ACWA Power has completed the signing of all financing agreements of the 900MW solar PV project, Shuaa Energy 3 PSC, which is the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.
Shuaa Energy 3 PSC is the special purpose vehicle incorporated for the project, with 60 per cent ownership by the Dubai Electricity & Water Authority (DEWA) and the balance split between ACWA Power and Gulf Investment Corporation (GIC).
The project involves the construction of a state-of-the-art 900MW solar PV plant, using bi-facial panels with tracking technology at a capital cost of c. $564 million, and has been the focus of significant international interest, having demonstrated one of the lowest levelised cost of electricity in the world of USD cents 1.6953 per kWh.
The financing for the project is based on the principles of limited recourse project financing with the senior debt provided by a number of international, regional and local banks along with a project recourse mezzanine tranche committed by a regional bank, structured as a c. 27-year soft mini perm financing with both conventional and Islamic tranches. In addition, the financing structure featured a set of equity bridge loans provided by local banks and also by DEWA.
“Securing this amount of long tenor project financing for Shuaa Energy 3 PSC even as COVID 19 pandemic continues to cause social and economic disruption to the entire world illustrates the combined capabilities and trusted partnership between ACWA Power and DEWA. We are delighted to have achieved this significant milestone, which reflects confidence of the financial community in this partnership, and the role and iconic status of the fifth phase of Mohammed bin Rashid Al Maktoum Solar Park in delivering Dubai’s Clean Energy Strategy 2050." Paddy Padmanathan, President & CEO of ACWA Power