March 1 (Renewables Now) - A consortium of Japan’s Marubeni Corp (TYO:8002) and China's JinkoSolar Holding Co Ltd (NYSE:JKS) has struck a power purchase agreement (PPA) for the 1,177-MW Sweihan solar project in Abu Dhabi, they announced today.
The two companies signed the agreement with Abu Dhabi Water and Electricity Co (ADWEC), a firm fully-owned by the Abu Dhabi Water & Electricity Authority (ADWEA), which has a 60% interest in the project. A special purpose company, in which Marubeni and JinkoSolar will hold 20% each, will build, operate and maintain the facility for the 25-year duration of the contract.
"Not only will the Project, once constructed, be the world's largest single utility scale solar PV plant, but the price of net electrical energy that we have agreed to today is one of the most competitive prices seen to date in the Solar PV industry," said Abdullah Ali Musleh Al Ahbabi, chairman of ADWEA. According to previous reports, the parties had agreed a price of just USD 23.00 (EUR 21.83) per MWh.
The financial agreements for the project will close in April 2017, with funding coming from international project finance lenders. Commercial operation is seen to start in 2019.
(USD 1.0 = EUR 0.949)