The Dubai Electricity and Water Authority (Dewa) has announced its intention to build the world's largest Concentrated Solar Power (CSP) project, that will generate 1,000MW of energy by 2030.
Speaking at a Press conference on Thursday morning, Saeed Mohammed Al Tayer, MD and CEO of Dewa, said that the project would be built using the Independent Power Producer (IPP) model, but noted that it was difficult to disclose the exact cost of the project.
Dewa has already released a tender for leading international CSP consultants to submit their proposals for advisory services for the 200MW first project of the CSP plant, which will be operational by April 2021. Al Tayer revealed that the tender for the consultant will most likely be awarded in about three months, with the tender for the main developer following shortly after. The winner will be decided on the lowest bid, Al Tayer said, adding that while current rates for CSP stand at around 15 cents per kilowatt hour, Dewa was aiming for bids of around eight cents.
Dewa is all set to generate 1,000MW using this technology by 2030 in the Mohammed bin Rashid Al Maktoum Solar Park, which is the largest single-site solar park in the world that uses the IPP model.
The 13MW first phase became operational in October 2013, and the 200MW second phase will be operational in April 2017. Once completed, the project will achieve a reduction of approximately 6.5 million tonnes of carbon emissions annually.
"An important advantage of CSP is that thermal heat, which is used to produce electricity, can be stored easily, which makes it possible to produce electricity after sunset. The plant will have several thousand heliostats located around a tower that receives the radiation reflected by the heliostats which follow the sun's movement. The heat-transfer fluid is then used to power the steam turbine to generate electricity," explained Al Tayer.
The project will use thermal storage for 8-12 hours daily, taking into account technical and economic factors. This will contribute to improving the effectiveness and efficiency of production and meet the requirements of the electricity grid. This in turn, provides sustainable world-class energy supply, in terms of availability and reliability, and supports the sustainable development of the emirate.
The overall project will be developed in a build and operate model for a duration of 25 years, where Dewa will retain 60 per cent. Al Tayer also revealed that the overall 5,000MW project within the solar park, which includes PV and CSP, would cost Dh50 billion; and would make Dubai the city with the lowest carbon footprint in the world by 2050.
"One of the successes that Dewa has achieved in this area, is receiving a globally-competitive price of $2.99 cents per kilowatt hour for the Mohammed bin Rashid Al Maktoum Solar Park's 800MW third phase. This demonstrates the trust that international investors have both in Dubai and in Dewa, and is a testament of our transparency in all our projects, in addition to Dewa's strong financial position," noted Al Tayer. "Today's announcement of the first CSP project will be followed by other major projects to diversify Dubai's energy mix."
