1.35 Cents/KWh: Record Abu Dhabi Solar Bid
Revealed on June Eighth, 2020 |
by Carlo Ombello
June Eighth, 2020 by Carlo Ombello
Before every thing printed on substitute:vitality.
A barely meaningful part of vitality news went virtually left out in newest weeks. The Abu Dhabi Vitality Corporation launched the bottom tariff for photo voltaic vitality in the sphere. The unusual sage came because the winning inform for the upcoming 2 gigawatt (GW) photo voltaic vitality plant, the Al Dhafra Portray voltaic PV mission, build the sphere’s most fee-aggressive tariff for photo voltaic PV vitality, at USD 1.35 cents/kWh (AED 4.97 fils/kWh in local forex). That is roughly 44% decrease than the tariff build factual three years in the past for the “Noor Abu Dhabi” mission – Abu Dhabi’s first immense-scale photo voltaic 1.2GW PV mission and an global sage tariff-setter at the time — which commenced its commercial operation support in April 2019.
The substantial photovoltaic vitality plant is scheduled to scheme support on-line in mid-2022. Expected to conceal an disclose of 20 sq. kilometers, this can virtually triple Abu Dhabi’s photo voltaic vitality generation skill to three.2 GW and befriend the Emirate disclose manufacture its 2030 draw to diminish carbon depth by 70% when put next with 2015. This single addition might perhaps perhaps perhaps on its possess offer virtually 3% of your total United Arab Emirates annual electrical energy seek recordsdata from (~127 TWh in 2018). The Al Dhafra and Noor projects firmly location Abu Dhabi among the leading regions of the sphere for photo voltaic vitality adoption and impress benchmark. To better just like the competitiveness of this inform, it’s fee noting that even mild and fully depreciated coal vitality vegetation personal LCOE values of around USD 3.3 cents/kWh (seek Lazard’s Levelized Price of Energy 2019). Which methodology the associated fee of electrical energy from this unusual photo voltaic vitality plant is dramatically less pricey than the associated fee of electrical energy from a prolonged-established, running coal vitality plant.
But why would this part of stories topic? Surely, this is a geographical exception, a sunny oasis in an global in any other case dominated by low-fee fossil fuels, a consequence that will per chance perhaps’t be replicated worldwide. Nicely, not in actual fact. Whereas the Heart East is of course sprint to changed into a photo voltaic powerhouse in the approaching years — its broad barren plot areas and sunny local climate finish in conventional PV load components above 1800 kWh/kWp build in — excessive ranges of photo voltaic irradiance are literally readily obtainable for the length of the sphere within a substantial range of latitudes. A brilliant blueprint from Global Portray voltaic Atlas is fee a thousand phrases:
As global data inform, an infinite fragment of the planet is basically ripe for exploitation with ultra-low-fee photo voltaic vitality. And the news from the Emirates are certainly echoed by similar prices build in other areas at some stage in the last year, from Europe to America. The outdated photo voltaic tariff sage belonged to Portugal: the southern European country claimed the plot in July 2019, at about USD 1.64 cents/kWh for a 150 MW mission. 211 MW of PV skill had been signed at USD 1.75 cents/kWh in Brazil factual weeks sooner than that, whereas a sub-2 cents/kWh inform changed into as soon as also presented in the identical length for the Los Angeles Eland Portray voltaic & Storage Heart mission in Kern County, California (the final version of the mission will in actual fact be a 300 MW / 1.2 GWh vitality storage installation — with an mixture impress of USD 3.962 cents/kWh for dispatchable vitality).
At the ranges being reached by utility-scale photo voltaic, even northern, wet worldwide locations such because the UK — with half of the photo voltaic irradiance of the Emirates — might perhaps perhaps perhaps soon seek projects manufacture LCOEs below USD 3 cents/kWh (in the event that they’re not beat by less pricey wind vitality at those latitudes). We are now at a degree the put economics alone is the foremost explain riding the vitality transition in direction of sustainability. With an annual global growth hovering around the 100 GW ticket sooner than the coronavirus disaster, photo voltaic vitality is now poised for a prolonged-timeframe extra boost thru favourable economic recovery insurance policies deliberate by most governments around the sphere. The unfolding economic disaster, liable to push down photo voltaic capital charges even extra, will finest make the PV market notable extra gorgeous. Cheap immense-scale battery storage, whether coupled to those projects or as standalone peaker plant replacements, might perhaps perhaps perhaps be the natural ally.
With the global financial neighborhood rising its level of curiosity on fossil fuel divestment and sustainability, we are in a position to inquire of the booming utility-scale photo voltaic market to ticket its presence in all continents at rising tempo. Investors with deep pockets, shopping for valid and predictable returns at a time of rising uncertainty and replace, will safely guess on massive renewable vitality inclinations for good returns on their portfolios, whereas warding off the volatility and anguish involved with projects in the incumbent sources of vitality.
As the fossil fuel industry struggles in the wake of the coronavirus emergency, all its hope lies on a swift, permanent, and not going recovery to elevated prices to retain its presence. An ironic conception with, eventually, tiny chance of success.
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Tags: abu dhabi, Abu Dhabi Vitality Corporation, Al Dhafra Portray voltaic, least pricey photo voltaic, Noor Abu Dhabi, UAE
About the Author
Carlo Ombello Carlo Ombello is an environmental engineer based in London. He writes about atmosphere, sustainability and green technologies on his blog substitute:vitality.