The Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Future Energy Company Masdar signed an agreement to construct and operate the 1.8 GW sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park. The project will cost up to AED5.51 billion (~$1.5 billion).

Masdar was selected from a pool of 23 international bidders for the contract.

Masdar’s proposed levelized cost of energy of $1.62/kWh for this phase is the lowest recorded for any of DEWA’s solar Independent Power Producer model projects to date.

Currently, the Mohammed bin Rashid Al Maktoum Solar Park has a total production capacity of 2.4 GW, with an additional 433 MW project under development by DEWA. After the 1.8 GW sixth phase is completed, the solar park’s total production capacity will surge to 4.6 GW.

When completed, the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park will provide clean energy to approximately 540,000 residences and reduce 2.36 million tons of carbon emissions annually.

Vice President and Prime Minister of the UAE, Al Maktoum, said, ” Our goal is to provide 100% of Dubai’s energy from clean sources by 2050.”

Sultan Al Jaber, UAE Minister of Industry & Advanced Technology Chairman of Masdar, commented, “It is a testament to Masdar’s track record in pioneering clean energy projects as we continue to support the UAE’s Net Zero by 2050 strategic initiative.”

In July, Masdar completed its inaugural green bond issuance, raising $750 million by issuing 10-year senior unsecured notes.

Earlier this year, the UAE government approved the updated UAE National Energy Strategy, which aims to triple the contribution of renewable energy by 2030, mitigate the effects of climate change, and achieve climate neutrality. Under the strategy, the UAE aims to achieve savings of up to AED100 billion (~$27.2 billion) by 2030. The national energy investments are expected to reach between AED150 billion (~$40.8 billion) and AED200 billion (~$54.4 billion) by 2030.

Earlier, Masdar had signed agreements with Angola, Uganda, and Zambia to develop renewable energy projects with a combined capacity of up to 5 GW to help African nations make the energy transition.