ITP MEDIA GROUP / BUSINESS SEPTEMBER 2021• VOL. 15, ISSUE 09 ON GUARD 24/7 Amir Kanaan, Managing Director for Middle East, Turkey and Africa at Kaspersky speaks to Utilities Middle East on how utilities can step up cybersecurity of critical infrastructure© 2019 A O Kaspersky Lab . All rights r eserv ed. R egis te red tr ademark s and service mark s ar e the pr oper ty o f their r espectiv e o wne rs. Learn more: ics.kaspersky.com | @KasperskyICS • A holistic portfolio of services and technologies designed specifically to protect industrial control systems • Detects anomalies deep inside industrial processes • Specialized protection for industrial nodes, including PLCs • No impact on industrial control systems performance • Dedicated industrial services – from cybersecurity assessment to incident response A Strategic Approach to Industrial CybersecurityCONTENTS www.utilities-me.com September 2021 / Utilities Middle East 3 Volume 15 | Issue 09 Contents As the utility sector becomes more digitized, it also becomes more vulnerable to cybersecurity threats. Over the last fi ve years, utility companies have adopted new software to con- trol operational technology (OT), moved towards technology- heavy green energy sources like wind and solar, and made large investments in big data, cloud computing and IoT. All of these changes have increased their attack surface and exposed critical infrastructure to cyberattacks. In fact, recent research from industrial control system (ICS) security fi rm Dragos shows that more than a third of the hacking groups it tracks (which typically focus on critical infrastructure and ICS) are targeting vulnerabilities in the electric sector. Cybersecurity is a rapidly changing battlefi eld that requires awareness, continuous vigilance, and a consoli- dated response from everyone involved. As a result, utility companies and their partners are put- ting more resources into understanding these cyber risks and how to defend against them. Many utilities are tailoring their security strategies toward risk reduction and cybersecurity resilience. But to achieve full cybersecurity resilience, it is critical for utilities to create a cybersecurity roadmap, one with clear goals backed by strong protocols. This will help ensure a util- ity is proactive rather than reactive about threats. Protecting against cyber threats is more than just imple- menting tools and responding to alerts; your utilities need a set of policies and practices in place for resilience and risk mitigation. Because cybersecurity is a highly sensitive, it demands a trustworthy partner who understands how products, sys- tems, and solutions integrate with the processes and people behind them and how people interact with them. Companies such as Kaspersky are enabling utilities to master the challenges of an increasingly digitalised world. In this issue of Utilities Middle East, Amir Kanaan, Manag- ing Director for Middle East, Turkey and Africa at Kaspersky talks to us about the changing faces of cyber-attacks and how having the right ally is key to boosting cyber resilience. A life or death affair for utilities Baset Asaba, Editor Email: baset.asaba@itp.com View point ON GUARD 24/7 A look at how utilities in the region can fi rmly guard critical infrastructure against increasing cyber attack vectorsCONTENTS 4 Utilities Middle East / September 2021 www.utilities-me.com UAE turns on unit 2 of Barakah nuclear plant The Emirates Nuclear Energy Corporation (ENEC) has announced that its operating and maintenance subsidiary, Nawah Energy Company (Nawah) has successfully started up Unit 2 of the Barakah Nuclear Energy Plant, located in the Al Dhafra Region of Abu Dhabi 02 $3.5bn hydrogen facility to be set up in Oman ACME Group, an Indian solar developer, has signed a land agreement with the government of Oman to establish a green hydrogen and ammonia facility in the country, which the company claims will be the largest in the world once complete 03 Saudi Arabia’s solar-gas hybrid power plant is 95% complete Saudi Electricity Company has announced the 95% completion of the $906.5mn Green Duba power plant, which combines solar with combined cycle gas turbines to generate power for about 600,000 Saudi homes per year 05 34 28 05 UPDATES 10 NEWS ANALYSIS 16 INDUSTRY TRENDS 20 COVER FEATURE 28 SPECIAL REPORT 40 PRODUCTS 10 12 16 Dubai has inaugurated the 300MW first stage of the 900MW fifth phase of the Mohammed bin Rashid Al Mak- toum Solar Park implemented by the Dubai Electricity and Water Author- ity (DEWA) using the IPP model SPECIAL EDITION ALSO THIS MONTH 10 CLEAN HYDROGEN Hydrogen could account for 6 to 25% of global energy consumption by 2050. Human skills and infrastructure develop- ment crucial to hydrogen take-up and decarbonisa- tion targets 28 REDEFINING DESALINA- TION WITH AI A close look at how Artifi cial Intel- ligence (AI) and machine learning are helping operators make real-time decisions to save