UAE’s Mohammed bin Rashid Al Maktoum Solar Park launches fifth phase: UAE Vice President and Prime Minister Mohammed bin Rashid Al Maktoum inaugurated the 900 MW fifth phase of the 5 GW Mohammed bin Rashid Al Maktoum Solar Park yesterday, Wam reports. The full investment ticket for the 5 GW mega solar park is AED 50 bn (c. USD 13.6 bn) and 2.4 GW of solar power has been installed.

The details: The Dubai Water and Electricity Authority (Dewa) acquired a 60% stake in the AED 2 bn (c. USD 544.5 mn) fifth phase of the project at a record low bid of USD 1.69 per KWh, with Acwa Power and Gulf Investment Corporation nabbing a 40% share. The fifth phase will offset some 1.18 mn tons of CO2 equivalent annually once fully operational, providing clean energy to 270k homes, according to Wam. The entire project will offset 6.5 mn tons of carbon emissions once fully operational.

Background: A consortium led by Saudi Arabia’s Acwa Power, in partnership with the Gulf Investment Corporation, was selected to develop the fifth phase of the project at a cost of USD 562 mn under a BOO agreement. Dewa — the sole offtaker of energy generated by the fifth phase — is buying the solar energy generated at a price of USD 1.7 per kWh, one of the most competitive PPA agreements to date.

Bidding for the sixth phase of the park has already begun: UAE’s Masdar and Saudi Arabia’s Acwa Power have submitted bids to develop the 1.8 GW that should be operational in stages between 2024 and 2026. Dewa will announce its selection this quarter, with the phase scheduled to become operational in stages between 4Q 2024 and 2026. No details on the cost of building the sixth phase have been disclosed.

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