< PreviousGAS POWER 20 Utilities Middle East / April 2020 www.utilities-me.com As we look at the decade ahead and beyond, there can be no doubt that gas will continue to play a criti- cal role in the Middle East’s energy mix. The underlying factors behind this projec- tion and next-gen solutions that will continue to drive the power sector forward were high- lighted at a GE Gas Power media roundtable held last month under the theme ‘The Evolv- ing Energy Landscape and the Role of Gas in Securing the Middle East’s Energy Future’. The roundtable was addressed by Joseph Anis, President & CEO of GE Gas Power MENA & South Asia (MENASA); Salim Mous- allam, Executive Sales Leader for GE Gas Power Gulf & Pakistan; and Mohamed Serag, Regional Engineering Manager, GE Gas Power MENASA. region is a hub for industries such as smelters and cement, which depend on large, uninter- rupted supplies of power as an essential input. Many countries such as Iraq, Lebanon, Yemen and others continue to experience frequent energy shortages and need to add signifi cant new capacity to their grids to meet the needs of present and future generations,” stated Joseph Anis. “Additionally, MENA’s population is projected to continue to grow faster than the global aver- age for the foreseeable future, from over 448 million in 2018 to more than 719 million in 2050. This growth will drive further demand for effi - cient, aff ordable and reliable power.” WHY GAS? WHY NOW? As the world shifts towards incorporating more renewable power in the energy mix and goes SUPPLY AND DEMAND DYNAMICS On the supply side, the discovery and devel- opment of new gas reservoirs in Saudi Arabia, the UAE and other countries across the Middle East will help to drive fuel self-suffi ciency and energy independence. Advancements made in liquefi ed natural gas (LNG) are also expected to ease access to gas. Today, there are more than 800 metric tons per annum (MTPA) of regasifi cation capacity and over 390 MTPA of liquefaction capacity globally, with more under construction. At the demand end, power consumption in the region is also likely to continue to grow. The Gas Exporting Countries Forum (GECF) expects demand for power in the Middle East to reach 2,419 terawatt hours (TWh) by 2040, almost double the 2016 levels. “Several factors contribute to this trend. The As the world shifts towards incorporating more renewable power in the energy mix and goes from largely centralised power systems to a combination of central and distributed power generation, gas can play a vital role in dispatching flexible, resilient and lower emission power GE POWERS THE ‘AGE OF GAS’ IN THE MIDDLE EASTGAS POWER www.utilities-me.com April 2020 / Utilities Middle East 21 from largely centralised power systems to a combination of central and distributed power generation, gas can play a vital role in dispatch- ing fl exible, resilient and lower emission power. Gas power is an excellent complement to renewable energy as the world, MENA included, transitions to cleaner sources of power generation. The UAE Energy Strategy 2050 for example, targets an energy mix that comprises of 44 percent clean energy, 38 per- cent gas, 12 percent clean coal and 6 percent nuclear energy. Other countries across the region are also adopting aggressive goals to decarbonize power production. However, supplies of renewable energy are typically intermittent in nature as sunshine, rain and wind speeds vary over the course of a day as well as across seasons and battery storage solu- tions remain expensive, often making them eco- nomically infeasible. It costs ~$200 to store one barrel of oil equivalent (BOE) of energy with bat- tery storage solutions. Conversely, storing one barrel of oil or natural gas at scale is ~$1. Gas power technologies not only off er the fl exibility to ramp power production up or down rapidly to meet potential gaps in energy supply from variable renewable sources and stabilize the grid but gas also presents the clean- est means to generate electricity from tradi- tional fossil fuels. For example, globally, gas is ~50% less carbon-intensive (~0.45 Mt CO2/TWh) than coal (~0.95 Mt CO2/TWh). Moreover, gas off ers compact, power-dense solutions. Today, up to one-fourth of the global population is in cities with more than 1 million people; ~10% are in megacities with over 10 mil- lion people. As urban centers across the Middle East and other parts of the world continue to become more densely populated, with open space at a premium, gas presents a land-effi cient solution. Natural gas requires 50-100 times less space per megawatt of power than renewable energy plus storage. For these and other reasons, the Interna- tional Energy Agency (IEA) expects gas gen- eration to continue to grow globally at 1.7 per- cent compound annual growth rate from 2018 through 2040, starting at 6,118 TWh (terawatt hours) and going up to 8,899 TWh (22 percent of total generation). GAS POWER GENERATION TECHNOLOGIES OF THE FUTURE A key driver in leveraging the ‘Age of Gas’ is the development of advanced technologies. Today, GE has the world’s largest installed base of over 7,500 gas turbines with more than 200 mil- lion operating hours and is helping customers around the world to unlock