The Gulf states have been competing to drive down tariffs for solar projects in recent months, with a series of record-low prices being celebrated in Saudi Arabia, Qatar and the UAE (MEES, 7 August). But not everyone is celebrating. Contractors are only prepared to go so low and there are growing signs that that threshold is now being reached.
The latest word of warning came from India’s Sterling & Wilson on an earnings call last month. Having signed a letter of intent (LoI) for a 1GW portion of Saudi Arabia’s 2GW Sudair solar PV project in October 2019, the firm is now concerned that Riyadh will seek to renegotiate a lower price (MEES, 24 July). (CONTINUED - 405 WORDS)