Dewa reaches financial closure for 2,400MW power project

Dubai Electricity and Water Authority (Dewa) has reached financing deal for the 2,400MW Hassyan clean coal power project, with a consortium led by Acwa Power, according to TradeArabia News Service.

The project which will cost $3.4 billion will be run by Hassyan Energy Company, a joint-venture between Dewa (51 per cent) and a consortium comprising Acwa Power, Harbin Electric, and the Silk Road Fund (49 per cent).

The project is funded using the Independent Power Producer (IPP) procurement model on a Build Own Operate (BOO) basis.

It is backed by a 25-year Power Purchase Agreement (PPA) with Dewa and Shareholders Agreement (SHA), and other project agreements with the consortium led by Acwa Power.

Four units

The project comprises four 600MW net power units, which will be operational in March 2020, March 2021, March 2022, and March 2023 respectively.

The Hassyan clean coal power plant will be the first-of-its-kind in the region and is fully-compliant with set international standards, adopting the use of ultra-supercritical technology. In this regard, all the necessary environmental studies have been carried out.

According to Saeed Mohammed Al Tayer, Managing Director & CEO of Dewa, the Hassyan clean coal power project will enable the emirate’s target of “diversifying the energy mix”.

“It also reflects Dewa’s commitment to achieving the Dubai Clean Energy Strategy 2050, which focuses on producing electricity from clean coal as part of Dubai's energy mix. Dewa works to achieve the fifth pillar of the Dubai Clean Energy Strategy 2050, which focuses on creating an environmentally-friendly energy mix, with 25 per cent from solar energy, 7 per cent from nuclear power, 7 per cent from clean coal, and 61 per cent from gas by 2030,” he said.