DEWA, Masdar close financing on Phase 6 of world’s largest solar park in Dubai
Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Future Energy Company (Masdar) have marked a significant milestone in the renewable energy sector with the financial closing of the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park. This phase propels the solar park into the global spotlight as the largest single-site solar park in the world, with its capacity set to surpass 5,000 megawatts by 2030, backed by investments totaling approximately AED 50 billion.
Masdar emerged as the Preferred Bidder to develop and operate the 1,800MW phase, leveraging photovoltaic solar panels under the Independent Power Producer (IPP) model, at a cost of up to AED 5.5 billion. This phase is a leap forward in clean energy provision, poised to power approximately 540,000 residences and slash around 2.36 million tonnes of carbon emissions annually, over an expanse of 20 square kilometers.
One of the most notable achievements of the sixth phase is securing the lowest Levelized Cost Of Energy (LCOE) in the Solar Park’s history, at US$1.6215 cents per kilowatt-hour (kWh), setting a new benchmark for solar energy efficiency.
DEWA, Masdar close financing on Phase 6 of Mohammed bin Rashid Al Maktoum Solar Park
Saeed Mohammed Al Tayer, MD & CEO of DEWA, aligned this expansion with the UAE’s broader sustainability goals, emphasizing its support for the Year of Sustainability 2024. The project not only advances the UAE’s Net Zero by 2050 strategic initiative but also resonates with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050, aiming for a fully clean energy-powered Dubai by 2050.
The collaboration between DEWA and Masdar, crystallized through the establishment of Shuaa Energy 4, showcases a robust partnership model, with DEWA holding a 60% stake and Masdar the remaining 40%. This partnership underscores the UAE’s commitment to pioneering sustainable energy solutions.
The project has garnered attention and financial support from a consortium of global and regional banks, demonstrating the investment community’s confidence in the UAE’s clean energy initiatives. This support is crucial for accelerating the global energy transition and highlights the UAE’s role as a leader in sustainable energy innovation.