Abu Dhabi to build Gulf's first solar power plant

ABU DHABI (Reuters) - The government of Abu Dhabi will build a $350 million solar power plant, the first of its kind in the world's biggest oil exporting region, an investor in the project said on Sunday.

The 500 megawatt plant, expected to begin operations in 2009, is part of Abu Dhabi's drive to cut dependence on hydrocarbon power generation, said Sultan al-Jaber, chief executive of state-owned Abu Dhabi Future Energy Co.

Future Energy, a subsidiary of government-owned Mubadala Development Co, and the Abu Dhabi Water & Electricity Authority will fund the plant with other investors.

Abu Dhabi holds more than 90 percent of the oil reserves of the United Arab Emirates, a seven member, petroleum-exporting federation.

The emirate eventually hopes to provide solar power to 10,000 homes and is setting up a special economic zone for the alternative energy industry, Jaber said.

"We...do not want to be 100 percent dependent on (hydrocarbon power), Jaber said.

"We have an economic development program dedicated to establishing an entirely new economic sector focused on alternative energy and sustainable technologies," he said.

The plant will be first in the Gulf, home to oil and gas producers who supply a fifth of the world's energy needs, he said.