Masdar achieves financial close of sixth phase of MBR Solar Park
The project supports the goals of the UAE’s Year of Sustainability 2024 to protect and preserve the environment for the benefit of future generations
The financial close of the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, which is being spearheaded by the Dubai Electricity and Water Authority (DEWA), has been achieved according to Abu Dhabi Future Energy Company (Masdar).
DEWA is implementing the 1,800MW sixth phase of the solar park in co-operation with Masdar based on the Independent Power Producer (IPP) model, using the latest solar photovoltaic bifacial technologies with single-axis tracking. The phase is expected to cost as much as US $1.49bn.
On completion, the solar park’s capacity will exceed 5,000MW by 2030, with investments totaling approximately $13.2bn. This is a new milestone in promoting the use of clean and renewable energy in the UAE.
“The MBR Solar Park supports the UAE’s position as a leading global hub for clean energy. It is aligned with the UAE Net Zero by 2050 strategic initiative, the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power capacity from clean energy sources by 2050,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA.
The current production capacity at the solar park is 2,627MW and the total capacity under construction is 2033MW. The sixth phase of the solar park will see the total production capacity increase to 4,660MW by 2026. By 2030, Dewa will have around 27% of the generation mix sourced from clean energy sources by 2030, said a statement.
This phase will provide clean energy for approximately 540,000 residences and will cut around 2.36 million tonnes of carbon emissions annually. The project will cover an area of 20sqkm. In addition, the 6th phase has achieved the lowest Levelized Cost Of Energy (LCOE) of $1.6215 cents per kilowatt hour (kWh) in the Solar Park, the statement added.
For the sixth phase, DEWA is said to have established Shuaa Energy 4 in partnership with Masdar. DEWA owns 60% of the company, whereas Masdar owns the remaining 40%.
Masdar CEO Mohamed Jameel Al Ramahi added, “Today’s announcement builds on our long-standing partnership with DEWA, advancing the UAE’s energy leadership in the construction of the world’s largest multi-phase solar plant. The UAE continues to demonstrate leadership in delivering cutting edge clean energy solutions which have attracted the interest and confidence of the investment community, locally and internationally.”
He continued, “Accessing capital is fundamental to accelerating the global energy transition and this expansion of MBR Solar Park is an important milestone for the UAE in its own clean energy journey. Masdar looks forward to further deepening our partnership with DEWA as we work collectively to support the country’s National Energy Strategy 2050 and the UAE Consensus.”
The lending group to the project includes Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered, Abu Dhabi Islamic Bank and Warba Bank.
