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Abu Dhabi announces lowest tariff for solar power

The Al Dhafra Solar PV project will produce twice the amount of solar energy and reduce the carbon emission by 3.6 mmt per year. (Image source: gordontour/Flickr)

Abu Dhabi Power Corporation (ADPower) has announced the world?s lowest tariff for solar power, at US$1.35 cents/kWh on a levelised electricity cost (LEC) basis

Emirates Water and Electricity Company (EWEC), a subsidiary of ADPower, delivered a virtual read-out from five technical and commercial bids for the two gigawatts solar photovoltaic (PV) independent power producer (IPP) project, which will be installed in Abu Dhabi.

Although the tariff for the Al Dhafra Solar PV project is lower than 44 per cent of the tariff, set three years ago, on the ?Noor Abu Dhabi? project, (considered the largest operational solar PV plants in the world); it will be double its size in terms of power generation, at 3.2GW, which can provide electricity to 160,000 households across the UAE.

The operation of the new solar PV project will also prove a landmark in driving sustainability goals, as it will reduce CO2 emissions by 3.6 mmt per year, by replacing sources of staple power production across the nation.

Jasim Husain Thabet, CEO and managing director of ADPower, said, ?Abu Dhabi has illustrated a remarkable step-change, in the way the Emirates generate power, through an enhanced focus on sustainability and renewable technologies.?

 ?The water and electricity sectors intend to meet 50 per cent of Abu Dhabi?s total power consumption, with clean and renewable energy sources by 2030 and reduce the average carbon footprints by 70 per cent or more, compared to 2015. The Al Dhafra Solar PV project will play a critical role in delivering these targets,? he added.

?The Al Dhafra Solar PV project represents a major milestone in EWEC?s ambitious and strategic shift towards clean power generation in the Emirates. The cost-competitiveness of the bids received is truly remarkable. It has positioned Abu Dhabi as one of the world?s most attractive markets for solar energy development, and reinforced the economic benefits, which are now achievable through renewable technologies. Securing such competitive tariffs is fundamental for supporting economic growth, across all sectors in the UAE. We look forward to signing the Power Purchase Agreement, and delivering the project by Q2 2022,? said Othman Al Ali, CEO of EWEC.

The completion of Al Dhafra Solar PV project includes, the financing, construction, operation and maintenance of the solar plant, including installation of solar PV modules, inverters, connection to the transmission network and associated facilities.

 

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