Dubai has high aspirations for renewable energy

Dubai has high aspirations for renewable energy

Masdar seeks $800m for solar project

01 August 2016

A consortium led by Abu Dhabi’s Masdar is aiming to raise an $800 million loan to help fund the building of the 800-megawatt (MW) third phase of Dubai’s solar park, the company’s chief executive has said.

The consortium, which also includes Spanish companies Fotowatio Renewable Ventures (FRV) and Gransolar Group, was selected to complete the third phase of the Sheikh Mohammed bin Rashid Al Maktoum Solar Park, Dubai Electricity and Water Authority (Dewa) said in a statement.

The consortium is in talks with banks including the National Bank of Abu Dhabi, First Gulf Bank and Union National Bank to provide project finance, said Mohamed Belhoul, chief executive of green energy firm Masdar, which is wholly owned by Abu Dhabi investment fund Mubadala.

The funding should be finalised by November or December, he said.

Dewa didn’t name the other bidders, but sources previously told Reuters that China’s Jinko Solar, France’s EDF and Saudi Arabia’s Acwa Power were among companies either bidding alone or as part of different consortia.

The Masdar-led consortium submitted the lowest generation price to build the plant at 2.99 cents per kilowatt-hour (kWh), Dewa said.

The third phase of the park will be operational by 2020, it added.

It is planned to be the largest single-site solar park in the world, producing 5,000 MW by 2030 with a total investment of Dh50 billion ($13.6 billion), Dewa said.

Dubai is aiming to generate 25 per cent of its total power from clean energy sources by 2030. 

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