Average costs for solar and wind electricity could fall 59 per cent by 2025
Expo 2020 Dubai and DP World deal puts UAE at the heart of future trade
The average costs for electricity generated by solar and wind technologies could decrease by between 26 and 59 per cent by 2025, according to a report released by the International Renewable Energy Agency (IRENA). The report, The Power to Change: Solar and Wind Cost Reduction Potential to 2025, finds that with the right regulatory and policy frameworks in place, solar and wind technologies can continue to realise cost reductions to 2025 and beyond. It estimates that by 2025, average electricity costs could decrease 59 per cent for solar photovoltaics (PV), 35 per cent for offshore wind, and 26 per cent for onshore wind compared to 2015. Electricity prices for concentrated solar power could also decrease as much as 43 per cent, depending on the technology used. By 2025, the global average cost of electricity from solar PV and onshore wind will be roughly five to six US cents (AED per kilowatt hour. Since 2009, prices for solar PV modules and wind turbines have fallen roughly 80 per cent and 30 to 40 per cent respectively. With every doubling of cumulative installed capacity, solar PV module prices drop 20 per cent and the cost of electricity from wind farms drops 12 per cent, due to economies of scale and technology improvements. Importantly for policy makers, cost reductions to 2025 will depend increasingly on balance of system costs (eg, inverters, racking and mounting systems, civil works, etc), technology innovations, operations and maintenance costs, and quality project management. The focus in many countries must therefore shift to adopting policies that can reduce costs in these areas.
Expo 2020 Dubai has announced DP World as its Premier Global Trade Partner. The company operates 77 terminals globally, including Jebel Ali Port, under 10 kilometres from the Expo site, and will be integral to the supply chain for the Expo, which will host over 180 nations and 25 million visitors for the world’s largest event in 2020. DP World is the third Premier Partner to date. Her Excellency Reem Al Hashimy, UAE Minister of State for International Cooperation and Director General Bureau Expo Dubai 2020, said,“Expo 2020 Dubai will be the first World Expo to take place in the Middle East, Africa or South Asia. The partnership with DP World will play a central role in cementing the UAE’s position at the heart of future global trade.” The partnership with DP World means that countries participating in Expo 2020 will be able to use ports in their home countries, as well as Jebel Ali Port, for their transport requirements as they prepare to take part in the global mega event, taking advantage of one of the most modern ports in the region, employing state-ofthe-art equipment and the infrastructure required to accommodate the world’s largest container vessels.
10 JULY/AUGUST 2016