Retail Power Price Reform in the Middle East: Grid-Competitive Solar’s Way In?
Solar’s time has (nearly) come in the Middle East. Tthe region is home to some of the most attractive markets for new-build solar in the world, and a steady stream of internationally competitive tenders — including more than 8 gigawatts expected in 2018 — has created a sizable pipeline of utility-scale projects in the Gulf, driven prices to record lows and caught the attention of the world.
GTM Research expects over 22 GW of solar to be installed in Bahrain, Jordan, Oman, Saudi Arabia and the United Arab Emirates by 2023 as national renewable energy target policies set bold goals. But to date, most of the region’s markets have not seen the maturation of solar markets behind the meter, despite steep cost declines and the introduction or development of net metering policies.
This report provides a market overview and five-year outlook for the solar market in the Middle East. It includes detailed coverage of legacy electricity subsidies and tariffs, as well as lessons to be learned from Jordan, which has fostered a thriving local solar industry.