Dubai Utility Gets Record Low Bid to Build Solar-Power Plant

https://www.bloomberg.com/news/articles/2019-10-13/dubai-utility-gets-record-low-bid-to-build-solar-power-plant?srnd=markets-vp

Dubai Electricity & Water Authority selected a contractor that submitted a “record” low bid to build a 900-megawatt solar-power plant in the emirate, Chief Executive Officer Saeed Mohammed Al Tayer said.

The contractor, which Al Tayer declined to identify, bid 1.7 cents per kilowatt-hour for the photovoltaic plant. The decision requires a lengthy evaluation before DEWA can publicly announce the winner, he said Sunday in an interview.

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Gulf sets a new global benchmark for solar energy production

https://www.power-technology.com/comment/gulf-sets-a-new-global-benchmark-for-solar-energy-production/

The submission of two tariffs below $1.8 cents a kilowatt-hour (kWh) for the fifth phase of Dubai’s Mohammed bin Rashid (MBR) renewable energy park marks the latest world record to be set by the Gulf’s burgeoning solar market.

The lowest tariff of $1.695 cents/kWh submitted by Saudi Arabia’s Acwa Power is not only a new record for unsubsidised photovoltaic (PV) solar production in the world, but further evidence why renewable energy is becoming the technology of choice for utilities and energy companies seeking to boost generation capacities to cope with rising demand.

In January 2015, Acwa Power set the world record for solar power generation with a $5.85 cents/kWh submission for the second phase of the MBR solar park in Dubai, which was far lower than any previous competitively tendered PV solar project across the globe. The Saudi developer faced the wrath of numerous solar companies and developers at the time, many claiming Acwa Power’s tariff was setting a dangerous precedent – reducing profit margins and setting unrealistic expectations for the region’s utilities.

The fact the latest solar project in Dubai has received bids three times lower than the record set for emirate’s first major solar independent power producer (IPP) project shows just how far the development of solar energy in the region has come. With Abu Dhabi and Saudi Arabia having also set records for solar tariffs in this period, the Gulf is emerging as a key market for driving down the cost of renewables.

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