As countries seek greener, low-carbon alternatives to fossil fuels, investments in nuclear are projected to soar in the coming years. ITP MEDIA GROUP / BUSINESS FEBRUARY 2022• VOL. 16, ISSUE 02 A NUCLEAR FUTUREDRILL DEEPER The oil and gas sector is the heartbeat of Middle Eastern economies. Unlock OilandGasMiddleEast.com to keep your finger on the pulse Projects Empower your decision-making with timely updates about the latest upstream oil and gas projects in the Middle East. Events Take advantage of early bird access to be first in line for the industry-leading Middle East Energy Awards. Subscribe now to get every last drop of upstream insight from OilandGasMiddleEast.com, with exclusive benefits Lists Read our comprehensive annual rankings of the Middle East’s most powerful people and companies across upstream. Multimedia platforms Get insider information through our global webinars, podcasts, and video interviews with upstream leaders. Industry insight Get the story behind the headlines with in-depth analysis dissecting current events and the industry’s outlook. In-depth interviews Hear about the industry directly from oil and gas titans with in- depth interviews, features and multi-media. AN ITP MEDIA GROUP PUBLICATIONCONTENTS www.utilities-me.com February 2022 Utilities Middle East 3 Volume 16 | Issue 02 Contents A decade ago the International Labour Organization (ILO) and the European Centre for the Development of Vocational Training (CEDEFOP) warned policy-makers that ‘skills are not a pure servant of the economy expected to react and adjust to any change’. Today, their warning assumes even greater importance given the imperative of making our economies fi t for reaching the goal of the Paris Agreement, i.e., limiting global warming to well below 2°C and pursuing eff orts to limit it to 1.5°C com- pared to preindustrial levels. There is no denying that the energy transition is here, thanks to advancements in technology. But are we skilled enough to embrace it and push it to where we want it to be? Investing in new skills and putting the workforce in the position of upgrading their knowledge on energy effi cient and climate-friendly solutions through life-long learning, education and training needs to become a target of all policy- makers and businesses involved in the transition. This would mean forecasting the type of skills and the number of qualifi ed professionals that will result into a gap analysis that shows where public intervention for skills devel- opment should be targeted. According to a report by the International Renewable Energy Agency (IRENA), comprehensive policies, led by edu- cation and training measures, labour market interventions, and industrial policies that support the leveraging of local capacities, are essential for sustaining the renewables jobs expansion. IRENA has highlighted promising initiatives in several countries aimed at supporting the education and training of workers. Such eff orts revolve around vocational training, curricula-building, teacher training, the use of information and communications technology, promotion of innovative public-private partnerships, and recruitment of under-rep- resented groups such as women. As a result, jobs in the renewable energy sector reached 11.5 million globally last year, led by solar PV with some 3.8 mil- lion jobs, or a third of the total, according to the seventh edi- tion of IRENA’s Renewable Energy and Jobs Annual Review. Skilling for renewables Baset Asaba, Editor Email: baset.asaba@itp.com View point A NUCLEAR FUTURE Countries are increasingly taking a keen interest in nuclear power generation to broaden their energy baskets CONTENTS 4 Utilities Middle East February 2022 www.utilities-me.com Masdar signs agreement to develop 200MW solar plant in Armenia Masdar, one of the world’s leading renewable energy companies and a subsidiary of Mubadala Investment Company, has signed an agreement with the Government of the Republic of Armenia to develop a 200-megawatt (MW) solar photovoltaic (PV) plant. treatment plants 02 Oman’s OQ and Korea’s KOGAS-Tech to partner on hydrogen opportunities OQ Group, a global integrated energy company, has signed a memorandum of understanding (MoU) with South Korea’s KOGAS-Tech aiming at exploring potentials of cooperation between the two sides in Hydrogen- related opportunities 03 Jordan, Israel conclude major deal on water and solar power swap Jordan and Israel have signed an important deal that will see the construction of a major solar power plant in Jordan to generate electricity for Israel while a desalination plant established in Israel will send water to Jordan 05 36 30 05 UPDATES 08 NEWS ANALYSIS 16 INDUSTRY TRENDS 20 COVER FEATURE 26 SPECIAL REPORT 40 PRODUCTS 08 16 26 ADNOC and TAQA announced a $3.6bn strategic project that will see the development and operation of a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmis- sion system in MENA SPECIAL EDITION ALSO THIS MONTH 08 WIND POWER The year 2021 came to an end with offshore wind additions reaching 11 GW, almost double compared with last year, according to the International En- ergy Agency (IEA) report 30GOING HYDROGEN No time has the possibility of hydro- gen to abate climate change become so apparent than today. A super-ver- satile energy carrier with exceptional energy density more than twice that of natural gas 20 NUCLEAR FUTURE Various countries are increasingly taking a keen interest in nuclear power generation to broaden their energy baskets to guarantee reliable clean energy supply while ensur- ing that the future of their energy is secure 36DIGITALISING DESALINATION Artifi cial Intelligence (AI) and ma- chine learning are helping operators within the seawater desalination industry to make real-time decisions to save time and money 26 GENSET TRENDS Where does the ‘tradition- al’ fossil fuel generator sit in the future with battery technology unable to pro- vide necessary power for intensive use demanded by utilities operations? 