Results of a study conducted by the International Renewable Energy Agency (IRENA) and the Masdar Institute of Science and Technology released on Monday found that energy production using solar photovoltiacs has been effective in the United Arab Emirates (UAE).
The technology has been shown to be cost-competitive compared to other forms of electricity generation, according to the study.
A German engineering firm, Manz AG, will pursue further exploration for developing solar generation in the Middle East and will include the region in the MENASOL 2015 project.
“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," Mohamed Alammawi, Manz’s vice president of sales for the Middle East and North Africa region, said. "Grid parity in the UAE has been a reality for some time now, and local manufacture of PV components can further supplement the cost-effectiveness of solar energy."
Renewable sources of energy are gaining traction in the UAE. The report stated that 10 percent of the UAE's energy is through renewable sources; and if the trend continues to 25 percent by 2030, the nation could see energy savings of approximately $1.9 billion.
This is further facilitated as solar panel prices have significantly fallen.
“Solar [photovoltaic] module prices have fallen around 75 percent since 2008," Alammawi said. "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."