China’s Silk Road Fund has acquire a 24.01% equity interest in the 700MW DEWA concentrated solar power (CSP) project in Dubai.
The DEWA CSP project, which was awarded to an ACWA Power led consortium in 2017, is the 4th phase of the Mohamed bin Rashid Solar Park, the largest single-site concentrated solar power plant in the world.
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The project uses a state-of-the-art combination of a central tower and parabolic trough technologies to collect energy from the sun, store it in molten salt and produce steam as required to generate electricity during the day and throughout the night.
The project is projected to deliver electricity at a tariff of US $7.30 cents per kilowatt-hour 24 hours a day – a cost level that competes with fossil fuel generated electricity without subsidy for reliable and dispatchable solar energy around the clock.
The agreement will see the project jointly invested and developed by DEWA, Silk Road Fund, and ACWA Power.
“The introduction of a new investor into the DEWA CSP is absolutely in line with ACWA Power’s established strategy of sharing investments with value adding partners who will in turn bolster our projects,” said Paddy Padmanathan, CEO of ACWA Power.
“This co-investment also is in keeping with our investment strategy of efficiently deploying our own capital to retain a meaningful level of equity interest in each project that is sufficient to permit us to be the long-term investor with de facto control over the investment and for us to remain focused on reliably delivering electricity and desalinated water at low cost.”