The Dubai Electricity & Water Authority (Dewa) has awarded Saudi private sector firm Acwa Power and China’s Shanghai Electric a contract to build the world’s largest concentrated solar power (CSP) plant, with 700MW generating capacity, as the fourth phase of a solar park being built at Seih al-Dalal 50km south of Dubai city.
After bids were first submitted, Dewa announced that it had received a record low bid of US¢9.45/kWh for electricity. However the original bids were based on a project capacity of 200MW. Dewa and Acwa have since expanded the project to 700MW to achieve economies of scale. This cut the electricity cost 23% further to US¢7.30/kWh. This is not the first time UAE utilities have secured world-beating electricity costs. Last year Dewa awarded the 800MW solar photovoltaic (PV) phase three of its solar park to a consortium led by Abu Dhabi’s Masdar, to set a new record. Abu Dhabi’s Adwea later set the current PV record by awarding Japan’s Marubeni and China’s JinkoSolar the 1.18GW Sweihan project – expanded from the tendered 350MW – with an electricity cost of US¢2.42/kWh (see charts). (CONTINUED - 786 WORDS)
