Solar Set To Surge
BMI View: News that a 100MW CSP solar plant has been completed in the UAE reinforces our constructive outlook for the solar sector, not just in the UAE, but the wider Gulf region - where exploiting solar power is rising up many political agendas. We also expect Masdar Clean Energy to undertake a greater number of renewable energy projects (particularly solar) across the region, capitalising on the growth potential on offer.
The 100-megawatt (MW) concentrated solar plant (CSP), known as Shams 1, was completed in March 2013, at a cost of around US$600mn. The project has taken the developers (Masdar, Total and Abengoa ) three years to build and is reportedly one of the largest CSP plants in the world. A number of other solar projects are also in the pipe line, including the first, 13MW phase of the planned 1,000MW Mohammed bin Rashid al-Maktoum Solar Park, e xpected to be completed in 2013. It was also announced in March, that Proventus Renewables signed a memorandum of understanding with a Dubai company for the construction of a 5MW project in Al Dhaidh .
These developments fall in line with the country's wider energy strategy to expand its, as of yet, underdeveloped renewables industry. A move driven by the ever growing demand for electricity and the opportunity-costs associated with traditional energy resources. As such, the Abu Dhabi government is committed to generating 7% of the total power in the emirate from renewables by 2020, and Dubai aims to generate at least 5% of its energy from renewables by 2030.
|Solar On The Up|
|Solar Generation (TWh) And Capacity (MW), 2012-2022|