PwC submits lowest bid for Dubai solar role

25 July 2016

Four international financial services firms submitted bids for IPP advisory role

UK-based consultant PwC has submitted the lowest bid for the advisory services contract for Dubai’s first concentrated solar power (CSP) farm.

State utility Dubai Electricity & Water Authority (Dewa) received bids from four international financial services providers on 20 July for the advisory role on the 200MW CSP scheme, which will be developed under the independent power producer (IPP) model.

PwC submitted a price of AED6.9m ($1.9m) for the advisory contract, which was about 10 per cent lower than the AED7.7m price submitted by Japan’s Sumitomo Mitsui Banking Corporation, the second lowest bidder.

The Netherlands’ KPMG submitted the third lowest bid of AED8.8m, with the UK’s EY completing the bidding list with a price of AED11.6m.

The 200MW project will be the fourth phase of the ambitious Sheikh Mohammed bin Rashid al-Maktoum (MBR) solar park. The scheme will be the first major CSP project at the park, with the initial three phases all using photovoltaic (PV) solar energy. Dubai has set a target of developing 1,000MW of CSP solar technology by 2030.

In late June, Dewa selected a consortium consisting of the UAE’s Abu Dhabi Future Energy Company (Masdar), Saudi Arabia’s Abdul Latif Jameel and Spain’s Fotowatio Renewable Ventures (FRV) as preferred bidder to develop the 800MW PV third phase of the solar park.

MEED reported on 1 May that the preferred bidder had submitted a world-record low tariff of 3 cents a kilowatt hour ($c/kWh) for the independent power project (IPP).

The scheme will be developed in three phases, with the full 800MW to be online in 2020.

The 200MW first phase is planned to be commissioned by April 2018. The second phase will have a capacity of 300MW, which will be commissioned by April 2019. The final 300MW third phase will be commissioned by April 2020.

The scheme will be developed under a 25-year power purchase agreement (PPA).

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.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications