Dubai Electricity and Water Authority (Dewa) has signed a power purchase agreement (PPA) and a shareholder agreement for the second phase of the Mohammed bin Rashid Al Maktoum Solar Park, said a report.

The project, which boasts a 200MW capacity from photovoltaic solar power, is being developed on the Independent Power Producer (IPP) model and will be operational by April 2017, reported the Emirati news agency Wam.

To be built on 4.5 sq km area, the project supports the green initiatives and programmes implemented by the Government of Dubai to reduce carbon emissions. It aims to cut 400,000 tonnes in carbon emissions, the report added.

Emad Madani, the consul general of Saudi Arabia in Dubai; Paddy Padmanathan, the chief executive of Acwa Power; Joaquin Garcia Rico, the chief executive of TSK; Waleed Salman, the executive vice president of Strategy and Business Development; Dr Yousef Al Akraf, executive vice president of business support and human resources at Dewa; Hussain Lootah, executive vice president of transmission; senior officials from Acwa Power, TSK, and Dewa attended the signing ceremony.

Commenting on the deal, Al Tayer said: "Signing the first agreement based on the IPP model supports the Dubai Plan 2021 to create a happy society that meets the needs of the citizens and residents of the Emirate."

"The PPA agreement supports the Dubai Integrated Energy Strategy 2030 developed by the Dubai Supreme Council of Energy to diversify Dubai’s energy mix," stated Al Tayer.

Solar energy, he said, will account for seven per cent of the total energy production by 2020 and 15 per cent by 2030.

"Dewa adds another solar plant at the Mohammed bin Rashid Al Maktoum Solar Park, which is one of the largest renewable energy projects in the region. The Solar Park will produce 3,000MW of electricity when completed in 2030," revealed Al Tayer.

"It is one of the biggest strategic new Independent Power Producer (IPP) projects in the renewable energy market worldwide," he added. - TradeArabia News Service