In the years leading up to the Covid pandemic, solar energy projects saw consecutive records of cost reduction until the latest record set by Saudi Arabia was reached in April 2021 at a cost of 1.04 cents per kilowatt for the 600 megawatt Shuaiba project.
Prices have risen again due to a global wave of inflation, and the latest awards announced were for the sixth phase of the 1,800 megawatt Mohammed bin Rashid Al Maktoum Solar Energy Complex in Dubai.
Masdar offered the lowest price of around 1.62 cents per kilowatt hour, an increase of around 60% from the record set in Saudi Arabia. This is somewhat in line with price increases for the last two solar projects in Saudi Arabia last year.
We track how the solar energy sector has developed over the past ten years and analyze prices for previous phases of the Mohammed bin Rashid Solar Park.
The first phase was allocated in June 2012 with a capacity of 13 MW, there is no information on the cost of energy.
The second phase, in June 2012, had a capacity of 200 megawatts, and the purchase price of energy reached 5.6 cents per kilowatt hour.
– The third phase, which was awarded in 2016, had a capacity of 800 megawatts, and the cost of purchasing energy reached 2.99 cents per kilowatt hour.
The fourth phase, which was awarded in September 2017, has a capacity of 250 megawatts and has a purchasing power cost of 2.4 cents per kilowatt hour.
The fifth phase was awarded in November 2019 with a capacity of 900 megawatts and an energy cost of approximately 1.7 cents per kilowatt hour.
Finally, the sixth stage, which is the first stage awarded since the coronavirus pandemic, cost 1.62 cents.