What is going on with Middle Eastern solar prices, and what does it mean for the rest of us?

Abstract

For the third time in a decade, solar energy pricing records are tumbling in the Persian Gulf. As each previous wave of new records was met with incredulity, only for these prices to become the new normal around the world within a few years, it would be unwise to once again dismiss low prices as unrepresentative outliers. In this study, we show how local conditions and global macroeconomic factors have conspired to bring solar energy into a new regime of extreme affordability in the region and argue that the Gulf market, especially the United Arab Emirates and Saudi Arabia, represents the leading edge of the global learning curve and therefore offers a window into the likely near future of large‐scale photovoltaics around the world. As this future increasingly appears to be one of previously unimaginably cheap energy, we conclude with a discussion of the ways in which the region and the world can seek to meet the opportunities and challenges of the coming renewable revolution.

Ultra-Cheap Renewable Energy as an Enabling Technology for Deep Industrial Decarbonization via Capture and Utilization of Process CO2 Emissions

“…In the models used in this study, capacity factors of 90% are initially assumed for all components of the system (cement, hydrogen, and methanol plants). In setting solar thermal and electric prices, we use the power purchase agreement (PPA) prices as benchmarks for most recently awarded contracts in two solar technologies: 1.35 US cents/kWh for daytime electricity from photovoltaics (Abu Dhabi's 2GW Al Dhafrah project) and 7.3 US cents/kWh for overnight electricity from CSP + TES in Dubai's Mohammed bin Rashid Al Maktoum solar park [48]. We can also make an estimate of the cost of 24 h solar heat collected from a parabolic trough array and stored by noting that the power block at present represents about 25% of the total cost of a CSP + TES plant, according to the latest available data, and that solar-to-thermal efficiency under local conditions is about 3× greater than solar-to-electric efficiency, giving a cost of solar heat of 1.8 US cents/kWh.…”

Modelling and Optimisation of Wave Energy Converters

“…The first photovoltaic power station with a rating of 1 megawatt-peak (MW p ) was constructed in 1982 in California. Since that time, there have been many thousands of utility scale solar parks constructed around the globe, with some rated up to 1 GW p , such as the Mohammed bin Rashid Al Maktoum Solar Park in the United Arab Emirates [26]. From the early 2000s onwards, the growth of photovoltic power pants has seen a dramatic increase and the rise in photovoltaic capacity has been almost exponential.…”

Comprehensive economic analysis of PV farm -A case study of Alkarsaah PV farm in qatar

“…Bahrain comes into the picture with a 100 MW Askar landfill solar project in 2019 (Apostoleris et al, 2021).…”