POWER June 2020 - 14

GLOBAL MONITOR
Record-Low Solar Prices Drive
Middle East Projects
Abu Dhabi Power Corp. (ADPower) in
late April announced what it called the
lowest-ever cost-competitive tariff for
a solar photovoltaic (PV) project, a few
months after a project in Dubai made
that claim for the latest phase of another
large solar power installation in the
United Arab Emirates (UAE). ADPower
on April 29 said the tariff for the 2-GW
Al Dhafra Solar PV project was set at
1.35 cents/kWh. That announcement
came just hours after Dubai Electricity
and Water Authority (DEWA), along
with a consortium led by Saudi Arabia's
ACWA Power, and including the Gulf
Investment Corp. (collectively known
as Shuaa Energy 3), signed a power
purchase agreement (PPA) for the fifth
phase of the world's largest single-site
solar park. That agreement confirmed
a tariff of 1.6953 cents/kWh that was
first announced in November 2019. A
project in Qatar publicly announced in
January, awarded to France's Total and
Japan's Marubeni, said it had a tariff of
1.6 cents/kWh, which at that time was
considered the lowest for a solar project.
The 800-MW Al Kharsaah solar development
in Qatar will use more than 2
million bifacial solar modules, making it
one of the largest bifacial projects in the
world. It is expected to be online in time
for the 2022 World Cup soccer tournament,
hosted by Qatar.
The Al Dhafra project, once operational,
will lift Abu Dhabi's total solar power
generation capacity to about 3.2 GW.
DEWA's agreement, a 25-year PPA, is
for the fifth phase of the Mohammed bin
Rashid Al Maktoum Solar Park (Figure 4).
That park in Dubai, when completed, will
have capacity of more than 5 GW, at an
estimated total construction investment
of $13.6 billion. The fifth phase of the
project is valued at $570 million.
Jasim Husain Thabet, CEO of ADPower,
said of the Al Dhafra project in the
UAE capital: " Abu Dhabi has illustrated
a remarkable step-change in the way
the emirate generates power through
an enhanced focus on sustainability
and renewable technologies. The water
and electricity sector intends to play a
critical role in meeting the target of having
50% of Abu Dhabi's energy needs
served from renewable and clean energy
sources by 2030, as well as the
reduction of the generation system's
average carbon intensity by more than
70%, compared to 2015. The Al Dhafra
Solar PV project will play a critical role
14
4. The Mohammed bin Rashid Al Maktoum Solar Park in Dubai will have more than 5 GW of
generation capacity when complete. Phase 3 of the installation (shown here), developed by
Shuaa Energy 2 in three stages beginning in 2017 and ending this year, has 800 MW of capacity.
Courtesy: Shuaa Energy 2
in delivering these ambitions, and we
look forward to working with our partners
to deliver this landmark project. "
The Al Dhafra project will include the
financing, construction, operation, and
maintenance of the solar plant, including
installation of solar PV modules, inverters,
connection to the transmission network,
and associated facilities.
The fifth phase of the Al Maktoum solar
park is expected to enter commercial
operation in the second half of 2021, and
will bring the park's generation capacity
to 2,863 MW. The project will help support
Dubai's Clean Energy Strategy 2050
by increasing the share of clean energy
in Dubai's total power output to 75% by
that year. The Al Maktoum project will
use the latest bifacial PV solar panels,
which capture sunlight on both sides of
the panel. The system produces power
with an advanced solar tracking system
to increase generation efficiency.
HE Saeed Mohammed Al Tayer, CEO
and managing director of DEWA, during
a virtual, online ceremony to mark
the signing of the PPA said, " This pioneering
national landmark is the largest
single-site solar park in the world. The
UAE has proved that it has always been
proactive and ready for all changes and
conditions. The recent developments in
the oil industry have proved the importance
of the UAE's track to bid farewell
to the last barrel of oil and diversify the
energy mix. " Al Tayer in a statement said
the park's current operational capacity is
" 1,013 MW from photovoltaic solar panels.
We have 1,850 MW under construction
from photovoltaic and Concentrated
Solar Power (CSP), with future phases to
reach 5,000 MW by 2030. "
The first phase of the solar park came
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online in 2013, with 13 MW of generation
capacity. The second phase, developed
by ACWA Power, came online in
2017, with capacity of 200 MW. The third
phase, developed by Shuaa Energy 2 in
three stages beginning in 2017 and ending
this year, has 800 MW of capacity.
The 950-MW fourth phase-known as
Noor Energy 1-is under construction.
Mohammed Abunayyan, chairman of
ACWA Power, said at the signing of the
PPA for the fifth phase: " The signing of
today's agreement is a testament of the
robust strategic partnership we have established
with Dubai Electricity and Water
Authority, which we are immensely
proud of. The Mohammed Bin Rashid Solar
Park is the most ambitious and largest
project of its kind worldwide, that aims
to reduce the carbon footprint in Dubai
and transform Dubai into a global model
for clean energy and the sustainable
green economy. "
The $467 million project in Qatar is
40% owned by Total and Marubeni, with
the remainder owned by Siraj Energy, a
joint venture between Qatar Petroleum
and Qatar Electricity & Water Co. Qatari
national power firm Kahramaa has signed
a 25-year PPA for the project's electricity.
The first 350-MW portion of the project
is expected to be operational in 2021,
with the full project set to come online
in 2022. The World Cup is scheduled to
begin in November of that year.
-Darrell Proctor is POWER
associate editor.
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POWER|June 2020

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POWER June 2020

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