ACWA Power led consortium achieves Financial Close for the landmark Shuaa Energy 1 – 260 MWp Solar PV IPP transaction (Phase II of Dubai Electricity & Water Authority’s Mohammed bin Rashid Solar Park

ACWA Power led consortium achieves Financial Close for the landmark Shuaa Energy 1 – 260 MWp Solar PV IPP transaction (Phase II of Dubai Electricity & Water Authority’s Mohammed bin Rashid Solar Park
  • Project supports the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote renewable energy sources, and is part of the Dubai Integrated Energy Strategy 2030
  • The 200 MW (260MWp) Shuaa Energy 1 photovoltaic plant at Mohammed bin Rashid Al Maktoum Solar Park is the largest photovoltaic IPP tender to date in the world and has set a worldwide “best in class” benchmark levelized tariff for utility scale solar power generation.
  • The Project is the largest utility scale solar plant in the world competitively tendered in a single phase, and the first and largest in the Middle East.
  • The Project, with an approximate capital cost of c. US$ 350 million benefits from a 25 year PPA with Dubai Electricity & Water Authority (“DEWA”) and has been financed through a long-term limited recourse project finance structure.

Dubai, UAE –27 July 2015:

The consortium of ACWA Power and TSK Electronica y Electricidad S.A. (“TSK”) has achieved financial close for the development, construction, ownership and operation of Shuaa Energy 1 PSC, the 260 MWp (200 MWac) solar photo-voltaic (PV) independent power project (IPP) under Phase II of the Middle East’s largest renewable energy park viz. the Mohammed bin Rashid Al Maktoum Solar Park, Dubai. In reaching this landmark the Project also broke new ground by becoming Dubai’s first IPP to achieve financial close. On 26 March 2015, Dubai Electricity and Water Authority (“DEWA”) signed a 25-year Power Purchase Agreement (“PPA”) with the ACWA Power led consortium on based on a levelized tariff, which has set a global benchmark for utility scale solar photovoltaic power plants.

The Project debt has been structured as long-term limited recourse project financing and funded by a group of regional banks viz. First Gulf Bank (“FGB”), The Saudi National Commercial Bank (“NCB”) and Samba Financial Group (“Samba”).

The Project will be constructed under a lump-sum turnkey EPC Contract with TSK. In addition, First National Operation & Maintenance Company Limited (“NOMAC”, a fully owned subsidiary of ACWA Power) shall be responsible for providing operation and maintenance services for the plant.