Editor’s take: In this case, the cost of capital is driving project development costs. As Apricum’s Moritz Borgmann surmises in this article, the lowest bidder here (Abu Dhabi’s Masdar in partnership with Spanish developer FSV) surely has access to the Abu Dhabi government’s wealth and can borrow at rates that commercial banks could not match. This explains why JinkoSolar’s US $3.69 per kWh bid and First Solar/Acwa Power’s $3.96 bid, still incredibly low, were beaten.
Still however, the top three bids are unprecedented and show that unsubsidized the cost of solar power in the middle east beats fossil fuels. Said Borgmann: “As recently as October 2015, Dubai Electricity and Water Authority (DEWA) awarded the new Hassyan coal power station at a much higher tariff of 5.177 US cents/kWh. Gas-fired power plants in Dubai have an even higher generation cost.”
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