Tag:

Abu Dhabi Solar Power Park

Abu Dhabi Set To Close $872 Million Funding For 1,177 Megawatts Solar Project

written by saurabh

The Abu Dhabi Water and Electricity Authority is set to close a funding deal for the cheapest solar power project next month.

According to media reports, ADWEA will secure funding worth $872 million to set up 1,177 megawatts of solar power project. The project has already been allocated to a consortium of Marubeni and JinkoSolar. The project will come up in eastern Abu Dhabi over an area of 7.8 square kilometres. Final agreements for the project are expected to be signed very soon with commissioning scheduled for 2019.

Abu Dhabi Water & Electricity Authority will arrange for 60% finance through debt (likely at very low interest rates), Marubeni and JinkoSolar will provide for 20% of the funding each. Abi Dhabi had awarded the project at record tariff of 2.42¢/kWh last year. The tariff was the lowest-ever quoted for a solar power project globally at that time.

Dubai Electricity & Water Authority (DEWA) also allocated 200 megawatt capacity to ACWA Power through auction at one of the cheapest tariffs in the world. The company managed to secure the project at such cheap rates as it had access to debt funding at very low rates.

03/09/2017 0 comment

Renewable Energy

Marubeni Reveals Plans For 1.18 Gigawatts Solar Power Project In UAE

written by saurabh

A Japanese company has reported that it will work on one of the largest solar power projects in the Middle East.

Marubeni recently announced plans of developing a 1.18 gigawatts solar power project in the United Arab Emirates. According to a press release issued by the Japan-based company, the project will come up in the emirate of Abi Dhabi.

The project will come up in eastern Abu Dhabi over an area of 7.8 square kilometres. Final agreements for the project are expected to be signed very soon with commissioning scheduled for 2019. Marubeni estimates the total project cost at $868 million with various stakeholders contributing towards funding the project.

Abu Dhabi Water & Electricity Authority will arrange for 60% finance through debt (likely at very low interest rates), Marubeni and JinkoSolar will provide for 20% of the funding each.

It should be noted that Abi Dhabi had awarded a 350 megawatts solar PV project to a joint venture of Marubeni and China’s JinkoSolar at record tariff of 2.42¢/kWh last year. The tariff was the lowest-ever quoted for a solar power project globally at that time. The 350 megawatts tender was believed to be the first phase of 1,000 megawatts solar park.

It is not, however, clear if the Abu Dhabi Water & Electricity Authority has offered to entire solar power capacity of the planned solar power park for development to JinkoSolar-Marubeni joint venture. There has been such a precedent in the country.

Dubai Electricity and Water Authority (DEWA) had offered 100 megawatts capacity in the second phase auction of Mohammed bin Rashid Al Maktoum Solar Park. The auction was won by ACWA Power at record-low tariff of 2.99¢/kWh. DEWA subsequently offered additional 100 megawatts to ACWA Power for development at the same tariff. ACWA Power is now developing a total of 200 megawatts capacity at the solar power park.

02/20/2017 0 comment

Renewable Energy

JinkoSolar, Marubeni Score Lowest-Ever Solar PV Bid At 2.42¢/kWh In Abu Dhabi

written by saurabh

The United Arab Emirates has seen yet another record-breaking solar power tariff bid. Abu Dhabi received the lowest-ever bid for a solar PV project at a shocking 2.42¢/kWh, taking back the title of cheapest solar power project from Chile.

The record-breaking bid has been submitted by a consortium of Chinese module manufacturer JinkoSolar and Japanese developer Marubeni.

Abu Dhabi Electricity and Water Authority received a total of 6 bids for the proposed 350 MW solar PV project planned to be built in the town of Swaihan, Abu Dhabi. Out of 6 bids, the lowest ever bid of 2.42¢/kWh has been submitted by the JinkoSolar–Marubeni consortium. The results of the tender are not out yet, as authorities will now evaluate the proposals for technical and economic viability.

The current bid of 2.42¢/kWh is the lowest so far globally, and by quite a bit — it is shockingly low. This bid is 20% lower than the previous record bid of 2.91¢/kWh submitted at an auction in Chile last month.

The second-lowest bid in the Abu Dhabi tender was reportedly not much higher, at 2.53¢/kWh, and was submitted by a local firm. These bids also beat the 2.99¢/kWh bid (shocking at the time … and still to some extent) submitted by a Masdar-led consortium for an 800 MW solar PV project in Dubai.

The Abu Dhabi solar park was initially planned for 350 MW. However, media reports state a possible increase in project size, as bidders were allowed to bid for larger capacities. The final capacity of the solar power park may well increase to 1 GW.

In recent months, large solar power parks around the globe have received bids less than 4.00¢/kWh — in India, Chile, the UAE, and elsewhere.

Many large developers — including Italy’s Enel, TSK, ACWA, Abdul Latif Jameel, and Engie — reportedly pulled out of the Abu Dhabi tender due to expected high competition and concern over a drastic drop in prices.

09/20/2016 0 comment

Articles Renewable Energy

350 MW Abu Dhabi Solar Project Draws Interest From Across The World

written by saurabh

Companies from US, Europe, India, China and Japan have expressed interest in bidding, and eventually developing, 350 MW solar power projects in Abu Dhabi.

A total of 34 companies or consortiums have qualified as bidders for the 350 MW solar PV project planned by the Abu Dhabi Water & Electricity Authority (ADWEA). Eight of these entities have qualified as main developers of the projects while others, if selected, will act as ‘managing members’ and technical advisors.

Entities qualified as main developers are mostly from the developed markets like the US and Europe. These include First Solar, EDF, Enel, Engie, RWE/Belectric, Solar Reserve and Total/Sunpower. A consortium led by South Korean utility KEPCO has also qualified for the next stage of bidding.

Geographical diversity increases substantially as one looks into the category of technical advisors (category B) and managing members (category C). Several Indian and Chinese companies have qualified as technical advisors for the next round of biddings. These include Jinko Solar, China State Construction Engineering Corp., Adani Enterprises, Acme Solar, Hindustan Clean Energy, and ReNew Power Ventures.

Qualified entities in the category of possible managing members include AWCA Power, Marubeni, Mitsui, and Masdar.

Selected entities in categories B and C are now expected to enter talks with entities to be selected as main developers. The procedure is expected to be the same as that for the 200 MW solar power auction in Dubai solar power park. ACWA Power partnered with First Solar and TSK to bid the lowest-ever solar PV tariff of US¢5.84/kWh.

Abu Dhabi already hosts one of the largest solar concentrated power projects in Asia – Shams 1.

04/28/2016 0 comment