The conglomerate from India, Larsen & Toubro, has been awarded the Dubai Solar Park Contract to construct a 1.8 gigawatt solar photovoltaic project which is part of Mohammed bin Rashid Al Maktoum Solar Park. The renewables arm of the Indian conglomerate was selected as the engineering, procurement, and construction (EPC) contractor of the project.
The scope of work on the mega renewables project entails constructing of the solar photovoltaic project, linking of two insulated substations of gas, conducting the installation works of high voltage underground cables and installing distribution networks of medium voltage power.
Cost of the Dubai Solar Park Contract
However, the value of the contract still remains undisclosed by Larsen & Toubro. However, the statement regarding the contract specified the project as “mega” with its value estimated at INR100 billion to INR150 billion which is equivalent to $1.2 billion to $1.8 billion. This planned solar project is set to be the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park and will become operational in three phases.
The state-owned renewable power company of UAE, Masdar, signed a power purchase agreement (PPA) with the Dubai Electricity and Water Authority (DEWA) to come up with the solar project. 60% of stake in the project will be retained by DEWA and also will be the primary off-taker of all the power that will be produced from the solar plant.
Capacity of the Project
The mega solar park has set plans of attaining a production capacity of 5GW by the year 2030. Upon completion, the solar park is expected to save more than 6.5 million tonnes of carbon emissions in a year. This solar park is very crucial component in attaining the Dubai Clean Energy Strategy 2050 and also the strategic initiative for DEWA that entails Net Zero emissions by the year 2050.
DEWA kicked off the procurement process of the sixth phase of the project by issuing out an Expression of Interest (EOI) on 14 September the year 2022. This was then followed by the Request for Qualification (RFQ) to the interested 23 bidders of the project on 15 November 2022. After a thorough qualification process, a total of 7 prequalified bidders were issued a Request for Proposal (RFP) on 30 December 2022. DEWA began evaluating the bids they had received and aimed to select the preferred bidder of the project in the third quarter of the year 2023.
Size of the Project
Spread over an area of 20 square kilometers the Mohammed bin Rashid Al Maktoum Solar Park is the largest single site solar farm in the whole world in terms of capacity. The fifth phase of the solar project was brought online in the beginning of the year 2023 which brought its overall capacity up to 2.4 gigawatts.
“We are very thankful to both Masdar and DEWA who have been our customers for a very long time for their support in this mega solar project. We will be committed to bringing at the table our innovative renewable energy solutions and project management team to accelerate the energy transition in the region which is seeking economic growth and development combined with practices that are sustainable,” stated T Madhava Das who is the Director and Senior Executive Vice President of utilities at Larsen & Toubro.