DEWA refinances $2.70 billion solar project ahead of schedule

Summary

• DEWA completed a $2.70 billion refinancing of Noor Energy 1, Dubai's fourth solar park phase.
• The 950-megawatt plant combines concentrated solar power and photovoltaics with up to 15 hours of storage.
• DEWA's chief said the deal cuts financing costs and signals lender confidence in Dubai.

The latest

A $2.70 billion refinancing of Noor Energy 1, the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, has closed well ahead of its target date, Dubai Electricity and Water Authority announced. Saeed Mohammed Al Tayer, DEWA's Managing Director and CEO, said the transaction lowers financing costs and strengthens the project's financial structure. He announced it at DEWA's Al Sheraa headquarters.

Details

• The deal: Al Tayer announced the completion of the $2.70 billion refinancing at an event attended by representatives of lenders, sponsors, partners and the Noor Energy 1 refinancing team. He said the transaction was concluded well ahead of the target date, though DEWA did not disclose the original timetable or the identities of the participating lenders.
• The asset: Noor Energy 1 has a generation capacity of 950 megawatts and combines concentrated solar power, parabolic trough and photovoltaic technologies. The plant carries up to 15 hours of thermal energy storage, allowing it to dispatch power after sunset rather than only during daylight hours.
• Scale claim: Al Tayer described Noor Energy 1 as a national asset and as the world's largest single-site concentrated solar power project. He said it supplies clean, dispatchable energy to Dubai day and night, which distinguishes it from conventional solar capacity that stops producing after dark.
• The savings: According to DEWA, the refinancing has enabled Noor Energy 1 to optimise its financing costs and strengthen its capital structure, generating what the authority described as substantial savings across the project's operational life. DEWA did not quantify those savings or specify the new pricing terms.
• The signal: Al Tayer said the size of the refinancing demonstrates the confidence of international, regional and local financial institutions in the UAE, Dubai and DEWA. He argued the transaction reinforces Dubai's position as a trusted destination for long-term sustainable investment.
• The ownership: DEWA and a consortium led by Saudi-based ACWA Power established Noor Energy 1 to design, build and operate the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park. The announcement did not set out how the refinancing affects the equity split between the partners.
• Strategy link: Al Tayer positioned the plant as a cornerstone of the Dubai Clean Energy Strategy 2050, the emirate's long-term programme to shift its generation mix toward renewables. He framed the refinancing as reinforcing that policy track rather than as a standalone financial exercise.
• The venue: The disclosure was made at Al Sheraa, DEWA's headquarters in Dubai, in front of the financing parties themselves, a format that put lenders and sponsors in the room rather than confining the announcement to a written statement.

Background

Noor Energy 1 is the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, Dubai's flagship renewable complex. It was developed by DEWA alongside an ACWA Power-led consortium under a build-and-operate structure, pairing thermal storage with photovoltaic capacity on one site.

Between the lines

Refinancing a project of this size before its target date, and at lower cost, is usually a sign lenders view the underlying cash flows as de-risked after construction. DEWA is treating the pricing itself as the headline: Al Tayer tied the $2.70 billion figure directly to institutional confidence in Dubai, converting a balance-sheet exercise into a sovereign credibility argument aimed at sustainable-finance investors.

What's next

Watch for disclosure of the lender group and the new pricing terms, and for whether DEWA applies the same early-refinancing approach to other phases of the Mohammed bin Rashid Al Maktoum Solar Park.

Source: WAM (Emirates News Agency) via Zawya