It was announced in late April that the winning bid in a 2 GW electricity tender had set a new world record for low priced solar electricity, coming in at 1.35 US cents per kWh. Officials from the United Arab Emirates (UAE) are currently negotiating with a consortium consisting of French energy giant EDF and the projects division of Chinese solar manufacturer Jinko Solar to finalize the 30-year legal agreement following the bid. If they are unable to reach agreement, the state-run Abu Dhabi Power Corporation (ADPower) retains the option of negotiating with the runner up in the bidding process.
The Al Dhafra project, scheduled for completion in mid-2022, is 2 GW and is expected to be the largest single-site solar energy project in the world.
The costs of new power projects in the Middle East are remarkably low for a number of reasons. First, of course there is plenty of uninterrupted sunshine year round. Secondly, the cost of land leases is very low. Third, having a 30-year contract with a well-financed government agency means that very low cost capital is available.
It appears that large solar power tenders in the region have continued to move forward generally unaffected by the global pandemic.