time and money 16 ENERGY ACCESS Researchers use a novel bottom-up approach to analyse how access to energy services may evolve over time under different scenarios of socioeconomic growth and policy scenarios that meet climate mitigation goals 34 A NUCLEAR PATH Several countries set their sights on carbon-free nuclear power genera- tion as part of their energy mix to ensure a dependable source of cleaner power with the highest level of reliability 20 CYBER RESILIENCE Amir Kanaan, Manag- ing Director for Middle East, Turkey and Africa at Kaspersky, talks about the urgent need for a holistic cybersecurity approach at the infrastructure level 12 FOSSIL FUELS PERSIST Emerging economies are increasingly investing in clean power grids to overcome pollution from conventional power plants, but many are still reluctant to quit coal Most popular news stories on www. Utilities-me.comitiesNews Dubai has inaugurated the 300 mega- watt (MW) fi rst stage of the 900MW fi fth phase of the Mohammed bin Rashid Al Maktoum Solar Park. Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai presided over the inauguration. Implemented by Dubai Electricity and Water Authority (DEWA) using the Independent Power Producer (IPP) model, the solar park is the largest single-site solar park in the world with a planned total capacity of 5,000MW by 2030. The Solar Park’s projects constitute one of the key pillars of the Dubai Clean Energy Strategy 2050, which aims to provide 75 percent of Dubai’s total power capacity from clean energy sources by 2050. The fi fth phase investments amount to AED2.058 billion, according to DEWA. In November 2019, DEWA announced the con- sortium led by ACWA Power and Gulf Investment Corporation as the Preferred Bidder to build and operate the fi fth phase of the Mohammed bin Rashid Al Maktoum Solar Park using photovoltaic (PV) solar panels based on the IPP model. DEWA achieved a world record by receiving the lowest bid of US$1.6953 cents per kilowatt hour (Levelised Cost of Energy) for this phase. A total of 60 Requests for Qualifi cations (RFQ) were received from international developers. To implement the project, DEWA established Shuaa Energy 3 in partnership with the consor- tium led by ACWA Power and Gulf Investment Cor- poration. DEWA owns 60 percent of the company, and the consortium owns the remaining 40 percent. The project uses the latest Solar photovoltaic bifacial technologies, which allows solar radiation to reach the front and back of the panels, with sin- gle-axis tracking to increase generation. The fi fth phase will provide clean energy to over 270,000 residences in Dubai, including 90,000 residences by the commissioned fi rst stage, and will reduce 1.18 million tonnes of carbon emissions annually. To be commissioned in stages until 2023, the fi fth phase uses the latest solar photovoltaic bifa- cial technologies with Single Axis Tracking to increase energy production. Commissioning the 300MW fi rst stage of the fi fth phase of the Mohammed bin Rashid Al Mak- toum Solar Park increases DEWA’s total capacity of clean energy to 1,310MW. This brings clean energy capacity in Dubai’s energy mix to around 10 percent. DEWA’s produc- tion capacity has increased to 13,200MW of elec- tricity and 490 million imperial gallons of desali- nated water per day (MIGD). By the end of 2021, clean energy capacity will increase to 13.3 percent of Dubai’s total energy mix after adding 517MW from solar photovoltaic panels and CSP in the fourth phase of the solar park. “These include 100MW from the world’s tall- est CSP tower at 262.44 metres, 200MW from fi rst project of the parabolic trough, and 217 MW using photovoltaic solar panels,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA. Al Tayer emphasised that DEWA’s major project in cooperation with the private sector and using the Independent Power Producer (IPP) model con- tributes to the economic growth of the Emirate. Through this model, DEWA received the lowest solar energy prices (Levelised Cost of Energy) globally fi ve consecutive times, making Dubai a global benchmark for solar power prices. DEWA has attracted investments of around AED40 bil- lion from the IPP model. REGIONAL UPDATE // ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS 300MW new capacity added to Dubai’s solar park The new capacity is the first stage of the 900MW fifth phase of Mohammed bin Rashid Al Maktoum Solar Park Solar www.utilities-me.com September 2021 / Utilities Middle East 5Tabreed announces Dh233mn net profit for H1 2021 The National Central Cooling Company PJSC (DFM: Tabreed), headquartered in the UAE, has today released its consolidated fi nancial results for the fi rst six months of 2021, reporting a net profi t of Dh233.5mn – an increase of 4% compared to its 2020 H1 performance. As Tabreed has remained focused on achieving its stated objectives, revenue has continued to grow, along with its portfolio of district cooling networks. Recent