Project supports the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote renewable energy sources,and is part of the Dubai Integrated Energy Strategy 2030.
The 200 MW (260MWp) Shuaa Energy 1 photovoltaic plant at Mohammed bin Rashid Al Maktoum Solar Park is the largest photovoltaic IPP tender to date in the world and has set a worldwide “best in class” benchmark levelized tariff for utility scale solar power generation.
The Project is the largest utility scale solar plant in the world competitively tendered in a single phase, and the first and largest in the Middle East.
The Project, with an approximate capital cost of c. US$ 350 million benefits from a 25 year PPA with Dubai Electricity & Water Authority (” DEWA “) and has been financed through a long-term limited recourse project finance structure.
Jeddah – The consortium of ACWA Power and TSK Electronica y Electricidad S.A. (“TSK”) has achieved financial close for the development, construction, ownership and operation of Shuaa Energy 1 PSC, the 260MWp (200MWac) solar photovoltaic (PV) independent power project (IPP)under Phase II of the Middle East’s largest renewable energy park viz. the Mohammed bin Rashid Al Maktoum Solar Park, Dubai. In reaching this landmark the Project also broke new ground by becoming Dubai’s first IPP to achieve financial close. On 26 March 2015, Dubai Electricity and Water Authority (“DEWA”) signed a 25-year Power Purchase Agreement (“PPA”) with the ACWA Power led consortium on based on a levelized tariff, which has set a global benchmark for utility scale solar photovoltaic power plants.
The Project debt has been structured as long-term limited recourse project financing and funded by a group of regional banks including the First Gulf Bank (“FGB”), The Saudi National Commercial Bank (“NCB”) and Samba Financial Group (“Samba”).
The Project will be constructed under a lump-sum turnkey EPC Contract with TSK. In addition, First National Operation & Maintenance Company Limited (“NOMAC”, a fully owned subsidiary of ACWA Power ) shall be responsible for providing operation and maintenance services for the plant.
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 a global scale path breaking project 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 , said: “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.”
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About ACWA Power
ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with operations in 10 countries in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power ‘s portfolio, with an investment value in excess of USD 25 billion, can generate 16.1 GW of power and produce 2.5 million m3 /day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.
ACWA Power , registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).
ACWA Power pursues a mission to reliably deliver electricity and desalinated water at the lowest possible cost while seeking to maximize local content and local employment creation, thereby contributing to the social and economic development of the communities and countries it invests in and serves.
ACWA Power strives to achieve success by adhering to the values of Diversity, Rigor, Ingenuity, Fairness and Integrity in operating its business.
