Al Dhafra 2 GW Solar Photovoltaic (PV) Independent Power Producer project

Project description

Once constructed, the Abu Dhabi-based 2 GW Al-Dhafra Solar Photovoltaic (PV) Independent Power Producer project will be the largest solar project in the world to date to be project financed.

EDF-R and Jinko Power are implementing the project through Dhafrah PV2 Energy Company LLC, the project company which will manage the financing, construction, operation and maintenance of the solar plant, including installation of solar PV modules, inverters, connection to the transmission network and associated facilities. The project is expected to begin commercial operation in 2022. The shareholders in the project company will, indirectly, be EDF-R, Jinko Power, Abu Dhabi Future Energy Company PJSC (Masdar) and Abu Dhabi National Energy Company PJSC (TAQA).

The Power Purchase Agreement was signed by EWEC as the Procurer and a consortium of Jinko Power and EDFR as the developer holding company in July 2020.

Banks involved in the Al-Dhafra project financing include Bank of China Limited (acting through Bank of China Limited, Shanghai Branch), BNP Paribas Fortis SA/NV, Credit Agricole Corporate and Investment Bank, HSBC Bank Middle East Limited, MUFG Bank, Ltd, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation. BNP Paribas Fortis SA/NV acted as documentation bank and MUFG Bank, Ltd acts as global facility agent.

Scope of work

A London-, Dubai- and Singapore-based Norton Rose Fulbright team led by EMEA head of energy Charles Whitney advised a consortium of EDF-R and Jinko Power on the project financing, power purchase and construction arrangements, corporate and hedging arrangements of the project.

What makes the project unique

Given its size and complexity, this really is a landmark project for the renewable energy industry and Abu Dhabi. The project is expected to power approximately 160,000 households across the UAE, with a tariff that is one of the most competitive in the world. It demonstrates the leadership role played by Emirates Water and Electricity Company, with its partners EDF-R and Jinko Power, in the energy transition in the Middle East.

The project won Solar Deal of the Year at the PFI Awards 2020.

Meet the Team

The team was led by our projects teams in London and Dubai.