Dubai’s 900 MW Solar Auction Sees Record Low Tariffs
ACWA Power quoted $0.0169/kWh and $0.0172/kWh was quoted by Masdar, EDF and Jinko Solar
October 15, 2019
The International Company for Water and Power Projects (ACWA Power) has quoted the lowest tariff bid at less than ~$ 0.017/kWh for 900 MW of solar projects.
The tender was floated by the Dubai Electricity and Water Authority (DEWA) to develop the fifth phase of the solar project at Mohammed Bin Rashid AL-Marktoum solar park in Dubai. According to IG Global, DEWA had extended the bid submission deadline for the tender until October 9, 2019.
In June 2019, Mercom had reported that DEWA had floated a tender for 900 MW of solar projects based on the independent power project (IPP) model.
As reported by IG Global, only two teams were bidding for the project, and both quoted low bids for the levelized cost of electricity (LCoE). ACWA Power quoted $0.0169 (~₹ 1.20)/kWh and $0.0172 (₹1.21)/kWh was quoted by Masdar, EDF, and Jinko Solar.
In February 2019, Mercom had reported that DEWA issued a request for qualification (RfQ) to develop 900 MW of solar PV projects located within the Mohammed Bin Rashid Al Maktoum Solar Park, about 50 km south of the city of Dubai.
DEWA is working to transform Dubai into a global hub for clean energy and green economy to make the city with the lowest carbon footprint in the world. Dubai aims to meet a capacity of 42,000 MWh of clean and renewable energy by 2050.
The operation of the first phase started in the year 2013 with a solar capacity of 13 MW, and the second phase of the park witnessed another 200 MW of solar installations. The third phase saw 800 MW of solar projects. The fourth phase of the park, with 950 MW capacity is the biggest single-site concentrated solar power project in the world. Three technologies are being utilized in this phase of the project: 250 MW from photovoltaic panels: 100 MW from a solar tower, and 600 MW from a parabolic basin.
Meanwhile, ACWA Power recently signed an agreement with Silk Road Fund for a 49% stake in the company.
Last year, Mercom reported that ACWA Power announced the financial closure of the Sakaka solar project, the first utility-scale renewable energy project developed in Saudi Arabia under the National Renewable Energy Program executed by the Renewable Energy Project Development Office.
Image credit: Activ Solar [CC BY-SA 2.0]
Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.