Can the UAE push solar tariffs below 1¢/kWh? This commentary examines the economics behind record-setting PV prices, using Al Dhafra as the benchmark and the upcoming MBR Solar Park Phase VII as the next test. We highlight the market conditions, procurement design, and technology shifts that could make another price breakthrough plausible.
Building on the UAE’s 1.32¢/kWh Al Dhafra outcome, the paper assesses whether forthcoming utility-scale PV tenders, especially Dubai’s MBR Solar Park Phase VII could break the sub-1¢/kWh barrier by 2027. It summarises the benchmark project’s key characteristics, reviews the sustained downward trend in solar LCOE across GCC mega-projects, and discusses Phase VII’s hybrid PV-plus-storage structure (including large-scale BESS integration). The note outlines drivers that could compress costs further—financing, supply chains, and module technology, and provides a directional price outlook.
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