Saudi Arabia to add 1.5 GW of solar capacity in 2013-2017 - IHS
Oct 31, 2013 - Saudi Arabia is forecast to build 1,481 MW of solar parks between 2013 and 2017, possibly taking advantage of falling costs for photovoltaic (PV) products, market research firm IHS (NYSE:IHS) said yesterday.
Saudi Arabia, which seeks to procure capacity of 500 MW-800 MW in its initial solar tender early in 2014, could benefit from the plunging average selling price (ASP) for solar modules. These are seen to almost halve to USD 0.38 (EUR 0.28) per watt in 2023 from USD 0.73 last year. However, IHS noted that bidders in the tender will need to keep a balance between locally-made solar products and competitive bid prices. “For Saudi Arabia to benefit from global price reductions its supply chain for modules must be transparent and not overruled by mandates for local content”, IHS senior director of solar research Henning Wicht said.
According to the market analyst, the country is set to become the third-largest nation in the Africa and Middle East regions in terms of installed PV capacity and build up an 18% share from 2013 to 2017. South Africa and Israel are expected to hold the first and second place in such a ranking with shares of 31% and 21%, respectively, according to IHS.
Saudi Arabia aims to install 16 GW of solar capacity by 2032. Its first solar tender, which will aim to add up to 800 MW of solar parks, was unveiled in February as part of the country's goal to install 23.9 GW of renewable capacity by 2020 and 54.1 GW by 2032. For solar, Saudi Arabia might launch two more tenders within three years for 7 GW of installed capacity.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.