Kahramaa Closes Financing for World's 2nd Cheapest Solar Power Project

Jul 24, 2020 01:18 PM ET
  • Kahramaa has actually revealed the effective monetary closure for the Siraj-1 solar energy plant project, the first of its kind project in Qatar
Kahramaa Closes Financing for World's 2nd Cheapest Solar Power Project
Image: saurenergy.com

Qatar General Electricity and also Water Corporation (Kahramaa) has announced the effective financial closure and also conclusion of all needed economic setups with its international financiers for the Siraj-1 solar energy plant project, the first of its kind in Qatar to create electrical power using photovoltaic cells with a capacity of 800 MW.

The project's company (Siraj-1 Company) has gotten the elderly lendings, which had been provided by Japan Bank for International Cooperation (JBIC) and also Mizuho Corporate Bank to fund the plant.

After the project's financial close, the Levelised Electricity Cost (LEC) was set at 5.281 Dirham (1.449 US cents) per KW/h, which was the lowest price in the world for solar PV projects for some time when the consortium of Total (49 percent) and Marubeni (51 percent) had participated in arrangements for the development of the project, which it had actually won in the nation's first solar tender.

"Achieving this affordable rate is proof for the count on of the capitalists and developers in the Qatari market along with carrying out the most recent and also most ingenious design remedies to construct and run the solar plant," the firm specified.

Kahramaa had authorized the contracts of the Siraj-1 large-scale solar power plant to produce electrical power utilizing photovoltaic or pv innovation. According to the arrangements, Kahramaa, which is the owner as well as operator of the transmission and also distribution system of electricity and also water in Qatar, will purchase the electrical power produced from the plant, while Siraj-1 must construct as well as operate the project.

Siraj-1 Company is owned by Siraj Energy (60 percent) and also a consortium of Japan's Marubeni Corporation as well as France's Total Solar International (40 percent). The project will certainly be constructed, possessed and also run for 25 years. Then, the properties will certainly be transferred to Kahramaa according to the system of Build, Own, Operate, and also Transfer (BOOT) that is understood internationally, committed to the concept of public and personal collaborations in addition to urge foreign investments in significant projects.

The project will be constructed with a total price of 1,7 billion Qatari Riyal (USD 467 million) at a 10 square kilometer land plot in Al Kharsaah area west of Doha that has been designated for Kahramaa.

The plant will certainly have an overall ability of 800 MW which equals about 10 percent of Qatar's existing peak electrical energy need. 350 MW will certainly be connected to the grid as a very first stage in the second quarter of 2021. The business appointing for the overall capability will certainly remain in the first quarter of 2022 in order to achieve the announced critical purpose of National Strategic Development 2018-2022.

The plant contributes to decreasing around 26 million lots of discharges during the project duration as well as will certainly sustain Qatar's dedication to organize a carbon-neutral FIFA World Cup. This likewise is available in line with one of the objectives of the National Program for Conservation and also Energy Efficiency "Tarsheed", represented in lowering a minimum of one million lots of emissions annually until 2022.

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