BE2C2 Report — Abu Dhabi’s government-owned power utility aims to close this month the financing package for a $872 million solar power plant, which will be the world’s largest. Power generated from the new 1177MW plant would be sold to Abu Dhabi.
Last month Abu Dhabi Water and Electricity Authority (ADWEA) announced it had selected a consortium of Japan’s Marubeni Corp and China’s JinkoSolar Holding to build and operate the solar plant. The duo was selected from six bids received by the authority in September 2016.
Adwea has signed a 25-year power purchase agreement (PPA) with the consortium under which all generated power will be sold to its wholly-owned entity Abu Dhabi Water and Electricity Company (Adwec).
The winning bidders offered to provide electricity for 2.42 US cents per kilowatt hour, one of the most competitive prices seen to date in the solar industry.
Scheduled to be operational in 2019, the plant will be funded 25% by equity, and 75% by debt, Adel al-Saeedi, the acting director of privatization at ADWEA, told Reuters. He added that ADWEA would contribute the equity, while local and international banks would fund the debt.
The UAE capital looks to generate 7% of its energy from renewables by 2020, a Reuters report said. The government’s green energy firm Masdar has launched several renewable energy projects, including solar plants.
Saeedi added that the initial plan for the project was to have a capacity of 350MW, but capacity was increased when additional land became available in Sweihan, east of the city of Abu Dhabi.
The plant — one of the largest and most competitive PV installations in the world is the first renewable project for Adwea and Adwec,
A special-purpose company – owned by Marubeni (20 per cent), JinkoSolar (20 per cent) and Adwea with a 60 per cent stake – will construct, own, operate and maintain the PV plant, said the company in a statement.