The Middle East nation of Saudi Arabia has set a new global record-low price for large-scale solar, with recent power purchase agreements for a new project selling for just over $US10 per megawatt-hour ($A13/MWh).
The PPAs are linked to the nation’s first renewables project, the 300MW Sakaka power plant in Al-Jouf. It is just one of many in the pipeline, though, with seven renewable energy projects receiving the green light to go ahead.
These new initiatives will be based at Al Madinah, Sudair, Qurayyat, Shuaibah, Jeddah, Rabigh, Rafha and a wind project at Doumat Al Jandal, which will take the nation’s renewable generation capacity to over 4 GW.
The Shuaibah project will be 600 MW alone and developed by a consortium of ACWA Power, Gulf Investment and Al Babtain Contracting.
The previous world record for solar was set in Portugal in August, 2020. Those PPAs were set at around $A18.17/MWh, which was 25 per cent lower than the previous record in Portugal.
While the Middle East has predominantly been known for its rich oil reserves and fossil fuel production, the announcement from Saudi Arabia has signalled a changing of the guard. Abu Dhabi Power Corporation’s Al Dhafra project in the Middle East is another example of a recent renewables drive, with that project attracting low prices around $A0.02/kWh ($A20/MWh).
Saudi Arabia’s Crown Prince Mohammed bin Salman said they had a responsibility to enter the green energy race.
“During the past weeks, the Saudi Green Initiative and the Middle East Green Initiative have been announced, which showed that we, as a leading global oil producer, are fully aware of our share of the responsibility in advancing the fight against climate change,” he said1.
Australian solar is also hitting record low prices
You don’t need to travel to the Middle East to enjoy highly affordable electricity. Solar power is only half the cost it was a decade ago, and that figure continues to decline, making it more and more accessible to all Aussie homes and businesses.
Utility-scale systems are also dropping between 30-40 per cent every time the capacity of solar doubles in Australia, which means even larger savings are just around the corner. As the world turns towards green energy to replace fossil fuels and combat climate change, we are going to see more and more Aussies install panels on their rooves, and more utility-scale projects.
When we see the amount of capacity double twice more, the price of solar in Australia is going to halve again, which makes it a tremendous investment right now.
While solar prices continue to set new records, grid electricity largely derived from fossil fuels are tipped to soar again. Are you getting a fair price for your electricity at your home or business? Try our free energy health check online tool so you can find the best deal for you.
Want to reduce your energy bills even further? Panels have become highly affordable and will slash your electricity bills. Contact us for a free quote on panels and installation packages.
- Renew Economy, Clean Energy News and Analysis, Saudi solar plant locks in new record low price for power: 1.04c/kWh, Sophie Vorrath.
https://reneweconomy.com.au/saudi-solar-plant-locks-in-new-record-low-price-for-power-1-04c-kwh/
