Japanese financial institutions back 'globe's cheapest solar project'

Jul 23, 2020 04:12 PM ET
  • Qatar General Electricity as well as Water Corporation has revealed financial close on the 800 MW Siraj-1 solar project with Mizuho Bank as well as the state-owned Japan Bank for International Cooperation. The project, secured in a tender by France's Total and also Japan's Marubeni, will offer power for $0.01449/ kWh.
Japanese financial institutions back 'globe's cheapest solar project'
Image: gregroose, pixabay

The Qatar General Electricity and also Water Corporation (Kahramaa) energy has actually exposed Mizuho Bank and the state-owned Japan Bank for International Cooperation (JBIC) have consented to finance the building of the 10km ² Siraj-1 solar project in Al Kharsaah, west of Doha.

Kahramaa stated the Japanese lenders have offered senior finances for the QAR1.7 billion ($467 million) project.

Siraj-1 was safeguarded in a tender in January by a consortium led by French oil giant Total and also Japanese corporation Marubeni. The partners originally sent a bid of QAR0.0636/ kWh yet the final rate reached QAR0.0571/ kWh ($0.016), based upon monetary market indices. That proposal is being widely reported as the least expensive solar power rate in the world, after it undercut the globe record of EUR0.0147/ kWh ($0.017) submitted by French developer Akuo Energy for 150 MW of solar ability in Portugal's very first PV auction. Nevertheless, as pv magazine exposed in April, Chinese developer Jinko Power as well as French power firm EDF have actually concurred a tariff of AED0.0497/ kWh ($0.0135330) for the power to be produced by the 1.5 GW Al Dhafra project in Abu Dabi.

The initial, 350 MW stage of Siraj-1 is set to be functional in the 2nd quarter of following year with the overall project set to be complete in the very first three months of 2022.

The project will certainly be 60%-possessed by the Siraj Energy joint endeavor formed by Kahramaa and Qatar Petroleum with Total and also Marubeni holding the balance. The solar park will provide the Qatari energy with electricity under a 25-year power acquisition arrangement.

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