Abu Dhabi Taqa secures funding for world's largest solar project
ABU DHABI, December 22, 2020
Abu Dhabi National Energy Company (Taqa) today (December 22) announced the successful financial closing of the Al Dhafra Solar Photovoltaic (PV) Independent Power Producer (IPP) project in co-ordination with key partners - Abu Dhabi Future Energy Company (Masdar), EDF Renewables and JinkoPower.
The record-breaking project, located approximately 35 km from Abu Dhabi city, will have a capacity of 2 gigawatts (GW) and will supply power to Emirates Water and Electricity Company (Ewec).
Once operational, the Al Dhafra Solar PV IPP will be the world’s largest single-site solar power plant, using approximately 4 million solar panels to generate enough electricity for approximately 160,000 homes across the UAE.
Financing for the project will come from seven international banks, following the signing of the power purchase agreement in July.
Earlier this year, the competitive bidding for the project led to one of the most competitive tariffs for solar power, set at AED4.97 fils/kWh ($1.35 cents/kWh), which upon financial closing, was further improved to AED4.85 fils/kWh ($1.32 cents/kWh), primarily driven by hedging and financing cost improvements, in addition to other optimization efforts.
As per the deal, Taqa will own 40% of the Al Dhafra project, while Masdar, EDF Renewables and JinkoPower will each have a 20% stake.
The plant will deploy the latest in crystalline, bifacial solar technology, which will enable the plant to provide more efficient electricity by capturing solar irradiation from both the front and backside of the panel.
Upon full commercial operation, the plant is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million metric tons per year, equivalent to removing approximately 470,000 cars from the road.
On the financial closing, Jasim Husain Thabet, Group CEO and Managing Director at Taqa, said: "The financial closing of the world’s largest solar plant marks the beginning of an important chapter for this IPP project, for Taqa Group and for the UAE as we continue to deliver on our bold clean energy ambitions, while demonstrating the commercial and operational viability of utility-scale single-site solar projects."
"Through this project and many others – such as Taqa’s Noor Abu Dhabi, currently the world’s largest operational solar power plant – we have established the company as a trusted integrated utilities partner that is leading the sector’s transformation in the UAE and beyond. 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," he added.
Lauding the milestone, Masdar CEO Mohamed Jameel Al Ramahi said: "We congratulate all the partners on achieving the financial close for this monumental solar power project, which again underlines the growing appeal of renewable energy from both a commercial and environmental perspective, and the attractiveness of the UAE as a location for the world’s largest and most cost-competitive renewable energy projects."
"Achieving this milestone is a significant step forward in the development of the Al Dhafra project and the realization of the UAE leadership’s vision for a diversified power sector," he stated.
Ewec CEO Othman Al Ali said: "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: the world’s largest reverse osmosis desalination project at Taweelah, the UAE’s largest and most advanced gas-fired power plant in Fujairah, and now the world’s largest solar power plant at Al Dhafra."
"These significant achievements are a testament to the integrity of our work, and belief in sustainable and renewable energy as a strategic pillar that will support and drive economic, social, and environmental advancements for future generations," he noted.
Bruno Bensasson, EDF Group Senior Executive VP Renewable Energies and CEO of EDF Renewables, said: "The Al Dhafra PV project highlights our full commitment to supporting the UAE National Climate Change Plan. We are using our solar photovoltaic power best expertise to deliver the next generation of solar plants in Abu Dhabi."
"The achievement of financial close with our partners and the investment community is a major milestone for the project, and we are now looking forward to start the construction phase of the solar plant with the objective of reaching commercial operations in 2022," he added.-TradeArabia News Service
