Dubai’s state utility Dubai Electricity and Water Authority (DEWA) has signed an amended power purchase agreement (PPA) with a consortium led by Saudi Arabian energy firm ACWA Power to increase the capacity of the fourth phase of the Dubai solar park from 700MW to 950MW.
Under the amended agreement, ACWA Power will add 250MW of photovoltaic (PV) solar panels, which will take the total investment in this project to AED16bn ($4.3bn).
The solar panels for Mohammed bin Rashid Al Maktoum Solar Park will be installed at a cost of 2.4 cents per kilowatt-hour, which is claimed to be the lowest in the world.
The fourth phase is also claimed to be the world’s largest investment project using Concentrated Solar Power on a single location. Furthermore, it is based on the independent power producer model.
The Dubai solar park is an important project supporting the Dubai Clean Energy Strategy 2050. This strategy aims to have a total capacity of 5,000MW of clean energy by 2030 with an investment of AED50bn ($13.6bn).
Dubai Crown Prince and Dubai Executive Council chairman Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said: “The capacity expansion of the Mohammed bin Rashid Al Maktoum Solar Park’s further consolidates the UAE’s leadership in the field of sustainable development and provides another impetus to our clean energy strategy.
“The UAE’s leaders accord this sector high priority in their vision for the nation’s future. Furthermore, being at the forefront of technological advancement in this sector is critical to Dubai’s aspiration of becoming one of the leading cities of the world.
“We see this project being a unique model for large clean energy projects elsewhere in the world. This ambitious initiative also adds a new facet to our cooperation with two of our strongest partners, Saudi Arabia and China.”
The energy company noted that the project will make use of three different technologies to generate clean energy, consisting of 600MW from a parabolic basin complex, 100MW from a solar tower and 250MW from PV panels.
Noor Energy 1, which was launched by DEWA, ACWA Power and China’s Silk Road Fund, will build the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park.
The first phase of development for the Dubai solar park was commissioned in 2012, while phases two and three were initiated this year.