DEWA signs PPA & SHA with ACWA Power & Harbin Electric consortium for Hassyan clean coal power project
HE Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA), signed a Power Purchase Agreement (PPA) and a Shareholders Agreement (SHA) with HE Mohammad Abdullah Abunayyan, Chairman of ACWA Power and agent of the ACWA Power and Harbin Electric consortium. The agreement intends to implement the project to produce 2,400 megawatts (MW) of electrical power using clean coal. The Hassyan clean coal power job uses the Independent Power Producer (IPP) procurement model on a Build Own Operate (BOO) basis. This follows the sending out of a letter of intent to ACWA Power and Harbin Electric consortium on 19 January 2016 in which DEWA selected the best bidder. The signing was gone to by DEWA's Executive Vice Presidents, and senior officials from both ACWA Power and Harbin Electric.
The Project will be supported by a 25-year PPA with DEWA and the bidder has been required to put in place a protected shipment of coal to the task over the 25-year life of the PPA. The very first 2,400 MW stage of the task consists of 4 600MW systems. The 2nd 1,200 MW stage of the project includes two 600MW devices with ultra-supercritical innovation. The job has a scheduled Commercial Operation Date of March 2023.
"DEWA's Hassyan clean coal power project reveals our commitment to achieving the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to diversify the energy mix. It likewise shows DEWA's commitment to its objectives of energy diversity and sustainability of resources, and attaining the Dubai Clean Energy Strategy 2050, which focuses on producing electricity from clean coal as part of Dubai's energy mix.," stated HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.
"DEWA works to attain the 5th pillar of the Dubai Clean Energy Strategy 2050, which focuses on producing an environmentally-friendly energy mix, with 25% coming from solar power, 7% from nuclear power, 7% from clean coal, and 61% from gas by 2030," added Al Tayer.
"Signing this arrangement exhibits the success of Public Private Partnerships and the importance of including the economic sector in improving efficiency, performance and cost reduction, in addition to optimising resources, transferring the technology, and training and establishing local abilities in the energy industry. Signing a PPA with DEWA brings us closer to the conclusion of the monetary close of the project to begin its building and construction as per the stated timeframe," stated Abunayyan.
The Hassyan clean-coal power plan acquired the interest of many international organisations. The large international participation in this field shows the trust and interest of international investors to purchase large projects supported by the Government of Dubai.
