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Middle East and Asia: Clean energy and sustainability – UAE and Malaysia update

    • Energy and infrastructure - Clean energy


    Middle East: Dubai Electricity & Water Authority commence tender process for second stage of the Mohammed Bin Rashid Al Maktoum solar photovoltaic power project

    Dubai Electricity & Water Authority (DEWA) has commenced a tender process to select a developer or developer consortium for the second stage of its Mohammed Bin Rashid Al Maktoum solar photovoltaic power project. The deadline for submitting an express of interest (EOI) is 24 April 2014.

    DEWA will share ownership with the winning party in a project company to be incorporated under Dubai and UAW laws. The project company will construct and operate an independent power project with an aggregate capacity of 100 MW. The project will be within the Mohammed Bin Rashid Al Maktoum Solar Park, 50km south of Dubai. It is expected to begin operations in the summer of 2017. The power generated by the project will be purchased by DEWA under a long term power purchase agreement.

    DEWA encourages interested parties with experience of undertaking similar projects to submit an EOI before 12pm on 24 April 2014. The EOI should include the company name, brief description of the company’s activity, country of the company’s headquarter, primary contact person, address, direct telephone number, mobile number, fax number and email address.

    Two hard copy signed originals of EOI should be submitted to DEWA for the attention of Mr Waleed Salman, Executive Vice President – Strategy & Business Development, Dubai Electricity & Water Authority, P.O. Box 564, Dubai, United Arab Emirates. In addition, an electronic copy of the EOI should be sent to and respectively.

    It has previously been reported that DEWA would retain a 51% controlling stake in the project company with the winning party of the tender process to own 49%. DEWA will provide additional information on the tender process to registered contenders.

    If you have any further questions or would like any help with participating in the tender process please let us know.

    Asia: Malaysian new Feed-in Tariff rates and proposed changes

    The Malaysia government has unveiled new degression and bonus rates for biomass, biogas and solar photovoltaic (PV) under its Feed-in Tariff (FiT) mechanism for the generation of renewable energy up to 30 MW in size.

    During the International Sustainable Energy Summit 2014 held on the 17-18 2014 March in Kuala Lumpur, the Sustainable Energy Development Authority (SEDA) Malaysia announced that the degression rates for both biomass and biogas have been reduced from 0.5% to 0%. In addition, the bonus rates for using Malaysian manufactured or assembled gas engine, boiler or gasifiers have been increased five-fold to RM0.05 per kWh. The reduced degression rates and increased bonus rates aim to boost the low take up rates of biomass and biogas. They have been effective since 1 January 2014.

    Meanwhile the degression rates for solar photovoltaic (PV) are adjusted to a flat rate of 10% for installations with capacity up to 5 KW for individual and 24KW for non individual. For solar PV facilities using locally manufactured or assembled solar PV modules or solar inverter, the degression rates have remained unchanged at 0%, while bonus rates have been uplifted to RM 0.05 per kWh. The new degression and bonus rates for solar PV have come into force on 15 March 2014.

    In addition to the revised rates, SEDA is amending the rules and administrative guidelines for the FiT program, among them a proposed new application method alternative to FiT Online System and a new category for community.

    SEDA, which was established in 2011, manages the FiT mechanism under the Renewable Energy Act 2011. As of 31 January 2014, SEDA had approved 2760 FiT applications with a total renewable energy capacity of 536.07MW, comprising solar PV (39%), biomass (31.06%), hydropower (24.44%) and biogas (5.51%).

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