(Yicai Global) April 16 -- China’s state-owned electrical equipment giant Shanghai Electric Group Co. won a 700MW solar-thermal power project in Dubai, the United Arab Emirates, which is the largest of its kind globally.
Shanghai Electric Group signed on April 13 the contract on for the fourth phase of the Mohammad Bin Rashid Al Maktoum Solar Park, the largest concentrated solar power, CSP, investment project in the world developed by the Dubai Electricity and Water Authority, DEWA. The total area is equivalent to 1,000 football fields, capable of generating a total of 700MW power.
The Shanghai-based company will cooperate with the Riyadh-based Acwa Power in the construction of this project as both parties signed the engineering, procurement and construction, EPC, contract in Shanghai. Saeed Mohammad Al Tayer, chief executive officer of Dewa, witnessed the signing of the contract. The ceremony was attended by Ali Obaid Al Daheri, UAE Ambassador to China, Turki Al Madi, Saudi Arabia’s Ambassador to China, and other senior officials.
Acwa is the largest power plant developer backed by the government of Saudi Arabia in the Middle East, having invested and held 37 projects in 10 countries at present. The project is worth of USD3.86 billion, with Dewa, contributing 51 percent, and Acwa and China’s Silk Road Fund paying the rest, said Zheng Jianhua, chairman of Shanghai Electric.
It will be a landmark project for Shanghai Electric to transform from a traditional thermal power-based company to a new energy-oriented one, said Jianhua, adding it is also the first large-scale energy contracting project won in the Middle East region.
"Previously, the Middle East was mainly invested by the US and European companies and it did not offer many opportunities to Chinese companies, because the Middle Eastern market has pretty strict requirements and has always adopted the highest international standards," Zheng added.
The proportion of clean energy in Dubai's total power generation will reach 7 percent in 2020, 25 percent in 2030, and exceed 75 percent in 2050, according to the government's Clean Energy 2050 strategy. The CSP project Shanghai Electric signed as the main contractor will provide support for this strategy.