New Record Set for World's Cheapest Solar, Now Undercutting Coal (bloomberg.com)

Anna Hirtenstein, reporting for Bloomberg: Solar power set another record-low price as renewable energy developers working in the United Arab Emirates shrugged off financial turmoil in the industry to promise projects costs that undercut even coal-fired generators. Developers bid as little as 2.99 cents a kilowatt-hour to develop 800 megawatts of solar-power projects for the Dubai Electricity and Water Authority, the utility for the Persian Gulf emirate. That's 15 percent lower than the previous record set in Mexico last month, according to Bloomberg New Energy Finance. The lowest priced solar power has plunged almost 50 percent in the past year. Saudi Arabia's Acwa Power International set a record in January 2015 by offering to build a portion of the same Dubai solar park for power priced at 5.85 cents per kilowatt-hour. Records were subsequently set in Peru and Mexico before Dubai reclaimed its mantel as purveyor of the world's cheapest solar power. "This bid tells us that some bidders are willing to risk a lot for the prestige of being the cheapest solar developer," said Jenny Chase, head of solar analysis at BNEF. "Nobody knows how it's meant to work."

Comments

power plants

[phantomfive]

Note that these prices are for solar power plants, not for household solar. Here's a comparison with prices for some other types of electricity generation.
Still solar plants have been popping up all over, and this will only encourage more of them, which is a good thing because coal pollution sucks.

Re:loss-lead, loss-follow, or loss-get-out-of-the-

[mspohr]

Contract is for 2.99 cents /kwh for energy delivered. Contractor eats any overruns. This is not the US Military pork barrel cost+ contract.