DEWA completes $2.7bn Noor Energy 1 refinancing ahead of schedule

DEWA has completed the $2.7bn Noor Energy 1 refinancing ahead of schedule, strengthening the financial structure of the 950MW Dubai solar plant that supplies clean power day and night through thermal storage.

Dubai Electricity and Water Authority (DEWA) has completed a $2.7bn refinancing of Noor Energy 1, the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, ahead of schedule. The Noor Energy 1 refinancing gives the 950MW plant a stronger financial structure for the rest of its operating life.

DEWA Managing Director and CEO Saeed Mohammed Al Tayer announced the deal at Al Sheraa, the utility’s headquarters in Dubai. Lenders, project sponsors, partners and members of the refinancing team attended. DEWA said the transaction will “optimise the project’s financing costs while strengthening its overall financial structure”. It expects substantial savings across the plant’s operating life.

Noor Energy 1 combines concentrated solar power (CSP) with parabolic trough and photovoltaic technologies. It has up to 15 hours of thermal energy storage, which lets the plant supply electricity after sunset. DEWA describes it as the world’s largest single-site CSP project and says it runs at world-class availability levels.

Al Tayer said the Noor Energy 1 refinancing reflects the confidence of international, regional and local financial institutions in the UAE, Dubai and DEWA. He said the transaction reinforces Dubai’s position as a destination for long-term sustainable investment.

DEWA developed the plant with a consortium led by ACWA Power, which designed, built and operates it. The plant supplies dispatchable clean electricity to Dubai around the clock and supports the Dubai Clean Energy Strategy 2050. DEWA earlier secured a world record for the highest-capacity single-operator CSP power station.

Completion ahead of schedule leaves DEWA with a settled financing structure for its storage-backed flagship. The Noor Energy 1 refinancing gives the UAE a reference point for financing round-the-clock solar projects.