Financial Structure sophisticated and composed of seven institutions including islamic financing
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An innovative project which, once completed, will be the largest solar plant in the world using solar panels tilted to follow the sun
Abu Dhabi, United Arab Emirates, June 14, 2017 the financing of The project of 800 MW, which constitutes the phase 3 of the solar park the Mohammed bin Rashid Al Maktoum in Dubai has just been finalized. This represents the last major milestone for the consortium led by Masdar, in partnership with EDF Energies Nouvelles, a subsidiary of the EDF Group, which is developing this project of 800 MW, in partnership with Dubai Electricity and Water Authority (DEWA).
The funding for this project is based on a set of seven different institutions : for the Middle East, Union National Bank, the Islamic Development Bank and Arab Petroleum Investments Corporation (APICORP) ; as well as the commercial banks, Natixis in France and Siemens Financial Services in Germany, the Korea Development Bank, and, finally, the canadian agency for export credit, Export Development Canada (EDC).
As a result of this agreement, the phase 3 of the solar park the Mohammed bin Rashid Al Maktoum became the largest renewable energy project in the Middle East to receive funding complies with the ” Sharia “, which is a segment of strong growth on the global market for financing.
His Excellency Saeed Mohammed Al Tayer, President and ceo of the Dubai Electricity and Water Authority (DEWA) said : “DEWA has adopted the Independent Power Producer (IPP) model to build the 800MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park. It has generated international interest from global business and energy companies, which reflects the trust and interest from international investors in large projects adopted by Dubai Government. This has been supported by the favourable existing regulatory and legislative frameworks in Dubai that enable public-private partnerships. The project has also set a global benchmark in solar tariffs at a price of 2.99 US cents per kilowatt-hour, world-record-low tariff for solar power generation. The third phase will be operational by 2020 “.
And he added: “The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world based on the IPP model, and is instrumental to the Dubai Clean Energy Strategy 2050. The solar park’n s production capacity will reach 5,000 MW by 2030 with investments totalling AED 50 billion. It will eventually save over 6.5 million tonnes of carbon emissions every year, supporting Dubai’s objective to promote sti for sustainable goals.”
Mohamed Jameel Al Ramahi, President of Masdar, Abu Dhabi Future Energy Company, said : “The financing of the third phase of the Mohammed bin Rashid Al Maktoum Solar Park clearly demonstrates the confidence which the multinational lender community has in this important project, and underlines the compelling business case for renewable energy today. The involvement of Islamic investment in the project financing is especially pleasing, and will pave the way for further Sharia-compliant investment in the clean energy “.
And to add: “Construction of the third phase of the Dubai Solar Park is progressing as scheduled thanks to the close involvement of DEWA and the collaborative efforts of all shareholders. This project is a model for successful public-private renewable energy partnerships, which not only contributes to the UAE’s strategic objectives, but also sets an example globally”.
The EDF Group, through its subsidiary EDF Energies Nouvelles, a leader in the market of electricity from renewable sources, has recently joined Masdar as a project partner.
Antoine Cahuzac, Executive Director of the EDF Group, in charge of Renewable Energies and Director General of EDF Energies Nouvelles : “This funding sophisticated marks a major step in the development of the third phase of the solar park the Mohammed Bin Al Maktoum in Dubai. This project is a perfect illustration of the strategic ambition of the EDF Group in the field of renewable energy, CAPE town 2030.
The commitment of international financial institutions alongside financial institutions of the middle east, has been critical to the implementation of this important project carried out in partnership with Masdar and DEWA “.
Once completed, the photovoltaic plant of 800 MW, extending over 16 km2 will be the largest of this type in the world and will generate approximately 2.5 million MWh of electricity per year. Unlike parks, conventional solar, the third phase of this project will use panels tilted to follow the sun, maximizing its production capacity.
The plant will be commissioned in three phases. Significant progress has been made on site, with work in progress, which will allow the positioning of the photovoltaic panels. The finalization of phase A is expected in 2018, the B phase with a capacity of 300 MW in 2019, while the final phase C of 300 MW, is expected in 2020.
About Masdar
Masdar is the renewable energy undertaking of Abu Dhabi that is working to advance the development, commercialization and deployment of technologies and clean energy solutions. The company serves as the link between the current economy based on fossil fuel consumption and the energy economy of the future. Wholly owned by the development company Mubadala PJSC, the company’s strategic investments of the Abu Dhabi Government, Masdar is dedicated to the long-term vision of the united arab Emirates for the future of energy and water.
About the EDF Group
Major player of the energy transition, the EDF Group is an integrated energy company active in all businesses : generation, transmission, distribution, trading, sales of energy and energy services. Leader energy low carbon in the world, the Group has developed a production mix diversified based on nuclear energy, hydropower, new renewable energies and the thermal. The Group is involved in supplying energy and services to approximately 37.1 million customers, of which 26.2 million in France. He has completed in 2016, the consolidated turnover of 71 billion euros. EDF is a public company traded on the Paris stock Exchange.
About EDF Energies Nouvelles
EDF Energies Nouvelles is an international leader in renewable electricity, with an installed capacity of over 9.5 GW gross in the world. Its development is focused mainly on wind and solar photovoltaic. It is mostly present in Europe and North America, EDF energies nouvelles continues its development, taking a position on promising new markets and in new countries such as South Africa, Brazil, Chile, China or India. The Company, which is positioning itself strongly in the sector of offshore wind farms, is also present on other segments of the renewable energy market: marine energy, distributed energies as well as energy storage. EDF energies nouvelles ensures the development and construction of renewable energy projects as well as their operation and maintenance, for its own account and for the account of third parties. EDF Energies Nouvelles is a subsidiary of the EDF group dedicated to renewable energy development. For more information : www.edf-energies-nouvelles.com
See www.edf-energies-nouvelles.com
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