The consortium led by Saudi Arabias Abdul Latif Jameel, Spains Fotowatio Renewable Ventures (FRV) and the UAEs Masdar has submitted a world-record low tariff of $3cents a kilowatt hour ($c/kWh) for the 800MW third phase of Dubais Mohammed bin Rashid al-Maktoum solar park.
The low bid was 18 per cent lower than the 3.65$c/kWh submitted by Chinas Jinko Solar Holding.
A consortium of Saudi Arabias Acwa Power and the US First Solar submitted the third-lowest tariff of 3.95$c/kWh. The UK/French Engie and Japanese Marubeni consortium submitted the fourth-ranked tariff of 4.382$c/kWh, with Frances EDF Renovables and Qatars Nebras submitting the final bid of 4.482$c/kWh.
The scheme will be developed in three phases, with bidders having been invited to submit proposals for part or all of the 800MW capacity. The prices listed are for the mandatory 200MW base proposal only. It is understood that all of the bidders submitted also submitted alternative 1 and 2 proposals.
The first phase, phase A, will have a capacity of 200MW, and is planned to be commissioned by April 2018. The second phase, phase B, will have a capacity of 300MW, which will be commissioned by April 2019. The third phase, phase C, will have a capacity of 300MW, and will be commissioned by April 2020.
Bidders were invited to submit proposals under three models.
- Base proposal (mandatory for all bidders): Phase A (200MW)
- Alternative proposal 1: Phase A (200MW) + Phase B (300MW) = 500MW
- Alternative proposal 2: Phase A (200MW) + Phase B (300MW) + Phase C (300MW) = 800MW
For alternative proposals 1 and 2, a single special-purpose vehicle (SPV) will be formed to develop the project. The scheme will be developed under a 25-year power purchase agreement (PPA).
MEED reported in December that Dewa had received 21 requests for qualification (RFQs) for the 800MW project. The utility had received expressions of interest (EOIs) from 95 companies in September.
In 2015, Dubai increased its targets for renewable energy. The Mohammed bin Rashid al-Maktoum solar park is planned to produce 1,000MW of renewable energy, with this figure rising to 5,000MW by 2030.
On 29 March 2015, Dewa signed a 25-year PPA with Saudi Arabias Acwa Power for the 200MW second phase of the solar park. Spains TSK is also participating in the consortium, and the US First Solar will provide solar panels. The Acwa Power-led consortium signed a tariff for 5.85$c/kWh, which was a world record at the time. Read more