IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/124740.html

The approach for Abu Dhabi’s solar energy: Centralised or Decentralised

Author

Listed:
  • McCloskey, PJ
  • Malheiros Remor, Rodrigo

Abstract

This paper evaluates the economic viability of decentralised solar systems in Abu Dhabi. By analysing levelised cost of electricity (LCOE), net present value (NPV), and internal rate of return (IRR) across customer groups, it finds that while rooftop solar generation is not yet cost-effective for heavily subsidised sectors, it remains viable for industrial and commercial users. The study suggests that subsidy reform could significantly improve the financial appeal of decentralised systems, aligning with Abu Dhabi’s decarbonisation targets under the UAE Energy Strategy 2050.

Suggested Citation

  • McCloskey, PJ & Malheiros Remor, Rodrigo, 2025. "The approach for Abu Dhabi’s solar energy: Centralised or Decentralised," MPRA Paper 124740, University Library of Munich, Germany, revised 13 May 2025.
    • Handle: RePEc:pra:mprapa:124740
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/124740/1/MPRA_paper_124740.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/124811/1/MPRA_paper_124811.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Idel, Robert, 2022. "Levelized Full System Costs of Electricity," Energy, Elsevier, vol. 259(C).
    2. Tholkappiyan Ramachandran & Abdel-Hamid I. Mourad & Fathalla Hamed, 2022. "A Review on Solar Energy Utilization and Projects: Development in and around the UAE," Energies, MDPI, vol. 15(10), pages 1-27, May.
    3. Mayyas Alsalman & Vian Ahmed & Zied Bahroun & Sara Saboor, 2023. "An Economic Analysis of Solar Energy Generation Policies in the UAE," Energies, MDPI, vol. 16(7), pages 1-25, March.
    4. Thapar, Sapan, 2022. "Centralized vs decentralized solar: A comparison study (India)," Renewable Energy, Elsevier, vol. 194(C), pages 687-704.
    5. Abdullahi Abubakar Mas’ud & Asan Vernyuy Wirba & Saud J. Alshammari & Firdaus Muhammad-Sukki & Mu’azu Mohammed Abdullahi & Ricardo Albarracín & Mohammed Ziaul Hoq, 2018. "Solar Energy Potentials and Benefits in the Gulf Cooperation Council Countries: A Review of Substantial Issues," Energies, MDPI, vol. 11(2), pages 1-20, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaima A. Alnaqbi & Abdul Hai Alami, 2023. "Sustainability and Renewable Energy in the UAE: A Case Study of Sharjah," Energies, MDPI, vol. 16(20), pages 1-30, October.
    2. Tholkappiyan Ramachandran & Abdel-Hamid I. Mourad & Fathalla Hamed, 2022. "A Review on Solar Energy Utilization and Projects: Development in and around the UAE," Energies, MDPI, vol. 15(10), pages 1-27, May.
    3. Uchechi Ukaegbu & Lagouge Tartibu & C. W. Lim, 2024. "Optimization of Solar-Assisted CCHP Systems: Enhancing Efficiency and Reducing Emissions Through Harris Hawks-Based Mathematical Modeling," Sustainability, MDPI, vol. 16(23), pages 1-21, December.
    4. Dasari, Hari Prasad & Desamsetti, Srinivas & Langodan, Sabique & Attada, Raju & Kunchala, Ravi Kumar & Viswanadhapalli, Yesubabu & Knio, Omar & Hoteit, Ibrahim, 2019. "High-resolution assessment of solar energy resources over the Arabian Peninsula," Applied Energy, Elsevier, vol. 248(C), pages 354-371.
    5. Zhang, Tingsheng & Qi, Lingfei & Zhang, Zutao & Yan, Jinyue, 2024. "A portable balloon integrated photovoltaic system deployed at low altitude," Energy, Elsevier, vol. 313(C).
    6. S. V. Zhukov & O. B. Reznikova, 2023. "Energy Transition in the United States, Europe and China: Latest Trends," Studies on Russian Economic Development, Springer, vol. 34(4), pages 439-449, August.
