The jury is still out on the trend for unsubsidised solar power production costs among the GCC states.
A May report by the Abu Dhabi-based International Renewable Energy Authority set average costs of capital for renewable energy projects in the Middle East and Africa region among the highest in the world.
Bracewell’s Tom Jamieson recently told MEED that the “consistent race to the bottom seen during the pre-Covid-19 pandemic years may have potentially come to an end. The next 12-18 months will provide some indicators in terms of levelised electricity cost trend, which will likely be heading upwards due to inflation, as well as contractor capacity and liquidity.”
According to MEED research, the eight main procuring entities across the GCC states are mandated to procure up to 115,000 MW of renewable energy capacity between now and 2030.