For the third time in a decade, solar energy pricing records are tumbling in the Persian Gulf. As each previous wave of new records was met with incredulity, only for these prices to become the new normal around the world within a few years, it would be unwise to once again dismiss low prices as unrepresentative outliers.
Over the last several years, the oil-rich Persian Gulf region has emerged as a global leader in photovoltaic deployment and pricing.
At the time of our original study on solar energy costs in the GCC region, the largest active utility-scale solar plant was the 200-MW project forming phase 2 of Dubai's Mohammed bin Rashid Al Maktoum solar park (henceforth MBR2).
We found that CapEx below $1000/kW was feasible based on rapidly declining module costs (around 30 ¢/W at the time of that writing), BOS and tracker costs, the low cost of labor in the region, and minimal overhead and “soft” costs.
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