L&T secures ‘mega’ order for UAE’s largest renewable generation plant

Larsen & Toubro (L&T) announced on Tuesday, January 30th, that its construction arm had clinched a ‘mega’ Engineering, Procurement, and Construction (EPC) order to establish the largest renewable generation plant in the UAE. The Renewable EPC division of L&T’s Power Transmission & Distribution business has been selected as the turnkey contractor to build a 1,800 MWac solar photovoltaic plant in Dubai, UAE, as per the company’s disclosure in a stock exchange filing. This project, falling within the ₹10,000 to ₹15,000 crore range, is classified as a ‘mega’ order by L&T standards.

This endeavor marks the sixth phase of the Mohammed Bin Rashid Al Maktoum Solar Park and is anticipated to curtail 2.4 million tonnes of carbon emissions annually. Spanning across 20 square kilometers, the project is scheduled to become operational in three phases. Apart from the photovoltaic plant, the project scope encompasses evacuation and interconnection arrangements, including two gas-insulated substations, high voltage underground cabling, and medium voltage distribution networks, according to L&T.

T Madhava Das, L&T’s whole-time director and senior executive vice-president (utilities), expressed the company’s commitment to introducing innovative renewable energy solutions and leveraging its project management expertise to expedite the energy transition in the region. The UAE, combining economic development with sustainable practices, aligns well with L&T’s vision of contributing to environmental sustainability.

Abu Dhabi Future Energy Company PJSC – Masdar, has inked a power purchase agreement with the Dubai Electricity and Water Authority (DWA) to spearhead the development of the project, where DWA will retain a 60% stake. The solar power park is slated to achieve a production capacity of 5,000 MW by 2030, significantly reducing over 6.5 million tonnes of carbon emissions annually upon completion.

At 11:30 am on Tuesday, January 30th, L&T shares were trading 0.75% lower at ₹3,682.6 apiece, reflecting the market’s response to this significant development in the company’s renewable energy portfolio.