Jul 23, 2020

Japan Bank For International Cooperation & Mizuho Corporate Bank Help Achieve Financial Closure For 800 MW Solar Power Project In Qatar 07:59 PM (Beijing Time) - 23. July 2020 The Marubeni and Total consortium won the 800 MW Qatar project for one of the lowest winning solar tariffs globally at QAR 0.0571 per kWh. With the financial closure achieved, Kahramaa says the LCOE of the project has reduced to QAR 0.05281 per kWh. (Source: Kahramaa/Twitter) Key Takeaways Kahramaa says Japan Bank For International Cooperation & Mizuho Corporate Bank have provided senior loans to Siraj-1 project company for 800 MW solar project Total construction cost of the project is estimated at QAR 1.7 billion and it will be owned in a 60:40 ratio by Siraj Energy and Marubeni/Total Construction under phase I will bring online 350 MW in Q2/2021 while the entire project is scheduled to be commissioned in Q1/2022 The 800 MW solar power project in Qatar to be built by the Marubeni and Total consortium has reached its first milestone with financial closure. Cumulative investment on the project construction is valued at QAR 1.7 billion ($467 million). The Qatar General Electricity and Water Corporation (Kahramaa) identified Japan Bank for International Cooperation and Mizuho Corporate Bank as international lenders to the project company Siraj-1, but did not specify how much exactly has been individually provided by the 2 lenders. The project was won by the consortium for the lowest winning tariff of QAR 0.0571 per kWh in January 2020. Among few bidders that have offered tariffs in the 1 US cent/kWh range, this is still among the lowest winning solar tariffs globally (see Record Low Winning Bid In 800 MW Qatar PV Tender ). Kahramaa said after the financial close, the levelized cost of electricity (LCOE) was set at QAR 0.05281 ($0.01449) per kWh to be generated for 25 years. After the end of the PPA the assets will be transferred to Kahramaa on a build-own-operate-transfer (BOOT) basis. Till then, a joint venture between Kahramaa and Qatar Petroleum (QP) Siraj Energy will hold 60% stake in the project, while the Marubeni/Total consortium will keep 40% ownership. The Al Kharsaah located project on achieving full completion in Q1/2022 will be connected to the grid will cover about 10% of Qatar’s current peak electricity demand. Phase I will see the consortium bringing online 350 MW in Q2/2021. Anu Bhambhani