Masdar Submits Lowest Bid of $1.62/kWh for Dubai’s Al Maktoum Solar Park
The project is scheduled to begin operations in stages starting in the fourth quarter of 2024
Abu Dhabi-based renewable energy project developer Masdar submitted the lowest bid of $1.62/kWh under the independent power producer model for the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai with a capacity of 1.8 GW.
The project is scheduled to begin operations in stages starting in the fourth quarter of 2024.
“To realize the ambitious goals outlined in the Dubai Clean Energy Strategy 2050 and Dubai Net Zero Carbon Emissions Strategy 2050, aiming to derive 100% of Dubai’s total power capacity from clean energy sources by 2050, an estimated 42 GW of clean and renewable energy is required. Al Maktoum Solar Park’s solar projects collectively generate a total production capacity of 2.32 GW, with an additional 533 MW currently under construction. Upon completing the sixth phase, the solar park’s production capacity will surge to an impressive 4.66 GW,” said Mohammed Al Tayer, DEWA’s esteemed MD & CEO.
Al Tayer said that DEWA is committed to completing the phases of the Mohammed bin Rashid Al Maktoum Solar Park according to the highest international standards using the latest solar power technologies to enhance the shift towards a green sustainable economy by increasing the share of clean and renewable energy.
He noted that when completed, the solar park will reduce over 6.5 million tons of carbon emissions annually.
DEWA initiated the procurement process for the sixth phase by issuing a tender in September 2022, followed by request for qualification to 23 interested bidders. After a rigorous qualification process, DEWA shortlisted seven international bidders and issued the request for proposal in December 2022.
DEWA is currently evaluating the bids and aims to select the preferred bidder by the third quarter of this year.
Last November, DEWA added 300 MW of clean energy production capacity to the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park. This was an addition to the 300 MW that became operational last year. The fifth phase is underway with a total capacity of 900 MW and will be operational in phases until 2030.
DEWA plans to invest $10.88 billion in capital expenditure in the next five years, including expanding renewable and clean energy projects. It also plans to invest $3.26 billion to complete the independent power producer projects in the Mohammed bin Rashid Al Maktoum Solar Park, the Hassyan Power Complex, and independent water producer projects at Hassyan.