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

Pj McCloskey and Rodrigo Malheiros Remor

MPRA Paper from University Library of Munich, Germany

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.

Keywords: renewable energy; solar energy; decentralised solar; centralised solar; LCOE; Abu Dhabi (search for similar items in EconPapers)
JEL-codes: Q2 Q42 Q47 Q58 (search for similar items in EconPapers)
Date: 2025-04-10, Revised 2025-05-13
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https://mpra.ub.uni-muenchen.de/124740/1/MPRA_paper_124740.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/124811/1/MPRA_paper_124811.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:124740

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