Bye bye Fossil Fuels

Today is May 1 and not April 1 – so we should assume this is not a joke but that this incredible news is real! Incredible news! The lowest offer for the current 800 MW tender of the Dubai Electricity & Water Authority (DEWA) was as low as 2.99 US cents per kWh, the Middle East Solar Industry Association (MESIA) said today.

In a message titled "Another global record broken in utility scale solar PV IPP's: Lowest tariff to date" MESIA referred to a statement from DEWA, which suggested that from the 5 bidders left, a "local-regional JV consortium" had offered this "rock-bottom" price. Today was the deadline for the submission of offers for the 800 MW 3rd Phase of The Sheikh Mohammed Bin Rashid Solar Park.

The first phase was awarded to First Solar (1.3 MW), while the second phase (200 MW) went to a consortium lead by ACWA Power. The power price agreement for phase 2 – at 5.85 US cents – was then the world's lowest subsidy-free solar price.

If the 2.99 US cents offer would be chosen by DEWA, that would mean a further price decrease of 49% compared to phase 2. It would also mean that this power will be generated cheaper than by any new fossil fuel plant and even outcompete on-shore wind! However, this price is incredibly low, really hard to fathom  – it would be extremely interesting to see the calculation behind that offer. Now let's see if this bid will be considered bankable, be awarded –  and actually built. In any case, the news about that price bid alone is amazing news – and will rock the world of power generation. Let's hope it works for all parties involved – so we can say Bye Bye fossil fuels very soon.