Comparison of Different Electricity Generation Costs (Oil and Gas, Coal, Solar Panels and Algae Panels)

Abstract

This dissertation investigates the comparative costs, environmental impacts and feasibility of four electricity generation sources – oil and gas, coal, solar panels and algae panels – within the context of the Gulf region’s growing energy demand and sustainability goals. The study is motivated by the region’s heavy reliance on hydrocarbons, which, while reliable, contribute significantly to carbon emissions and global warming. Coal, though cheap, presents high environmental costs and limited local availability, making it an unsustainable option. Solar panels, by contrast, are widely adopted in the Gulf due to abundant sunlight, offering low operational costs and reduced emissions, though challenges remain, with high installation costs and efficiency losses under dust and heat conditions. Algae panels, an emerging bioenergy technology, present dual benefits of renewable electricity generation and carbon capture, yet are hindered by high installation and maintenance costs, low conversion efficiency and limited scalability. Using a mixed-methods approach combining secondary data analysis and benchmarking through a villa case study in Dubai, the research evaluates the Levelized Cost of Electricity (LCOE), maintenance and ecological impacts across the four technologies. The findings reveal solar panels as the most cost-effective and sustainable near-term option, while algae technology, though not yet commercially viable, holds long-term potential as innovations reduce costs and improve efficiency. The study concludes that diversifying energy sources through solar adoption and supporting algae research aligns with the UAE’s energy transition and net-zero 2050 goals.