Abengoa will participate in the construction of the biggest solar complex in the world in Dubai; a contract equivalent to 38% of its portfolio

Abengoa anticipates tripling its billing in 10 years

Abengoa has been chosen as the technological partner for the construction of the biggest solar complex in the world in Dubai. The size of the contract to be directly executed by Abengoa is $650 million (some 550 million euros). The company has in fact been selected by Shanghai Electric Group, for which it will supply the technology and be the subcontractor for the design, the construction and the start up of the solar technology, as well as build a solar farm.

This project, which will extend over 28 square kilometres, is part of the biggest solar complex in the world, the Mohammed bin Rashid Al Maktoum Solar Park, owned by Dewa (Dubai Electricity and Water Authority)

If the contract is finalised it would be a real boost for the company at a time when it is negotiating with its creditors to put an end to the dispute which it has with those bondholders who did not adhere to the refinancing plan. At end-2017, Abengoa’s order book totalled 1.4 billion euros. So the contract in Dubai is very important as it would be the equivalent of 38% of that.

Abengoa flagged that the contribution of the Mohammed bin Rashid Al Maktoum Solar Park to Dubai’s energy model will be key to turning that country “into the international epicentre of clean energy and sustainable economy.”

So the Spanish firm will help Dubai reach its goal to have 7% of the energy generated in 2020 coming from clean sources, a percentage which will rise to 25% in 2030 and 75% in 2050.

This is the second thermosolar project being developed by Abengoa in the United Arab Emirates. The group has a global installed capacity in thermosolar technology of over 2,3 gigawatts (GW), which is approximately 30% of the world installed capacity.



About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.