Solar just beat coal and with small time it will beat gas. How much longer can a great country such as ours continue to rely on gas supply from a trouble spot?

New Record Set for World's Cheapest Solar, Now Undercutting Coal

- 2.99 U.S. cents per kilowatt-hour is 15% lower than old record
- Cheaper than new coal-fired electricity in the Gulf emirate

Solar power set another record-low price as renewable energy developers working in the United Arab Emirates shrugged off financial turmoil in the industry to promise projects costs that undercut even coal-fired generators.
Developers bid as little as 2.99 cents a kilowatt-hour to develop 800 megawatts of solar-power projects for the Dubai Electricity & Water Authority, the utility for the Persian Gulf emirate, announced on Sunday. That’s 15 percent lower than the previous record set in Mexico last month, according to Bloomberg New Energy Finance.

The lowest priced solar power has plunged almost 50 percent in the past year. Saudi Arabia’s Acwa Power International set a record in January 2015 by offering to build a portion of the same Dubai solar park for power priced at 5.85 cents per kilowatt-hour. Records were subsequently set in Peru and Mexico before Dubai reclaimed its mantel as purveyor of the world’s cheapest solar power.

“This bid tells us that some bidders are willing to risk a lot for the prestige of being the cheapest solar developer,” said Jenny Chase, head of solar analysis at BNEF. “Nobody knows how it’s meant to work.”

Plunging costs along with the bankruptcy for the biggest developer, SunEdison Inc., has spurred questions about whether the cheapest projects will ever be profitable. The collapse of the world’s largest renewable energy company made some banks wary of financing projects. The winners of recent auctions in Mexico, Peru and Chile were diversified power companies like Enel SpA, which perhaps prioritized market share over profit maximization.

Dubai’s utility didn’t identify the developers behind the record-low bid it received. MEED reported that it’s a group including Masdar Abu Dhabi Future Energy Co., Spain’s Fotowatio Renewable Ventures BV and Saudi Arabia’s Abdul Latif Jameel. Among those companies, only Masdar could be reached for comment, and it didn’t confirm that it was the low bidder.

“A consortium led by Masdar, Abu Dhabi’s renewable energy company, was one of a number of bidders to have submitted a proposal for the third phase of the Mohammed bin Rashid Al Maktoum Solar Park,” a spokesperson for the consortium said in an e-mailed statement. “This is an active bid, with the technical and commercial proposals being evaluated by Dubai Electricity and Water Authority.”

Tender Process
The shift to tenders from feed-in tariffs for clean energy globally has helped governments rein in support for renewables while prodding companies to deliver lower costs. That’s shifted pressure away from government budgets and toward developers, which must strike a balance between a winning new contracts and maintaining profits.

Enel Green Power’s Chief Executive Officer Francesco Venturini, whose company bid 3.5 cents a kilowatt hour in Mexico last month, said in an interview that his projects will still make decent money even with record-low prices for electricity.
Enel’s Strategy

“There is no value in winning without margin attached,” Venturini said in an interview in Brussels last month. “I have two investment committees and two boards of directors I need to present my projects to and they want to see the money attached to it. So trust me, there is margin.”
Dubai’s state utility said it received five bids for the 800-megawatt project, which will be the third phase of the Mohammed bin Rashid Al-Maktoum solar park. It has not awarded the building permits yet. The facility is planned to have a capacity of 5 gigawatts by 2030.

“This price is borderline in terms of viability, but it’s an outlier project,” said Josefin Berg, solar analyst at IHS Inc., an industry researcher. “The size of the installation makes it easier to get good conditions on their procurement. It shouldn’t be used as a benchmark.”
The 2.99 cents bid for the solar project is a third lower than the electricity that will be generated by a coal plant commissioned by Dubai in October. That facility, set to begin generating in 2020, is expected to feed power onto the grid at 4.501 cents per kilowatt-hour under a 25-year power purchase agreement.

http://www.bloomberg.com/news/articles/2016-05-03/solar-developers-undercut-coal-with-another-record-set-in-dubai

Its inevitable that we'll join the rest of the world in utilising cleaner and renewable energy. Whether this year or in 5 years time, solar, wind, hydro will play major roles in our energy search.

lol. every time i see dis kind trend

theV0ice:
Its inevitable that we'll join the rest of the world in utilising cleaner and renewable energy. Whether this year or in 5 years time, solar, wind, hydro will play major roles in our energy search.

I just heard about a top secret government project that will be massive. Of course, it's in the North and they will use it as leverage.

No need to make it top secret as already many individuals in the north are already taking the initiative to invest in personal solar systems to power their homes and small businesses - with an abundance of God given sun one wonders why this hadn't happen any sooner.

