JEDDAH -- Dubai Electricity and Water Authority (DEWA) announced a consortium led by Harbin Electric International and ACWA Power as the preferred bidder for developing, constructing, owning and operating Phase 1 of the 1,200MW Hassyan clean coal power plant.
The plant, located in Saih Shuaib on the border between Dubai and Abu Dhabi, also includes integrated transshipment coal and dry bulk handling facilities. DEWA will take a 51 percent equity stake in the project company, while ACWA Power and Harbin will own the remaining 49 percent.
Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, said: "This ambitious project supports the vision and directives of his highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Today's DEWA is adding another initiative to diversify Dubai's energy mix and support the Dubai integrated Energy Strategy 2030. This wide international participations reflects the trust and confidence of international investors to invest in Dubai's government."
The ultra-supercritical plant is the first coal based power plant in the GCC region and is designed to be a "best in class" plant in terms of efficiency, output and adherence to global environmental best practices. The winning bid has delivered a compelling value proposition to DEWA with a Levelized Cost of Electricity of 4.501 USD cents/kWh based on May 2015 coal prices and payable under a 25-year power purchase agreement (PPA).
Mohammad Abunayyan, Chairman of ACWA Power, said: "DEWA and the Emirate of Dubai are to be congratulated on their vision of diversifying their energy mix set out in the Dubai Integrated Energy Strategy 2030. We acknowledge and appreciate the highly professional approach demonstrated during the procurement process for Hassyan project, and the consortium is committed to a smooth financial close and meeting the target commissioning dates of the plant."
The project marks a key step in the UAE's long term energy strategy of reducing dependence on natural gas and diversifying its fuel mix in line with the objectives set out in the Dubai Integrated Energy Strategy 2030.
Guo Yu, Chairman and President of Harbin Electric International, said: "Dubai has been promoting the diversification of its power market with a clear focus on clean fuels. Hassyan clean coal project marks a major milestone in the pursuit of this strategy. While Harbin Electric International, a long-term active participator in Dubai power sector, has been working towards meeting the growing demand for power and thereby, driving industrial growth and all-round economic progress worldwide. As a major step of global strategy, Hassyan Project is a significant success for its development of the Middle East power market. Just as a Chinese saying goes, "the distance tests a horse's strength, and time will reveal a person's sincerity", through cooperation with DEWA and ACWA Power, Harbin Electric International will deliver the project, built to world class standards, and stand ready to shoulder its responsibility and contribute to this new chapter of Dubai's economic progress.
© The Saudi Gazette 2015
