Saudi Arabia’s ACWA Power and its partners have secured a US$344 million loan for a 200-megawatt solar project in Dubai.
The 27-year loan forms the equity portion of the project, amounting to about 86% of the cost of the solar farm. The financiers include First Gulf Bank from Abu Dhabi and Saudi Arabia’s National Commercial Bank and Samba Financial Group.
The project is being developed together with Spain’s TSK. The developers submitted a winning bid of US 5.84 cents per kilowatt-hour in a tender. The solar farm is the first and largest in the Middle East. It will produce enough electricity to power 30,000 homes annually.
The project is the second phase of the development located on a 40 square kilometer site to the south-east of Dubai and further enhances the Green Economy for Sustainable Development initiative of His Highness Sheikh Mohammed bin Rashid Al Maktoum. Subsequent expansion will see the facility grow to produce 1,000 MW of electricity.