The increasing share of renewable energy in the UAE’s energy mix to 10 per cent and electricity generation mix to 25 per cent by 2030 could result in substantial annual savings for the nation of about $1.9 billion, according to a study.

The study published recently by the International Renewable Energy Agency (Irena) and Masdar Institute of Science and Technology (Mist) pointed out that the electricity generated via solar photovoltaics (PV) has been cost-competitive in the UAE since last year.

German engineering firm Manz AG further explored the scope for improving the nation’s savings via local production of solar modules through its participation at Menasol 2015, which took place in Hyatt Regency Dubai on May 13 and 14.

Mohamed Alammawi, Manz’s vice president of sales for the Mena region, said: “As a result of plummeting manufacturing expenses, solar energy is now competitive with the wholesale price of electricity, even in the Middle East, where solar power has to compete with naturally abundant fossil fuel-fired electricity generation.

“Grid parity in the UAE has been a reality for sometime now, and local manufacture of PV components can further supplement the cost-effectiveness of solar energy.”