Construction work on the 2GW Al Dhafra solar project in Abu Dhabi is set to begin as the consortium behind the development announces it has reached financial closing.

An approximately US$1 billion transaction has been funded via project financing with BNP Paribas as bookrunner together with Bank of China, Crédit Agricole, HSBC, MUFG, Sumitomo Mitsui Banking Corporation and Standard Chartered as mandated lead arrangers.

Abu Dhabi National Energy Company (TAQA) will own 40% of the project, while the remaining partners – Masdar, EDF Renewables and JinkoPower – will have a 20% stake each.

The consortium was announced as the party behind

 the winning US$0.0135/kWhtariff price for the project earlier in the year – a world record-low price at the time. TAQA revealed this week that upon financial closing, the tariff was lowered toUS$0.0132/kWh, primarily driven by “hedging and financing cost improvements, in addition to other optimisation efforts”.

The four partners behind the project have a 30-year power purchase agreement in place, with the facility expected to come online in 2022.