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The prim aim of this paper is to propose and analyze technical and economic dimensions concerning the integration of solar power (PV) unit(s), in the existing typical conventional power generation system, in the absence of a feed-in tariff scheme. The basic scenario examined in this work assessed possible electricity unit cost taking into account the penetration of PV modules of about 5 to 10 kW PV systems as roof-tops for residential use, without storage capability in prevailing local conditions in the northern region of KSA, i.e. city of Arar. Based on the input data and assumptions made, the simulations indicated that the scenario to meet the electrical demand of Arar would require installing at least 20-30 central modules, with a capacity of about 10 MW each. But it is not possible to meet the total electrical demand by employing distributed PV modules. In addition, the cost The estimated cost of produced electricity is about 0.1-0.12 US$/kWh and considered very high compared with the current prices of about US$ 0.013 per kWh. Without government incentives, i.e. feed-in-tariff or any other financial scheme aiming to encourage the utilization of renewable energy resources, such systems will not be feasible or find its way in KSA. However, the sensitivity analysis on current fuel prices, used for power generation, showed that increasing the local fuel prices would make such plants more economically attractive compared with conventional systems.

Prospects of Solar Power Generation in Dry Regions: The case of Arar in KSA