KAHRAMAA and Siraj Energy Sign Agreements for Al-Kharsaah Solar PV Power Plant

CHANGCHUN, China, January.
21, 2020 /PVTIME/ -- Under the
patronage and in the presence of His Excellency Sheikh Abdullah bin Nasser bin
Khalifa Al-Thani, the Prime Minister and Minister of Interior, and in the
presence of His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for
Energy Affairs and the President and CEO of Qatar Petroleum, a number of
agreements were signed today to build Al-Kharsaah Large-Scale Solar PV Power
Plant, and to establish the project company as well as for power purchase from
the plant.

Pursuant to the agreements, Qatar General Electricity & Water
Corporation “KAHRAMAA” in its capacity as the Transmission and Distribution
System Owner and Operator (TDSOO) in the State of Qatar will buy electricity
from Siraj1, which is owned by Siraj Energy (60%) and a consortium of Japan’s
Marubeni Corporation and France’s Total Solar International (40%). The project
follows a Build, Own, Operate, and Transfer (BOOT) model and has a term of 25
years, after which the ownership will be transferred to KAHRAMAA.

The agreements were signed by H.E. Eng. Essa bin Hilal Al-Kuwari the
President of KAHRAMAA, Mr. Fahad bin Hamad Al-Mohannadi, the General Manager
and Managing Director of Qatar Electricity and Water Company and member of the
Board of Directors of Siraj Energy, Mr. Masumi Kakinoki, the President and CEO
of Marubeni Corporation, and Mr. Patrick Pouyanné, the Chairman and Chief Executive
Officer of Total. The ceremony was attended by dignitaries, experts, diplomats,
and senior officials of the signing parties.

With an estimated total cost of Q.R. 1.7 billion, the Large-Scale Solar PV
Power Plant will be constructed at Al-Kharsaah area west of Doha on a 10 square
kilometer land plot.

On this occasion, H.E. Mr. Saad Sherida Al-Kaabi, the Minister of State
for Energy Affairs, the President and CEO of Qatar Petroleum said, “This
project comes in implementation of Qatar’s policy to diversify the production
of energy and to increase reliance on and the efficiency of renewable energy,
which is a basic cornerstone for a sustainable future for the generations to
come.”

H.E. Minister Al-Kaabi said, “This plant is the first of its kind in the State
of Qatar with a total capacity of 800 MW which equals about 10% of Qatar’s
current peak electricity demand. The project is also part of our efforts to
conserve energy and protect the environment in a manner that strikes a balance
between the needs of the current generation and that of the future generations
as stipulated by Qatar National Vision 2030.”

H.E. Minister Al-Kaabi added, “This project also comes as part of the
energy sector’s contributions towards Qatar’s commitment to host the FIFA 2022
World Cup. It will generate about 8 times the size of the solar energy Qatar
had pledged to build, helping the organization of a carbon neutral event.”

KAHRAMAA President H.E. Eng. Essa bin Hilal Al-Kuwari said, “Monitoring
the recent developments in solar panel manufacturing including their improving
efficiency and decreasing costs, and considering the natural gas quantities
that can potentially be saved and the associated emissions reductions, KAHRAMAA
has decided to go forward with a utility-scale solar power plant.”

H.E. Al-Kuwari added, “KAHRAMAA requested bids, attracted bidders, and
completed the prequalification of 16 leading international Solar Power
Developers, evaluated the technical and commercial offers, and succeeded in
obtaining a competitive unit price for electricity produced from the Solar PV
Power Plant, which price is currently the lowest in the world for such a
project.”

Mr. Fahad bin Hamad Al-Mohannadi, the General Manager and Managing
Director of Qatar Electricity and Water Company (QEWC) and member of the Board
of Directors of Siraj Energy stated, “Al-Kharsaah Solar PV Power Plant is
considered an achievement at the regional level. The project will include
application of the latest solutions and innovations in solar energy technology,
including the use of dual panels, utilizing state-of-the-art automated systems
to track the sun and the use of robots in the continuous cleaning of solar
panels to ensure the continuity of production efficiency and reduce plant operating
costs. I am proud of this achievement in the field of renewable energy, which
comes in the context of the Qatar Electricity and Water Company’s strive to be
a leader in everything it is involved in.”

Mr. Masumi Kakinoki, the President and CEO of Marubeni Corporation said,
“First, I would like to express my sincere gratitude to Kahramaa for selecting
Marubeni to lead Al-Kharsaah Solar PV Power Plant Project. As part of the
promotion of sustainable development, and the fight against climate change, Marubeni
aims to help realize a decarbonized society. As such, we are targeting an
approximately 20% increase in the ratio of power generated by renewable energy
sources in our net power supply by 2023. We will work hard to make this project
successful, thus contributing to the further development of Qatar, and the
achievement of the Qatar National Vision 2030.”

Mr. Patrick Pouyanné, the Chairman and Chief Executive Officer of Total
said, “We are extremely proud to develop Al-Kharsaah Solar PV Power Plant alongside
Marubeni and Siraj Energy. Total is committed to better energy that is safer,
more affordable and cleaner and has the ambition to expand its footprint in
renewables to 25 GW by 2025.”

Mr. Pouyanné added, “We support Qatar’s drive to develop renewable energy
in line with Qatar National Vision 2030 and we will bring the best of our
expertise and technical know-how to ensure the success of the project."

The total capacity of Al-Kharsaah Solar PV Power Plant is 800 MW. During
the first phase of the project, 350 MW will be connected to the grid by the
first quarter of 2021 while the commercial commissioning of the total capacity
is expected to start in the first quarter of 2022 in line with strategic
objective set in Qatar National Development Strategy 2018 – 2022.

With this project, KAHRAMAA managed to avail competitive power generation
prices, save significant natural gas quantities used in traditional power
generation, reduce carbon and other emissions and preserve the surrounding
environment. During the project’s life time, the plant will contribute to
reducing 26 million tons of CO2, which aligns with the objectives of the
national program for conservation and energy efficiency “Tarsheed” to reduce 1
million tons of carbon emissions annually until 2022.

KAHRAMAA had announced Requests for Bids (RFB) to build Qatar’s first
large-scale solar Photovoltaic (PV) power plant in the first half of
2019. 16 international Solar Power Developers were prequalified by
KAHRAMAA. 5 competitive bids were received, which is a high number of bids
considering the nature of this project, and which reflects the strength and
attractiveness of Qatar’s electricity market and the global interest to invest
in the country. KAHRAMAA was supported in this project by a consortium of consultants,
with EY as lead and financial advisor, DLA Piper as legal advisor, and Pöyry
Switzerland Ltd as technical advisor.

SOURCE: Qatar Petroleum

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