Abu Dhabi claims record low US$0.0135/kWh solar tariff for 2GW Al Dhafra project

Facebook
Twitter
LinkedIn
Reddit
Email
The Al Dhafra project will be nearly twice the size of the existing Abu Dhabi Noor project (pictured), completed last year. Image: EWEC.

Abu Dhabi Power has claimed to have received the world’s lowest tariff for solar for its 2GW Al Dhafra project.

A pool of five bidders tendered for the project and the first-ranked bidder – yet to be named by ADP – set their price at US$0.0135/kWh, a sum which would rank as the world’s lowest, the utility said.

At that price, the Al Dhafra project comes in cheaper per kilowatt-hour than the previous solar record of US$0.0164/kWh, claimed by a bidder in Portugal’s major solar tender last year.

While the identities behind the leading bid have yet to be formally revealed, reports suggest that it is a joint bid from French utility EDF and Solar Module Super League member JinkoSolar. ADP did not comment on the speculation when contacted by PV Tech yesterday. 

The 2GW Al Dhafra project is the designated follow-up to the Emirate’s maiden utility-scale solar project Abu Dhabi Noor. Al Dhafra’s tariff has come in 44% lower than the US$0.0242/kWh received by Noor three years ago, itself a world record low at the time.

The Al Dhafra tender was launched in February last year, attracting interest from a list of nearly 50 companies which was then whittled down to a shortlist of 24. From that shortlist, just five firms submitted bids last November.

At the World Future Energy Summit in Abu Dhabi earlier this year, ADP’s utility subsidiary Emirates Water and Electric Company (EWEC) said that it was evaluating the bids against a selection of price and non-price criteria, intending to announce further details this spring.

Formal agreements between ADP, EWEC and the winning bidder are now to be signed, with EWEC expecting to sign a power purchase agreement and start receiving power from the project in Q2 2022.

Othman Al Ali, chief executive at EWEC, described the project as a “major milestone” for its strategic shift towards clean energy.

“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,” he said.

29 November 2022
PV ModuleTech EMEA in Madrid on 29-30 November 2022 will address the factors underpinning the changing PV module landscape, gathering together all the key stakeholders across the value-chain from module production to field testing. Join us for presentations from the leading players in the sector, clearly identifying the opportunities and challenges set to impact module supply to Europe and the Middle-East over the next few years.

Read Next

June 29, 2022
Arab-speaking countries in the MENA region have planned to increase utility-scale solar capacity by 49.5 GW by 2030, according to Global Energy Monitor.
PV Tech Premium
June 14, 2022
With PV cleaning robots posing significant advantages for solar O&M, Ben Figgis of the Qatar Environment & Energy Research Institute of Hamad bin Khalifa University, explores recent developments of standards in the field.
May 30, 2022
Israel is planning to scale up solar deployment as part of a new government strategy designed to put the country on track to have 30% of its electricity generation from renewables by 2030.
April 6, 2022
Portugal’s first floating solar auction closed with a world record-low price, with utilities EDP and Endesa among the winning bidders, the country’s environment ministry has announced.
March 9, 2022
Solar developers ACWA Power and Jinko Power have both penned power purchase agreements in Saudi Arabia, with the country aiming to launch 15GW of projects in the next two years.
February 22, 2022
and smart infrastructure in the Middle East, Africa and Asia, with investments earmarked for a portfolio of projects exceeding 1GW.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
London
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event