The increasing share of renewable energy in the UAE’s energy mix to 10 per cent and electricity generation mix to 25 per cent by 2030 could result in substantial annual savings for the nation of about $1.9 billion, according to a study.

The study published recently by the International Renewable Energy Agency (Irena) and Masdar Institute of Science and Technology (MIST) pointed out that the electricity generated via solar photovoltaics (PV) has been cost-competitive in the UAE since last year.

German engineering firm Manz AG will now further explore the scope for improving the nation’s savings via local production of solar modules through its upcoming participation at Menasol 2015, which will take place in Hyatt Regency Dubai on May 13 and 14.
 
Mohamed Alammawi, Manz’s vice president of sales for the Mena region, said: “As a result of plummeting manufacturing expenses, solar energy is now competitive with the wholesale price of electricity, even in the Middle East, where solar power has to compete with naturally abundant fossil fuel-fired electricity generation.

“Grid parity in the UAE has been a reality for sometime now, and local manufacture of PV components can further supplement the cost-effectiveness of solar energy.”

Solar is a critical resource for the UAE, alongside highlighting that different forms of solar energy account for more than 90 per cent of renewable energy use in the 2030 renewable energy roadmap produced by Irena, said the study.

A number of renewable energy technologies – such as solar PV, wind power, and waste- to-energy – are already economic in the UAE above $8 per million British thermal units (MBtu), with solar PV potentially competitive with gas prices as low as $4.5/ MBtu, it said.

“Solar PV module prices have fallen round 75% since 2008. The current price parity level is a call for energy producers to examine their investment choices. The UAE's shifting cost dynamics have far-reaching implications across the region,” said Alammawi.

The virtues of local production of solar modules at the manufacturing of PV components session, which will also explore the benefits of forming partnerships with local institutions and the latest developments in PV hybridisation, he added. - TradeArabia News Service