Dubai Electricity & Water Authority (DEWA) and ACWA Power, in collaboration with Shanghai Electric Generation, will undertake the 700MW concentrated solar power (CSP) project. The engineering, procurement and construction (EPC) agreement with Shanghai Electric was signed at a ceremony in China. The EPC agreement pushes forward the development of the project, which represents an AED14.2bn investment.

The project is 4th phase of the Mohamed bin Rashid Solar Park. The financing package, which involves a US$1.5bn loan from Industrial & Commercial Bank of China (ICBC), is now being arranged. It is seen as a flagship project for ICBC in supporting the three major Chinese power equipment suppliers, namely Shanghai Electric, Dongfang Electric and Harbin Electric, to enter the overseas power market.

The project, which comes with a low tariff of US$0.073/kW/h, will feature a combination of a tower and parabolic troughs, which will collect heat and store it in molten salt to supply electricity on demand during the day and through the night. The CSP tower to be built at the site will the world's tallest of its kind.

"By signing this agreement, we have taken a significant step towards starting the engineering and construction works. We are committed to supporting Dubai's Clean Energy Strategy through this project, which extends our portfolio in the energy sector in Dubai," said ACWA Power chairman Mohammad Abunayyan.