# Abu Dhabi signs cheapest electricity contract, ever

By [Brandon Donnelly](https://brandondonnelly.com) · 2016-09-25

abu-dhabi, electric-vehicle, g-class, gas-car, natural-gas, ramez-naam, solar-electricity, solar-power, sustainability, technology, uncategorized

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![](https://storage.googleapis.com/papyrus_images/aa50bc31c9e975bb353c2d49fc717318.jpg)

The Abu Dhabi Water and Electricity Authority recently completed [a 350 MW solar tender](http://renewables.seenews.com/news/update-abu-dhabi-confirms-usd-24-2-mwh-bid-in-solar-tender-540324#). They received a total of 6 bids and the low bidder was Japan’s Marubeni Corp and China’s JinkoSolar Holding Co Ltd. Their bid was USD $24.2 per MWh or 2.42 cents per KWh.

This is really low.

[According to the U.S. Energy Information Administration](https://www.eia.gov/forecasts/aeo/pdf/electricity_generation.pdf), the average cost of a new natural gas-fired plant is 5.6 cents per KWh. More than double the above solar bid.

In fact, author, blogger and futurist [Ramez Naam](https://twitter.com/ramez) calls the above bid, “_the cheapest contract for electricity ever signed, anywhere on planet earth, using any technology_.” ([Blog post here](http://rameznaam.com/2016/09/21/new-record-low-solar-price-in-abu-dhabi-costs-plunging-faster-than-expected/).) 

Huge.

Now, Abu Dhabi is obviously a very sunny locale. No shortage of bluebird days there. But that doesn’t negate the fact that we are seeing a rapid decline in solar power prices.

This, along with the growing adoption of electric vehicles is excellent news for us sustainability dorks. Just this morning I was thinking to myself that the car I currently own will likely be the last gasoline-powered car I ever own.

Hopefully they start making an electric version of the [G-Class](https://en.wikipedia.org/wiki/Mercedes-Benz_G-Class).

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*Originally published on [Brandon Donnelly](https://brandondonnelly.com/abu-dhabi-signs-cheapest-electricity-contract,-ever)*