.png)
Abu Dhabi faces a strategic choice in scaling up solar energy: centralised mega-projects or decentralsed rooftop systems. This paper by our Director PJ McCloskey and analyst Rodrigo Remor analyses why distributed solar uptake remains low in Abu Dhabi and evaluates its economic viability under current conditions. Abu Dhabi has so far favored large solar parks (e.g. the 1.17 GW Noor Abu Dhabi plant) while rooftop solar adoption is minimal (~2.94 MW on government buildings by 2020, <1% of Noor’s capacity). Given the UAE’s net-zero commitment and Energy Strategy 2050 targets (44% renewable electricity by 2050), the study explores whether decentralised solar could play a larger role and what policy shifts might be required.
This paper evaluates the economic viability of decentralised solar systems in Abu Dhabi. By analysing levelised cost of electricity (LCOE), net present value (NPV), and internal rate of return (IRR) across customer groups, it finds that while rooftop solar generation is not yet cost-effective for heavily subsidised sectors, it remains viable for industrial and commercial users. The study suggests that subsidy reform could significantly improve the financial appeal of decentralised systems, aligning with Abu Dhabi’s decarbonisation targets under the UAE Energy Strategy 2050.
This paper has been published on following other platforms
I was delighted that MCC's work was completed on time, and within budget, helping us deliver important changes and improvements, to the benefit of our stakeholders. MCC's report is published on the CCC website.
I am delighted to recommend MCC Economics. Specifically, I worked closely with PJ, who helped us with our Nuclear and CCUS projects. PJ helped us develop new policies and answer questions from our stakeholders. His support helped us deliver important changes and improvements, to the benefit of our stakeholders.
MCC Economics has helped us better understand the most important issues for our stakeholders, including: charges, shareholder returns, debt payments and inflation impacts.
Harness the power of informed decisions and shape tomorrow's success.
© All rights reserved – MCC Economics 2024.
