Oil-rich Abu Dhabi is planning a massive solar project.
By Samantha Page
Transitioning to clean energy is the single most important thing we can do to avoid the catastrophic effects of climate change.
Luckily for us, clean energy keeps getting cheaper.
This week saw the lowest-ever bid for electricity from a proposed solar plant, worldwide. A proposed development in Abu Dhabi will sell its electricity for 2.42 cents a kilowatt-hour (kWh).
For context, the average price per kWh for residential electricity in the United States — from all sources — is 12.73 cents. Wholesale prices for electricity can vary dramatically, but a set of record-low bids last summer for solar in Austin were around 4 cents per kWh. A 350 MW plant provides enough electricity to power about 57,000 average U.S. homes.
For years, solar prices have been falling and solar projects have been growing. It’s a fairly straightforward relationship: As the industry grows — streamlining production, training more workers, and generally benefitting from the economies of scale — prices come down.