Financial Closing Reached on 1800MW 6th Phase of Solar Park

Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Future Energy Company (Masdar) have officially closed the financial deal for the 1800-megawatt sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park. This phase, which will be part of the largest single-site solar park in the world, is a significant step towards promoting clean and renewable energy in the UAE.

With a capacity that is set to exceed 5,000 megawatts by 2030 and investments totaling around AED 50 billion, this project represents a major milestone in the country’s clean energy transition. Masdar was selected as the Preferred Bidder to build and operate this phase of the solar park using photovoltaic solar panels under the Independent Power Producer model.

The 1,800MW 6th phase is expected to provide clean energy for approximately 540,000 homes while reducing carbon emissions by around 2.36 million tonnes annually. It will cover an area of 20 square kilometers and has achieved a record-low Levelized Cost Of Energy (LCOE) of US.6215 cents per kilowatt hour (kWh) within the Solar Park.

H.E Saeed Mohammed Al Tayer, MD & CEO of DEWA, emphasized that this achievement aligns with the vision of the UAE’s leadership to drive sustainable practices and protect the environment for future generations. The Mohammed bin Rashid Al Maktoum Solar Park plays a crucial role in positioning the UAE as a global leader in clean energy.

Furthermore, this project supports the UAE’s sustainability goals for 2024 and is in line with strategic initiatives like the UAE Net Zero by 2050, Dubai Clean Energy Strategy 2050, and Dubai Net Zero Carbon Emissions Strategy 2050.

DEWA, in collaboration with Masdar, is utilizing the latest solar photovoltaic technologies to implement the sixth phase of the solar park. With the total capacity set to increase to 4,660MW by 2026, DEWA aims to have 27% of its energy generation from clean sources by 2030.

As part of the project, DEWA and Masdar established Shuaa Energy 4, with DEWA owning 60% and Masdar holding the remaining 40%. Mohamed Jameel Al-Ramahi, CEO of Masdar, expressed excitement about the partnership with DEWA and the progress in advancing the UAE’s energy leadership through the expansion of the solar park.

The lending group for the project includes prominent financial institutions such as Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Abu Dhabi Islamic Bank, and Warba Bank. This collaboration underscores the confidence in the UAE’s commitment to clean energy and sustainable development.