Abu Dhabi announces world’s lowest tariff for solar power

The Al Dhafra Solar PV project, it will have 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. (File/AFP)

• The tariff set 44 percent lower than tariff set three years ago on the ‘Noor Abu Dhabi’ project

DUBAI: Abu Dhabi Power Corporation (ADPower) announced on Tuesday the world’s lowest tariff for solar power, state news agency WAM reported. 
ADPower has submitted a commercial bid for the 2 GW Solar Photovoltaic (PV) Independent Power Producer (IPP) project to be located in Abu Dhabi. 
The tariff set at $1.35/kWh on a Levelized Electricity Cost (LEC) basis, which is approximately 44 percent lower than tariff set three years ago on the ‘Noor Abu Dhabi’ project – Abu Dhabi’s first large-scale solar PV project and a world record tariff-setter at the time.
“The cost-competitiveness of the bids received is truly remarkable – positioning Abu Dhabi as one of the world’s most attractive markets for solar energy development and reinforcing the economic benefits now achievable through renewable technologies,” Othman Al Ali, Chief Executive Officer of EWEC, said.
The Solar PV project will have the capacity to power approximately 160,000 households across the UAE with electricity. 
It is expected to double in size of the approximately 1.2 GW Noor Abu Dhabi solar plant – amongst the largest operational solar PV plants in the world – which commenced commercial operations in April 2019.
The project aims to reduce the Emirate’s CO2 emissions by more than 3.6 million metric tons per year – equal to removing around 720,000 cars from the road – improving efficiency and driving sustainability, while catering for the growth in demand across the UAE.
“Abu Dhabi has illustrated a remarkable step-change in the way the Emirate generates power through an enhanced focus on sustainability and renewable technologies,” Jasim Husain Thabet, Chief Executive Officer and Managing Director of ADPower, said. 
“The water and electricity sector intends to play a critical role in meeting the target of having 50 percent of Abu Dhabi’s energy needs served from renewable and clean energy sources by 2030, as well as the reduction of the generation system’s average carbon intensity by more than 70 percent compared to 2015”, he added. 
Known as the Al Dhafra Solar PV project, it will have 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.