Marubeni signs finance agreement for Sweihan photovoltaic project in UAE

29 May 2017 (Last Updated May 29th, 2017 18:30)

Marubeni’s unit Sweihan PV Power, JinkoSolar, and Abu Dhabi Water and Electricity Authority (ADWEA) have signed a limited recourse financing loan agreement.

Marubeni signs finance agreement for Sweihan photovoltaic project in UAE

Marubeni’s unit Sweihan PV Power, JinkoSolar, and Abu Dhabi Water and Electricity Authority (ADWEA) have signed a limited recourse financing loan agreement.

As part of the agreement, the Sweihan photovoltaic (PV) independent power project (IPP) will be co-financed by eight commercial banks, including Japan-based Bank of Tokyo-Mitsubishi UFJ, the Norinchukin Bank, Mitsubishi UFJ Trust and Banking, and Sumitomo Mitsui Banking.

Located near weihan in Abu Dhabi, United Arab Emirates (UAE), Sweihan PV IPP has a power generation capacity of 1,177 MW. In March, Marubeni and JinkoSolar entered into a 25-year power purchase agreement (PPA) with Abu Dhabi Water and Electricity Company (ADWEC) for the construction, operation, and maintenance of the project.

Under the recent PPA contract, power generated by the plant will be sold to ADWEC.

"As part of the agreement, the Sweihan photovoltaic (PV) independent power project (IPP) will be co-financed by eight commercial banks."

Expected to commence commercial operation in April 2019, the plant will be constructed, owned, operated, and maintained by a special purpose firm owned by Marubeni, JinkoSolar, and ADWEA.

Marubeni is a Japanese developer and operator of power projects and it currently operates four thermal independent power and water projects in the UAE.

In order to support the Middle Eastern countries' aim to minimise fossil fuels and meet the increasing demand for power by enhancing installed renewable energy capacity, Marubeni intends to expand its IPP business in the renewable segment, alongside the conventional thermal IPPs.


Image: Solar panels. Photo: courtesy of dan/FreeDigitalPhotos.net.