Abu Dhabi Set To Close $872 Million Funding Deal For 1.177 Gigawatt Solar Project

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Originally published on CleanTechies.

The Abu Dhabi Water and Electricity Authority is set to close a funding deal for the cheapest solar power project next month.

According to media reports, ADWEA will secure funding worth $872 million to set up 1,177 megawatts of solar power capacity. The project has already been allocated to a consortium of Marubeni and JinkoSolar. The project will come up in eastern Abu Dhabi over an area of 7.8 square kilometers. Final agreements for the project are expected to be signed very soon, with commissioning scheduled for 2019.

Abu Dhabi Water & Electricity Authority will arrange for 60% finance through debt (likely at very low interest rates), and Marubeni and JinkoSolar will provide for 20% of the funding each. Abi Dhabi had awarded the project at a record tariff of 2.42¢/kWh last year. The tariff was the lowest-ever quoted for a solar power project globally at that time.

Dubai Electricity & Water Authority (DEWA) also allocated 200 megawatts of capacity to ACWA Power through auction at one of the cheapest tariffs in the world. The company managed to secure the project at such cheap rates as it had access to debt funding at very low rates.

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Reprinted with permission.