Green energy companies want Dubai to consider implementing a feed-in tariff (Fit) to accelerate rooftop solar in the emirate.
Dubai FIT
In other words, adjusted for solar conditions, this auction just produced a price almost competitive with German feed-in tariffs. So congratulations, Dubai, that’s not easy to do with auctions! . . .
There are, however, a few differences that matter. In Germany, these feed-in tariffs are open to everyone who wants to build, creating a market of competing players. In Dubai, a single firm – ACWA, “owned by eight Saudi conglomerates” and two other organizations from the area – won the contract for the 100 MW project. The bidding process itself is competitive (the part where everyone loses money), but the profitable building process is a monopoly.
With Dubai’s government close to finalizing legislation, property owners in the Emirate may soon have the option to feed solar power into the grid so they can make money from feed-in tariffs. . .
The announcement that Dubai will keep prices fixed increases pressure on the Government to introduce a feed-in tariff to help renewable energy compete with conventional power.
