Under the terms of the power purchase agreement, DEWA will purchase power generated by the solar plant at a price of $2.99 cents per kilowatt hour (kW/h).
Earlier this year, DEWA selected Masdar-led consortium for the development of third phase of the solar park following its lowest bid of power generation price.
The consortium includes the Spanish companies Fotowatio Renewable Ventures (FRV) and Gransolar Group.
DEWA managing director and CEO Saeed Mohammed Al Tayer said: “We are pleased to sign the Power Purchase Agreement with Abu Dubai Future Energy Company to produce 800MW based on the Independent Power Producer model for the third phase of 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.
“The agreement also supports the Dubai Plan 2021 to promote sustainability and happiness in Dubai, and achieve the aspirations of its citizens and residents, and DEWA’s vision to become a sustainable innovative world-class utility.”
The 5GW Mohammed bin Rashid Al Maktoum Solar Park is designed to contribute to the Dubai Clean Energy Strategy 2050, which aims to generate 7% of its total power from clean energy sources by 2020. The target is planned to increase to 25% by 2030 and 75% by 2050.
Planned to be developed based on the Independent Power Producer (IPP) model, the 800MW third phase solar project will feature photovoltaic technology. It is scheduled to be commissioned by 2020.
Image: Officials from DEWA and Masdar during power purchase signing ceremony. Photo: courtesy of Dubai Electricity and Water Authority.