the true potential of gas through industry-leading solutions. GE’s HA gas turbine technology for example has already set two world records for effi ciency, one each in the 60 hertz and 50 hertz segments of the global power market. GE’s HA technology is unlocking a new era of effi ciency. With over 100 units ordered globally, including by the Sharjah Electricity and Water Authority (SEWA) for an upcoming 1.8 gigawatts independent combined cycle power project located in Hamriyah, the HA technology con- tributes to lower fuel consumption and fewer emissions. In fact, using three GE 9HA units in combined cycle operations can help SEWA reduce carbon dioxide emissions by up to 4 million tons per year, compared to current levels. This is the equivalent of taking 1 million cars off the UAE’s roads! Capable of ramping up or down at up to 88 megawatts per minute while still meeting emissions requirements, the turbine can also support countries transition to a larger propor- tion of renewable power in their energy mix by helping to balance grid instability. Hybrid technologies are another means to address today’s energy needs. For exam- ple, Southern California Edison (SCE) and GE unveiled the world’s fi rst battery-gas tur- bine hybrid system in Norwalk, California. The system helps to balance variable energy supply and demand, including when the sun sets and solar power production falls while electricity usage surges as people turn on lights and appli- ances. At its heart is an advanced control system that seamlessly blends output between the battery and gas turbine. The energy storage capacity of the battery has been specifi cally designed to provide enough time coverage to allow the gas turbine to start and reach its designated power output. Therefore, the system does not need to burn fuel and consume water in standby mode to be able to dispatch power immediately when demand surges or renewable energy supplies decline. Today, we can also adapt gas turbines to burn clean resources such as hydrogen and GE is an industry leader in the use of hydrogen for power generation. More than 75 GE gas tur- bines have operated on low heating value fuels, including blends of hydrogen and natural gas, accumulating over 5 million operating hours. GE’s B and E-class gas turbines also have the capability to operate on ~100% hydrogen with the installation of the appropriate combustion and accessory systems. “Gas will be at the heart of the energy sector of the future and GE Gas Power will continue to be a partner of growth for countries across the Middle East as they strengthen national power infrastructure further,” concluded Joseph Anis. Gas will be at the heart of the energy sector of the future and GE Gas Power will continue to be a partner of growth for countries across the Middle East.” JOSEPH ANIS, PRESIDENT & CEO, GE GAS POWER MENA & SOUTH ASIA (MENASA)An ever-increasing number of solar plants have been in operation for ten years or more, which in many cases leaves its mark on the system com- ponents. In most cases, the plant still has many years of attractive compensation ahead of it. And even for the time beyond that, operators should consider whether a refurbishment or optimisation might make sense. In large solar plants, even small improve- ments can bring big yield increases. The rea- sons for yield losses are often problems that can be attributed to inferior products or installa- tion mistakes. When solar was booming, proj- ects could often not be completed fast enough. To make matters worse, some operators challenge, he says. According to Reiners, exper- tise with older components, whose manufac- turers have fi led for bankruptcy and gone out of business, is in demand. POSITIVE MARKET DEVELOPMENT The solar farm refurbishment market in gen- eral off ers a broad range of opportunities for companies specialising in this sector: “Because components are getting older, we are currently dealing with a rapidly growing market,” says BayWa r.e., which has access to a broad interna- tional network. The recent acquisition of Sybac Service GmbH has also bolstered the compa- ny’s position in the German market. Sönke Jäger, the technical director of Adler invested too little in maintenance and service. This has come back later to haunt them in the form of damage and massive revenue losses. Good advice is often needed. Expert apprais- als provide initial information on how to deal with the damage, which can be quite com- plicated in certain cases. The options range from repair or replacement of components to retrofi tting of monitoring systems and data exchange. Christoph Reiners, managing director of BayWa r.e. Operation Services GmbH, explains: “It is usually the modules, inverters and cables that are faulty, and that is also where yield can be optimised.” Installed components from insolvent manufacturers present a particular Refurbishing solar farms can be a major financial opportunity for operators. Service providers specialising in this area see it as a lucrative business for both parties TREASURE HUNTING FROM OLD PV FARMS INDUSTRY TRENDS 22 Utilities Middle East / April 2020 www.utilities-me.comSolar Services GmbH, also expects increas- ing growth in the short to medium term with regard