects. This project is also in alignment with the Dubai Plan 2021 to enhance sustainability and create a happy society that meets the aspirations of citizens and residents. Solar Park will produce more than 3,000 MW of electricity when completed in 2030.”

“The Solar Park supports the Dubai Integrated Energy Strategy 2030 developed by the Dubai Supreme Council of Energy to diversify Dubai’s energy mix. Solar energy will account for 7% of the total energy production by 2020 and 15% by 2030,” added Al Tayer.

Al Tayer added:

“Phase II is a photovoltaic plant based on the IPP model and will be operational by April 2017. The project, which occupies 4.5 square kilometres, will help to achieve a reduction of approximate 400,000 tonnes of carbon emissions by 2020, which supports the green initiatives and programmes implemented by the Government of Dubai to reduce carbon emissions. This project will increase the size of solar energy projects in Dubai to 220 MW. The tender for this project, which will be implemented in partnership with the private sector, is a key step towards achieving the objectives of the Dubai Integrated Energy Strategy 2030, in which solar-powered electricity is set to become part of Dubai’s energy portfolio by increasing the share of renewable energy in the energy mix. DEWA will continue to execute these ground-breaking projects in renewable energy and contribute to the growing energy needs of Dubai. A large number of international organisations were interested in this project. The wide participation in the bid reflects the trust and interest of international investors to invest in in this vital field, which is supported by the Government of Dubai."