16 SMARTER GRID A new study from Juniper Research has found that global smart grid deploy- ments will lead to annual energy savings of 1,060 terawatt-hours by 2026, from 316 terawatt-hours in 2021 Most popular news stories on www. Utilities-me.comNews A bu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) announced a $3.6bn strategic project to signifi cantly decarbonize ADNOC’s off shore production operations, further strengthening ADNOC and TAQA’s position in driving and leading sustainability eff orts and supporting the United Arab Emirates (UAE) ‘Net-Zero by 2050 Strategic Initiative’. The innovative project will see the development and operation of a fi rst-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system in the Middle East and North Africa (MENA) region. It will power ADNOC’s off shore production operations with cleaner and more effi cient energy, delivered through the Abu Dhabi onshore power grid, owned and operated by TAQA’s transmission and distribution companies. The project will be funded through a special purpose vehicle (SPV) – a dedicated company that will be jointly owned by ADNOC and TAQA (30% stake each), and a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan’s Kyushu Electric Power Co. and Électricité de France (EDF). Led by KEPCO, the consortium will hold a combined 40% stake in the project on a build, own, operate and transfer basis. The consortium will develop and operate the state-of-the-art transmission system alongside ADNOC and TAQA, with the full project being returned to ADNOC after 35 years of operation. The project is subject to relevant regulatory approvals. The development is expected to reduce the carbon footprint of ADNOC’s off shore operations by more than 30%, replacing existing off shore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network. This progressive and collaborative approach will also drive operational effi ciencies and improve system reliability of energy supply, while off ering the potential for power supply cost optimization. “ADNOC is delighted to be collaborating again with TAQA, as we jointly welcome world- class industry leaders in yet another landmark transaction that will see ADNOC make a signifi cant step forward in our ongoing decarbonization journey,” said Yaser Saeed Almazrouei, ADNOC Upstream Executive Director. “As ADNOC embraces the energy transition, this bold and progressive project will replace our existing off shore local power supply with cleaner and more sustainable onshore power sources, signifi cantly reducing our carbon footprint while enabling additional cost savings. This fi rst-of-its- kind project is a further example of how ADNOC is advancing practical and commercially viable solutions to secure a lower carbon future, while driving signifi cant foreign direct investment, and, in turn, cementing Abu Dhabi and the UAE’s position as a trusted global investment destination.” More than 50% of the project value will fl ow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, underpinning ADNOC and TAQA’s commitment to driving responsible and sustained investment and value creation for Abu Dhabi and the UAE. Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “As the recognized low carbon power and water champion of Abu Dhabi and one of the top 5 utilities in EMEA by market value, TAQA is pleased to again partner with ADNOC on such an important project that will contribute to the decarbonization of Abu Dhabi’s energy industry in such an impactful way. This fi rst-of- its-kind project shows how the UAE continues to demonstrate its strong leadership and innovation in the global energy transition by bringing together critical players to boost sustainability credentials and maximizing the utilization of Abu Dhabi’s diverse and effi cient energy mix. Decarbonization continues to provide social and economic opportunities for collaboration and growth, which TAQA is actively pursuing through its strategic alliances and partnerships in the market.” Seung-il Cheong, President and CEO of KEPCO, said: “It is truly an honour to participate in this strategic project with ADNOC. As the Barakah Nuclear Power Project has become a token of long friendship and cooperation between the UAE and Korea, KEPCO will strive for the successful completion of this Project and contribute to the ‘2050 Net-Zero Initiative’ of the UAE.” REGIONAL UPDATE // ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS TAQA, ADNOC announce $3.6bn sub-sea power transmission project First-of-its-kind sub-sea transmission network in the MENA region to connect ADNOC’s offshore operations to TAQA’s clean onshore power network, unlocking cost-savings and environmental benefits alike Transmission www.utilities-me.com February 2022 Utilities Middle East 5GCCIA and CESI Launch the GCC DAM Pilot Project Gulf Cooperation Council Interconnection Authority (GCCIA) with the support of CESI Middle East FZE, a subsidiary of CESI S.p.A. (Centro Elettrotecnico Sperimentale Italiano), a world- leading technical consulting and engineering company launched the GCC Day Ahead Market (DAM) Pilot Project at the Pavilion of the Gulf Cooperation Council at Expo 2020, in Dubai. This ambitious project consists in the creation of an electronic platform for