Acwa Power appoints Shanghai Electric as EPC contractor for fifth phase of Dubai solar park
Shanghai Electric will deliver the fifth phase of the Mohammed bin Rashid Solar Park in three stages
Saudi Arabia’s Acwa Power appointed Shanghai Electric as the engineering, procurement and construction (EPC) contractor for the fifth phase of the Mohammed bin Rashid Solar Park in Dubai.
The 900 MW photovoltaic plant, which has a project value of $564 million (Dh2.07 billion), is the first utility scale solar power plant to operate remotely with zero manpower on site.
“The signing of the EPC agreement between Acwa Power and Shanghai Electric represents a crucial milestone in the delivery of Phase 5 of the Mohammed Bin Rashid Solar Park,” Mohammad Abunayyan, chairman of Acwa Power, said.
“With their participation, this iconic project will be realised through an international collaboration between the Kingdom of Saudi Arabia, the UAE and the People’s Republic of China.”
The development follows the signing of a power purchase agreement in April between Dubai Electricity and Water Authority and Acwa Power for the 900 megawatt phase.
Acwa Power submitted the lowest bid of 1.69 US cents for the fifth phase of the Sheikh Mohammed bin Rashid Solar Park in November. Dewa chose the Saudi Arabian power developer's bid from among 60 requests for qualification from international companies.
Shanghai Electric will deliver the project in phases, with a construction period of 12 months on each 300MW phase, Acwa Power said.
Dubai aims to generate 25 per cent of its energy requirements from renewable sources by 2030 and 75 per cent by 2050 as part of its clean energy drive. Dewa is building the world’s largest solar energy park in the Dubai desert in an effort to reduce reliance on natural gas and diversify its power sources.
The Mohammed bin Rashid Solar Park is expected to generate 5,000MW of electricity by 2030 and is estimated to drive up to Dh50bn in investments.
The fifth phase of the project is being implemented through the Shuaa Energy 3 company in which Dewa holds a 60 per cent stake, with the remainder held by a consortium including Acwa Power and Gulf Investment Corporation.
Acwa Power, which is co-owned by nine Saudi conglomerates, including the Vision International Investment Company, the Public Investment Fund, Saudi Public Pensions Agency and the International Finance Corporation, operates in 12 countries in the Middle East, Africa and south east Asia. It has a portfolio of 59 assets with a total investment of $48bn producing 34 gigawatts of power and 5.9 million cubic metres per day of desalinated water.
Updated: July 28, 2020 09:45 PM