– Sophisticated financial structure composed of seven institutions including Islamic financing
– An innovative project which, once completed, will constitute the largest solar power plant in the world using tilted solar panels that follow the sun
Abu Dhabi, United Arab Emirates, June 14, 2017 – Financing for the 800 MW project constituting phase 3 of the Mohammed bin Rashid Al Maktoum solar park in Dubai has just been finalized. This represents the latest important milestone for the consortium led by Masdar, in partnership with EDF Energies Nouvelles, a subsidiary of the EDF Group, which is developing this 800 MW project in partnership with Dubai Electricity and Water Authority (DEWA).
The financing of this project relies on a set of seven different institutions: for the Middle East, the Union National Bank, the Islamic Development Bank and the Arab Petroleum Investments Corporation (APICORP); as well as the commercial banks of Natixis in France and Siemens Financial Services in Germany, the Korea Development Bank, and finally the Canadian export credit agency, Export Development Canada (EDC).
Following this agreement, Phase 3 of the Mohammed bin Rashid Al Maktoum Solar Park becomes the largest renewable energy project in the Middle East to receive Sharia-compliant financing, which constitutes a high growth segment in the market global financing.
His Excellency Saeed Mohammed Al Tayer, Chairman and CEO of Dubai Electricity and Water Authority (DEWA) said: “ DEWA has adopted the Independent Power Producer (IPP) model to build the 800MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park. It has generated international interest from global business and energy companies, which reflects the trust and interest from international investors in large projects adopted by Dubai Government. This has been supported by the favorable existing regulatory and legislative frameworks in Dubai that enable public-private partnerships. The project has also set a global benchmark in solar tariffs at a price of 2.99 US cents per kilowatt-hour, a world-record-low tariff for solar power generation. The third phase will be operational by 2020 ".
And to add: “ The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world based on the IPP model, and is instrumental to the Dubai Clean Energy Strategy 2050. The solar park's production capacity will reach 5,000MW by 2030 with investments totaling AED 50 billion. It will eventually save over 6.5 million tonnes of carbon emissions every year, supporting Dubai's objectives to promote its sustainable goals ".
Mohamed Jameel Al Ramahi, Chairman of Masdar, Abu Dhabi Future Energy Company said : " The financing of the third phase of the Mohammed bin Rashid Al Maktoum Solar Park clearly demonstrates the confidence which the multinational lender community has in this important project, and underlines the compelling business case for renewable energy today. The involvement of Islamic investment in the project financing is especially pleasing, and will pave the way for further Sharia-compliant investment in the clean energy ".
And to add: “ Construction of the third phase of the Dubai Solar Park is progressing as scheduled thanks to the close involvement of DEWA and the collaborative efforts of all shareholders. This project is a model for successful public-private renewable energy partnerships, which not only contributes to the UAE's strategic objectives, but also sets an example globally ".
The EDF Group, through its subsidiary EDF Energies Nouvelles, leader in the renewable electricity market, recently joined Masdar as a project partner.
Antoine Cahuzac, Executive Director of the EDF Group, in charge of Renewable Energy and Managing Director of EDF Energies Nouvelles : “ This sophisticated financing marks a major milestone in the development of the third phase of the Mohammed Bin Al Maktoum Solar Park in Dubai. This project is a perfect illustration of the EDF Group's strategic ambition in the field of renewable energies, CAP 2030. The commitment of international financial institutions alongside Middle Eastern financial institutions was decisive for the implementation of this important project carried out in partnership with Masdar and DEWA ".
Once completed, the 800 MW photovoltaic plant spanning 16 km² will be the largest of its type in the world and will generate around 2.5 million MWh of electricity per year. Unlike conventional solar farms, the third phase of this project will use tilted panels that follow the sun, maximizing its production capacity.
The plant will be commissioned in three phases. Significant progress has been made on site, with work underway which will enable the positioning of the photovoltaic panels. The finalization of phase A is expected in 2018, phase B - with a capacity of 300 MW - in 2019 while the final phase C of 300 MW is expected in 2020.