Dubai Electricity and Water Authority has completed a US$2.70bn refinancing of Noor Energy 1, the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park.
The 950MW project combines concentrated solar power, parabolic-trough and photovoltaic technologies with thermal-energy storage of up to 15 hours. The configuration allows the plant to provide dispatchable renewable electricity during daytime and night-time periods.
DEWA and a consortium led by ACWA Power established Noor Energy 1 to design, build and operate the project. The refinancing was completed ahead of its target date and is intended to reduce financing costs and strengthen the project’s long-term capital structure.
The participating lenders, pricing, tenor and allocation of the refinanced facilities were not disclosed in the announcement. The transaction nevertheless represents a major project-finance milestone for an operating Gulf renewable-energy asset.
For banks and advisers, the refinancing provides a significant regional benchmark for operational solar and storage assets. It may also inform future financing structures for large hybrid renewable projects with dispatchable generation characteristics.
Image: Mohammed bin Rashid Al Maktoum Solar Park. Photo by Anoop S, licensed under CC BY 2.0 via Wikimedia Commons.
Sources: Dubai Electricity and Water Authority; Emirates News Agency.