Dewa and Masdar Secure Funding for Massive Solar Park Expansion in UAE

Dewa and Masdar Secure Funding for Massive Solar Park Expansion in UAE

By Staff Writer, 26 February 2024

Dubai Electricity and Water Authority (Dewa) and Abu Dhabi’s renewable energy leader Masdar have successfully finalized the financial arrangements for the ambitious 1,800-megawatt (MW) sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park.

According to reports from the UAE state-run news agency Wam, the funding for this groundbreaking project has been secured through a collaboration involving several prominent financial institutions, including Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Abu Dhabi Islamic Bank, and Warba Bank.

Masdar, chosen as the preferred bidder for the construction and operation of the sixth phase, will employ photovoltaic solar panels under the independent power producer model, with an estimated project cost of AED5.5 billion ($1.50 billion).

Once completed, this phase of the solar park is expected to generate clean energy capable of powering approximately 540,000 households while significantly reducing carbon emissions by approximately 2.4 million tonnes annually.

Spanning an impressive area of 20 square kilometers, the project is set to make substantial strides in advancing sustainable energy initiatives in the region.

Notably, the sixth phase has achieved a remarkable milestone by achieving the lowest levelized cost of energy at $1.6 cents per kilowatt-hour within the solar park.

The successful implementation of the sixth phase will mark a significant milestone in the overall expansion of the solar park, with its total production capacity projected to reach an impressive 4,660 MW by the year 2026.

Source: AGBI

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