ACWA Power financial structure agreements
ACWA Power announces the signing of agreements to finance the fifth phase of the 900MW solar photovoltaic complex of the MBR solar complex.
ACWA Power new global achievement
Mohammed bin Rashid Al Maktoum Solar Energy Complex
The Dubai Electricity and Water Authority have awarded the implementation of the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Energy Complex with a capacity of 900 MW to a consortium led by ACWA Power and the Gulf Investment Corporation. The project achieved a new global achievement by registering the lowest global competitive tariff rate of 1.6953 cents per kilowatt-hour, using photovoltaic solar panels according to the independent production system.
ACWA Power project the latest technology
With investments amounting to $ 570 million, the fifth phase will add 900 megawatts to the production capacity of the Mohammed bin Rashid Al Maktoum Solar Energy Complex to reach 2,863 megawatts. It is expected that this phase alone will meet the energy needs of 270,000 housing units and reduce carbon emissions by 1.18 million tons annually in Dubai. The ACWA Power project will use the latest technology of two-way photovoltaic solar panels that allow the use of reflected sunlight on both front and back sides, with a uniaxial solar tracking system to increase energy productivity.
Dubai Electricity and Water Authority will retain a 60% stake in the ACWA Power project and will be the beneficiary of the project under a 25-year power purchase agreement. It is expected to be completed in several phases, starting in the third quarter of 2021.
ACWA Power agreements to finance solar photovoltaic project
ACWA Power, the leading developer, investor and operator in the Kingdom of Saudi Arabia for power generation and water desalination plants, has completed the signing of all financing agreements for the 900 MW solar photovoltaic project, Shuaa Energy 3 PSC, which is the fifth phase of the Mohammed bin Rashid Al project. Maktoum Solar Park in Dubai. Shuaa Energy 3 PSC is the special purpose utility that was incorporated into the project, 60 percent of which is owned by Dubai Electricity and Water Authority (DEWA), and the balance is split between ACWA Power and the Gulf Investment Corporation (GIC).
The-art 900MW solar PV plant
The project includes the construction of a state-of-the-art 900MW solar PV plant, using dual-sided panels with tracking technology, at a capital cost of c. $ 564 million, and it was the focus of much international attention after it showed one of the lowest flat costs of electricity in the world at 1.6953 cents per kilowatt-hour.
The financial structure of the project
The project financing is based on the principles of a limited right of recourse to finance the project with major debts provided by a number of international, regional and local banks, as well as the project’s mezzanine segment committed by a regional bank, organized in the form of c. Flexible microfinance for 27 years with traditional and Islamic slides. In addition, the financing structure included a group of interim equity loans from local banks as well as from Dubai Electricity and Water Authority.