Solar competitive with gas in the Middle East–without subsidies
Bloomberg Businessweek reports that the Emirates Solar Industry Association has co-authored a report with PricewaterhouseCoopers LLP, finding that Middle Eastern solar projects are competitive with natural-gas-fired generators.
As solar technology becomes increasingly affordable and fossil fuels conversely continue to rise, some markets are finding that solar is more cost effective than fossil fuels as those prices continue to skyrocket.
That said, even without government subsidies, solar is able to replace some gas generation for the Middle East.
Countries that must rely on expensive fossil fuel imports to run generators, like Dubai and Kuwait who import liquified natural gas, are investing more in solar power even without the government subsidies other countries employ.
For example, LNG imported from Qatar currently costs $16 per thermal unit; at this point, solar technology innovations are able to compete with generators using gas purchased at $10 per thermal unit.
Ironically, according to Businessweek, “Saudi Arabia, the world’s largest crude exporter, forgoes oil revenue by burning the fuel in power plants, also making it economically sensible to pursue solar power there.”