    7. Mladen Bošnjaković & Mato Galović & Jasmin Kuprešak & Tomislav Bošnjaković, 2023. "The End of Life of PV Systems: Is Europe Ready for It?," Sustainability, MDPI, vol. 15(23), pages 1-22, November.
    8. Ping Fa Chiang & Shanshan Han & Mugabekazi Joie Claire & Ndungutse Jean Maurice & Mohammadtaghi Vakili & Abdulmoseen Segun Giwa, 2024. "Sustainable Treatment of Spent Photovoltaic Solar Panels Using Plasma Pyrolysis Technology and Its Economic Significance," Clean Technol., MDPI, vol. 6(2), pages 1-21, April.
    9. Kowsar, Abu & Saha, Shemanto & Naima, Foyzunnesa & Palash, Mujib L. & Faruque, Md Jamal & Lasker, Goutam Kumar & Haque, Nawshad & Alam, Firoz, 2025. "Unlocking the potential of rooftop photovoltaic power generation for healthcare in Bangladesh," Renewable Energy, Elsevier, vol. 243(C).
    10. Jenn-Jong Shieh & Kuo-Ing Hwu & Sheng-Ju Chen, 2024. "Two Types of Asymmetric Switched-Capacitor Five-Level Single-Phase DC-AC Inverters for Renewable Energy Applications," Energies, MDPI, vol. 17(5), pages 1-31, February.
    11. Babaei, Ardavan & Tirkolaee, Erfan Babaee & Boz, Esra, 2025. "Optimizing energy consumption for blockchain adoption through renewable energy sources," Renewable Energy, Elsevier, vol. 238(C).
    12. Saini, Krishna Kumar & Sharma, Pavitra & Mathur, Hitesh Datt & Gautam, Aditya R. & Bansal, Ramesh C., 2024. "Techno-economic and reliability assessment of an off-grid solar-powered energy system," Applied Energy, Elsevier, vol. 371(C).
    13. Łukasz Augustowski & Piotr Kułyk, 2023. "The Economic Profitability of Photovoltaic Installations in Households in Poland from a New Policy Perspective," Energies, MDPI, vol. 16(22), pages 1-16, November.
    14. Steele, Amanda Harker & Sharma, Smriti & Pena Cabra, Ivonne & Clahane, Luke & Iyengar, Arun, 2023. "A tool for measuring the system cost of replacement energy," Energy, Elsevier, vol. 275(C).
    15. Ahmad Taki & Bilal Alsheglawi, 2022. "Toward Energy-Efficient Houses Considering Social Cultural Needs in Bahrain: A New Framework Approach," Sustainability, MDPI, vol. 14(11), pages 1-30, June.
    16. Dara Eam & Vannak Vai & Chhith Chhlonh & Samphors Eng, 2023. "Planning of an LVAC Distribution System with Centralized PV and Decentralized PV Integration for a Rural Village," Energies, MDPI, vol. 16(16), pages 1-19, August.
    17. Chong, Shijia & Wu, Jing & Chang, I-Shin, 2024. "Cost accounting and economic competitiveness evaluation of photovoltaic power generation in China —— based on the system levelized cost of electricity," Renewable Energy, Elsevier, vol. 222(C).
    18. Hamed M. Hussain & Khalil Rahi & Mohammednoor Al Tarawneh & Christopher Preece, 2022. "Developing Applicable Scenarios to Install and Utilize Solar Panels in the Houses of Abu Dhabi City," Sustainability, MDPI, vol. 14(22), pages 1-33, November.
    19. Adam Krzymowski, 2022. "Energy Transformation and the UAE Green Economy: Trade Exchange and Relations with Three Seas Initiative Countries," Energies, MDPI, vol. 15(22), pages 1-20, November.
    20. Miguel A. Morales Mora & Vicente A. Soriano Ramírez & Patricia López Rivera & Francisco Javier López-Flores & Cirilo Nolasco Hipólito & Gonzalo Angeles Ordóñez & Sergio A. Martínez Delgadillo, 2025. "Narrative policy framework to evaluate clean energy certificates in shaping decarbonization strategies: evidence from Mexico’s electricity sector," Climatic Change, Springer, vol. 178(5), pages 1-22, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:124740. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.