$1bn financing kicks off world’s largest solar project
EDF Renewables and Jinko Power announce financing closure as construction begins in Abu Dhabi
A EDF Renewables and Jinko Power consortium says it has reached the financial closing of the world’s largest solar project and has begun construction on the project in Abu Dhabi
The consortium, formed by French EDF Group subsidiary, EDF Renewables and Chinese Jinko Power HK, subsidiary of Jinko Power Technology Co. Ltd, both global leaders in renewable energy, have successfully reached the financial closing for the 2 GW Al Dhafra PV2 solar project in Abu Dhabi, United Arab Emirates. This operation has been completed along with TAQA Group and Masdar, the Abu Dhabi-based shareholders and major players in the electricity and renewable sectors.
The approximately $1 billion transaction has been funded via project financing with BNP Paribas as bookrunner together with Bank of China, Crédit Agricole, HSBC, MUFG, Sumitomo Mitsui Banking Corporation and Standard Chartered, as mandated lead arrangers.
Completion of this major milestone allows the mobilization on site and start of construction. Located in the region of Al Dhafra, this solar photovoltaic plant will be the largest single-site solar plant worldwide.
Al Dhafra PV2 solar project will be the first plant of such scale to deploy bifacial module technology, capturing as such light on both sides of the PV modules and thus benefits from the reflection of light by the ground in order to yield higher generation. The plant spans over 20 square kilometres of desert climate area, with more than 4 million PV modules.
Upon commissioning, targeted in 2022, this project will provide the equivalent electricity to power over 160,000 households.
As the project is under an independent power producer model (IPP), EDF Renewables and Jinko Power hold respectively 20% of the shares, the remaining 60% is owned by TAQA and Masdar.
The four partners had previously signed the 30-years Power Purchase Agreement (PPA) on July 23rd 2020.
“The Al Dhafra PV2 project highlights EDF full commitment to supporting the UAE National Climate Change Plan,” said Bruno Bensasson, EDF group senior EVP, Renewable Energies. “The achievement of financial close with our partners and the investment community is a major milestone for the project. We are now fully mobilized to support the construction of the solar plant with the objective of reaching the commercial operation in 2022. This 2GW future solar power plant contributes to meet the EDF Group’s CAP 2030 strategy, which aims to double its worldwide renewable installed energy capacity from 28 to 50 GW nets between 2015 and 2030.”
Charles Bai, president, Jinko Power International Business added: “The successful financial close of Al Dhafra PV 2 project is supported by the well-structured tender program and PPP scheme designed and implemented by the Government of Abu Dhabi and its regulatory authorities. Working closely with our partners and financing community, we are proud to achieve this critical milestone, following our success of internationally awarded financial close of Sweihan project.
“We look forward to continuing working closely with the stakeholders of this project to achieve commercial operation in 2022.”
