21 March 2017
Dubai's ruler, Sheikh Mohammed bin Rashid Al Maktoum, on Monday inaugurated the 200 megawatt (MW) second phase of the Mohammed bin Rashid Al Maktoum Solar Park.
The 1.2 billion dirham ($326 million) project, when complete, will generate up to 1,000MW of clean energy by 2020 and up to 5,000MW electricity by 2030. With a total investment of 50 billion dirhams, it is set to be the largest single-site solar park in the world.
The move comes as an industry expert report that the surge in production of Chinese solar energy panels has helped to push the price of units down dramatically over the last decade, making the sector much more attractive for investors.
“The last seven to eight years the prices of [solar panel] equipment has reduced big time…. The price has probably reduced 10 times over the last eight years,” Yousif Al Ali, director of business growth in the clean energy division of Masdar, Abu Dhabi’s renewable energy city, told Zawya in an interview last month.
The price of panels is currently around 30 cent per watt at peak, down from around $3 eight years ago, Al Ali said, adding that the biggest contributory factor for this drop was massive production of cheap panels in China.
“We know that many companies that went to bankrupt because of this. The China factor is the biggest impact,” he said.
In addition to panels becoming cheaper, the technology has become more reliable, meaning less land is now required to generate the same amount of energy.
The more attractive costs are part of the region’s bid to diversify away from hydrocarbons. Investments in the renewable energy sector picked up in 2016 across the Middle East and Africa, with greenfield transactions attracting $8.7 billion (Dh31.9 billion) of investments, according to a report issued this month by consultancy firm Ernst and Young.
Further reading:
Small solar power projects replacing costly generators
Dubai's DEWA seeks proposals for 200 MW solar plant in May
Abu Dhabi aims to close $872mln solar plant financing in April
Abu Dhabi's Masdar City starts to take shape as private sector investors come on board
© Express 2017
Dubai's ruler, Sheikh Mohammed bin Rashid Al Maktoum, on Monday inaugurated the 200 megawatt (MW) second phase of the Mohammed bin Rashid Al Maktoum Solar Park.
The 1.2 billion dirham ($326 million) project, when complete, will generate up to 1,000MW of clean energy by 2020 and up to 5,000MW electricity by 2030. With a total investment of 50 billion dirhams, it is set to be the largest single-site solar park in the world.
The move comes as an industry expert report that the surge in production of Chinese solar energy panels has helped to push the price of units down dramatically over the last decade, making the sector much more attractive for investors.
“The last seven to eight years the prices of [solar panel] equipment has reduced big time…. The price has probably reduced 10 times over the last eight years,” Yousif Al Ali, director of business growth in the clean energy division of Masdar, Abu Dhabi’s renewable energy city, told Zawya in an interview last month.
The price of panels is currently around 30 cent per watt at peak, down from around $3 eight years ago, Al Ali said, adding that the biggest contributory factor for this drop was massive production of cheap panels in China.
“We know that many companies that went to bankrupt because of this. The China factor is the biggest impact,” he said.
In addition to panels becoming cheaper, the technology has become more reliable, meaning less land is now required to generate the same amount of energy.
The more attractive costs are part of the region’s bid to diversify away from hydrocarbons. Investments in the renewable energy sector picked up in 2016 across the Middle East and Africa, with greenfield transactions attracting $8.7 billion (Dh31.9 billion) of investments, according to a report issued this month by consultancy firm Ernst and Young.
Further reading:
Small solar power projects replacing costly generators
Dubai's DEWA seeks proposals for 200 MW solar plant in May
Abu Dhabi aims to close $872mln solar plant financing in April
Abu Dhabi's Masdar City starts to take shape as private sector investors come on board
© Express 2017
