Japanese study cites UAE for lower global prices for solar and wind power projects
The UAE has contributed significantly to making renewable energy cheaper to produce, according to a Japanese study.
The report, compiled by Japan’s Nikkei, noted that bid prices for solar and wind power projects in Europe and the Middle East have dropped to levels comparable to coal-fired thermal power, according to a report by the UAE national news agency WAM.
Dubai Electricity and Water Authority, DEWA, alone received bids in the range of $2 cents per kilowatt-hour in proposals for solar projects, teaming up with Abu Dhabi’s clean energy company Masdar as well as other companies to build solar plants and wind farms in the UAE and abroad.
Long sunlight hours in the Middle East also helps ensure stable production of solar energy in the region at a lower cost. According to the report, renewable energy has been costly in the past, but many countries began to subsidise it in the 2000s in an effort to fight global warming and diversify their energy sources.
Earlier this month, Masdar announced that it has taken a 25% stake in Hywind Scotland, a 30 megawatt floating offshore pilot wind farm in the North Sea, due to be completed this year. This project will push Masdar’s total UK investments above 1 gigawatt of power, which is enough electricity to supply 6,600 homes.
Data from the International Energy Agency, IEA, has also shown that solar energy production costs have dropped 80% in the last five years while onshore wind power costs have fallen by nearly 70%.