Saudi utility company ACWA Power has finalized funding agreements for the development of a 900-megawatt (MW) solar photovoltaic (PV) solar park in Dubai, Kallanish Energy reports.
The PV project, known as Shuaa Energy 3 PSC, is the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, United Arab Emirates (UAE). The $564 million solar park claims to produce electricity at one of the world’s lowest levelized cost of electricity rates at 1.69 cents per kilowatt.
The fifth phase of the projects will bring total production capacity of the Mohammed bin Rashid Al Maktoum Solar Park to 2.86 gigawatts (GW). The fifth phase alone is expected to power 270,000 homes and offset carbon emissions amounting to 1.18 million tonnes per annum in Dubai.
An Engineering, Procurement and Construction (EPC) Agreement for the project was signed with Shanghai Electric in July this year.
Shuaa Energy 3 PSC is the special-purpose vehicle incorporated for the project, with 60% ownership by the Dubai Electricity & Water Authority (DEWA) and the remaining 40% split between ACWA Power and Gulf Investment Corporation (GIC).
The financing group to the project included Abu Dhabi Islamic Bank, Arab Petroleum Investment Corporation, Industrial and Commercial Bank of China, Emirates NBD Bank, Natixis, SAMBA Financial Group, Standard Chartered Bank and Warba Bank.
“Securing this amount of long tenor project financing for Shuaa Energy 3 PSC even as Covid-19 pandemic continues to cause social and economic disruption to the entire world illustrates the combined capabilities and trusted partnership between ACWA Power and DEWA,” said CEO of ACWA Power, Paddy Padmanathan.
This post appeared first on Kallanish Energy News.