To be developed using PV solar panels based on the IPP model, the sixth phase of the Mohammed bin Rashid Al Maktoum solar park entails a total cost of AED5.5bn ($1.5bn)
DEWA and Masdar reaches financial closing on the 1.8GW sixth phase of the MBR solar park in the UAE. (Credit: Dubai Electricity & Water Authority (PJSC))
Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Future Energy Company (Masdar) have achieved financial closing of the 1.8GW sixth phase of the Mohammed bin Rashid Al Maktoum (MBR) solar park in the UAE.
The Abu Dhabi-based clean energy company was chosen by DEWA as the preferred bidder to build and operate the sixth phase of the MBR solar park in September 2023.
To be developed using photovoltaic (PV) solar panels based on the independent power producer (IPP) model, the sixth phase of the MBR solar park entails a total cost of AED5.5bn ($1.5bn).
For this phase of the solar park, DEWA incorporated Shuaa Energy 4 in partnership with Masdar. DEWA owns 60% of the new company while the remaining 40% is held by Masdar.
The solar project’s lending group includes Abu Dhabi Commercial Bank, Commercial Bank of Dubai, HSBC, First Abu Dhabi Bank, Abu Dhabi Islamic Bank, Standard Chartered Bank, and Warba Bank.
Masdar CEO Mohamed Jameel Al-Ramahi said: “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.”
Located in Dubai, the MBR solar park is aimed to have a production capacity of 5GW by the end of this decade with investments totalling AED50bn ($13.61bn).
The sixth phase of the solar park is estimated to deliver clean energy to about 540,000 residences upon its completion. It will also offset 2.36 million tonnes of carbon emissions per year.
Besides, phase six of the MBR solar park has achieved the lowest levelised cost of energy (LCOE) of $1.62 per kilowatt hour (kWh) in the solar park.
The sixth phase of the MBR solar park is scheduled to become operational in stages between 2024 and 2026.
DEWA CEO and managing director Saeed Mohammed Al Tayer said: “DEWA is implementing the sixth phase of the solar park in cooperation with Masdar, Abu Dhabi Future Energy Company based on the Independent Power Producer (IPP) model, using the latest solar photovoltaic bifacial technologies with single-axis tracking.
“The current production capacity at the solar park is 2,627MW and the total capacity under construction is 2033 MW. The 1,800MW sixth phase of the solar park will see the total production capacity increase to 4,660MW by 2026.”