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It's not cheap because the costs of building it is cheap, the companies are willing to undercut each other for the benefit of getting the contracts. The questio
by coldcode 10y ago
It's not cheap because the costs of building it is cheap, the companies are willing to undercut each other for the benefit of getting the contracts. The question is whether they will ever be profitable at this level.
- akhatri_aus 10y agoWhy would someone bid at a price like this before the project is set up if it was not the least bit feasible?
- beambot 10y agoPR? Hidden subsidies? Lucrative maintenance contracts? Desperation for revenue in a competitive market? Overly aggressive sales staff? Contract loopholes for cost overruns?
- knieveltech 10y ago^ this bot knows what's up.
- beat 10y agoHigh risk, high reward investment by individual actors who don't have to answer to boards and regulators.
- akhatri_aus 10y agoI think they mentioned there isn't any support from the government involved.
- barney54 10y agoThey will is they get subsidies to do so.
- deleted 10y ago[deleted]
- akhatri_aus 10y agoThey mentioned there aren't subsidies involved. It looks like they're trying to beat the curve.
- discardorama 10y agoMy guess: looking at the curve, and when they'll actually have to purchase the PV panels (a few years from not), things will be actually cheaper.
- ljf 10y agoNo - they are able to undercut as they have access to hugely cheap loans, which the others do not, so the bid come in close to the actual hardware and running costs, not that figure plus the loan repayments. Quote: One can suspect that Masdar had access to long-term financing through the wealthy emirate of Abu Dhabi that no commercial banks, the primary source of capital for the other bidders, could match in cost. From: http://www.apricum-group.com/dubai-shatters-records-cost-solar-earths-largest-solar-power-plant/ http://www.apricum-group.com/dubai-shatters-records-cost-sol...
- lukasm 10y agoAlso, UEA don't have taxes and cheap foreign labour to built it.