Driving about 65 kilometers south from downtown Dubai, in the vast desert hinterland, a 262 meter high solar collector tower rises from the ground. About 70000 solar mirrors radiate around the tower, gathering sunlight from all directions onto the collector at the top of the tower, forming dazzling beams of light. This is the location of the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park project, and it is also a landmark project for China and the United Arab Emirates to jointly build the Green Silk Road. On September 27th, Dubai Electricity and Water Authority announced that the Noor Energy 1 solar thermal photovoltaic integrated power plant has successfully completed a $2.7 billion debt refinancing, with the landing time earlier than the original target.

Standing tall towers in the heart of the desert

Noor Energy 1 covers an area of approximately 44 square kilometers, equivalent to the size of over 6000 standard football fields. The project is jointly invested by Dubai Power and Water Authority, China the Silk Road Fund and Saudi International Power and Water Group. The three parties hold 51%, 24% and 25% shares respectively. ACWA Power and Shanghai Electric are the general contractors. In 2018, Shanghai Electric was contracted as an EPC general contractor. By February 2024, the project will achieve full capacity grid connected power generation, creating approximately 50000 job opportunities for the local area during the construction period. Developed under the independent power generation model, the project has a total investment of approximately 15.78 billion dirhams and has signed a 35 year power purchase agreement.

Photothermal photovoltaic simultaneous force

This power station has a total installed capacity of 950MW, incorporating three sets of solar technologies into the same project: 600MW trough solar thermal, 100MW tower solar thermal, and 250MW photovoltaic. Among them, the total solar thermal part is 700MW, equipped with one 100MW tower type molten salt thermal storage unit and three 200MW trough type molten salt thermal storage units, and equipped with a maximum of 15 hours of thermal storage system. It is the world's largest single unit concentrated solar thermal clean energy project. Compared to ordinary photovoltaics that shut down at night and fluctuate in output with sunlight, thermal storage solar thermal energy can store the heat during the day and achieve continuous and stable output across day and night. At present, the project has reached the world-class operation and maintenance availability standard, providing green electricity to 320000 local residents and reducing annual carbon dioxide emissions by 1.6 million tons.

From construction to operation

Refinancing is not about borrowing money for new expansion, but about replacing high cost debt left over from the construction period with cheaper and longer-term funds. After the completion and operation of the power station, risks such as project delays and cost overruns have been released. Stable cash flow and long-term power purchase agreements have made it a mature infrastructure asset, and financing conditions have improved accordingly. The CEO of Dubai Electricity and Water Authority, Said Mohammed Tayal, stated that the successful refinancing has landed in an industry environment with tight market liquidity and fluctuating interest rates, effectively optimizing the overall financing cost of the project. It will bring considerable economic benefits to the operation of the power station throughout its lifecycle and significantly enhance the commercial value of the project.keywords:New energy information network

For the Chinese companies involved, the inspiration of this transaction goes beyond just a power station. From the capital investment of the the Silk Road Fund, to the EPC of Shanghai Electric, to the asset repricing after the project enters the operation period, a complete chain has run through. According to the plan, the total installed capacity of the solar park will reach 5000MW by 2030, and the seventh phase also plans to add about 2000MW of photovoltaic and 1400MW of battery energy storage. The competition in the Middle East's new energy market is shifting from who builds power plants to who can obtain lower cost long-term funding and operate assets for longer and better.Editor/Yang Meiling