L&T Secures 'Mega' Contract for UAE's Largest Renewable Plant Construction

In a significant development, Larsen & Toubro (L&T) announced on January 30 that its Construction arm has clinched a 'mega' Engineering, Procurement, and Construction (EPC) order for establishing the largest renewable generation plant in the UAE.

The project, a 1,800 MWac solar photovoltaic plant in Dubai, forms the sixth phase of the Mohammed Bin Rashid Al Maktoum Solar Park. This substantial win reflects L&T's prowess in the renewable energy sector.

Key Highlights:

Largest Renewable Generation Plant: L&T's Renewable EPC division within the Power Transmission & Distribution business will spearhead the construction of the 1,800 MWac solar photovoltaic plant, consolidating its position in the renewable energy market.

Mega Order Classification: L&T classifies orders in the range of ₹10,000 to ₹15,000 crore as 'mega' orders, emphasizing the substantial scale and impact of this strategic project.

Project Scope: The scope of the project encompasses the establishment of the photovoltaic plant along with related evacuation and interconnection arrangements. This includes two gas-insulated substations, high voltage underground cabling, and medium voltage distribution networks.

Environmental Impact: The project, part of the Mohammed Bin Rashid Al Maktoum Solar Park's sixth phase, is anticipated to reduce 2.4 million tonnes of carbon emissions annually, contributing significantly to sustainable energy practices.

Operational Phases: The solar plant, spread over 20 sq km, will be operational in three phases, showcasing a meticulous approach towards its construction and functionality.

Power Purchase Agreement: Abu Dhabi Future Energy Company PJSC - Masdar, has inked a power purchase agreement with the Dubai Electricity and Water Authority (DWA) for the project. DWA will retain a 60% stake in the venture.

Long-term Environmental Impact: Upon completion, the solar power park aims for a production capacity of 5,000 MW by 2030, with an expected annual saving of over 6.5 million tonnes of carbon emissions.

T Madhava Das's Statement: T Madhava Das, the whole-time director and senior executive vice-president (utilities) at L&T, expressed the company's commitment to bringing innovative renewable energy solutions and project management expertise to accelerate the region's energy transition.

Market Impact and Share Update:

L&T Share Performance: As of the latest update, L&T shares were trading 0.75% lower at ₹3,682.6 apiece on Tuesday.

Innovation Meets Expertise:

This mega-project isn't just about sheer size; it showcases L&T's cutting-edge renewable energy solutions and robust project management expertise. The scope of the contract extends beyond the solar plant itself, encompassing:

• Two gas-insulated substations

• High voltage underground cabling

• Medium voltage distribution networks

L&T Committed to Accelerating Regional Energy Transition:

"We are committed to bringing in our innovative renewable energy solutions and project management expertise to speed up energy transition in the region," stated T Madhava Das, Whole-Time Director and Senior Executive Vice President (Utilities) at L&T. This project signifies L&T's dedication to supporting the UAE's sustainable development agenda, balancing economic growth with environmental responsibility.

A Collaborative Venture for Green Progress:

The project is a collaborative effort between:

• Abu Dhabi Future Energy Company PJSC (Masdar): Responsible for signing the power purchase agreement with Dubai Electricity and Water Authority (DEWA) and developing the project.

• Dubai Electricity and Water Authority (DEWA): Will retain a 60% stake in the project.

Conclusion:

L&T's successful bid for this 'mega' contract reaffirms its dedication to pioneering sustainable solutions and reinforces its position as a key player in the renewable energy sector. The UAE's largest renewable generation plant is set to be a groundbreaking venture in the region's pursuit of cleaner and greener energy alternatives.