ACWA Power, a Saudi developer, owner, and operator of power generation and water desalination plants, has announced that China’s Silk Road Fund will acquire a 24.01% equity interest in the 700MW DEWA Concentrated Solar Power ("CSP") project in the United Arab Emirates.
The project will be jointly invested and developed by Dubai Electricity and Water Authority (DEWA), Silk Road Fund, and ACWA Power.
The DEWA CSP project, which was awarded to an ACWA Power led consortium in 2017, is the 4th phase of the Mohamed bin Rashid Solar Park, the largest single-site concentrated solar power plant in the world. The project uses a combination of a central tower and parabolic trough technologies to collect energy from the sun, store it in molten salt and produce steam as required to generate electricity during the day and throughout the night.
It is projected to deliver electricity at a levelised tariff of US$7.30 cents per kilowatt-hour 24 hours a day; a cost level that competes with fossil fuel generated electricity without subsidy for reliable and dispatchable solar energy around the clock. The plant will support the Dubai Clean Energy strategy 2050 to increase the share of clean energy in Dubai to 25% by 2030, and is expected to provide anannual saving of 2.4 Million tons of CO2.
"This co-investment also is in keeping with our investment strategy of efficiently deploying our own capital to retain a meaningful level of equity interest in each project that is sufficient to permit us to be the long-term investor with de facto control over the investment and for us to remain focused on reliably delivering electricity and desalinated water at low cost," said Paddy Padmanathan, CEO of ACWA Power.
Silk Road Fund is a market-oriented, international and professional medium to long-term development and investment institution. It invests in a broad spectrum of sectors under the framework of the "Belt and Road" initiative including infrastructure, energy resources, industrial capacity cooperation and financial cooperation.