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On Friday 10 May 2013 his Majesty King Mohammed VI attended the launch of construction of the Noor 1 Concentrated Solar Power (CSP) Independent Power Project. The 160 MWe Noor 1 CSP project is a greenfield IPP to be developed as the first project for the Moroccan Agency for Solar Energy (MASEN) in a series of several planned developments at Noor 1 Solar Complex. The Noor 1 complex is set to develop into a 500 MW solar park incorporating several utility-scale solar power plants using various solar technologies.
Noor 1 160MWe CSP IPP plant with 3 hours of thermal storage is today the world’s largest parabolic trough CSP power plant and the first utility size thermal solar generation project in Morocco. The project is located in Souss-Massa-Draa, province of Ouarzazate in Morocco, approximately 200 km south of Marrakesh. The 160 MW Noor 1 CSP IPP will be developed on a Build, Own, Operate and Transfer (BOOT) basis by ACWA Power Ouarzazate which has recently awarded an EPC contract to a consortium composed of spain’s TSK Electrónica y Electicidad, Acciona Infrastructuras, Acciona Ingeniería, and Sener Ingeniería y Sistemas. The EPC consortium will procure part of the scope locally in Morocco. The Operation and Maintenance will be undertaken by a consortium led by NOMAC, a subsidiary of ACWA Power and it is estimated that the commercial operation will begin in the second half of 2015. Masen will be the offtaker of the energy produced according to the 25-year Power Purchase Agreement (PPA).
ACWA Power Ouarzazate “the project company” is owned by ACWA Power, Saudi Arabia; the Moroccan Agency for Solar Energy (MASEN), Morocco; Aries and TSK both of Spain.
In addition to achieving local industrial integration, ACWA Power is seeking to collaborate with Moroccan companies, universities and research centers to transfer knowledge in solar power with the emphasis on not just localizing technology but to utilize efforts to develop and enhance technology with a view to developing intellectual property.
ACWA Power has already instated the development of a joint R&D program focusing on CSP between King Abdullah University of Science & Technology (KAUST), and Université Internationale de Rabat (UIR).
The operation of the plant will provide electricity to communities further afield and will ensure a reliable source and increased power supply to the neighboring communities; thereby facilitating the development and expansion of commercial and small industrial businesses. . In addition, the project will mitigate the negative impact on the environment by using concentrated solar energy technology which will reduce the emission of carbon dioxide equivalent of approximately 470,000 tons during each year of operation.
A targeted system of local recruitment and investment in human capital of the local workforce will increase the benefit to the local economy. Up to 1,000 workers will be employed during construction and 60 during operation.
Mohammed A. Abunayyan the Chairman of ACWA Power stated “We at ACWA Power are proud of the fruitful cooperation with the concerned Moroccan entities, in both public and private sectors, and here I would like to commend the professional efforts of Masen, which managed the tender with full transparency in a record time and the ability to collect and manage a mixture of international financial institutions that each and every one of them had different and special requirements”. Mr. Abunayyan went on to say “We have been able, through this project, to effectively participate in the Kingdom of Morocco’s renewable energy strategy which has become a model for the development of renewable energy industry in terms of technology, implementation and cost”. »
ACWA Power Ouarzazate has on Monday 29 April 2013, awarded an EPC Contract to the Spanish consortium composed of Acciona, Sener and TSK to construct the 160 MWe Ouarzazate parabolic trough Concentrated Solar Power (CSP) Independent Power Project (IPP) in Morocco. The EPC Contractor has commenced engineering and procurement for the plant in accordance with a Limited Notice to Proceed Agreement. The EPC consortium will procure a significant part of the scope locally in Morocco.
ACWA Power Ouarzazate is a company owned by ACWA Power, Saudi Arabia; the Moroccan Agency for Solar Energy (Masen), Morocco; Aries and TSK both of Spain. Ouarzazate 160MWe CSP plant with 3 hours of thermal storage is today the world’s largest parabolic trough CSP power plant and the first utility size thermal solar generation project in Morocco. The project is located in Souss-Massa-Draa, province of Ouarzazate in Morocco, approximately 200 km south of Marrakesh.
