Government

Dubai,UAE, 26March 2015:In line with the directives of HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE to produce renewable energy locally, sustainably manage natural resources and support growth of a new promising sector, and the Green Economy for Sustainable Development initiative launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make the UAE one of the global leaders of sustainability and a hub for the export and re-export of green products and technologies, HE Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA), has signed a Power Purchase Agreement (PPA) and a Shareholder Agreement for the second phase of the Mohammed bin Rashid Al Maktoum Solar Parkwith Mohammad A. Abunayyan, Chairman of ACWA Power and representative of the ACWA Power- and TSK-ledconsortium to produce 200MW from photovoltaic solar power.

The project intends to strengthen the position of Dubai as a global hub for trade, finance, tourism, sustainability, and green economy and an international role model for achieving the highest standards in energy efficiency. Signing the agreement was attended by HE EmadMadani, Consul General of Saudi Arabia in Dubai, Paddy Padmanathan, CEO of ACWA Power, JoaqunGarca Rico, CEO of TSK, Waleed Salman, Executive Vice President of Strategy and Business Development, Dr. Yousef Al Akraf, Executive Vice President of Business Support and Human Resourcesat DEWA, Hussain Lootah, Executive Vice President of Transmission,senior officials from ACWA Power, TSK, and DEWA.

The second phase is based on theIndependent Power Producer model andwill be operational by April 2017. The project, which occupies 4.5 square kilometres, will help to achieve a reduction of 400,000 tonnes of carbon emissions, which supports the green initiatives and programmes implemented by the Government of Dubai to reduce carbon emissions. Signing the first agreementbased on theIndependent Power Producer modelsupports the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which are the roadmap that leads our ambitious initiatives and developmental projects. It also supports the Dubai Plan 2021 to create a happy society that meets the needs of the citizens and residents of the Emirate, said Al Tayer.

The PPA agreement supports the Dubai Integrated Energy Strategy 2030 developed by the Dubai Supreme Council of Energy to diversify Dubais energy mix. Solar energy will account for 7% of the total energy production by 2020 and 15% by 2030.DEWA adds another solar plant at the Mohammed bin Rashid Al Maktoum Solar Park, which is one of the largest renewable energy projects in the region. The Solar Park will produce 3,000MW of electricity when completed in 2030. It is one of the biggest strategic new Independent Power Producer (IPP) projects in the renewable energy market worldwide, added Al Tayer. The Mohammed bin Rashid Al Maktoum Solar Park is creating a shining opportunity for Dubai on so many levels. DEWA is aggressively working to bring solar power to the citizens and residents of Dubai by working with the most capable and efficient stakeholders, to ensure a brighter future for us all. The signing of the PPA with the ACWA Power and TSK consortium is yet another step forward in our efforts to create a brighter future for Dubai, concluded Al Tayer

This project further supports the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote renewable energy sources. Dubai has a clear strategy to diversify its energy mix with renewable energy with specifically solar, playing a key role. This when combined with a politically stable environment and the availability of low-cost finance means that solar PV technology becomes commercially cost-effective, said Abunayyan. We have established ACWA Power as the leading renewable energy developer in the region, and this project demonstrates our commitment of delivering reliable and sustainable electricity at the lowest kWh tariff. ACWA Power will finance, build and operate 200 MW photovoltaic plant at the Mohammed bin Rashid Al Maktoum Solar Park and will receive a 25-year PPA starting in 2017. This plant also sets a worldwide milestone for utility-scale solar power generation with a landmark level tariff of 5.84 USD cents/kWh, he added.

The ACWA Power led consortium was awarded preferred-bidder status on 15 January 2015 based on a level tariff, which has set a global benchmark for utility-scale solar photovoltaic power plants. The signing of the PPA within 70 days of the award is a testament to the commitment shown towards the project by both DEWA and the ACWA Power - and TSK-led consortium.

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