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Replacement of inverters is the largest maintenance expense for solar photovoltaic (PV) projects across the Gulf Cooperation Council (GCC) region, S&P Global Rating said in a new report.
Inverters convert direct current generated by solar PV assets to alternating current for interconnection with the utility grid.
The ratings agency pointed out that the life span of an inverter is shorter than the 25-year typical useful life of a PV asset.
“PV assets, therefore, require an adequate operating budget to allow for the replacement and refurbishment of spare parts,” the report said.
The report noted that solar PV projects with contracted prices are more predictable and carry lower operational risk than other power-generating assets.
“We expect investment in renewable energy for hydrogen production to ramp up alongside investment in pure power facilities,” it stated.
S&P Global Ratings expects significant investments in renewables in the GCC during the current decade as member countries race to meet net-zero targets and commitments to the Paris Agreement.
(Writing by P Deol; Editing by Anoop Menon)