Paddy Padmanathan the President and CEO of ACWA Power said “The award of the EPC Contract today is in line with our plans to bring the plant online to meet commercial operation date (COD) during the second half of 2015”.
Padmanathan went on to say “ACWA Power believes entering into a new market as an investor and operator also means embarking on a long-term relationship with the country as a whole and the local community specifically. Therefore the EPC Contract has been structured to maximize economic value creation within Morocco by not just encouraging local manufacturing but also in skills transfer, training and local capacity building.”
The Operation and Maintenance will be undertaken by NOMAC, a subsidiary of ACWA Power. Masen will be the off-taker of the energy produced according to the 25-year PPA signed on 19 November 2012.
The 160 MWe Ouarzazate CSP IPP Project is to be developed on a Build, Own, Operate and Transfer (BOOT) basis. It is the first project for Masen in a series of several planned developments at the Ouarzazate Solar Complex. The Ouarzazate complex is set to be developed into a 500MWe solar complex incorporating several utility-scale solar power plants using various solar technologies.
Whilst Morocco currently relies heavily on coal and other conventional sources to meet its energy needs, the country is well endowed with renewable energy resources that offer sustainable alternatives to fossil fuels. With the CSP technology used, the project will serve to abate a “green approach” saving approximately 470,000 tons of CO2 equivalent emissions every year of operation. »
ACWA Power International (“ACWA Power”) today announced the closing of a private placement transaction of a new issue of c. 89.5 million primary equity shares to Sanabil Direct Investment Company (“Sanabil”) which is owned by Saudi Arabian Investment Company subsequently owned by the Public Investment Fund (“PIF”); and Saudi Public Pension Agency (“PPA”). Sanabil and PPA will consequently own 13.72% and 5.71% equity stakes respectively and will each be entitled to a seat on the Board of Directors.
H.E. Mohammed bin Abdullah Al-Kharashi - Governor of PPA said “PPA seeks attractive investments in successful National companies who demonstrate a long-term ability to generate sustainable returns. Based on the due diligence performed by PPA ACWA Power has become successful, in record time, through management of its portfolio of assets which contains some of the Kingdom’s largest water desalination and power generation plants in addition to its success in international markets in a short time period. Also, ACWA Power has demonstrated its long-term vision by investing in renewable energy facilities such as its projects in Morocco, Bulgaria and South Africa. PPA has taken up a 5.71% share in ACWA Power’s paid up capital.
Ibrahim bin Muhammed Alromaih, CEO of Sanabil stated: “Sanabil’s investment in ACWA Power is consistent with its strategy to invest in the growth of Saudi private companies that contribute to the local economy. With the constantly increasing demand for power and water in Saudi Arabia, ACWA Power plays an important role in helping our nation fulfill these critical needs. Through this investment, Sanabil is pleased to become a long-term partner of ACWA Power and to contribute to its long-term success and development.”
Mohammad A. Abunayyan, Chairman of ACWA Power said “We are pleased that Sanabil and PPA have joined ACWA Power as new investors.This will have a significant positive impact on the strength of the company’s financial position and on its business by accelerating the execution of its strategic and expansion plans to become the prime international developer of power generation and water desalination plants both in Saudi Arabia and globally.”
Paddy Padmanathan, President and CEO of ACWA Power stated "We are proud of the company’s increasing contribution to the Saudi national economy. As a leader in the power and desalinated water industry, ACWA Power has been able to compete with well-established international companies operating in the field of power generation and water desalination for decades and has successfully won major local and international bids. Today, its portfolio of assets includes some of the world's largest plants in their respective categories such as Qurayyah IPP, Shuaibah IWPP in Saudi Arabia and Ouarzazate CSP IPP in Morocco. In each and every bid ACWA Power has won, it submitted a significantly lower tariff than the other competing bidders, thus delivering large savings to the local economy over the life of the respective purchase agreements.
