Dewa and Masdar secure funding for sixth phase of solar park

Dubai Media Office

Dubai Electricity and Water Authority (Dewa) and Abu Dhabi’s renewable energy major Masdar have achieved the financial closing of the 1,800-megawatt (MW) sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park.

The funding has been jointly provided by Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Abu Dhabi Islamic Bank and Warba Bank, the UAE state-run news agency Wam reported.

Masdar was selected as the preferred bidder to build and operate the sixth phase of the solar park using photovoltaic solar panels based on the independent power producer model, at a cost of AED5.5 billion ($1.50 billion).

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This phase will provide clean energy for 540,000 residences and reduce emissions by around 2.4 million tonnes of carbon a year. The project will cover an area of 20 sq km.

The sixth phase has achieved the lowest levelised cost of energy of $1.6 cents per kilowatt hour in the solar park.

The sixth phase will mean the total production capacity of the solar park increases to 4,660 MW by 2026.

Dewa established Shuaa Energy 4 in partnership with Masdar to develop the sixth phase. The Dubai-listed utility provider owns 60 percent of the company, while Masdar owns the remaining 40 percent.

The current production capacity at the solar park is 2,627 MW, with the total capacity under construction at 2,033 MW. The park will produce more than 5,000 MW by 2030 at an investment cost of AED50 billion.