Abu Dhabi – Mubasher: Abu Dhabi National Energy Company (TAQA), Masdar, EDF Renewables, and JinkoPower have announced the financial closing of the Al Dhafra Solar Photovoltaic (PV) Independent Power Producer (IPP) project.
A total of seven international banks will finance the project following the signing of a power purchase agreement in July 2020, according to a press release on Tuesday.
The project has received one of the most competitive tariffs for solar power, set at AED 4.97 fils/kWh ($1.35 cents/kWh) through a competitive bidding.
Following the financial closing, the tariffs were improved to AED 4.85 fils/kWh ($1.32 cents/kWh), as a result of hedging and financing cost improvements.
Located around 35 kilometers from Abu Dhabi, the 2 gigawatts (GW) project will supply power to Emirates Water and Electricity Company (EWEC).
Upon its operation, Al Dhafra project will be the world’s largest single-site solar power plant that will use about 4 million solar panels to provide electricity to 160,000 homes in the UAE.
TAQA will hold 40% of the project, while the remaining partners, comprising Masdar, EDF Renewables, and JinkoPower will own a 20% stake each.
The Group CEO and Managing Director at TAQA, Jasim Husain Thabet, commented: “We have an expanded portfolio of power and water assets that we will grow further through a disciplined approach, adding value for our shareholders and delivering a diverse supply of energy for our stakeholders and the communities in which we operate.”
Meanwhile, the CEO of EWEC, Othman Al Ali, remarked: “Over the past 12 months EWEC has collaborated with international, regional, and local partners during the bidding, negotiation, and financial close for a number of ground-breaking projects.”
It is noteworthy to mention that in July, a consortium, led TAQA and Masdar, won the development of Al Dhafra project, the world’s largest solar power plant.
