Oil Kings of Middle East Plan To Invest in Solar Power
Solar energy is getting cheaper and as a result, the UAE and Saudi Arabia among others are looking to solar power to run their electricity plants rather than oil. There are no green reasons for doing this, and they are not doing it for the good of the world.
Solar energy is getting cheaper and as a result, the UAE and Saudi Arabia among others are looking to solar power to run their electricity plants rather than oil. There are no green reasons for doing this, and they are not doing it for the good of the world. Simply, the cost is lower and at a recent show in Dubai, it was revealed how strong the solar industry could become in the Middle East.
The Dubai Electricity and Water Authority had five bids before it to build 800MW of solar capacity and at very competitive rates. The exact cost is not known but is believed to be around 3 cents per kWh, and this is after land purchasing costs and government subsidies have been factored in. To see this in context, in the US the consumer price was 12.15 cents per kWh and Hawaii was much higher at 26.77 cents per kWh. With so much sunshine in the Middle East, it seems to be the obvious option.
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By 2030, Saudi Arabia wants to generate 9.5 GW of renewable energy, and this will require a substantial investment. For FirstSolar and SunPower the main reason for involvement in solar power is the global demand.
For the last ten years, boom and bust have been the norm for solar energy with Spain, Japan, and Germany raising and lowering government subsidies. Growth is now being noticed in Mexico, Chile China, the Middle East and South Africa.
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Daniel Okafor
Daniel Okafor is the Senior AI Reporter at TrendinTech, where he covers large language models, machine learning research and the practical use of artificial intelligence across business and government. He previously reported on artificial intelligence for MIT Technology Review, covering the labs behind the current generation of frontier models and the policy debates in Washington and Brussels. Daniel holds a Master of Science in Machine Learning from Carnegie Mellon University and follows the research community closely, attending NeurIPS and ICML each year to speak with the people behind the papers. He has a particular interest in evaluation: how models are benchmarked, where those benchmarks fail and what that means for the companies betting on them.
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