Mr. Abunayyan added “ACWA Power’s track record of success would not have been achieved without the vision of the Saudi Government under the leadership of the Custodian of the Two Holy Mosques, who has encouraged companies like ACWA Power to actively add value to the national economy and outreach for global successes. We are proud of our staff, who have proven their ability to successfully compete with, and fairly and squarely overcome their counterparts of companies with a long history of international experience. ACWA Power’s experts have demonstrated their ability to deliver projects on time, and in some instances, a few months earlier than the contracted date”.
From its humble beginnings in 2004 when it won Saudi Arabia’s first IWPP project, ACWA Power has demonstrated consistently rapid growth. Today, ACWA Power has a diversified portfolio of 19 assets in 8 countries across 3 continents, with a contracted gross capacity of c.13,000 MW of power generation and 2.37 million cubic meters per day of desalinated water production, and a total investment in excess of USD 17 billion (SAR 63 billion).
Mr. Abunayyan concluded by saying “This partnership did not come over night. We view it as a reinforcement of the success that ACWA Power has achieved in the power and water industry. We believe that Sanabil and PPA joining ACWA Power as shareholders is a quantum leap for the company’s bright future. Such a strategic milestone is a new starting point for ACWA Power to move to a wider business horizon”. »
Under the Patronage of His Majesty King Mohammed VI, the Moroccan Agency for Solar Energy (MASEN) and the winning consortium, led by ACWA Power, including Aries Ingeniería y Sistemas, S.A. and TSK Electrónica y Electricidad, signed the Power Purchase Agreement (PPA) for the value of USD 1 Billion, for the sale of the net electricity output of the Ouarzazate CSP Independent Power Project with the capacity of 160MWe located approximately 200 KM south of Marrakesh. The newly-developed project will generate power in Morocco by using Concentrating Solar Power “CSP” parabolic trough technology.
The 160 MWe Ouarzazate CSP Project is a greenfield Independent Power Project (IPP) to be developed as the first project for the MASEN in a series of several planned developments at the Ouarzazate Solar Complex. The Ouarzazate complex is set to develop into a 500 MW solar park incorporating several utility-scale solar power plants using various solar technologies. The first plant within this complex will be the 160 MW Ouarzazate CSP Project with 3 hours of thermal energy storage to be developed on a Build, Own, Operate and Transfer (BOOT) basis.
The PPA was signed by Mr. Mustapha Bakkoury, the President of the Management Board of MASEN and Mr. Mohammed A. Abunayyan, the Chairman of ACWA Power representing the winning consortium. The official award to the consortium by MASEN was announced on 24 September 2012, making the period between award and signing of the PPA less than 2 months which is considerably short for a project of this size and magnitude. This gives the possibility, an objective set forth by all parties, to achieve financial closing before the end of 2012.
The ACWA Power consortium has selected as EPC contractor, a consortium composed of Spain’s TSK Electrónica y Electricidad, Acciona Infrastructuras, Acciona Ingeniería, and Sener Ingeniería y Sistemas. The EPC consortium will procure part of the scope locally in Morocco. The Operation and Maintenance will be undertaken by a consortium led by NOMAC, a subsidiary of ACWA Power. MASEN will be the offtaker of the energy produced according to the 25-yearPPA. In addition, MASEN will provide Strategic Services to the Project such as the debt funding requirements.
Mohammed A. Abunayyan, Chairman of ACWA Power, stated “I would like to thank His Majesty King Mohammed VI for honoring ACWA Power with his presiding over the signing ceremony”. The presence of His Majesty highlights the significance of the Ouarzazate Project and its soci-economic impact on the Kingdom of Morocco and its people. ACWA Power believes entering into a new market as an investor and operator also means embarking on a long-term relationship with the country as a whole and the local community specifically. In solidifying this long-term relationship an ACWA Power led consortium has been pre-qualified to submit a bid to construct five wind farms with a total capacity of 850MW, where out of the 16 parties who submitted pre-qualifications 6 developer consortiums were prequalified.
The signing of the PPA today highlights a series of significant milestones:
Ouarzazate IPP will be the largest Solar CSP in the world.
With the CSP technology used, the project will serve to abate a “green approach” capturing approximately 470,000 tons of CO2 equivalent emissions every year of operation.
The technology used in Ouarzazate will be a positive factor in offsetting the Moroccan grid peak power demand period in particular due to its thermal storage.”
