Solar energy seems to be the new go-to investment segment in the small Middle East country of United Arab Emirates.
The power and water utility servicing the iconic city of Dubai will invest $3 billion to boost the generation capacity of the country’s largest solar power plant from 1 GW to 3 GW. Saeed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority (DEWA), recently announced that the installed capacity of the Shaikh Mohammad Bin Rashid Al Maktoum Solar Park would be increased significantly.
The initial installed capacity target for the solar park was 1 GW by 2019, with an investment of $3.3 billion. DEWA now plans to increase the park’s installed capacity to 3 GW by 2030. This will be inline with the United Arab Emirates Vision 2021, which requires the country to source 24% of its energy requirement from ‘clean energy sources’ like renewable energy and nuclear energy.
The Shaikh Mohammad Bin Rashid Al Maktoum Solar Park was launched in 2013 when a 13 MW block of solar photovoltaic power system was commissioned. The second phase of the project, however, was a blockbuster affair and grabbed the world’s attention. Through a tender, Saudi project developer ACWA Power secured the rights to develop 200 MW capacity at the park at a record-low levelised tariff of 5.84¢/kWh.
The expansion announcement of the solar park comes just days after the Federal Electricity and Water Authority announced that it will set up 100 MW of solar power capacity in the northern region of the country.
Image Credit: DEWA