In the interim another initiative has recently emerged, where youths with a bit of capital establish generator based micro power plant businesses called 'merger'; they supply power to as many as 70 -90 small shops (as temporary substitutes for PHCN) using 3 phase generators for a daily fee of as little as N200 - N300/day.

Meanwhile, let the NDA continue bombing as the rest of the country diversifies and moves on; while through their own actions they unwittingly help to wean Nigerians from over dependency on their oyel, thereafter making their ongoing militancy lesser and lesser of an economic weapon of blackmail - they are by all means welcomed to continue with the bombing; after all, pickin wey say im mama no go sleep him ma no go sleep.

Positive news. I do reckon however that the project will need substantial government incentives if it's to be financed.

MeAboki:
No need to make it top secret as already many individuals in the north are already taking the initiative to invest in personal solar systems to power their homes and small businesses - with an abundance of God given sun one wonders why this hadn't happen any sooner.

In the interim another initiative has recently emerged, where youths with a bit of capital establish generator based micro power plant businesses called 'merger'; they supply power to as many as 70 -90 small shops (as temporary substitutes for PHCN) using 3 phase generators for a daily fee of as little as N200 - N300/day.

Meanwhile, let the NDA continue bombing as the rest of the country diversifies and moves on; while through their own actions they unwittingly help to wean Nigerians from over dependency on their oyel, thereafter making their ongoing militancy lesser and lesser of an economic weapon of blackmail - they are by all means welcomed to continue with the bombing; after all, pickin wey say im mama no go sleep him ma no go sleep.

Typical Hausa man has spoken ..so this haphazard solutions are going to help Nigeria solve it's power deficit to become an industrial giant ...this is no different than the previous I pass my neighbour economy Nigeria has been running

MeAboki:
No need to make it top secret as already many individuals in the north are already taking the initiative to invest in personal solar systems to power their homes and small businesses - with an abundance of God given sun one wonders why this hadn't happen any sooner.

In the interim another initiative has recently emerged, where youths with a bit of capital establish generator based micro power plant businesses called 'merger'; they supply power to as many as 70 -90 small shops (as temporary substitutes for PHCN) using 3 phase generators for a daily fee of as little as N200 - N300/day.

Meanwhile, let the NDA continue bombing as the rest of the country diversifies and moves on; while through their own actions they unwittingly help to wean Nigerians from over dependency on their oyel, thereafter making their ongoing militancy lesser and lesser of an economic weapon of blackmail - they are by all means welcomed to continue with the bombing; after all, pickin wey say im mama no go sleep him ma no go sleep.

I am talking about thousands of megawatts and you are here promoting a hobby.

“This bid tells us that some bidders are willing to risk a lot for the prestige of being the cheapest solar developer,” said Jenny Chase, head of solar analysis at BNEF. “Nobody knows how it’s meant to work.”

Plunging costs along with the bankruptcy for the biggest developer, SunEdison Inc., has spurred questions about whether the cheapest projects will ever be profitable. The collapse of the world’s largest renewable energy company made some banks wary of financing projects.

guys, that someone tender his cost implications for a job in an organised civil society doesn't mean what you've on your headline is true.

Renewable energy is abundant yes, harnessing it nko? Is it cheap, mind you the tarrif there is dependent on the estimated installation cost.

So Dubai awash with oil and gas also invested incoal power gfor diversified energy mix while Nigeria is been encouraged to be daft by abandonment of it's own coal reserves.

Even the almighty USA and India generate between 50-60% of their energy from coal while they preach sanctimonious clean renewable energy only to us. And our economy keeps reeling from lack of energy and lives get destroyed anyway as a result

kayfra:


I am talking about thousands of megawatts and you are here promoting a hobby.

Thats how big things develop from from small steps later on - well, its not your fault if you can't see the bigger picture of potential that lies ahead.

idupaul:


Typical Hausa man has spoken ..so this haphazard solutions are going to help Nigeria solve it's power deficit to become an industrial giant ...this is no different than the previous I pass my neighbour economy Nigeria has been running

Typical Igbo, speaking through his anus without pausing to think first; this is why you and your ilk currently find yourselves shouting marginalisation after being politically floored again and again (much to your chagrin and bruised inflated egos) no thanks to your penchant and ineptitude of continuously under estimating your worthy northern political foes.

If you had gone through my post very carefully, you would have noticed that I was specifically referring to local initiatives of my ppl in the north on individual basis, not on national basis and from a longer term basis as well as an interim basis using solar and communal generators respectively - key words being interim and temporary.
All the above being ongoing efforts in the north at grassroot level to diversify away from present over dependency on ND oyel and blackmail by the militants - in response to the topic of this thread.

