ACWA Power has announced that China’s Silk Road Fund will acquire a 24% equity interest in the one of the UAE’s largest solar projects.

The DEWA Concentrated Solar Power Project (DEWA CSP Project), part of the fourth phase of the Mohamed bin Rashid Solar Park, is projected to deliver electricity at a levelised tariff of $7.30 cents per kilowatt-hour 24 hours a day.

This will be a cost level that competes with fossil fuel generated electricity without subsidy for reliable and dispatchable solar energy around the clock.

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The DEWA CSP Project, which was awarded to an ACWA Power led consortium in 2017, will now be jointly invested and developed by the company, DEWA, and the Silk Road Fund.

The plant will support the Dubai Clean Energy strategy 2050 to increase the share of clean energy in Dubai to 25% by 2030, and is expected to provide an annual saving of 2.4 Million tons of CO2.

DEWA CSP Project uses a combination of a central tower and parabolic trough technologies to collect energy from the sun, store it in molten salt and produce steam as required to generate electricity during the day and throughout the night

Silk Road Fund is a market-oriented, international and professional medium to long-term development and investment institution.

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It invests in a broad spectrum of sectors under the framework of the “Belt and Road” initiative including infrastructure, energy resources, industrial capacity cooperation and financial cooperation.

Paddy Padmanathan, chief executive officer of ACWA Power, said: “The introduction of a new investor into the DEWA CSP is absolutely in line with ACWA Power’s established strategy of sharing investments with value adding partners who will in turn bolster our projects.

“We could not have found a more capable partner than Silk Road Fund to complement DEWA and us on what is the largest single renewable energy project underway in the world today.

“This co-investment also is in keeping with our investment strategy of efficiently deploying our own capital to retain a meaningful level of equity interest in each project that is sufficient to permit us to be the long-term investor with de facto control over the investment and for us to remain focused on reliably delivering electricity and desalinated water at low cost.”

Mohamed bin Rashid Solar Park is the largest single-site concentrated solar power plant in the world.