Image courtesy: WAM
Dubai Electricity and Water Authority (DEWA) has selected Abu Dhabi Future Energy Company (Masdar) to build and operate the 1,800 megawatt (MW) sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park with an estimated cost of up to Dhs5.51bn, according to Dubai Government Media Office.
Earlier in June, DEWA said it received the lowest bid from Masdar to build phase six of Mohammed Bin Rashid Al Maktoum Solar Park. The Abu Dhabi renewable energy firm bid 1.62154 cents per kilowatt-hour for the solar power plant.
“The 1,800MW 6th phase of the solar park using photovoltaic (PV) solar panels based on the independent power producer (IPP) model will become operational in stages starting from Q4 of 2024,” said Saeed Mohammed Al Tayer, managing director & CEO of DEWA.
“The project documents, power purchase agreement (PPA), and financial close agreements will be signed in due course.”
The total capacity of the solar energy projects commissioned at the Mohammed bin Rashid Al Maktoum Solar Park has reached 2,427MW. The sixth phase of the solar park will increase the total production capacity to 4,660MW.
The Dubai utility firm received 23 expressions of interest from international applicants to develop this project.
DEWA accelerates energy transition
Meanwhile, the share of clean energy in Dubai’s energy mix is about 16.3 per cent of its total installed capacity. Al Tayer said this percentage is expected to reach 24 per cent in 2026 with the completion of the sixth phase and the remaining phases under construction of the solar park.
DEWA has attracted huge investments to the UAE from the private sector and foreign banks, leading to increased cash flow to the economy of Dubai and the UAE. The utility giant said it is building another project with a total capacity of 433MW.
Under the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy, the city seeks to obtain 100 per cent of its power from clean energy sources.
Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai inaugurated the 900MW phase 5 of the solar park in June.
The fifth phase of the solar park is expected to power 270,000 homes and offset 1.18 million tonnes of carbon emissions per year.
With a total investment of Dhs50bn based on the IPP model, the solar park will cut carbon emissions by 6.5 million tonnes annually upon completion.
DEWA posted Dhs12.7bn in half-year revenues, a 5.4 per cent increase driven by an increase in demand for electricity, water, cooling services and an increase in the revenues of the utility firm’s other portfolio of assets.
Revenue growth for electricity, water and cooling increased by 5.7 per cent, 3.8 per cent and 4.9 per cent, respectively.