The Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Future Energy Company (Masdar) have achieved financial close on phase VI of the Mohammed bin Rashid Al Maktoum Solar Park (MBR Solar Park) with an undisclosed amount.
The 1.8 GW phase VI out of the park's 5 GW cumulative capacity is expected to cost up to AED 5.5 billion ($1.50 billion).
The lending consortium includes Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Abu Dhabi Islamic Bank and Warba Bank.
The financial close has been announced within 7 months of Masdar winning the project in a competitive procurement process. It achieved a levelized cost of energy (LCOE) of $0.016215/kWh (see $0.016215/kWh For 1.8 GW Solar Project In Dubai).
Masdar plans to bring the project online in phases, starting from Q4/2024 on an area covering 20 sq. km. To be based on the independent power producer (IPP) model, it will provide clean energy to around 540,000 residences, according to DEWA.
While Masdar is the 40% owner of the special purpose vehicle Shuaa Energy 4, DEWA is the majority stakeholder with 60% stake.
"Accessing capital is fundamental to accelerating the global energy transition and this expansion of the Mohammed bin Rashid Al Maktoum Solar Park is an important milestone for the UAE in its own clean energy journey," said Masdar CEO Mohamed Jameel Al-Ramahi.
Planned to host over 5 GW solar capacity by 2030 as the world's largest single-sited solar project, Dubai's MBR Solar Park currently has 2.627 GW operational capacity. Another 2.033 GW is under construction.
DEWA's MD and CEO Saeed Mohammed Al Tayer says, "The 1,800 MW sixth phase of the solar park will see the total production capacity increase to 4,660 MW by 2026. DEWA will have around 27% of the generation mix sourced from clean energy sources by 2030."