A consortium comprising Shanghai Electric and Acwa Power of Saudi Arabia has been awarded the contract for the 700MW Concentrated Solar Power (CSP) fourth phase of the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai.

The fourth phase will require a total of 14.2 billion Emirati Dirham (US$3.87 billion) of debt and equity. Chinese banks are expected to feature prominently in the debt syndicate.

Adding all the phases together, this is the largest single site thermo-solar power plant in the world, and uses a combination of a 260-metre-tall central tower and parabolic trough concentrated solar power (CSP) technologies.

The US$750 million equity investment that Acwa Power has committed represents the largest CSP investment that the company has ever made. This is in line with Saudi's Vision 2030 strategy, which seeks to maximize the Saudi investment base outside the Kingdom.

It is also in line with Sheikh Mohammed's vision to transform Dubai into a global hub for clean energy and green economy through the Dubai Clean Energy Strategy 2050. The goal is to increase the share of clean energy in Dubai to 25% by 2030.

Shanghai Electric is one of China's largest equipment manufacturing conglomerates. Its four main businesses sectors are high efficiency & clean energy equipment, new energy & environmental protection equipment, industrial equipment, and a so-called modern services segment.

According to the project sponsors, phase four sets a new global record for the lowest levelized cost for renewable base load electricity in an independent power project tender without the benefit of any subsidy, including any carbon credit. The price is US$7.3 cents per kilowatt hour.

The power purchase agreement and the preparation to achieve financial close are already at an advanced stage, to enable fourth phase construction to commence in 2018. Construction has already begun on the early phases.

The plant will be commissioned in stages with the first phase scheduled for Q4 2020. Fields covered with mirrors will concentrate the sunrays, the combination of a tower and a field of troughs will collect heat and store that heat in a molten salt medium. This will allow the plant to supply electricity on demand at all hours of the day and night, even when the sun is not shining.

“The confirmation of our 700MW CSP bid for the Sheikh Mohammad Bin Rashid Solar Park represents a pivotal moment for the solar industry and the efforts in the region to reach a clean energy future", comments Acwa Power chairman Mohammad Abunayyan. "Acwa Power is proud to continue to be recognised as a partner of choice by DEWA and to support the efforts of making the Dubai Clean Energy Strategy 2050 a reality".