the pricing of electricity in GCC countries, as part of the fi rst phase of the energy pricing project in the region. After the go-live, the pilot project is set to last over the course of six months, during which the Member States will be able to gather and leave feedbacks for further implementations in the future. The GCC DAM Pilot Project is the fi rst of its kind, as it represents a fundamental cornerstone for managing the energy exchange platform launched by the Electricity Interconnection Authority in 2018, an essential contribution to the development of the spot market for electricity trading. The Electricity Interconnection Authority has dedicated a full international team, in collaboration with CESI and ENERWEB, to manage and follow this project. The GCC DAM Pilot Project its electricity costs, with 85% of the Italian manufacturer’s energy consumption needs being generated through the solar lease. The manufacturing plant will reduce MAPEI’s carbon emissions by 800 tonnes, equivalent to carbon emissions generated from electricity usage of 145 homes for one year or charging 97 million smart phones. “MAPEI is at the forefront of solutions that are in the best interest of the environment and communities across the world,” said Stefano Iannacone, Director – Middle East & Africa for MAPEI. MAPEI and Yellow Door Energy partner on 1.2MWp rooftop solar project in Dubai MAPEI Construction Chemicals LLC, the fully owned subsidiary of MAPEI Group, has partnered with UAE-based sustainable energy provider, Yellow Door Energy, to install over 2,200 solar panels at its state-of-the-art manufacturing plant in Dubai Investment Park, UAE. The colossal 1.2-megawatt solar plant will generate 1,922,000 kilowatt-hours of clean energy in its fi rst year of operations. Installation of the solar panels will commence in early 2022 and will cover an area of approximately 8,900 square meters of the plant’s rooftop, signifi cantly lowering Solar Transmission EWEC completes transfer of load dispatch function from TRANSCO The transfer of the LDC function to EWEC significantly expands its remit for coordinating water and electricity production operations in Abu Dhabi and beyond Italian construction giant, MAPEI Construction Chemicals, will install over 2,200 solar panels at its manufacturing plant in Dubai to generate over 1,922,000 kilowatt-hours of clean energy in its first year of operation Emirates Water and Electricity Company (EWEC), a leading company in the integrated system of coordinating planning, purchasing and supplying of water and electricity across the UAE, announced that it has successfully completed the transfer of the Load Despatch Centre (LDC) function from the Abu Dhabi Transmission & Despatch Company (TRANSCO). The transfer of the LDC function to EWEC signifi cantly expands its remit for coordinating water and electricity production operations in Abu Dhabi and beyond. With this new function, EWEC will be responsible for the scheduling and despatch of water and electricity from independent water and power producers (IWPPs), which will continue to be carried via the transmission networks operated by TRANSCO, a subsidiary of TAQA Group. In addition, EWEC will lead operational planning and studies that support real-time operations and balancing of supply and demand. The new load despatch function “We are delighted to contribute towards the UAE’s Net Zero initiative and will continue to implement forwardthinking sustainable solutions that can positively impact all stakeholders.” Rory McCarthy, Chief Commercial Offi cer of Yellow Door Energy, said: “We are honoured to partner with MAPEI.” is in addition to EWEC’s existing role as the sole procurer of water and electricity within the Emirate of Abu Dhabi and beyond, with the mandate to ensure the supply of water and power to consumers. EWEC said it is on a strategic path to advance integration within Abu Dhabi’s energy sector to increase optimisation, improve effi ciencies, and diversify the energy production portfolio, with a focus on sustainability. Along with its partners in the energy sector EWEC has spent 18 months planning and progressing the smooth transition of the Load Despatch Centre function from TRANSCO to EWEC, transferring operational systems to EWEC. NEWS 6 Utilities Middle East February www.utilities-me.comProjects Empower your decision-making with timely updates about the latest downstream oil and gas projects. Lists Read our comprehensive annual rankings of the Middle East’s most powerful people and companies across downstream. Industry Insights Get the story behind the headlines with in-depth analysis dissecting current events and the industry’s outlook. Events Take advantage of early bird access to be first in line for the industry-leading Middle East Energy Awards. Multimedia platforms Get insider information through our global webinars, podcasts, and video interviews with downstream leaders. In-depth interviews Hear about the industry directly from oil and gas titans with in-depth interviews, features and multimedia. Refined. Relevant. Robust. Subscribe now to refine your knowledge and get insight from industry leaders at refiningandpetrochemicalsme.com AN ITP MEDIA GROUP PUBLICATION The downstream sector is growing exponentially in the Middle East.8 Utilities Middle East February 2022 www.utilities-me.com NEWS ANALYSIS T he year 2021 came to an end with off shore wind additions reaching 11 GW, almost double compared with last year, according to the International Energy Agency (IEA) report which says this is driven by expansion in China, where developers have rushed to secure the