Export Development Canada (EDC) announced $72m in financing within the larger $655m senior project finance banking facilities for Phase 3 of the Mohammed bin Rashid Al Maktoum Solar Park (Solar Park) in Dubai.
The project consists of the development, construction, and operation of an 800MW solar photovoltaic (PV) power project located within the Solar Park. EDC's financing is predicated on the sale of solar panels from Canadian Solar, a Guelph-based clean technology company.
"We are proud to be partnering with Masdar/DEWA/EDF on this outstanding project," says Dr. Shawn Qu, Chairman and Chief Executive Officer, Canadian Solar. "On the financing side, we are very pleased to have EDC's commitment and continuous support for our global growth. As Dubai diversifies its energy portfolio, our partnership will serve as an excellent example for future utility-scale solar projects in the region, and we are eager to contribute further to the energy market growth in the Middle East."
The 16 square-kilometre 800 MW PV plant will generate around 2.5 million megawatt-hours of electricity per annum on completion. Unlike conventional solar power arrays, the park will use tilting panels that track the sun, thereby maximising output.
"Supporting clean technologies is a strategic priority for EDC," said Carl Burlock, Senior Vice President, Financing and International Growth Capital, EDC. "Canadian Solar's contribution to an international project of this size is a testament to Canada's leading expertise in the clean energy space."
The Solar Park will be the largest single-site solar park in the world. By 2030, it is expected to displace an estimated 6.5 million tonnes of carbon dioxide each year.
This is an example of an eligible project for EDC's Green Bond program. In June 2017, EDC issued its third USD 500M Green Bond, with previous bonds of 300M in January 2014 and 300M in December 2015, each receiving strong support from the green bond investor community.
"Green Bonds and transactions such as this one are examples of EDC's contribution to international climate change objectives, and our alignment with broader industry trends towards a climate-resilient future," added Burlock.