Consortium including Saudi’s ACWA Power and China’s Harbin Electric set to deliver first phase of 1,200MW project, subject to final contract
The Dubai Electricity and Water Authority (DEWA) has announced a consortium including Saudi Arabia’s ACWA Power and China’s Harbin Electric as preferred bidder for the first phase of the 1,200MW Hassyan clean coal power project.
The consortium bid to provide electricity at a levelised cost of 4.501 cents/KWh based on May 2015 coal prices, state news agency WAM reported.
The first phase of the $1.8 billion Hassyan clean coal power project comprises two units of 600 MW each and will be operational by March 2020 and March 2021 respectively. DEWA is planning to launch two additional projects, to bring the total capacity of the plant to 3,600 MW.
The power project will be implemented using the IPP model on a build, own, operate basis. DEWA will hold a 51% share in the company that will be established, WAM reported.
The state utility will invest $200 million in the plant, while regional and international lenders will be approached for 78% of the project’s total cost, according to media reports.
The consortium is in talks with the state-owned Export-Import Bank of China and lenders including the Industrial and Commercial Bank of China, Bank of China, Standard Chartered and First Gulf Bank for about a $1.4 billion loan for the power project, Paddy Padmanathan, chief executive of ACWA Power, told reporters on the side-lines of the press conference on Tuesday.
Harbin Electric and France’s Alstom will build the plant, which will be operated and maintained by them in conjunction with ACWA Power and US-based NRG Energy. Meanwhile, France’s EDF Trading will supply coal to the plant.
In line with the Dubai Integrated Energy Strategy 2030, DEWA plans to generate 7% of the Dubai’s energy from clean coal. The bulk of the emirate’s power needs (71%) will be met by gas, 15% from solar power, and 7% from nuclear power.