Financial close - Advisory Services for Mohammed bin Rashid Al Maktoum Solar Park Phase V
Mohammed bin Rashid Al Maktoum (MBR) Solar Park is a solar park spread over a total area of 77 km² in Saih Al-Dahal, about 50 kilometers south of the city of Dubai.
With an estimated completion date of 2030, the MBR Solar Park will be largest single-site solar park of its kind in the world with a total capacity of 5,000 MW. The Project, which represents the fifth phase of the MBR Solar Park, will have a capacity of 900 MW. The Project will generate enough clean energy to power approximately 270,000 homes in Dubai.
The project will use the latest solar photovoltaic bifacial technologies, which allows solar radiation to reach the front and back of the panels, with single-axis tracking to increase generation.
The consortium including GOPA-International Energy Consultants GmbH (technical advisor), Ernst & Young (lead and financial consultant) and Trowers & Hamlins LLP (legal consultant) advised Dubai Electricity and Water Authority (DEWA) in relation to the fifth phase (Project) of the Mohammed bin Rashid Al Maktoum Solar Park (MBR Solar Park) which included the drafting of the request for proposals (RFP) and developing the full suite of project agreements. The key project agreements include the power purchase agreement (PPA), shareholders' agreement, the musataha agreement and high-level term sheets for the engineering, procurement and constructions (EPC) contract and operation and maintenance (O&M) contract. Since commercial close, the Consultants have advised on all matters up to the successful satisfaction of the conditions for financial closing.
The successful bidder submitted a then new world-record low tariff (for unsubsidised levelised cost of electricity (or LCOE)) PV solar power generation of $1.695 cents a kilowatt hour ($c/kWh). DEWA awarded the project to the developer consortium of International Company for Water and Power Projects (ACWA Power) and Gulf Investment Corporation (GIC) (together the Consortium).
DEWA, the Consortium and relevant stakeholders, with the assistance of the Consultants, previously reached commercial close on 29 April 2020.
In a move away from precedent transactions, DEWA has successfully procured the Project without the benefit of a government guarantee (in relation to DEWA's payment obligations under the PPA). The Consortium was able to secure lender support for the Project based, in part, on DEWA's now strong track record of delivering bankable solar IPPs.
Karsten Ley (Technical Lead and Expert), noted that: “The rising demand for green electricity is changing the energy world and we need more speed in the global energy transition "Energiewende". intec is proud to drive the direction of Dubai's energy turnaround with DEWA's award winning project.”
Photo source: www.dewa.gov.ae