27 June 2016
HE Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA) announced today the selected bidder for the 800 megawatt (MW) third phase of the Mohammed bin Rashid Al Maktoum Solar Park, which will be constructed based on the Independent Power Producer (IPP) model. HE Dr. Sultan Al Jaber, Minister of State, and Chairman of Abu Dhabi Future Energy Company (Masdar) and HE Dr. Thani Ahmed Al Zeyoudi, Minister of Climate Change and Environment, were present. The selected bidder for the project is a Masdar-led consortium including the Spanish companies FRV (Fotowatio Renewable Ventures) and Gransolar Group. The consortium bid a Levelised Cost of Electricity (LCOE), of USD $2.99 cents per kilowatt hour (kW/h).
The announcement was made at a press conference at the Armani hotel in Dubai, which was attended by Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, Executive Vice Presidents and Vice Presidents from DEWA, senior management from Masdar, and local and international media.
The consortium was selected following a significant competition and an evaluation of numerous offers. DEWA has received 95 Expressions of Interest (EOI) from international energy companies, in response to its tender request over 8-29 September 2015.
DEWA requested that companies submit their requests for qualification before November 2015. This was followed by a Request for Proposals (RFP), to qualified bidders on 28 December 2015. DEWA received 5 bids from international organisations. The lowest recorded bid at the opening of the envelopes was USD $2.99 cents per kW/h. In preparation for the next phase, DEWA will develop shareholder and power-purchase agreements that will be signed in Q4 of 2016.
“The selection of the Masdar-led consortium is a testament to the vision of the UAE leadership, the foresight of the Dubai Clean Energy Strategy 2050, and the commitment of Dubai Electricity and Water Authority to realise ambitious renewable energy projects. It also reflects the technical expertise and proven track record that Masdar has built over the last ten years,” said HE Dr Sultan Ahmed Al Jaber.
“The UAE firmly believes that meeting the world’s growing energy demand requires a mix of energy sources, where we build on our existing assets of conventional energy, complementing them with alternative sources. By using multiple sources of energy such as natural gas, nuclear and solar, we are delivering both baseload generating capacity and the ability to meet peak energy demand efficiently and cost effectively.”
“Phase three of the Mohammed bin Rashid Al Maktoum solar park is a clear signal that solar power is a reliable and commercially-viable technology, and a key part of the UAE’s well-diversified energy strategy,” Al Jaber added.
“Today’s important meeting supports the directives of His Highness Sheikh Khalifa bin Zayed Al Nahan, President of the UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council,” said Al Tayer.
“Today, we take another step forward for solar energy by announcing the selected bidder for the 800 megawatt (MW) third phase of the Mohammed bin Rashid Al Maktoum Solar Park. We have a roadmap to achieve this, which includes ambitious initiatives and development projects to provide excellent government services based on world-class standards, to achieve everyone’s happiness. This is a new phase of our economy that is based on environmental sustainability and clean energy to make Dubai the city with the lowest carbon footprint in the world.”
“DEWA has received a globally-competitive price of USD 2.99 cents per kilowatt hour (kW/h) for the park’s third phase, which will use photovoltaic technology and will be operational by 2020. This is based on the IPP model, thanks to the Masdar-led consortium including the Spanish companies FRV (Fotowatio Renewable Ventures) and Gransolar Group. The importance of the Mohammed bin Rashid Al Maktoum solar park lies in two points: it is the first of its kind in the region, and in its capacity. It is the first of several promising projects to use renewable energy to generate electricity in Dubai,” added Al Tayer.
“Since the announcement of the Mohammed bin Rashid Al Maktoum solar park, the project has attracted huge interest from the business and energy sectors. DEWA received several offers from international solar energy companies, reflecting the trust and interest from investors in large projects by Dubai Government. This has been encouraged by favourable current regulations and legislation in Dubai that permit private sector partnerships in power-production projects in the Emirate.”
“We are very proud of the UAE’s achievements. We have accomplished significant success in photovoltaic energy. We strive to implement the Dubai Clean Energy Strategy 2050 to diversify the energy mix so clean energy will generate 25% of Dubai’s total power output by 2030 and 75% by 2050. This strategy relies on innovation, and Research and Development (R&D) as the basis for the future of energy, preparing the plans and initiatives to make developments in science and technology.”
“Earlier this month, and in adherence with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, we launched the largest Concentrated Solar Power (CSP) project in the world, using the IPP model, with an expected capacity of 1,000 MW by 2030, at the Mohammed bin Rashid Al Maktoum Solar Park, which is the largest single-site solar park in the world with a planned capacity of 5,000MW by 2030 with a total investment of AED 50 billion,” said Al Tayer.
“DEWA has released a tender for leading international CSP consultants to submit their proposals for advisory services for the 200MW first project of the CSP plant. It will be operational by April 2021. DEWA will generate 1,000MW using this technology by 2030 at the Mohammed bin Rashid Al Maktoum solar park. The solar park’s 13MW first phase became operational in October 2013. The 200MW second phase will be operational in April 2017. When it’s completed, the project will achieve a reduction of approximately 6.5 million tonnes of carbon emissions annually.”
“Energy is an integral part of the social and economic development of all countries, and the transformation towards clean energy has positive environmental, social, and economic effects, making conventional energy less competitive and attractive for further investments. Clean energy is a great opportunity for the future as demand keeps rising around the world. Oil prices and improved technology have helped increase the share of renewable energy in the energy mix. This makes technology a key factor in the transformation towards clean energy. At DEWA, we encourage research and development in solar energy, to enhance energy security and sustainability.”
“Our wise leadership has a vision to make the UAE the most sustainable country in the world by launching projects in clean and renewable energy, ensuring the Emirate’s continuous growth, while at the same time protecting its natural resources, and shaping the future of energy in the region as a whole, to achieve sustainable development and promote the welfare of citizens, residents, and visitors, to ensure a sustainable future, for generations to come,” concluded Al Tayer.
“The selection of the Masdar consortium to develop phase three of the Mohammed bin Rashid Al Maktoum solar park is a historical achievement for our company as we mark ten years of operations,” said Mohamed Jameel Al Ramahi, CEO of Masdar.
“The Masdar consortium will devote all of its experience and expertise to realising this world-class project. It is thanks to the technical clarity and transparency provided by DEWA that we have been able to deliver such a highly-competitive bid.”
“Masdar is committed to accelerating the adoption of clean technologies and renewable energy, building on our decade-long experience and supporting the UAE’s strategy to increase the share of clean energy in its energy mix,” Al Ramahi added. “We stand ready to develop new opportunities in the UAE and elsewhere in the GCC, including new markets such as Saudi Arabia.”