Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Future Energy Company (Masdar) have announced the financial closing of the 1800-megawatt sixth phase of the Mohammed bin Rashid Al Maktoum (MBR) Solar Park, the largest single-site solar park in the world.
The solar park’s capacity will exceed 5,000 megawatts by 2030, with investments totaling approximately $13 billion (AED 50 billion). This is a new milestone in promoting the use of clean and renewable energy in the UAE.
Saeed Mohammed Al Tayer MD & CEO DEWA
“This achievement is in line with the directives of the wise leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan; and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai. This project also supports the goals of the UAE’s Year of Sustainability 2024 to protect and preserve the environment for the benefit of future generations. The Mohammed bin Rashid Al Maktoum 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 percent of Dubai’s total power capacity from clean energy sources by 2050.”
Masdar was selected as the Preferred Bidder to build and operate the 1,800MW 6th phase of the solar park using photovoltaic solar panels based on the Independent Power Producer (IPP) model. This phase will provide clean energy for approximately 540,000 residences and will reduce around 2.36 million tons of carbon emissions annually.
The project will cover an area of 20 square kilometers. In addition, the 6th phase has achieved the lowest Levelized Cost of Energy (LCOE) of $1.6215 per kilowatt hour (kWh) in the solar park.
For the 6th phase of the Solar Park, DEWA established Shuaa Energy 4 in partnership with Masdar. DEWA owns 60 percent of the company, whereas Masdar owns the remaining 40 percent.
The lending group to the project includes Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Abu Dhabi Islamic Bank, and Warba Bank.
Mohamed Jameel Al-Ramahi, Masdar CEO, said that, “This 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.”
“Accessing capital is fundamental to accelerating the global energy transition and this expansion of the Mohammed bin Rashid Al Maktoum 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,” Al-Ramahi added.
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