24/7 dispatchable solar power at costs comparable to gas-fired generation: too good to be true?
EWEC in Abu Dhabi just announced a Gigascale PV plus battery system that will provide 24/7 dispatchable solar power at an all-in energy cost comparable to gas-fired generation. Masdar will deliver and operate the plant. What does this mean for global power markets?
Solar Panels in the Liwa desert, Abu Dhabi
What makes solar PV + batteries competitive to provide dispatchable solar power?
Four key factors drive the viability of large-scale solar PV + battery systems as a cost-effective alternative:
1. Decreasing the cost of Battery Energy Storage Systems (BESS) and PV
Advances in battery technology and cost reduction enable solar PV + batteries to overcome traditional concerns by delivering a reliable, 24/7 power supply.
2. High-Quality Solar Resources
Regions with exceptional solar conditions can access high-capacity and consistent generation at a price comparable to conventional fossil fuel generation.
3. Low-Cost Capital
The cost of capital required for this type of power is already falling in many regions due to easing inflation and reduced risk perceptions.
4. Availability of suitable site
Large tracts of flat land with access to transmission connections.
Why This Matters
Solar PV + BESS can offer the same service as a gas generator, at the same price, with no carbon emissions. Many countries with high-quality RE resources stand to benefit from these developments as a cleaner energy future becomes economically and financially viable compared to conventional thermal generation. Take Australia for example; the CSIRO’s most recent study anticipates solar PV + battery reaching $70-130MWh by 2030. This announcement from Abu Dhabi suggests it could be a reality far sooner.
What’s Next?
If Masdar and EWEC’s solar PV and BESS facility can produce 1 GW of 24/7 dispatchable renewable energy for a price consistently comparable to fossil fuel generation and other regions can follow suit, global energy investment priorities and political focus will shift dramatically.
