The costs and benefits of large-scale solar photovoltaic power production in Abu Dhabi, United Arab Emirates

The potential for a 10 MW photovoltaic power plant in Abu Dhabi is examined in this paper using RETScreen modeling software to predict energy production, financial feasibility and GHG emissions reductions. Initial results show high energy production potential, generating 24 GWh and saving over 10,000 tons of GHG emissions annually, but poor financial prospects yielding a net present value (NPV) of −$51 million. Benefits of reducing GHG and air pollution emissions by replacing natural gas with PV generation are calculated to have a net present value of $47 million, with a large range of possible values. Results show that the high initial costs and low expected price for electricity generated are driving reasons why photovoltaic systems are not being implemented in Abu Dhabi. A feed-in tariff rate of $0.16/kWh is recommended to make large-scale PV systems profitable.