The tariff delivered by the consortium led by ACWA Power was 28.8% lower than the one offered by the second bidder. Ouarzazate CSP IPP is a milestone also for this technology as it has demonstrated the cost at which solar power can be produced, which is significantly lower than what has been achieved to date and at the same time narrowing the gap between the cost of solar power produced using photo voltaic technology. The consortium will target to achieve financial closing by the end of 2012, while the plant commercial operation date (COD) is planned for the second half of 2015. »
Under the Patronage of His Majesty King Mohammed VI, the Moroccan Agency for Solar Energy (MASEN) and the winning consortium, led by ACWA Power, including Aries Ingeniería y Sistemas, S.A. and TSK Electrónica y Electricidad, signed the Power Purchase Agreement (PPA) for the value of USD 1 Billion, for the sale of the net electricity output of the Ouarzazate CSP Independent Power Project with the capacity of 160MWe located approximately 200 KM south of Marrakesh. The newly-developed project will generate power in Morocco by using Concentrating Solar Power “CSP” parabolic trough technology.
The 160 MWe Ouarzazate CSP Project is a greenfield Independent Power Project (IPP) to be developed as the first project for the MASEN in a series of several planned developments at the Ouarzazate Solar Complex. The Ouarzazate complex is set to develop into a 500 MW solar park incorporating several utility-scale solar power plants using various solar technologies. The first plant within this complex will be the 160 MW Ouarzazate CSP Project with 3 hours of thermal energy storage to be developed on a Build, Own, Operate and Transfer (BOOT) basis.
The PPA was signed by Mr. Mustapha Bakkoury, the President of the Management Board of MASEN and Mr. Mohammed A. Abunayyan, the Chairman of ACWA Power representing the winning consortium. The official award to the consortium by MASEN was announced on 24 September 2012, making the period between award and signing of the PPA less than 2 months which is considerably short for a project of this size and magnitude. This gives the possibility, an objective set forth by all parties, to achieve financial closing before the end of 2012.
The ACWA Power consortium has selected as EPC contractor, a consortium composed of Spain’s TSK Electrónica y Electricidad, Acciona Infrastructuras, Acciona Ingeniería, and Sener Ingeniería y Sistemas. The EPC consortium will procure part of the scope locally in Morocco. The Operation and Maintenance will be undertaken by a consortium led by NOMAC, a subsidiary of ACWA Power. MASEN will be the offtaker of the energy produced according to the 25-yearPPA. In addition, MASEN will provide Strategic Services to the Project such as the debt funding requirements.
Mohammed A. Abunayyan, Chairman of ACWA Power, stated “I would like to thank His Majesty King Mohammed VI for honoring ACWA Power with his presiding over the signing ceremony”. The presence of His Majesty highlights the significance of the Ouarzazate Project and its soci-economic impact on the Kingdom of Morocco and its people. ACWA Power believes entering into a new market as an investor and operator also means embarking on a long-term relationship with the country as a whole and the local community specifically. In solidifying this long-term relationship an ACWA Power led consortium has been pre-qualified to submit a bid to construct five wind farms with a total capacity of 850MW, where out of the 16 parties who submitted pre-qualifications 6 developer consortiums were prequalified.
The signing of the PPA today highlights a series of significant milestones:
Ouarzazate IPP will be the largest Solar CSP in the world.
With the CSP technology used, the project will serve to abate a “green approach” capturing approximately 470,000 tons of CO2 equivalent emissions every year of operation.
The technology used in Ouarzazate will be a positive factor in offsetting the Moroccan grid peak power demand period in particular due to its thermal storage.”
The tariff delivered by the consortium led by ACWA Power was 28.8% lower than the one offered by the second bidder. Ouarzazate CSP IPP is a milestone also for this technology as it has demonstrated the cost at which solar power can be produced, which is significantly lower than what has been achieved to date and at the same time narrowing the gap between the cost of solar power produced using photo voltaic technology. The consortium will target to achieve financial closing by the end of 2012, while the plant commercial operation date (COD) is planned for the second half of 2015. »
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