Seeing the light on solar power

UAE project sets a new global benchmark in photovoltaic electricity generation costs

Mohammed bin Rashid Al Maktoum Solar Park. Courtesy Government of Dubai

The true proof of solar power's increasing viability is that even at a time of belt-tightening amid low oil prices, major renewable-energy projects in Dubai and Abu Dhabi are going ahead. Through a combination of technological advances and economies of scale, the projected cost of generating electricity via photovoltaics in the third phase of Dubai's Mohammed bin Rashid Al Maktoum solar park has plummeted to just 2.99 cents (Dh0.11) per kilowatt hour – a new industry benchmark.

There can be little doubt that the importance of solar energy will continue to increase and the UAE’s investment in expertise will be repaid, not simply in meeting our energy needs in a clean and affordable way but in being a world leader in this field. Within days of the projected cost for the 800-megawatt Dubai solar farm expansion, there was speculation that bids will be even cheaper for a 350MW solar project in Abu Dhabi’s Sweihan, to be built by Masdar and its partners Fotowatio Renewable Ventures and Gransolar Group.

Certainly, the UAE enjoys a combination of compelling advantages in solar power, quite apart from the obvious one of abundant sunshine. Our solar industry also enjoys the benefits of the easy availability of flat and accessible land to site solar farms, proximity to high-quality existing infrastructure, the intellectual capacity represented by the Masdar Institute of Science and Technology and through hosting the global headquarters of the International Renewable Energy Agency, access to cheap loans through the government’s AA credit rating, a tax-free environment to attract the best and brightest and, not least, strong support from the highest levels of Government.

All this seems an impossibly long way since the early days of the photovoltaic industry, where just 40 years ago the cost of solar cells was around 200 times what it is now. Back then, development in this area would be one of the first things to be cut when budgets had to be trimmed. The true breakthrough in the solar industry in the past few years is that costs are now so reasonable that investing in solar farms is the smart thing to do when belts are being tightened.