Dubai Electricity and Water Authority has confirmed that the ACWA Power and Harbin Electric consortium has begun construction of the 2400 MW Hassyan clean coal power plant in Dubai, based on the Independent Power Producer procurement model.
The 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 June, DEWA and the consortium signed a power purchase agreement (PPA), in addition to a shareholders’ agreement (SHA) to implement the 2400 MW project to produce electricity using clean coal, based on the IPP model.
The project will be supported by a 25-year PPA with DEWA and the bidder has been required to put in place a secure delivery of coal to the project over the 25-year life of the PPA. Hassyan clean coal power project will have a total coal-fired capacity of 2400 MW. The power plant will be fully operational by 2023.
DEWA has instructed that the project meets fluegas emission limits more stringently than emission limits in the Industrial Emissions Directive (IED) of the European Union and in the International Finance Corporation (IFC) Guidelines. All the necessary environmental studies have been carried out.
“DEWA selected the ACWA Power and Harbin Electric consortium as the Preferred Bidder for the 2400 MW Hassyan clean coal power project. The consortium bid a levelised cost of electricity (LCOE) of USD4.241 cents per kilowatt (kW), based on May 2015 coal prices,” said HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.