October 17 (Renewables Now) - Prices in the tender for a 900-MW portion of the Mohammed bin Rashid Al Maktoum solar project in Dubai have dropped to a record low level of USD 16.953 (EUR 15.255) per MWh, Dubai Electricity and Water Authority (DEWA) confirmed.
The tender for the fifth phase of the 5-GW complex was launched in February and attracted 60 requests for qualifications. Nine consortia and companies were eligible to submit final offers and the winner will be announced next month, DEWA said on Tuesday.
According to media reports, the record low tariff was offered by a consortium led by Saudi Arabia’s ACWA Power, while a rival consortium comprising Masdar Clean Energy of the UAE, France’s EDF(EPA:EDF) and Jinko Solar (NYSE:JKS) of China has placed a USD-17.25/MWh bid.
As previously announced, the winner in the latest tender will own 40% of the company operating the 900-MW project, while DEWA will hold 60% and will be the power off-taker under a 25-year power purchase agreement (PPA). The project will be developed on the Independent Power Producer (IPP) model, with the power plant slated to begin staged operation in the second quarter of 2021.
The AED-50-billion (USD 13.6bn/EUR 12.3bn) Mohammed bin Rashid Al Maktoum park will use both solar PV and concentrated solar power (CSP) technologies and by 2020, its commissioned capacity will exceed 1 GW.
(USD 1.0 = EUR 0.899)
(AED 1.0 = USD 0.272/EUR 0.245)