King Coal is taking a lot of blows recently. But at least it could usually count on being the cheapest alternative. Now even that’s called into question.
The latest battering to coal’s standing came when Dubai announced June 27 that it would build a massive 800-megawatt solar plant that will produce electricity at an average cost of 2.99 cents a kilowatt hour, substantially below what even coal-fired power plants charge.
This rock-bottom price offered by the developers doesn’t benefit from any obvious subsidies and is the lowest price offered by any solar plant in the world.Bloomberg reports that the price is a full 50% below the price a Saudi firm bid just 18 months ago in the same solar park in Dubai – a price that at the time was a record low, but has since been eclipsed by ever-lower prices.
That price of less than 3 cents a kilowatt hour is one-third cheaper than a coal plant also being built in Dubai, one that, like the just-announced solar facility, is also expected to start operations in 2020.
Originally published in Forbes. Can be accessed here.