The project company developing Dubai’s first coal power project, Hassyan Energy Company, has awarded the EPC contract for the 2,400MW coal plant to China’s Harbin Electric and the US’ GE.

The Hassyan Energy Company is a joint venture between state utility Dubai Electricity & Water Corporation (Dewa), 51 per cent, and the Saudi/Chinese consortium Acwa Power Harbin Holding.

In June, the Acwa Power/Harbin consortium signed a 25-year power purchase agreement (PPA) to supply electricity from the Hassyan coal facility to Dewa. The 2,400MW coal plant will be built in four 600MW phases, with each unit to be made operational in March 2020, March 2021, March 2022 and March 2023 respectively.

Dewa selected the team as preferred bidder for the originally tendered 1,200MW Hassyan coal independent power project (IPP) in October 2015 on a levelised cost of energy tariff (LCOE) of 4.501 cents a kilowatt hour (kWh).

MEED reported in February this year that Dewa was in discussions with the consortium to expand its remit and develop the first two phases of the Hassyan scheme, doubling the capacity to 2,400MW.

Netherlands’ based Louis Dreyfus will build the coal-handling facilities and France’s EDF will supply coal for the plant.

The Hassyan project is a key part of Dubai’s efforts to diversify its power generation sector by 2030. The emirate has set a target for coal and nuclear power to both provide 7 per cent of the total energy mix by 2030, with 25 per cent to be provided by solar energy and the remaining 61 from gas-fired power facilities.