DAILY BASKET – NEWS COMMENTARY
Solar Electricity at Cents 2.42 per Kilowatt in Abu Dhabi
MARSAL COMMENTS: Abu Dhabi will very shortly award a Japanese/Chinese consortium a contract to build and operate, for 25 years, a 1,177 megawatt Solar electricity power plant. It will be built from scratch to become operational in less than two years from now (2019) and will cost US$ 872 million.
It will produce electricity at a rate of US Cents 2.42 per kilowatt (KD Fils 7.3) and this includes the cost construction, plant equipment, cost of production, cost of finance (75% of the money will be borrowed), depreciation, amortization AND profit for the operators as well as the investors. Compared to the claimed cost of KD Fils 40 per kilowatt in Kuwait, this is magic… or simply good sense!
EFFECT PERIOD: (Short Term to Long Term)
IMPACT POTENTIAL: (Positive)
READ ORIGINAL: Abu Dhabi to Build World’s Largest Solar Power Plant