A consortium led by UAE clean energy group Masdar has won a bidding process for the 800 MW third phase of a solar park in Dubai.
And the consortium was awarded the tender for the Mohammed bin Rashid Al Maktoum Solar Park after bidding a levelized cost of electricity of just 2.99 US cents per kilowatt hour.
The other companies in the consortium are Fotowatio Renewable Ventures and Gransolar Group, both from Spain.
Masdar chairman Dr Sultan Ahmed Al Jaber said: “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.”
The contract was awarded by Dubai Electricity and Water Authority (DEWA), which received 95 expressions of interest from international energy companies.
DEWA chief executive Saeed Mohammed Al Tayer said: “Today, we take another step forward for solar energy. We have a roadmap to achieve this, which includes ambitious initiatives and development projects to provide excellent government services based on world-class standards.
He said the solar park was “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”.
He added that the importance of solar park is twofold:”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.”
Al Tayer said the Mohammed bin Rashid Al Maktoum Solar Park “is the largest single-site solar park in the world with a planned capacity of 5000 MW by 2030” and a total investment of $13.6bn.