Abu Dhabi Power Corporation Announces Lowest Tariff for Solar Power in the World

Record-low tariff set at AED 4.97 fils/kWh (USD 1.35 cents/kWh)

Largest solar power plant in the world to generate 2 GW of power, equivalent to powering approximately 160,000 households

Project will reduce Abu Dhabi’s CO2 emissions by more than 2.4
million metric tonnes per year, equivalent to removing approximately
470,000 cars

PVTIME - Abu Dhabi Power Corporation (ADPower) announced, today, the lowest tariff for solar power in the world. ADPower’s subsidiary, Emirates Water and Electricity Company (EWEC), delivered a virtual read-out of five consortia’s technical and commercial bids for the 2 GW Solar Photovoltaic (PV) Independent Power Producer (IPP) project – to be located in Abu Dhabi. The project has received, from the first-ranked bidder, the world’s most cost-competitive tariff for solar PV energy, set at AED 4.97 fils/kWh (USD 1.35 cents/kWh) on a Levelized Electricity Cost (LEC) basis, which is approximately 44% lower than tariff set three years ago on the ‘Noor Abu Dhabi’ project – Abu Dhabi’s first large-scale solar PV project and a world record tariff-setter at the time.

The Al Dhafra Solar PV projectwill be almost double the size of the approximately 1.2 GW Noor Abu Dhabi solar plant (pictured). Source: ADPower

The Al Dhafra Solar PV project will have the capacity to
power approximately 160,000 households across the UAE with electricity. It will
be almost double the size of the approximately 1.2 GW Noor Abu Dhabi solar
plant – amongst the largest operational solar PV plants in the world – which
commenced commercial operations in April 2019.

Once operational, the Al Dhafra Solar PV project will lift
Abu Dhabi’s total solar power generation capacity to approximately 3.2 GW. This
will reduce the Emirate’s CO2 emissions by more than 3.6 million metric tons
per year – equal to removing around 720,000 cars from the road – improving
efficiency and driving sustainability, while catering for the growth in demand
across the UAE.

Jasim Husain Thabet, Chief Executive Officer and Managing
Director of ADPower, said: “Abu Dhabi has illustrated a remarkable step-change
in the way the Emirate generates power through an enhanced focus on
sustainability and renewable technologies. The water and electricity sector
intends to play a critical role in meeting the target of having 50% of Abu
Dhabi’s energy needs served from renewable and clean energy sources by 2030, as
well as the reduction of the generation system’s average carbon intensity by
more than 70%, compared to 2015. The Al Dhafra Solar PV project will play a
critical role in delivering these ambitions, and we look forward to working
with our partners to deliver this landmark project.”

Othman Al Ali, Chief Executive Officer of EWEC, said: “The
Al Dhafra Solar PV project represents a major milestone in EWEC’s ambitious and
strategic shift towards clean power generation in the Emirate. The
cost-competitiveness of the bids received is truly remarkable – positioning Abu
Dhabi as one of the world’s most attractive markets for solar energy
development and reinforcing the economic benefits now achievable through
renewable technologies. Securing such competitive tariffs on our energy
projects is fundamental to support economic growth across all sectors in the
UAE. We look forward to signing the Power Purchase Agreement and to delivering
the project in Q2 2022.”

The Al Dhafra Solar PV project will include the financing,
construction, operation and maintenance of the solar plant, including
installation of solar PV modules, inverters, connection to the transmission
network and associated facilities.

In July 2019, EWEC received 48 expressions of interest from
potential bidders in respect of the Al Dhafra Solar PV project, out of which 24
bidders were qualified to bid for the project after submitting Statements of
Qualification. In November 2019, five bids were received for both the Al Dhafra
Solar PV project.