Plans to build the largest solar power plant in the Middle East moved a step closer to reality after financing closed on the $600 million Shams 1 project in the United Arab Emirates.
The 100MW concentrated solar project, some 120km southwest of Abu Dhabi, is being developed by the Shams Power Company, a joint venture between Masdar (60%), Total (20%) and Abengoa Solar (20%), who will jointly own and operate the facility.
The project ranks as one of the largest solar project transactions in the world, and combines financing from 10 regional and international lenders including BNP Paribas, Société Générale, KfW, Natixis, Sumitomo Mitsui Banking Corporation, the Bank of Toyko-Mitsubishi, Mizuho, Union National Bank and the National Bank of Abu Dhabi. WestLB and BNP Paribas acted as financial advisers.
Shams 1 is the first concentrated solar project to be registered under the UN’s Clean Development Mechanism and is expected to avoid around 175,000 tonnes of carbon dioxide annually. The plant will assist Abu Dhabi in meeting its 7% renewable energy target by 2020.
By. Environmental Finance
