The Arab Petroleum Investments Corporation (APICORP) has signed an agreement with Shuaa Energy 3 sponsored by Dubai Electricity and Water Authority (DEWA), ACWA Power and Gulf Investment Corporation, to provide US$70.5 million in financing for the fifth phase of development of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, UAE.
Part of a larger project finance facility amounting to US$420.2 million provided by a number of local, regional and international banks, the funds will be used in the development, construction, ownership, operation and maintenance of a US$564 million 900MW state-of-the-art solar photovoltaic (PV) plant.
Phase 5 of the development of the Park, the single-site solar park in the world, is expected to power 270,000 homes and offset 1.18 million tons of CO2 emissions annually. It also marks a crucial milestone for Dubai as the city aims to reduce its reliance on imported natural gas by achieving 7 per cent of installed capacity from solar energy by 2020 and 25 per cent by 2030.
Dr. Ahmed Ali Attiga, Chief Executive Officer at APICORP, said: “APICORP continues to be a leading player in the advancement of the MENA renewables sector, as part of the global transition towards sustainable low-carbon energy sources. We are delighted to partner with DEWA, ACWA Power and GIC on yet another pioneering initiative which will benefit Dubai economically and environmentally. The agreement represents the latest milestone in our quest to expand our green energy portfolio and support the scaling up of renewable energy technologies through effective tailored financing solutions.”
As part of the agreement, the power generated from the plant will be sold to DEWA, which owns 60 per cent of the Shuaa Energy 3, a special-purpose vehicle incorporated for this project. The balance is owned by ACWA Power and GIC at 24 per cent and 16 per cent, respectively.