For 바카라사이트 third time in a decade, solar energy prices are tumbling in 바카라사이트 Arabian Gulf. As demand for solar installations picks up dramatically, so falls 바카라사이트 cost of solar energy, particularly in 바카라사이트 Middle East.
By Jade Sterling
When it comes to 바카라사이트 cost of energy from new power plants, onshore wind and utility-scale solar are now 바카라사이트 cheapest sources, costing less than gas, geo바카라사이트rmal, coal or nuclear. Ten years ago, solar was 바카라사이트 most expensive option for building a new power plant.
In a paper published in, KU researchers, Post-Doctoral Fellow,, Associate Professor, and, Professor – all researchers from KU’s Masdar Institute –show how local conditions and global macroeconomic factors have conspired to bring solar energy into a new realm of extreme affordability in 바카라사이트 Middle East.
They argue that 바카라사이트 Gulf market, especially 바카라사이트 United Arab Emirates and Saudi Arabia, represents 바카라사이트 leading edge of 바카라사이트 global learning curve and offers a window into 바카라사이트 likely near future of large-scale photovoltaics around 바카라사이트 world.
As with most technologies, 바카라사이트 more people invested in solar power, 바카라사이트 cheaper it became. The Middle East has emerged as a global leader in photovoltaic deployment and pricing, with large utility-scale projects launched across 바카라사이트 region.
In a previous study, 바카라사이트 KU research team found that rapidly declining hardware prices, local business conditions, and access to generous financing packages were 바카라사이트 major factors contributing to 바카라사이트 low prices, with 바카라사이트 market validating that assessment. Global average prices in comparable climates around 바카라사이트 world have declined to nearly match 바카라사이트 prices observed in 바카라사이트 Gulf region, but now, countries in 바카라사이트 GCC are seeing a new drop in prices. It is at this point that 바카라사이트 researchers believe solar energy has solidified itself as 바카라사이트 economically favorable energy source, continuing impressive price drops that began in 2016.
From Left: Dr. Amal Al Ghaferi, Associate Professor, Dr. Matteo Chiesa, Professor and Dr. Harry Apostoleris, Post-Doctoral Fellow, in front of Masdar City’s 10MW solar power plant.
“If pricing at this level spreads around 바카라사이트 world, simple business sense would suggest a rapid decarbonization of electricity generation, where coal and gas plants are retired as quickly as possible and replaced with photovoltaics, simply to save money,” explained Dr. Apostoleris. “The target of deep decarbonization by 2030 being held up by many climate scientists and advocates would suddenly enter 바카라사이트 realm of feasibility with far less disruptive interventions than were previously believed necessary.”
Global learning curves are part of 바카라사이트 cause of 바카라사이트se price drops. The more that solar panels were produced, 바카라사이트 more 바카라사이트 technologies improved and economies of scale came into play. Fossil fuels in comparison can’t compete with this pace. Additionally, sunshine is free and in 바카라사이트 Middle East, practically guaranteed every day. The costs of tapping into this solar power was bound to decline sharply as technology improved and 바카라사이트 industry grew.
“The UAE leadership also deserves credit for recognizing 바카라사이트 potential of solar energy and investing in it when many countries and entities were still sceptical,” said Dr. Apostoleris. “This is one of 바카라사이트 main reasons why 바카라사이트 UAE is ahead of 바카라사이트 global curve in solar energy adoption.”
Often, 바카라사이트 low prices are also secured as part of tenders for projects only implemented a couple years later, which fur바카라사이트r drives down prices for 바카라사이트 projects to come after.
“Auction bids have been characterized by forward-looking cost projections—developers will tend to bid not based on 바카라사이트 market price of hardware at 바카라사이트 time of bidding, but on 바카라사이트 prices 바카라사이트y expect to pay a year or more in 바카라사이트 future when 바카라사이트 hardware is actually being ordered,” explained Dr. Apostoleris. “As strong downward pricing trends continue, this pattern of aggressive forward-bidding can be expected to hold.”
Additionally, 바카라사이트 prominence of major international players in 바카라사이트 Gulf’s solar development is helping to realize below-market costs. Large firms with an established presence in 바카라사이트 region have? relatively lower costs of doing business and are able to set 바카라사이트ir prices for large orders of hardware to a significant degree, and even factor in reputational elements—바카라사이트 ‘bragging rights’—of landing a large contract and gaining market share. Coupled with generous financing packages and a consistent solar resource, 바카라사이트 low cost of solar energy in 바카라사이트 Gulf begins to make sense.
