Finance

ACWA Power – Defying Marketing Pricing

ACWA Power is a desalinated water and energy company with a difference. While its
competitors seek to maximise profit by securing contracts with the most-generous possible
margins, the Saudi Arabian developer, owner and operator of power and water plants defies
market pricing to win – a strategy that has earned it a success rate of two out of three tenders,
as well as a growing international footprint. With ACWA’s bids on solar developments reaching
record lows, Paddy Padmanathan (CEO) was coming under increasing scrutiny from analysts
and media pundits, who could not understand how they could sustain these record-breaking
prices. In the latest auction on 5th June 2017, the Dubai Electricity and Water Authority (DEWA)
announced it had received four bids from consortiums for the tender of a 200 MW Concentrated
Solar Power (CSP) tower project. The ACWA consortium submitted a price of USD 9.45
cents/kWh, nearly 40% below the previous world-record low price for electricity generated from
this technology. The three other bids ranged from USD 10.58 to 17.35 cents/kWh. As analysts
struggled to replicate this price in their own models, Paddy put his own team to work to
demonstrate to the world how ACWA Power’s unique financing structure could make the
improbable possible.

Finance

Solar PV Feed-in Tariffs: The Fast-Track Review

Solar PV power is a kind of renewable generation that depends upon light striking a panel of semi-conductor material. The most common type at present is made of crystalline silicon, with layers which have alternately been doped with phosphorus and boron respectively. When the light strikes the panel, some of the photons release electrons from the silicon, allowing them to travel towards an electrode. The silicon that has been treated with phosphorus behaves differently, in terms of electron release, from that treated with boron, which creates an electrical field at the boundary between the layers, helping the freed electrons to move towards the electrode; from there, they move around an electrical circuit, providing useful energy as they do so. The field also helps the atoms that have lost electrons and are now positively charged to move towards the panel’s positive electrode where they are recombined with electrons from the circuit.

 

Topics/Industry: energy businessrenewable energy

Publication date: 05/09/2017

Published by: Centre for Climate Finance and Investment, Imperial College Business School

Authors: Charles Donovan, Chris Corbishley

Length: 14 pages

Geography: Saudi Arabia

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Topics/Industry: economicsenergy businesspolicypricingrenewable energy

 

Publication date: 01/04/2015

Published by: Imperial College Business School

Authors: Richard Green

Length: 12 pages

Geography: UK

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This case is not available to external audiences at this time.