ADPower announces lowest tariff for solar power in the world

Abu Dhabi Power Corporation (ADPower) has announced the world's lowest tariff for solar power, set at a record Dh4.97 fils/kWh or $1.35 cents/kWh.
ADPower's subsidiary, Emirates Water and Electricity Company (EWEC), delivered a virtual read-out of five consortia's technical and commercial bids for the 2GW Solar Photovoltaic (PV) Independent Power Producer (IPP) project to be located in Abu Dhabi. The project has received, from the first-ranked bidder, the world's most cost-competitive tariff for solar PV energy on a Levelized Electricity Cost basis, which is approximately 44 per cent lower than tariff set three years ago on the 'Noor Abu Dhabi' project - Abu Dhabi's first large-scale solar PV project and a world record tariff-setter at the time.
The Al Dhafra Solar PV project will have the capacity to power approximately 160,000 households across the UAE with electricity. It will be almost double the size of the approximately 1.2GW Noor Abu Dhabi solar plant - amongst the largest operational solar PV plants in the world - which commenced commercial operations in April 2019.
Once operational, the Al Dhafra Solar PV project will lift Abu Dhabi's total solar power generation capacity to approximately 3.2GW. This will reduce the Emirate's CO2 emissions by more than 3.6 million metric tons per year - equal to removing around 720,000 cars from the road - improving efficiency and driving sustainability, while catering for the growth in demand across the UAE.
Jasim Husain Thabet, CEO and MD of ADPower, said: "Abu Dhabi has illustrated a remarkable step-change in the way the Emirate generates power through an enhanced focus on sustainability and renewable technologies. The water and electricity sector intends to play a critical role in meeting the target of having 50 per cent of Abu Dhabi's energy needs served from renewable and clean energy sources by 2030, as well as the reduction of the generation system's average carbon intensity by more than 70 per cent, compared to 2015. The Al Dhafra Solar PV project will play a critical role in delivering these ambitions."
Adnoc and ADPower launch joint tender for sub-sea power transmission network
The Abu Dhabi National Oil Company (Adnoc) and ADPower have also announced the issuance of a joint tender for a first-of-its-kind project in the Middle East & North Africa region.
The joint tender sets out to develop and operate the region's first high-voltage, direct current (HVDC) sub-sea transmission system, that will connect Adnoc's offshore production facilities to ADPower's onshore electricity grid using state-of-the-art technology.
The project, initiated by Adnoc, is in line with its continued objective to drive efficiencies and bolster resilience. Together, Adnoc and ADPower will deliver valuable long-term synergies in national infrastructure and jointly attract international partners to Abu Dhabi. In addition, the milestone project demonstrates the two entities' commitment to continuously drive responsible and sustained investment and value creation for Abu Dhabi and the UAE, and support the ongoing development of the national economy in this complex and challenging period.
The project is expected to reduce the carbon footprint of Adnoc's offshore facilities by up to 30 per cent through ADPower's efficient onshore power production. It also offers power supply cost optimization potential for Adnoc's offshore facilities and will drive operational efficiency and system reliability by replacing the existing offshore localised gas turbine generators with diverse, more efficient and environmentally sustainable sources of energy, including renewable and nuclear power. The project also offers potential for Adnoc to more effectively utilise its rich gas - currently used to power the offshore facilities - for higher-value purposes, allowing Adnoc to generate additional revenue for Adnoc and Abu Dhabi.
Yaser Saeed Al Mazrouei, Adnoc Upstream executive director, said: "This project will meet our future offshore power needs, even as our fields mature, using diverse and sustainable sources. It will lower Adnoc and the UAE's carbon footprint, whilst at the same time enabling Adnoc to utilize the natural gas currently used to power our offshore facilities for higher-value purposes. Equally, the project will deliver operational expenditure reductions in the long run as well as lasting strategic benefits as we continue to drive sustainable value and responsible investment opportunities that stimulate economic growth for Abu Dhabi and the UAE in the current market environment."
rohma@khaleejtimes.com