additions include a fourth plant in Downtown Dubai, along with additional connections to our existing concession areas. Capacity has also increased, in Bahrain and Oman. Group revenue increased by 22% to AED 869 million (H1 2020: AED 710 million). Core chilled water revenue increased by 22% to AED 832.1 million (H1 2020: AED 681.2 million). EBITDA increased by 25% to AED 517.6 million (H1 2020: AED 415.4 million). Profi t from Operation increased by 40% to AED 326 million (H1 2020: AED 232.8 million) Share of results of associates and joint ventures increased by 37% to AED 24.9 million (H1 2020: AED 18.2 million). Net profi t attributable to the parent increased by 4% to AED 233.5 million (H1 2020: AED 224.3 million). metal tower. The purpose is to collect accu- rate data and study the total capacity of the power plant as well as other technical details in terms of number of turbines, capacity of each, annual operat- ing hours, among other things. “At DEWA, our strategy and plans are guided by the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum to promote sustain- ability, innovation and the shift towards a green sustainable economy,” said Saeed Moham- med Al Tayer, MD & CEO of DEWA. “The project to generate elec- Dubai to build UAE’s fi rst wind farm with a capacity of 28MW Dubai has launched a project to study the feasibility of generat- ing electricity by utilising wind energy in Hatta. The project was launched Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. Based on fi eld visits and avail- able preliminary data on wind in Hatta, Dubai Electricity and Water Authority (DEWA) has identifi ed the location for a wind farm with a total capacity of about 28MW. Actual wind speed for a full year is currently being measured at the location using a 150-metre Wind TAQA TAQA Group reports Dh2.9bn net income for H1 2021 The results represent a 42% year-on-year increase adjusted for one-offs charg- es in H1 2020. TAQA has also declared second interim cash dividend for 2021 of Dh618mn, delivering on quarterly dividend policy DEWA has already identified the location for a wind farm and actual wind speed for a full year is currently being measured using a 150-metre metal tower Abu Dhabi National Energy Com- pany (TAQA Group), one of the largest listed integrated utilities in the region, has reported con- solidated fi nancial results for the period ended June 30, 2021. Results were boosted by improved commodity prices in the oil and gas segment, refl ecting a recovery from softer economic conditions in 2020. Group revenues reached Dh22.2bn, 11% higher than the prior-year period, primarily due to higher commodity prices within the Oil & Gas segment. EBITDA was Dh9.9bn, up 19%, mainly refl ecting higher revenues and income from associates, par- tially offset by higher expenses. Net income (TAQA-share) was Dh2.9bn, an increase of Dh2.4bn, with a signifi cantly higher con- tribution from the Oil & Gas seg- ment and the fact that Q1 2020 was reduced by a Dh1.5bn post-tax impairment charge. Capital expenditure was Dh2.0bn, 3% lower than prior year. TAQA also reported strong free cash fl ows of Dh7.4bn, allowing for the full repayment of corporate revolving credit facilities. Upon approving the period’s fi nancial results, TAQA’s Board of Directors also declared an interim tricity using wind power is part of our efforts to diversify clean and renewable energy sources in Dubai. These include photo- voltaic solar panels technol- ogy, Concentrated Solar Power (CSP), green hydrogen produc- tion using renewable energy, and pumped-storage technology in the hydroelectric power station in Hatta.” cash dividend of Dh618mn (0.55 fi ls per share). This will be the second quarterly dividend payment planned for the fi nancial year of 2021, in line with the Company’s dividend policy. TAQA also reported a transmis- sion network availability for power and water of 98.2%, marginally lower than the prior-year period. Generation global technical availability of 92.6% was margin- ally lower compared to the prior period, mainly due to planned out- ages within the international gen- eration assets. Oil & Gas average produc- tion volumes increased to 124.2 mboepd, driven by higher produc- tion in Europe, in particular the United Kingdom. NEWS 6 Utilities Middle East / September 2021 www.utilities-me.comUAE launches national programme for the conservation of water and energy The UAE has launched the National Water and Energy Demand Management Programme, which was approved by the Federal Cabinet to enhance the effi ciency of the three most energy-consuming sectors by 40 percent. Rolled out in cooperation with strategic partners and stakeholders of the federal and local governments and the private sector, the programme targets 40 percent effi ciency of the three most energy- consuming sectors in the UAE: transport, industry and construction. The programme will adopt the best international standards in the nation’s