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Shanghai Electric awarded EPC contract for 700MW CSP project in Dubai

CTBR Staff Writer Published 16 April 2018

Shanghai Electric Generation Group (SEGC) has been awarded the engineering, procurement and construction (EPC) by Dubai Electricity and Water Authority (DEWA) to construct a 700MW concentrated solar power project in Dubai.

This project is the fourth phase of the Mohamed bin Rashid Solar Park, which is considered to be largest thermo-solar power plant in the world.

It will be developed by DEWA in collaboration with Saudi Arabia’s ACWA Power and China’s Shanghai Electric. The development of the project is estimated to require an investment of AED14.2bn ($3.87bn).  

The new 700MW CSP project will be based on the independent power producer (IPP) model and will feature a solar tower measuring 260m.

The fourth phase of the Mohamed bin Rashid Solar Park is expected to offset about 2.4 million tons of CO2.   

ACWA Power Chairman Mohammad Abunayyan said: “By signing this agreement, we have taken a significant step towards starting the engineering and construction works.

"We are committed to supporting Dubai’s Clean Energy Strategy through this project, which extends our portfolio in the energy sector in Dubai."

Presently, the project is in the process of closing finance. ICBC is acting as a mandated lead manager and has a target of approving $1.5bn senior loan.

ICBC along with Bank of China and Agricultural Bank of China will play a key role in the financing of the project, offering almost 80% of senior debt.

Comprising the 600MW parabolic basin complex and the 100MW solar tower, the project achieved the Levelised Cost of Electricity (LCOE) of $7.3 cents per kilowatt hour (kW/h).

The Mohammed bin Rashid Al Maktoum Solar Park is expected to have a planned capacity of 5GW by 2030 and is being constructed with a total budget of $13.6bn (AED50bn).

Commissioning of the 800MW photovoltaic third phase and the first stage of the 700MW CSP fourth phase are scheduled to be commissioned by 2020 and in Q4 of 2020, respectively.

Image: Officials of Shanghai Electric, DEWA and ACWA Power at the signing in ceremony. Photo: Courtesy of Acwa Power.