Dentons has advised EDF Renewables (EDFR) and Korea Western Power Company on the successful financial close in respect of the Al Ajban Solar Photovoltaic (PV) Independent Power Project.
Dentons advised the successful international sponsors on the bid and financing stages of the project, including review of the finance documents from an international sponsor perspective. The EDFR-led team submitted the lowest levelised electricity cost of 5.1921 fils a kilowatt-hour (kWh) or about 1.413 US$cents/kWh for the Al Ajban solar PV IPP contract.
Al Ajban Solar Photovoltaic (PV) Independent Power Project will be in the Ajban area of the Emirate of Abu Dhabi. It is a greenfield solar PV plant with a power generation capacity of 1.5 gigawatts (AC) and will generate enough electricity to power approximately 160,000 homes across the UAE. Once commercially operational, it is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million metric tonnes per year.
The project is fundamentally important to the energy transition and sustainability strategy of Abu Dhabi and will play a pivotal role in successfully achieving the sustainability and energy diversification objectives of UAE Energy Strategy 2050, and the UAE Net Zero by 2050 strategic initiative through the use of renewable and clean energy.
EWEC’s strategic investments in solar power have seen it develop Noor Abu Dhabi, one of the world’s largest single-site solar power plants, and Al Dhafra Solar PV, which will be the world’s new largest single-site solar power plant, once commercially operational. With Al Ajban Solar PV, Abu Dhabi will be home to three of the largest single-site solar power plants in the world, increasing the diversification of the UAE’s energy production portfolio and significantly advancing decarbonisation of the energy sector.
Energy, Transport and Infrastructure partner Kanishka Singh, based in Dentons’ Abu Dhabi office, commented: “We are delighted to have supported EDFR on the successful financial close of this project. This transaction is another milestone in the use of clean and renewable energy in the UAE, and yet another example of Dentons’ commitment to helping shape the future of the UAE following the successful financial close of the DEWA Phase VI earlier this year.”. The USD755m senior financing package consists of commercial facilities from BNP Paribas, BNP Paribas Fortis SA/NV, Crédit Agricole Corporate and Investment Bank, HSBC Bank Middle East Limited, Standard Chartered Bank (Singapore) Limited, Sumitomo Mitsui Banking Corporation (DIFC Branch – Dubai) and ECA direct facilities from Korea Export-Import Bank.
The Dentons team was led by partners Stephen Knight (on the finance documentation), Kanishka Singh and Colm O’Huiginn (on the project documentation) and Graham Richmond (on the EPC arrangement), with assistance from senior associates Tony Nicholson, Annabel Vincent and Ahmed El-Bayouk, associates Patrick Yeo, Najeeb Gill, Elspeth Nuttall, legal consultant Nikhil Pareek and trainee Hajer Al-Raisi. The hedging workstream was led by partner Matthew Sapte and supported by Andrew Gallagher and Marcus Ang. The corporate workstream was led by partner Iain Black, supported by associate Lamia Al-Lamki, and paralegals Faris Al Ramahi and Manal Abu Issa. French law support was provided by Dentons Europe AARPI partner Philippe Max and counsel Steeve Jaskierowicz, and Korean law support was provided by Dentons Lee senior attorneys Stephan Kim and Sang-Yeol Cha and attorney Sung-Ha Park.
