A model of the Hassyan coal plant.

Dubai Electricity and Water Authority (Dewa) said a consortium including China’s Harbin Electric and Saudi Arabia’s Acwa Power has begun construction of the 2,400 megawatt (MW) Hassyan clean coal power station which is being developed on the independent power producer (IPP) procurement model.

The plant will be the first of its kind in the region and is fully compliant with set international standards, adopting the use of ultra-supercritical technology.

Hassyan clean coal power project, which will have a total coal-fired capacity of 2,400 MW, will be fully-operational by 2023, it stated.

Saeed Mohammed Al Tayer, the managing director and chief executive of Dewa, said the Acwa Power and Harbin Electric consortium was selected as the preferred bidder for the project for its low costs. It bid a levelised cost of electricity (LCOE) of $4.241 cents per kilowatt (kW), based on May 2015 coal prices.

The project will be supported by a 25-year PPA (power purchase agreement) with Dewa and the bidder is required to put in place a secure delivery of coal to the project over the period, said Al Tayer.