An engineering, procurement, and construction (EPC) contract has been signed for the 700 mega-watt (MW) fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park (MBR Solar Park).

Saudi Arabia's ACWA Power and China's Shaghai Electric, Phase 4's main contractor, signed the deal in China.

MBR Solar Park is the largest CSP investment in the world, based on the independent power producer (IPP) model.

A consortium comprising ACWA Power and the Silk Road Fund is co-developing the project with Dubai Electricity and Water Authority (DEWA).

READ: Ground broken on $3.8bn Phase 4 of Dubai's MBR Solar Park

Phase 4 will feature the world’s tallest solar tower, measuring 260m, and have the world’s largest thermal energy storage capacity.

An investment of $3.9bn (AED14.2bn) is being made for the project, which has achieved the world's lowest levelised cost of electricity (LCOE), at $0.073 per kilo-watt hour (kW/h) for concentrated solar power (CSP). 

Two technologies will be used to generate clean energy for the project – a 600MW parabolic basin complex, and the 100MW solar tower, which will span 43km2.

Upon completion, Phase 4 will deliver clean energy to more than 270,000 Dubai residences, reducing carbon emissions by 1.4 million tonnes per year.

With a planned capacity of 5,000MW by 2030, and a total investment of $13.6bn (AED50bn), MBR Solar Park is part of Dubai's efforts to diversify into clean energy.

HE Saeed Mohammed Al Tayer, managing director and chief executive officer of DEWA, was present for the signing ceremony of Phase 4, Dubai Media Office reported.

Al Tayer said the development supported "the directives of HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE; HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; and HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to achieve the objectives of the UAE Centennial 2071, the UAE Vision 2021, and the Dubai Plan 2021".

Commenting on the agreement, he added: "Last month, HH Sheikh Mohammed bin Rashid Al Maktoum gave the go-ahead to commence the fourth phase of the MBR Solar Park, the largest single-site solar park in the world, based on the IPP model.

"This marks considerable progress in our efforts to achieve the objective of the Dubai Clean Energy Strategy 2050 to provide 75% of Dubai's total power output from clean sources by 2050."