Dewa seeks record-low kWh tariff for third phase of 5000 MW solar park

Dubai’s Dewa is expected to award the tender for the 800 MW, third phase of the Mohammed bin Rashid Al Maktoum Solar Park by the middle of next year.

However, Dewa’s chief executive, Saeed Mohammed Al Tayer, confirmed that the utility is seeking a price below 5 US cents/kWh for the third phase, making it one of the lowest solar tariffs in the world.

Earlier this year the project hit the headlines with what was at the time the world’s cheapest solar tariff. A consortium led by Saudi Arabia’s Acwa Power and TSK of Spain was awarded the 200 MW, second phase of the solar park at a price of 5.84 US cents/kWh.

The utility has received 21 requests for qualification from companies and consortia, including Abu Dhabi’s Masdar and Acwa Power.

Dewa is expected to announce the winning consortium by the middle of next year.

The Mohammed bin Rashid Al Maktoum Solar Park was originally slated to have an installed capacity of 1000 MW, but last January Dewa announced that it would triple the project’s size to 3000 MW. Then in November its capacity was further expanded to 5000 MW.

The second phase of the Mohammed bin Rashid Al Maktoum Solar Park is due to come online in 2017, with the third phase operational by 2030.

Renewables are expected to make up 7 per cent of Dubai’s power generation mix within the next five years, increasing to 25 per cent in 2030 and 75 per cent in 2050.

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