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APICORP Provides $70.5m for Mohammed Bin Rashid Al Maktoum Solar Park

APICORP Provides $70.5m for Mohammed Bin Rashid Al Maktoum Solar Park
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APICORP Provides $70.5m for Mohammed Bin Rashid Al Maktoum Solar Park

APICORP Provides $70.5m for Mohammed Bin Rashid Al Maktoum Solar Park

The Arab Petroleum Investments Corporation (APICORP) has signed an agreement with Shuaa Energy 3 P.S.C sponsored by Dubai Electricity and Water Authority (DEWA), ACWA Power and Gulf Investment Corporation, to provide $70.5 mn in financing for the fifth phase of development of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, UAE.

Part of a larger project finance facility amounting to $420.2 mn provided by a number of local, regional and international banks, the funds will be used in the development, construction, ownership, operation and maintenance of a $564 mn 900MW state-of-the-art solar photovoltaic (PV) plant. Utilizing bi-facial panels with tracking technology, the plant will produce the lowest cost of electricity in the world at just under $0.017 (1.7 cents) per kWh.

The project is aligned with Dubai’s Integrated Energy Strategy 2030 as well as Clean Energy Strategy 2050, aimed at securing a sustainable supply of energy and diversifying energy supply sources.

Phase 5 of the development of the Park, the single-site solar park in the world, is expected to power 270,000 homes and offset 1.18 million tons of CO2 emissions annually. It also marks a crucial milestone for Dubai as the city aims to reduce its reliance on imported natural gas by achieving 7% of installed capacity from solar energy by 2020 and 25% by 2030.

Dr. Ahmed Ali Attiga, Chief Executive Officer at APICORP, said: “APICORP continues to be a leading player in the advancement of the MENA renewables sector, as part of the global transition towards sustainable low-carbon energy sources. We are delighted to partner with DEWA, ACWA Power and GIC on yet another pioneering initiative which will benefit Dubai economically and environmentally. The agreement represents the latest milestone in our quest to expand our green energy portfolio and support the scaling up of renewable energy technologies through effective tailored financing solutions.”

Over the past four years, APICORP has committed around $450 mn of capital towards renewable projects as part of its strategic drive to enable MENA countries to utilize the region’s abundant renewables energy resources and help Member Countries achieve a more sustainable and diversified energy mix.

APICORP also provided a $50 mn credit facility to SirajPower and acquired an equity stake in Yellow Door Energy, both of which are based in the UAE.

This includes a $110 mn in financing for Shuaa Energy 2, an 800MW PV plant developed by Masdar and EDF Energies Nouvelles in phase 3 of the MBR Solar Park that provides power to 160,000 homes and offsets 1.4 mn tons of CO2 emissions annually.

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Saudi Arabia Leads Int’l Efforts to Combat Climate Change, Land Degradation

Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
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Saudi Arabia Leads Int’l Efforts to Combat Climate Change, Land Degradation

Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)

The presidencies of the next three upcoming Conferences of the Parties (COP) — Saudi Arabia, Azerbaijan, and Colombia — held a meeting on the sidelines of the United Nations General Assembly in New York to outline their ambitions regarding the three Rio Conventions.

Additional meetings are scheduled for the last quarter of this year to address the pressing challenges of climate change, desertification, and biodiversity loss.

The Rio Initiative takes its name from the historic agreements made at the 1992 Earth Summit in Rio de Janeiro, Brazil. It aims to foster cooperation in tackling land degradation, climate change, and biodiversity loss, while boosting international efforts under the United Nations' environmental agreements.

On Sunday, world governments gathered in New York to establish a framework for addressing the threats posed by climate change, desertification, and biodiversity loss. The meeting focused on enhancing cooperation between the upcoming COP presidencies.

The participants included Saudi Arabia, set to lead the 16th Conference of the Parties to the United Nations Convention to Combat Desertification (COP16); Azerbaijan, which will chair the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29); and Colombia, which will head the 16th Conference of the Parties on Biological Diversity (COP16).

Saudi Arabia's presidency of COP16 highlighted the crucial importance of land restoration for the well-being of both people and the planet. It also underscored the devastating economic, social, and environmental impacts of land degradation and drought, which threaten biodiversity and increase greenhouse gas emissions, worsening food and water security challenges.

Dr. Osama Faqeeha, Saudi Arabia’s Deputy Minister of Environment, Water, and Agriculture, and advisor to the COP16 presidency, stated: "Climate change, biodiversity loss, and land degradation are interconnected aspects of the same crisis facing the planet, and they must be addressed in a more integrated and effective manner."

"This year presents a unique opportunity to unite efforts with Azerbaijan and Colombia and rally global support to address these interlinked environmental challenges, which have a destructive impact on the planet and its people," he added.

Colombian Minister of Environment and Sustainable Development Susana Muhamad emphasized the need for a unified agenda to be implemented on the ground. She expressed her readiness to establish a working group to bolster coordination and cooperation.

"The just transition in climate change must reflect interconnected efforts to protect natural ecosystems from degradation and harm," she said, adding: "We have a valuable opportunity to plan land use through a more integrated approach: decarbonization, environmental restoration, and improving human living conditions. COP16 for Biological Diversity is the ideal platform to deepen understanding and action on these efforts."

Mukhtar Babayev, president of COP29 for Climate Change, stressed the importance of "fostering cooperation, enhancing action efficiency, and achieving tangible results that benefit people and the planet by strengthening collaboration across the three Rio agreements."

He continued: "It’s essential to recognize that the goals of these agreements are fundamentally interconnected, and progress in one area can drive advancements in others."

Saudi Arabia called on governments attending the UN General Assembly to take decisive actions during COP16 for the United Nations Convention to Combat Desertification, which will be held in Riyadh in early December.

The UN Convention to Combat Desertification has set a target of restoring 1.5 billion hectares of degraded land by 2030. In Riyadh, Saudi Arabia's COP16 presidency will push for further concrete commitments to help achieve this goal.

The upcoming COP16 will be the largest and most comprehensive conference in the history of the convention, providing a global platform for collaboration. It will also offer opportunities for the private sector, civil society, and the scientific community to exchange solutions for combating land degradation, desertification, and drought.