If you want me to tell you about alternative energy source initiatives/potentials on larger scale by govts (states and FG) in the north: there are solar and wind energy being developed by Zamfara and Jigawa state governments; coal powered plants to be sourced from Kogi & Yobe deposits (FG); Hydroelectricity, Mambilla & Shirroro Dams (FG), Tiga and Bagauda Dams (Kano State govt) the latter already in advanced stage of development with an initial projected power output of 30 Mega Watts but scaled back to 13 Mega Watts in order not to compromise water supply to ongoing irrigation projects for dry season farming - among others.

Next time think carefully before shooting your mouth prematurely and most importantly; don't believe the hype that Hausa/northerners are unintelligent - after all, they couldn't have been at the helm of affairs in this country for so long only by chance; though you are free to continue to underestimate them at your own peril.

MeAboki:
No need to make it top secret as already many individuals in the north are already taking the initiative to invest in personal solar systems to power their homes and small businesses - with an abundance of God given sun one wonders why this hadn't happen any sooner.

In the interim another initiative has recently emerged, where youths with a bit of capital establish generator based micro power plant businesses called 'merger'; they supply power to as many as 70 -90 small shops (as temporary substitutes for PHCN) using 3 phase generators for a daily fee of as little as N200 - N300/day.

Meanwhile, let the NDA continue bombing as the rest of the country diversifies and moves on; while through their own actions they unwittingly help to wean Nigerians from over dependency on their oyel, thereafter making their ongoing militancy lesser and lesser of an economic weapon of blackmail - they are by all means welcomed to continue with the bombing; after all, pickin wey say im mama no go sleep him ma no go sleep.

Fascinating this "merger" thingy. How does it work? Please enlighten me.

pacino26:
“This bid tells us that some bidders are willing to risk a lot for the prestige of being the cheapest solar developer,” said Jenny Chase, head of solar analysis at BNEF. “Nobody knows how it’s meant to work.”

Plunging costs along with the bankruptcy for the biggest developer, SunEdison Inc., has spurred questions about whether the cheapest projects will ever be profitable. The collapse of the world’s largest renewable energy company made some banks wary of financing projects.

guys, that someone tender his cost implications for a job in an organised civil society doesn't mean what you've on your headline is true.

Renewable energy is abundant yes, harnessing it nko? Is it cheap, mind you the tarrif there is dependent on the estimated installation cost.

It's the beginning of low costs. The fact that overpriced SunEdison got bankrupt doesn't mean Chinese developers won't pick up the slack.

Its obvious that its only a matter of time before solar energy catches with other sources of energy.
But what most people fail to realize is that the problem with solar is not the price.
The main problem with solar energy is the POOOOR efficiency i.e POOOR energy conversion from solar radiation to electricity. I know the technology is getting better and more efficient, but you still need very massive land area to install huge number of panels just to get the same amount power from other conventional methods of electricity generation.

Imagine the amount of power that Lagos needs and imagine the land mass required if solar is to provide just 10%. Of course, if the Lagos state government is determined and brave enough, she can build a solar or wind farm on the atlantic - but then the cost will sky-rocket by a 1000 time.

For me the second draw back to solar is its inability to generate power at night time. Trust me, if storage batteries can be eliminated and solar panels can somehow squeeze out power from the very tiny solar radiation in the night, then the world will me moving seriously towards green energy. And even if the cost of such panels is three times the present price, it will be well worth it.

But we shall get their. The days of fossil fuel are numbered.

kayfra:


It's the beginning of low costs. The fact that overpriced SunEdison got bankrupt doesn't mean Chinese developers won't pick up the slack.

Exactly our problem we mistake quality for quantity. Not minding standards and the so called effect of your clean energy on our environment. Creating a new dump ground for low quality garbage.

linnyx:


Fascinating this "merger" thingy. How does it work? Please enlighten me.

Read 2nd paragraph of my post again, its all there; you too can do it in your area if you have the capital for a medium/large generator as well as the cooperation of local ppl willing to subscribe to your services - its quite a viable business venture for commercial areas with notorious problem of power supply; but you must also be careful not to be too successful otherwise the local DISCO may see you as a rival/interloper encroaching into their territory.

pacino26:


Exactly our problem we mistake quality for quantity. Not minding standards and the so called effect of your clean energy on our environment. Creating a new dump ground for low quality garbage.

If you knew your onions about clean energy, you'll know that China is now a trailblazer when it comes to cheap quality cells.