Saudi Press: Saudi Arabia Welcomes US Administration's Decision Designating Houthi Militia as a Terrorist Organization    Syrian refugee makes cheese to survive the pandemic    Najran deputy governor receives first dose of coronavirus    French Driver Peterhansel Wins Dakar Rally Saudi Arabia 2021    Bahrain announces delay in delivery of Pfizer-BioNTech vaccine shipments    WhatsApp delays new privacy policy as users flee to rival apps    Air travel down 60% as airline industry losses top $370 billion: ICAO    Pandemic curbs trend toward ever-increasing migration    Peterhansel takes Dakar Rally crown for the 14th time    WHO committee underlines need for equitable coronavirus vaccine access, more data sharing    Bahrain thanks Oman for facilitating release of Al-Haddad, others from Qatari detention    HRH Crown Prince Condoles Emir of Kuwait on Death of Sheikha Fadhaa Jaber Al-Ahmad Al-Sabah    Saudi Arabia to appoint female judges soon    Prince Turki bin Hazloul Receives 1st Dose of Coronavirus' Vaccine    173 New Confirmed Covid-19 Cases, 181 Recoveries Reported, in Saudi Arabia    Yemeni Government: Riyadh Agreement is A Model to Be Followed for Achieving Peace    OIC Secretary-General Condemns Strongly Launching 3 bomb-laden UAVs Towards KSA by Terrorist Houthi Militia    UAE Reports 3,407 New Cases of Covid-19    Saudi Press: Saudi Arabia Supports Stability of Region and World    Saudi Arabia's hazard warning system on roads best in Arab world    Industrial sector stimulates investment and creates qualitative jobs: Al-Khorayef    Combining offshore wind and green hydrogen is still too expensive    Al-Attiyah beats Peterhansel to take Dakar stage 11 win    Sadara recognized by GPCA as Operation Clean Sweep partner; first in GCC    Rosewood Jeddah launches ‘Sunrise Breakfast' at sky lounge    UK, Saudi Arabia & UAE artists to create digital artworks from 1000s of miles apart 
    Makkah hospital takes care of Pakistani baby boy for a full year    Transshipment containers up by 2.5 million at Jeddah Islamic Port in 2020 despite pandemic    S. Korea to Inject 1.1 Tln Won Into Autonomous Driving Projects    Yazeed Al-Rajhi cruises to second stage win in Dakar Rally    Royal Court: Prince Khalid Bin Abdullah Bin Abdulrahman dies    The National Committee for the Enforcement and Respect of the Intellectual Holds its First Meeting    Saudi Press: The Line Project Adopts Artificial Intelligence Technologies    Rangers win Old Firm derby, 50 years since Ibrox disaster    Dakar Saudi Arabia 2021 Rally to fully Kick off for 13-Day on Sunday    Saudi Film Commission Opens Registration Doors for Digital Filmmakers' Program    Dakar Saudi Arabia 2021 Rally to Kick off, on Saturday    Saudi Arabia Names " Scales" Film to Represent it in Oscars    Painting Marking UN Arabic Language Day Adorns Madinah Road, in Jeddah    MCIT Launches Initiative to Raise Awareness on Cyberbullying    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Court facilitates young woman's marriage after stripping father's guardianship    Bahrain's top Islamic body condemns attempts to insult Muslim symbols    Saudi man accused of harassing foreign wife asked to be produced before court Court allows divorce, custody of children by mother    S. P. Bala, legendary Indian singer, dead at 74    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    Pilgrims Perform Dhuhr and Asr Prayers in Arafat Holy Site    Senior Scholars Council Issues Decision No. 246 Regarding Attendance of Friday Prayer and Prayers at Mosques in a Case of Spread of Epidemic or Fear of its Spread    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





GCC era of solar energy arrives
Published in The Saudi Gazette on 11 - 05 - 2015

JEDDAH — The era of solar energy has finally arrived, the CEO of Saudi Arabia's ACWA Power believes.
“Fast forward to 2020, if we're going to have this discussion, I'm absolutely convinced that people will look back and say 2014-15 was the point of inflection. That's when solar became mainstream. I think we have just turned,” Padmanathan said in an article published in Arabian Business Sunday.
In the last two years, he has signed multi-billion-dollar deals in Morocco and contracts worth hundreds of millions of dollars in the UAE and South Africa and now has an asset portfolio with an investment value in excess of just over $27 billion.
The change, he said, comes down to financial sense, citing DEWA's $330 million solar power station, which is all set to be completed in April 2017.
“This is the period during which the price levels have come to a point where it has become cost competitive. The proof of the pudding is here in Dubai. They start off with a 100-megawatt [MW] tender, saw the price, said it was a compelling case, and doubled the procurement,” he added.
“The plan was to develop 1,000MW in stages over five to eight years. The second project of 800MW — one project — is coming before the end of this year. By the end of this year, there's a very good chance that the whole 1,000MW will be spoken for. They have started to immediately revise their targets and to think about buying more solar.”
The financial sense in the discussion comes right back to the basic measurement of how much it costs to produce electricity, in terms of cents per kilowatt hour. Five years ago, Padmanathan said the conversation would have been completely different.
“An average price for [gas] power generation would be 8 cents per kilowatt hour, as a point of reference. Up to five years ago, the average price of solar energy would have been 50 cents; even as recent as two years ago, it was 15 cents,” he added.
“You could have alternatively generated it at 7 cents using gas two years ago. Quite frankly, from a cost competitiveness point of view, it didn't make sense to talk about renewable energy. But today, where it [solar] has now come to 6 cents, the story is completely different.”
The solar energy provided at 6 cents provides the power during the heavier daytime use hours only, he said, because ACWA can't supply solar energy at night using photovoltaic technology because there is no way of storing the energy.
“We can using concentrated solar power, which uses molten salt storage, another more sophisticated technology, but the cost of that is still around 14c,” Padmanathan noted.
He said the big difference between solar and fossil fuel is that the biggest component of the cost of the fossil fuel electricity with comes from the fuel cost, which can fluctuate.
“With solar energy, you have built the plant and spent the money, the energy comes free and there is no price volatility, so I'm able to commit to a fixed price for 20 to 25 years,” he noted.
Demand for renewable energy has been strong in the region, Padmanathan further said. Dubai could end up in about 20 years with a grid of 20,000MW, with 5,000-6,000MW of that coming from renewable energy.
“Jordan has hesitantly started to step into renewables, unsure whether it will be price competitive. Now they're seeing the projects coming through, and the speed of deployment, they can't get it out fast enough. Egypt I fully expect will embrace more and more renewable energy, wind, CSP [concentrated solar power],” he pointed out.
The kingdom's plans had centered around King Abdullah City for Atomic and Renewable Energy — Ka-Care — a $109 billion plan to provide 40,000MW of additional power generation capacity from solar power, and another 21,000MW from geothermal and wind power by 2032.
“They (Saudi Arabia) are completely convinced of the renewable energy story and that it has a part to play in the fuel mix. That's not a debate that needs to be initiated. The only questions now: how much, how fast and how do we do it, and extract as much value out of it,” he added. — Agencies


Clic here to read the story from its source.