DUBAI: Saudi Arabia has established a new global benchmark for the lowest levelized cost of electricity for solar photovoltaics, reaching an unprecedented $10.4 (Dh38) per megawatt-hour, Gulf News reported citing a report by Norwegian business company, Rystad Energy. This remarkable feat underscores the kingdom’s commitment to renewable energy and its emergence as a leader in the transition towards sustainable power sources.
According to a report by Rystad Energy, Saudi Arabia, alongside the UAE and Oman, is poised to spearhead the region’s solar energy revolution. Several factors contribute to this leadership position, including low hurdle rates, the implementation of large-scale projects, declining hardware costs, inexpensive labor, and abundant solar irradiance.
The Middle East’s solar capacity has witnessed significant growth, surpassing 16 gigawatts by the end of last year and is expected to reach nearly 23 GW by the end of this year, as highlighted in the Rystad Energy report. Projections indicate that by 2030, the region’s solar capacity will soar past 100 GW, driven mainly by green hydrogen projects, contributing to an impressive annual growth rate of 30 percent.
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By the end of the decade, Saudi Arabia, the UAE, and Oman are forecasted to collectively account for approximately two-thirds of the region’s total solar capacity.
Furthermore, the shift towards renewable energy sources, including hydro, solar, and wind, is projected to witness a significant increase in the Middle East’s power generation mix. By 2050, these sources are expected to comprise 70 percent of the region’s power generation.
Saudi Arabia’s achievement of record-low solar electricity costs not only signifies a massive milestone in the global energy landscape but also underscores the kingdom’s commitment to sustainability and environmental stewardship.
