Noor Energy 1 in Dubai, UAE Completes US$2.7 Billion Refinancing

en.Wedoany.com Reported - On September 27, the Dubai Electricity and Water Authority announced the completion of a US$2.7 billion refinancing for the Noor Energy 1 project, with the transaction completed ahead of its original target. Noor Energy 1 is the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, with an installed capacity of 950MW, including 700MW of concentrated solar power and 250MW of photovoltaic power.

The CSP portion of Noor Energy 1 consists of 600MW of parabolic trough CSP and 100MW of tower CSP, along with a 250MW photovoltaic system. The project is equipped with up to 15 hours of thermal energy storage capacity. DEWA previously disclosed that its thermal storage scale reaches 5,907MWh, and the project has achieved full commercial operation. The project company is jointly participated in by DEWA, ACWA Power, and China Silk Road Fund, with DEWA holding 51%, ACWA Power holding 25%, and Silk Road Fund holding 24%.

The project initially reached financial close in March 2019, with a total investment of approximately AED 15.78 billion, equivalent to about US$4.3 billion. The original financing involved multiple Chinese, UAE, and international banks, including Agricultural Bank of China, Bank of China, China Everbright Bank, China Minsheng Bank, Industrial and Commercial Bank of China, as well as Standard Chartered Bank, Natixis, and other institutions. DEWA's 2025 annual report shows that as of the end of 2025, Noor Energy 1's outstanding commercial loan principal was approximately AED 8.566 billion, with an additional AED 682 million in mezzanine financing and AED 294 million in short-term financing.

This US$2.7 billion refinancing corresponds to the project's transition from a construction-period and early-operation financing structure to a long-term operational-period financing arrangement. DEWA stated that the new financing structure has reduced the project's financing costs and will generate financial savings over the remaining operational life of the project, but it has not yet disclosed interest rate changes, debt tenor adjustments, the debt repayment profile, or the amount of savings. Noor Energy 1 adopts a 35-year power purchase agreement and a BOO model. According to ACWA Power materials, the project's commercial operation date was in the first quarter of 2024.

Noor Energy 1 covers a total area of approximately 44 square kilometers. The CSP system includes a 100MW central tower and three 200MW parabolic trough CSP units, supported by more than 790,000 photovoltaic modules, 63,600 parabolic trough collectors, and approximately 70,000 heliostats. The new milestone at this stage of the project is the completion of the first round of refinancing. The project construction and commissioning phases have ended, and the project has now entered a long-term operation and debt repayment cycle.