favourable Feed-in-Tariff (FIT) before it expired with the last day of 2021. While China’s growth will slow down through the upcoming period and until 2026, annual off shore wind capacity additions are expected to reach 21 GW by then with rapid expansion in new markets. IEA’s main case scenario sees the share of off shore capacity in overall annual wind additions reaching over 20 per cent, up from 5 per cent in 2020, breaking a record at the end of the forecast period. Large-scale projects are expected to be commissioned beyond the established markets of the United Kingdom, Germany, Belgium, WIND IS ENERGISING THE FUTURE Wind power deployment in Middle East and Africa (MENA) is set to finally take off as national authorities take advantage of falling wind costs to diversify their energy resourceswww.utilities-me.com February 2022 Utilities Middle East 9 NEWS ANALYSIS Denmark and the Netherlands in the next fi ve years, with a boost to the global installed capacity set to come from France, Taiwan, South Korea, Vietnam, Japan, and the United States. Based on the upcoming projects from these new markets, in addition to new installations in the established markets, IEA anticipates cumulative capacity to reach almost 120 GW by 2026 in its main case and 134 GW in the accelerated case. IEA’s accelerated case considers faster off shore and onshore grid expansion in the United Kingdom and the European Union, rapid cost decline and strong provincial-level policies in China, and the early-commissioning of large-scale pipeline in the United States, which together could push cumulative global off shore wind capacity to adding 14 GW more than in the main case. As for the main case looking at the new markets, France’s off shore wind capacity is expected to take off in 2022 with the full commissioning of the 480 MW project in Saint- Nazaire. By the end of 2026, off shore wind capacity in France is forecast to reach 3.7 GW, with seven large projects expected to come online. In South Korea, cumulative wind energy generation capacity is expected to almost triple by 2026, with off shore wind providing the majority of the expansion. Wind energy projects in South Korea are not eligible for fi xed-price contracts and instead rely on wholesale market revenues and renewable energy credits (RECs), both of which have declined over the last four years. “According to our estimates, remuneration for all large-scale renewable energy projects has halved since June 2017. Future remuneration remains the largest forecast uncertainty for technologies beyond solar PV, for which fi xed- price auctions provide revenue stability”, IEA says in the report. For Vietnam, IEA expects that tenders in the country’s planned auction scheme will mostly target wind capacity, based on the new draft national Power Development Plan (PDP8), which assumes 11 GW of new wind capacity until 2030. Along with several nearshore projects under development or construction, Vietnam now also has large-scale off shore wind projects planned, including the 3.4 GW Thang Long, whose fi rst phase could go online until 2026. Wind power deployment in Middle East and Africa (MENA) is set to fi nally take off as national authorities take advantage of falling wind costs to diversify their energy resources. Saudi Arabia is expected to award some 1.2 GW of wind capacity this year while Morocco and Egypt will also see strong growth. Over the next 10 years, MENA wind growth will come in two phases as emerging market openings are followed by maturing market activity, according to Sohaib Malik, Senior Analyst at Wood Mackenzie Power & Renewables. By 2023, Egypt, Morocco and Saudi Arabia will spearhead strong growth and raise installed wind power capacity in MENA to over 11 GW. “We see Egypt, Morocco and Saudi Arabia all adding over 2 GW each during the fi rst phase of market development,” he says. During a second phase running from 2024 to 2027, around 12 GW of wind capacity will be installed in MENA, Malik says. “This phase is defi ned by a maturing wind market... Saudi Arabia, Egypt and Morocco will have become regional heavyweights...with a cumulative capacity of over 14 GW through the outlook period, which will be roughly 55% of the overall capacity that MENA will have installed by 2027,” he says. The second phase will see the emergence of markets like Oman, Malik noted. Oman is reportedly planning to build around 550 MW of wind power capacity by 2024. Saudi Arabia is due to become the Middle East’s largest wind power market in the next decade, according to new analysis, with the desert kingdom accounting for nearly half of new additions in the region by 2028. Developers will add 6.2GW of new wind capacity in Saudi Arabia between 2019 and 2028 — 46% of the region’s 13.5GW total capacity additions in this period — according to Wood Mackenzie Power & Renewables. However, the country will fall short of the revised 16GW target under its Vision 2030 program — a package of economic, energy and public sector goals for Saudi Arabia to achieve by the end of the next decade. Elsewhere, against a backdrop of regional volatility, Wood Mackenzie expects an extra 2GW of new wind power installations online in the Middle East by 2021, 6GW by 2024, and 13.5GW by 2028. Saudi Arabia’s Renewable Energy Project Development Offi ce (Repdo) is due to award a total of 850MW of wind capacity, with the projects expected online between 2021 and 2022. Last year, construction began at the biggest wind project in the GCC. Dumat Al-Jandal is a 400MW onshore wind farm development that will become Saudi Arabia’s fi rst utility-scale wind power source.Next >