Financial Closure: Mohammed bin Rashid Solar Park Phase 6

Mohammed bin Rashid Al Maktoum

Dewa and Masdar have achieved a significant milestone by reaching financial closure on the 1800-megawatt sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, solidifying its position as the largest single-site solar park globally. The collaboration between Dubai Electricity and Water Authority (Dewa) and Abu Dhabi Future Energy Company (Masdar) underscores the commitment to promoting clean and renewable energy in the UAE. With investments totaling approximately Dh50 billion, this phase marks a significant step towards expanding the solar park's capacity to exceed 5,000 megawatts by 2030.

Masdar, selected as the Preferred Bidder, will spearhead the construction and operation of the 1,800MW 6th phase using photovoltaic solar panels under the Independent Power Producer (IPP) model. The project, estimated to cost up to Dh5.5 billion, is projected to provide clean energy for around 540,000 residences and contribute to an annual reduction of approximately 2.36 million tonnes of carbon emissions. Covering an area of 20 square kilometers, this phase has achieved a remarkable feat by attaining the lowest Levelized Cost Of Energy (LCOE) of $1.6215 cents per kilowatt-hour (kWh) within the solar park.

Saeed Mohammed Al Tayer, MD & CEO of Dewa, emphasized that this achievement aligns with the directives of the UAE's wise leadership, supporting the nation's sustainability goals, including the UAE's Year of Sustainability 2024. The Mohammed bin Rashid Al Maktoum Solar Park plays a pivotal role in positioning the UAE as a global leader in clean energy and is in line with strategic initiatives such as the UAE Net Zero by 2050 and Dubai's Clean Energy Strategy 2050.

Al Tayer highlighted Dewa's collaboration with Masdar on the sixth phase of the solar park, utilizing advanced solar photovoltaic bifacial technologies with single-axis tracking. Currently, the solar park's production capacity stands at 2,627MW, with a total capacity under construction reaching 2033MW. Upon completion of the 1,800MW sixth phase, the total production capacity is set to increase to 4,660MW by 2026, contributing to Dewa's target of sourcing around 27% of the generation mix from clean energy sources by 2030.

For the 6th phase, Dewa established Shuaa Energy 4 in partnership with Masdar, with Dewa owning 60% and Masdar holding the remaining 40%. Mohamed Jameel Al Ramahi, Masdar CEO, highlighted the significance of today's announcement in advancing the UAE's energy leadership and clean energy journey. The expansion of the Mohammed bin Rashid Al Maktoum Solar Park reflects the UAE's commitment to delivering cutting-edge clean energy solutions and attracting investments both locally and internationally.

The lending group for the project includes prominent financial institutions such as Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Abu Dhabi Islamic Bank, and Warba Bank. This collaboration underscores the confidence of the investment community in the UAE's clean energy initiatives and further strengthens the country's position as a global hub for renewable energy.

In conclusion, the financial closure of the 6th phase of the Mohammed bin Rashid Al Maktoum Solar Park marks a significant milestone in the UAE's journey towards sustainability and clean energy leadership. With Dewa and Masdar's collaboration, supported by strategic partnerships and investments, the solar park continues to play a crucial role in driving the nation's transition towards a sustainable and low-carbon future.