Page 39 - Tcexpression2021 - Sept to Dec 2020

THE SUN IS SHINING BRIGHTER ON THE SANDS

Middle East’s Solar Revolution And Warfare

lot is happening in the sunny and sandy fields UAE, Saudi Arabia, Oman & Qatar have drawn
of the Middle East. In a region where oil was the aggressive plans for implementing large-sized projects
A undoubted king, solar power is emerging as a in the region in various phases. Projects in range of
strong leader. The region receives plenty of sunshine 6GW plus are in the various stages of development and
throughout the year, hence making solar an attractive implementation in Saudi Arabia and 5 GW plus in UAE.
option.
Another interesting point to note in these Solar projects
Why is the oil-rich Middle East that used to cater to its is the “Price Wars” leading to significant players in the
power demands from thermal power keen in switching region outpricing each other by offering aggressive and
to green solutions? Middle East Nations realised record low prices. Each time a new bid is opened, a new
quite early that investments in renewable energy and record is being set.
abandoning fossil fuels for electricity generation is the
key to future prosperity. These Nations also realised One of the recent bids in Abu Dhabi for 2 GW Al Dhafra
an eventual end to their oil reserves, thus leading to Solar Project saw a record low tariff of 1.35 cents/
climate change initiatives and adopting global shift kWh. It was preceded by another project of Dewa at
towards renewables. a tariff of 1.6953 cents/kWh. Another project in Qatar
was awarded at a tariff of 1.6 cents/kWh, which was
At present, the region is at the forefront of the race considered the lowest for a solar project.
to decarbonise energy production. According to the
Middle East Solar Industry Association (MESIA), energy These low bids are also backed with high-quality
investment in the Middle East region could hit more assurance, thanks to favourable tax regimes, assured
than $1 trillion by 2023. long term power offtake agreements, besides projects
locations closer to consumer centres resulting in lower
While oil may remain the primary economic engine for transmission costs and losses.
the Middle East for years to come, renewable energy is
gaining substantial new interest and investment from A decade ago, solar generation costs were well above
both governments and private-sector energy firms 30 cents per kWh. At present, the best solar projects
within the region and worldwide. Prominent names in the Middle East can achieve drastically lower prices,
like Acwa, Taqa, Masdar, EDF and Marubeni etc. have thanks to continuous technology innovations that are
invested heavily in the region and may continue to do driving down costs further.
so in the future.

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