Saudi ACWA Power signed the Engineering, Procurement and Construction (EPC) agreement with Shanghai Electric Generation Group (SEGC) for the DEWA (Dubai Electricity and Water Authority) 700MW Concentrated Solar Plant (CSP) project in Dubai at a ceremony in China.
The project is the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, the largest thermo-solar power plant in the world.
The agreement was signed in Shanghai in presence of representatives from the Chinese government, the embassies of the United Arab Emirates and Saudi Arabia, as well as senior officials from DEWA and ACWA Power.
The EPC agreement pushes forward the development of the project, which represents a $3.87 billion investment.
The project, which comes with a record low tariff of just $7.3 cents per kilowatt hour (kW/h), will feature a combination of a tower and parabolic troughs, which will collect heat and store it in molten salt to supply electricity on demand during the day and through the night.
The CSP tower to be built at the site will be the world’s tallest CSP Tower, at 260 meters.
“I am pleased to be here in Shanghai to attend the signing of the Engineering, Procurement and Construction Agreement for the completion of the fourth phase of the Mohammed bin Rashid Al Maktoum’s Solar Energy Complex,” said DEWA Managing Director and CEO of DEWA Saeed Mohammed al-Tayer.
“This agreement builds on the strong ties between our countries, which were formed by our common values and the commercial and economic interests that unite the UAE and China.”
“By signing this agreement, we have taken a significant step towards starting the engineering and construction works. We are committed to supporting Dubai’s Clean Energy Strategy through this project, which extends our portfolio in the energy sector in Dubai,” said ACWA Power Chairman Mohammad Abunayyan.
“The signing of today's agreement highlights three-way cooperation based on deep economic and technological relations among Saudi Arabia, the UAE and China,” Abunnayan stated.
This cooperation comes in line with the ambitious Saudi Vision 2030, which aims to diversify the Saudi economy, as well as the “localization of the latest technologies and solutions in everything we develop, build and operate with Saudi investments globally,” he added.
“Thanks to the Dubai Electricity and Water Authority, this project proves the success and effectiveness of implementing projects based on a public-private partnership model,” ACWA Power President and CEO Paddy Padmanathan said.
“We are confident that signing the EPC agreement with Shanghai Electric will secure the delivery of required work at the highest standards,” he stressed.