largest water and energy effi ciency drive. The programme includes three main pillars: Energy, water and consumption rationalisation. Several initiatives will be launched to reduce energy consumption and realise the following targets by 2050: reduce energy demand by 40 percent; increase the renewable energy’s contribution to the energy mix to 50 percent and expand water reuse by 95 percent. Dubai Clean Energy Strategy aims to produce 75 percent of its energy requirements from clean sources by 2050. will generate carbon-free energy, powering up to 70,000 Saudi households, while saving 988,000 tonnes of CO2 per year in support of the Kingdom’s climate change mitigation goals. “We are now looking forward to successfully reaching the full commissioning of the project in the months to come,” said Oliv- ier Marchand, Project Director of Dumat Al Jandal Wind Co for Energy LLC. Saudi Arabia’s 400MW wind farm connected to the grid Dumat Al Jandal, the Middle East’s largest wind farm and the fi rst in the Kingdom of Saudi Arabia, is now connected to the grid and has produced its fi rst carbon-free megawatt-hours (MWh) of energy. The 400-megawatt (MW) util- ity-scale wind power project is being developed by a consor- tium led by EDF Renewables and Masdar, two of the world’s leading renewable energy companies. The wind farm consists of 99 wind turbines from supplier and EPC contractor Vestas, each with a power output of 4.2 MW. Construc- tion began in September 2019, and the wind turbine erection works are near completion. When complete, the wind farm Wind Cummins Cummins Kuwait moves to modern, purpose-built facility Aspires to strengthen its scale and capabilities to bring best-in-class engineering solutions The Dumat Al Jandal project, consisting of 99 wind turbines, is Saudi Arabia’s first wind farm and the largest in the Middle East Cummins has announced the addi- tion of Cummins Kuwait to its strong distribution network. Cummins Kuwait is a subsidiary of Cummins Arabia, a joint venture between Cummins Inc., USA and the Olayan Group of Companies, Saudi Arabia, formed to serve as the offi - cial distributor of Cummins products and solutions in the GCC countries of Kuwait, Saudi Arabia and the UAE. Through the partnership with the Olayan Group, established in 2016, Cummins has demonstrated its strong commitment to the region, and a clear focus in bringing best-in- class distribution support infrastruc- ture for its products and solutions closer to its customers. Cummins has been well-rep- resented in Kuwait through its esteemed partner General Transpor- tation & Equipment (GTE), part of the Olayan Group. With the establishment of Cum- mins Kuwait, it aspires to continue this journey and further strengthen its scale and capabilities to bring best-in-class engineering solutions, parts availability, and product sup- port for its customers in Kuwait. Cummins Kuwait has been work- ing with GTE to help transition its business responsibilities and provide a seamless experience to its cus- tomers. In August, Cummins Kuwait cele- brated a key milestone having relo- cated to its new offi cial address. Conveniently located in very close proximity to the GTE facility in East Ahmadi Industrial Area, the new state-of-the-art facility includes a workshop area and a warehouse, as well as increased offi ce space to pro- vide a holistic environment to sup- port the customers and employees. “We are fortunate to have the Marchand said the successful execution of the project was sup- ported by Saudi Arabia Ministry of Energy, Saudi Power Procurement Company (SPCC) and the Saudi Electricity Company (SEC). “The successful connection of the project to the electricity trans- mission grid marks an important milestone for this landmark proj- ect in the Kingdom,” said Osama Al Othman, Country Representative, Saudi Arabia, Masdar. He noted that as a leader in the development of wind power, Masdar was committed to advanc- ing clean technology across the region and that it will continue its efforts to support the country’s ambitious energy program. trust and opportunity to serve the business needs of our customers in Kuwait. The larger, modern facil- ity will allow us to continue deliver- ing the best-in-class products, parts, and quality service to our customers, and provide an improved working environment to our employees,” said Amit Deshpande, Managing Director of Cummins Arabia. Cummins, with its storied 100- year history, has a solid presence in the Middle East through its distri- bution partners. Cummins Arabia brings trusted technological innova- tion and advanced energy solutions to the region to meet the needs of its customers now and in the future. NEWS 8 Utilities Middle East / September 2021 www.utilities-me.comKhalid Al Qubaisi Appointed CEO of Abu Dhabi Energy Services Abu Dhabi National Energy Company (TAQA) has announced the appointment of Khalid Al Qubaisi as Chief Executive Offi cer (CEO) at its