The 700MW Mohammed Bin Rashid Al Maktoum Solar Park, to be developed by ACWA Power, will be spread over the equivalent area of more than 4,500 football fields.
It will be mostly made up of mirrors concentrating the suns rays onto photovoltaic panels.
The energy will be captured in the form of heat, which will be stored in molten salt medium to allow the plant to supply electricity even when the sun is not shining.
The CSP facility is expected to save half a million tons of natural gas per year and significantly reduce the need for energy imports.
Construction is expected to commence in 2018.
Paddy Padmanathan, President and CEO of ACWA Power, said: “The visionary courage of the Government of the Emirate of Dubai has enabled ACWA Power to set the scene to not only make 100% of electricity some nations use through renewable energy but to do so at a lower cost than with fossil fuel alternatives.”