ACWA Power, a Saudi Arabia headquartered power and water developer has signed a new contract for the fourth phase of the Mohammad Bin Rashid Al Maktoum Solar Park, the largest Concentrated Solar Power investment project in the world.
The Engineering, Procurement, and Construction (EPC) contract for the 700 megawatt (MW) fourth phase was signed in Shanghai, China, with Shanghai Electric, the project’s main contractor.
The $3bn project is expected to significantly boost Dubai’s plan to increase the share of clean energy in its total power output, which by 2020 should be 7 percent, and rise to 25 percent by 2030.
Upon completion, it will account for 7% of Dubai's power supply, said Mohammad A Abunayyan, chairman of ACWA Power.
Saeed Mohammad Al Tayer, CEO of Dubai Electricity and Water Authority (Dewa), witnessed the signing of the contract. The ceremony was attended by Dr Ali Obaid Al Daheri, UAE Ambassador to China; Turki Al Madi, Saudi Arabia’s Ambassador to China; and other top officials and dignitaries.
The solar power plant will feature a 260-meter tower to receive focused sunlight, which will be by far the world’s tallest tower of its kind, according to Dubai's government.
Shanghai Electric won the bid from tens of competitors “thanks to its reliability in delivery,” Abunayyan said. “More importantly, it enables the cost of power generation to be around 7 US cents per kilowatt-hour, almost the same as conventional energy.”
Zheng Jianhua, chairman of Shanghai Electric, said the project marks the group’s new step toward the world’s leading green energy markets, “with Dubai having the world's most severe manufacturing rules."
“I am pleased to be here today in Shanghai for the signing of the EPC contract. We are here today to show the strong ties between our two great nations, which have been formed because of our shared values and our trading and economic interests. Bilateral trade between the UAE and China has already exceeded $35 billion [Dh128.4 billion] in the first nine months of 2017,” said Al Tayer in his speech during the signing ceremony.
“Today’s signing ceremony is an important milestone that supports the directives of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan; His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; and Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to achieve the objectives of the UAE Centennial 2071, the UAE Vision 2021, and the Dubai Plan 2021 to secure a happy and better future.”
With a planned capacity of 5,000MW by 2030, and a total investment of $13.6 billion (Dh50 billion), the Mohammed Bin Rashid Al Maktoum Solar Park seeks to accelerate our diversification into clean energy. It is a key pillar in our strategy, considering that our ambitious targets require at least 42,000MW of renewable energy by 2050.”