Dubai extends deadline for solar park deal

28 September 2014

24 companies invited to bid for independent power project

Dubai Electricity & Water Authority (Dewa) has extended the bid deadline for companies to submit prices for the 100MW second phase of its Mohammed bin Rashid al-Maktoum Solar Park in the emirate.

Dewa prequalified 24 of the 49 companies that submitted prequalification documents in May, and has extended the submission date to 20 November, from the original deadline of 23 October.

The 100MW second phase will, like the 13MW first phase, use photovoltaic (PV) solar technology. However, while the first phase was built under a standard engineering, procurement and construction (EPC) contract, the second phase is being developed through an independent power project (IPP) model.

MEED reported in March that Dewa had appointed the Netherlands’ KPMG as financial adviser and the UK’s London Norton Rose Fulbright as legal adviser for the IPP.

The 13MW first phase of the solar park began operation on 22 October 2013. The first phase is the largest operating PV solar plant in the Middle East and North Africa (Mena) region, and will generate 24 million kilowatt hours (kWh) of electricity a year. The project is powered by 152,880 photocell PV modules, connected to 13 step-up transformers. US-based First Solar was awarded the estimated AED124m ($34m) contract to build the first phase of the park in October 2012.

In June, Dewa received bids to build transmission and distribution (T&D) infrastructure at the solar development. Five groups submitted bids in the first week of June for the supply and installation of a 400kV substation and 400kV overhead line (OHL) at the project.

Germany’s Siemens was the only bidder to submit prices for both parts A and B of the tender, with its total price entered at AED131.5m. For section A, Switzerland’s ABB submitted two alternative prices of AED99.2m and AED94.7m, while the joint venture of France’s Alstom and SAS Dubai submitted a bid of AED177.6m.

When completed, the Mohammed bin Rashid al-Maktoum Solar Park is planned to have a total capacity of 1,000MW. The park is scheduled to contribute 5 per cent of Dubai’s power generation capacity by 2030, as part of the emirate’s Integrated Energy Strategy. The project is under the umbrella of the Dubai Supreme Council of Energy and is operated by Dewa. The solar park is expected to receive AED12bn of investment by 2030.

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