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ACWA, Shanghai Electric sign EPC contract for 700MW CSP project in Dubai

EBR Staff Writer Published 16 April 2018

ACWA Power and Shanghai Electric Generation Group (SEGC) have signed the engineering, procurement, and construction (EPC) contract for the 700MW fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

The fourth phase of the solar park will be a concentrated solar power (CSP) plant to be built with an investment of AED14.2bn ($3.8bn).

It is being developed by the Dubai Electricity and Water Authority (DEWA) in collaboration with a consortium made up of ACWA Power and the project’s main contractor Shanghai Electric.

According to ACWA Power, the EPC agreement with Shanghai Electric will advance the development of the project which will sell its power at a rate of $0.073 per kilowatt hour (kW/h) based on the independent power producer (IPP) model.

ACWA Power president and CEO, Paddy Padmanathan said: “Thanks to the Dubai Electricity and Water Authority, this project proves the success and effectiveness of implementing projects based on a public-private partnership model.

“We are confident that signing the EPC agreement with Shanghai Electric will secure the delivery of required work at the highest standards.”

Currently, the 700MW CSP project is on the verge of completing its financing package with Industrial and Commercial Bank of China (ICBC) as the mandated lead arranger. Along with Bank of China and Agricultural Bank of China, ICBC will play a key role in the financing of the project, covering nearly 80% of senior debt.

SEGC chairman Zheng Jianhua said: “This project presents an opportunity for China, UAE and KSA to cooperate, promote and benefit in energy and infrastructure development based on each parties’ advantage in equipment manufacturing, engineering, construction & infrastructure, financing, project development and project management.”

Commissioning of the 700MW CSP project is scheduled for the fourth quarter of 2020. Featuring a 600MW parabolic basin complex and a 100MW solar tower, the CSP plant will generate enough power to cover 270,000 residences while offsetting 1.4 million tons of CO2 emissions annually.

Image: Singing of the EPC agreement between ACWA Power and Shanghai Electric. Photo: courtesy of Dubai Electricity and Water Authority.