The Dubai Electricity and Water Authority (DEWA) has granted a contract to the U.S.-based First Solar to build the first phase of the $3.3 billion Mohammad Bin Rashid Al-Maktoum Solar Park in the city, a local business website reported on Friday.
The agreement says that First Solar will provide engineering, procurement and construction services for the 13 megawatt solar plant, Arabian Business said.
The solar park project is planned to diversify the energy sector in Dubai and to increase solar power to 1 percent by 2020 and 5 percent by 2030. First Solar said that the park will cover 48 square kilometers and is expected to produce 1,000MW of clean energy.
“The PV plant installation is a key step in the implementation of the energy diversification strategy adopted by the Supreme Council of Energy, in which solar energy is set to become part of Dubai’s energy portfolio,” said managing director and CEO of DEWA, Saeed Mohammed Al Tayer.
Electricity generated by the power plant is expected to displace more than 14,000 metric tons of CO2 emissions annually, that is the equivalent of removing 1,600 cars from the road every year.
The power plant, which will open by the end of next year, is expected to generate more than 22 million kilowatt hours of electricity per year, that equates to enough energy to meet the average annual electricity needs of more than 500 households in the UAE.
First Solar recently opened an office in Dubai and is establishing an office in Saudi Arabia as well.