A consortium comprising ACWA Power and Harbin Electric International has been chosen as the preferred bidder to develop, construct, own and operate Phase 1 of the 1,200MW Hassyan clean coal power plant
Located on the border between Dubai and Abu Dhabi, the plant is the GCC?s first coal-based power plant and is designed to be very efficient and environment-friendly. The plant will include transshipment coal and dry bulk handling facilities.
DEWA CEO Saeed Mohammed Al Tayer said, ?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 Dubai Electricity and Water Authority (DEWA) will hold a 51 per cent equity stake in the company, while ACWA and Harbin Electric will hold the remaining 49 per cent. The winning bid has delivered a compelling value proposition to DEWA with a levelised cost of electricity of 4.501 cents/kWh based on May 2015 coal prices and payable under a 25-year power purchase agreement (PPA).
Harbin Electric International chairman Guo Yu said that Dubai has always promoted diversified power solutions with a focus on clean fuels. The Hassyan coal project can be considered a milestone in this strategy, he added.