subsidiary, Abu Dhabi Energy Services (ADES). In his new role, Mr. Al Qubaisi will help further ADES as Abu Dhabi’s Super ESCO while working with other energy services companies to expand the market in the Emirate. ADES is responsible for retrofi tting Government and Commercial buildings by identifying, sourcing and funding solutions that deliver tangible reductions in water and electricity consumption. Mr. Al Qubaisi has more than 15 years of diversifi ed experience in investments and energy. Prior to this appointment, Khalid served in several leadership positions at Mubadala Investment Company, most recently as Vice President of Information Communication and Technology. Most recently, ADES announced a series of MoUs with leading Abu Dhabi Government entities including the Department of Culture and Tourism, the United Arab Emirates University and Abu Dhabi Health Services Company (SEHA), aiming to retrofi t their facilities and help them reduce their power and water consumption. The loan is intended to provide SEC with the funds necessary for projects in the fi eld of electric- ity transmission and distribution that contribute towards mitigat- ing environmental impact, such as constructing a new substa- tion and transmission lines to inte- grate renewable energy to the grid networks and introducing smart meters in Saudi Arabia. Saudi Arabia aims to modernize and diversify its economy under a national development strat- egy, Saudi Vision 2030. Within this framework, the government is pro- moting projects that contribute towards the growth of renewable energy and energy effi ciency. As a vertically integrated elec- Saudi Arabia seeks to boost electric grid with new funding Saudi Arabia is on course to enhancing its electric power grid to help meet growing demand. Japan Bank for International Cooperation (JBIC) recently signed a loan agreement with Saudi Electricity Company (SEC) under its GREEN (“Global action for Reconciling Economic growth and Environmental preservation”) programme. JBIC will provide $250mn of the US$500 million loan, alongside MUFG Bank, Bank of Yokohama, Joyo Bank, Nanto Bank, Nishi-Nip- pon City Bank, Hachijuni Bank, and San-in Godo Bank. JBIC will also provide a guarantee for part of the portion co-fi nanced by the private fi nancial institutions. Power grid Water New UAE project will produce water from air World’s first solar/thermal energy storage-powered project at Masdar City will extract water from air at a commercial scale A Japanese bank syndicate $500mn will be used to make the Saudi electricity sector more sustainable and aligned to the national economic goals The world’s fi rst project to produce commercial volumes of an unin- terrupted water supply from a sus- tainable source, making it carbon free, will launch this month in Masdar City, Abu Dhabi. The innovative pilot project will be run by U.S.-based water technolo- gies company, AQUOVUM, in part- nership with Masdar and Khalifa University of Science and Technol- ogy, as part of a three-party research and development agreement. The project, which is beginning this month, will evaluate the per- formance of AQUOVUM’s large format Atmospheric Water Gen- eration (AWG) technology in combination with a renewable energy source, and its ability to be included in current and/or future sustainable water projects. The AWG technology which extracts water from the atmo- sphere using a renewable energy source, is another promising addi- tion to the innovative sustainabil- ity-focused projects being run in Abu Dhabi’s R&D hub, Masdar City. The carbon-free technology will create access to clean water, a fun- damental necessity in building a greener future, while contribut- ing to the UNSDG 6 goal of ensur- ing the availability and sustainable management of water and sanita- tric utility that generates, trans- mits, and distributes electricity throughout Saudi Arabia, SEC is enhancing transmission and dis- tribution networks for a stable supply of power from renewable energy sources for consumers, in line with the government policy to promote renewable energy. In December 2020 JBIC signed a memorandum of understanding (MOU) on strategic partnerships in the power sector with SEC. tion for all. The AWG technology will also contribute to a market that is expected to grow by a compound annual growth rate (CAGR) of more than 25 per cent world- wide, and more than 30% CAGR in the Middle East and Africa alone, which are some of the world’s harshest climates where water is needed the most, according to Global Market Insights. “Water underlies all areas of human and environmental health and it is also essential to food and energy production. Developing technologies that both protect and guarantee a constant and secure source of water, is therefore of utmost importance,” said Abdulla Balalaa, Executive Director, Sus- tainable Real Estate, Masdar City. NEWS www.utilities-me.com September 2021 / Utilities Middle East 9Next >