Sheikh Hamdan on Tuesday said the project would be the world's largest and most efficient waste-to-energy centre in the world.
The plant in Warsan is capable of generating 220 megawatt hours of renewable energy which could power 135,000 homes.
It can also process 2 million tonnes of waste a year without harming the environment.
"We congratulate the exceptional teams involved in this unique project," Sheikh Hamdan wrote on Twitter.
"We are committed to deploying advanced technologies to build a brighter and more sustainable future."
Backed by Dh4 billion funding, the project will reinforce "Dubai's status as a global leader in sustainable infrastructure", Sheikh Hamdan added.
It is now in its first operational phase and the project is due for completion next year.
Investing in green power
Sheikh Hamdan's announcement comes a day after the UAE said it would be investing up to Dh200 billion in the renewable energy sector.
Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said the latest Cabinet meeting resulted in the approval of an updated national energy strategy.
"Our goal will be to triple the contribution of renewable energy in the coming seven years and inject national investments ranging from Dh150 billion to Dh200 billion during the same period to meet the increasing demand for energy in the country due to the accelerated economic growth," Sheikh Mohammed wrote on Monday.
"We also approved our national strategy for hydrogen, which has recently emerged as one of the most important clean energy sources."
Sheikh Mohammed said the plan aims to establish the country as a producer of low-emission hydrogen. In addition, a specialised national research and development centre for the hydrogen sector will be established.