ACWA Power, a prominent developer, owner and operator of power generation and water desalination plants — has announced that China’s famed Silk Road Fund will be acquiring a 24.01% equity interest in its 700 MW DEWA Concentrated Solar Power (CSP) project, based in the UAE.
The DEWA CSP project is the fourth phase of the Mohamed bin Rashid Solar Park – which stands as the largest single-site of concentrated solar power plant in the entire world. The project is notable for using an advanced combination of a central tower, and parabolic trough technologies to collect and store energy from the sun. Which is then stored in molten salt and used to produce steam to generate electricity day and night.
The project is projected to deliver electricity at a levelised tariff of US $7.30 cents per kilowatt-hour 24 hours a day. This cost level will make it competitive with fossil fuel generated electricity, without the subsidy for reliable, round-the-clock solar energy. The plant suports the Dubai Clean Energy Strategy 2050, in aid of increasing the share of clean energy in Dubai to 25% by 2030, and saving 2.4 Million tons of CO2 annually.
Paddy Padmanathan, Chief Executive Officer of ACWA Power emphasised the importance of a new investor into ACWA Power’s established strategy of seeking out value-adding partners for investment. “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.” he stated. Rajit Nanda, Chief Investment Officer of ACWA Power also said: “I am delighted that we have reached an agreement to introduce an investor of the quality and international reputation of the Silk Road Fund.”
Silk Road Fund is a market-oriented, international,medium to long-term development and investment institution. It lies under the “Belt and Road” initiative and invests in a large portfolio of sectors including: infrastructure, energy resources, industrial capacity and financial cooperation.