The Dubai Electricity and Water Authority (DEWA) has awarded the 700MW, $3.86 billion fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park to a consortium comprising of Saudi Arabia’s ACWA Power and China’s Shanghai Electric, it has been announced.

Based on the Independent Power Producer (IPP) model, this is the largest single-site Concentrated Solar Power (CSP) project in the world. The consortium bid the lowest Levelised Cost of Electricity (LCOE) of USD 7.3 cents per kilowatt hour (kW/h), a statement from DEWA said.

The project will also have the world’s tallest solar tower, measuring 260 metres. The power purchase agreement and the financial close are due to be finished shortly, and the project will be commissioned in stages, starting from Q4 of 2020.

“Awarding this strategic project supports the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote sustainability, and make Dubai a global centre for clean energy and a green economy. This vision is supported by the Dubai Clean Energy Strategy 2050 to increase the share of clean energy in Dubai’s total power output to 7% by 2020, 25% by 2030, and 75% by 2050,” said Saeed Mohammed Al Tayer, MD and CEO of DEWA.

“Our focus on renewable energy generation has led to a drop-in prices worldwide and has lowered the price of solar power bids in Europe and the Middle East. This was evident today when we received the lowest CSP project cost in the world,” he added.

The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world, based on the IPP model. It will generate 1,000MW by 2020 and 5,000MW by 2030. The 13MW photovoltaic first phase became operational in 2013.

The 200MW photovoltaic second phase of the solar park was launched in March 2017. The 800MW photovoltaic third phase will be operational by 2020, and the first stage of the 700MW CSP fourth phase will be commissioned in Q4 of 2020.