Investment in Distributed Solar - A case for Abu Dhabi, UAE

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Abu Dhabi stands at the forefront of the UAE's clean energy transformation, and distributed solar generation plays a pivotal role in achieving its sustainability goals. Our report delivers a comprehensive analysis of the potential for rooftop and ground-mounted solar systems to reshape the emirate's energy future. The report examines the inefficiencies of electricity subsidies, compares solar costs with current tariffs, and evaluates the economic benefits of adopting distributed solar. It features real-world data on levelized cost of energy (LCOE), payback periods, and return on investment (IRR) for different consumer groups. By modeling growth scenarios, the report highlights how solar adoption could reduce government subsidies by AED 1.5 billion annually and avoid 5 million tonnes of CO₂ emissions by 2030. Packed with actionable insights and practical recommendations, this report is essential for policymakers, investors, and energy professionals looking to lead the UAE’s transition to a sustainable, clean energy future.

Abstract

This report investigates the potential for distributed solar generation to drive Abu Dhabi's transition to clean energy while addressing the inefficiencies of current electricity subsidies. It explores the economic and environmental case for rooftop and ground-mounted solar systems, highlighting recent cost declines that make solar a viable alternative to fossil fuel-based power. By outlining a clear roadmap, the report positions distributed solar as a key driver of economic efficiency and environmental sustainability in Abu Dhabi.

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