to repowering under the EEG. In addi- tion, solar farms that are no longer covered by the EEG due to the length of their service lives are becoming attractive, he says. Wi Solar GmbH sees growth due to the withdrawal of former operators from the market: “This means that a number of old systems have no support,” says Martin Gött, head of service & mainte- nance at Wi Solar, describing the current situ- ation. Some operators still on the fence However, IBC Solar AG is only cautiously opti- mistic. At present the market could better be described as satisfactory, says Oliver Parthey- müller, the fi rm’s head of project development and project management in Germany: “In our opinion, optimising solar farms off ers greater market potential. But in practice it has scarcely been tapped into so far for economic reasons.” As long as the systems are in good running order, components are only replaced where damage occurs. In addition to solar farms with thin-fi lm panels, which we have converted into crys- talline plants, we have also had projects that involved retrofi tting and converting design from central-inverter to string-inverter based,” says business developer Stefan Wippich. Enva- ris is a partner in Secondsol GmbH in Meinin- gen, Germany, a company that trades in used modules. Its managing director Frank Fiedler also says that business is good: “In the last quar- ter of 2017 alone, Secondsol’s Repowering unit purchased and resold around 400,000 used modules.” In the previous year, the fi gure was around 250,000. INTERNATIONALISATION In addition to the German market, interna- tional markets are also picking up: Belectric Solarkraftwerke GmbH says that owners’ will- ingness to untertake refurbishments is primar- ily evident in other European countries at pres- ent, particularly in Italy. Encome Energy Per- formance GmbH in Klagenfurt, Austria, also reports major orders in the engineering and consulting business, especially in Europe and Australia. Meteocontrol GmbH is also keenly inter- ested in international territory in the fi eld of refurbishment, as Managing Director Robert Pfatischer explains: “The emerging PV mar- kets such as India, Japan, China, South Amer- ica and the USA are of particular interest to us, immediately, or can the fault be remedied as part of regular plant maintenance, if need be?” In any case, says the company, a detailed anal- ysis of the technical and economic conditions should precede the decision. Once the order has been placed, work can begin in the solar farm. When replacing the solar panels, disposal of the old modules should also be considered. Once the work is complete, a test run begins with monitoring, documentation and handover. At that point, the operator should consider taking out a suit- able service and maintenance contract as soon as possible to avoid any further damage in the future. Given the choice between replacing mod- ules and repairing them, most providers of solar farm refurbishment services clearly prefer the fi rst option. Encome Energy Perfor- mance GmbH usually replaces defective mod- ules with new or used modules. Belectric also says that replacement is always the fi rst choice, provided the warranty conditions cover it. Repairing modules, on the other hand, usu- ally makes little economic sense, not least in view of the massive drop in module prices. Repairs are still most likely to be used in cases of serial defects where the high number of units can justify the whole procedure. In prac- tice, replacing defective junction boxes or diodes appear to be relatively simple repairs. Whatever the individual case for refurbish- ment, these various approaches provide exam- ples of how subjecting their old solar power plants to a detailed analysis and then a thor- ough face-lift can be increasingly worthwhile for operators. but the European market has also remained very stable. Most providers have the entire spectrum of plant refurbishment services in their portfolio. This begins with the appraisal. The fi rst step is a yield analysis and comparison with simulation values, preferably at the module row level, so that damage can be optimally localised. This is usually followed by technical checks, such as irradiation measurements, I-V curve assessments, isolation measurements and ther- mal imaging inspections. The latter can not only indicate faults in modules, but also detect overheating of other components such as inverters and cables. For more specifi c tests on solar modules, such as by electroluminescence or with lasers for power measurement, system components must be removed and examined in more detail in mobile or stationary labora- tories. REFURBISHMENT REQUIRES CAREFUL PLANNING All of the tests are documented and used to create an individual planning concept. Essen- tial components of such a concept are a set of recommended actions, a profi tability analysis and the design of the technical refurbishment concept with a project schedule. Subsequently, an off er is prepared, and individual fi nancing options can be examined. It is also important to check possible guarantee and warranty claims. But be careful: it does not always make economic sense to repair defects immedi- ately. Meteocontrol advises asking whether repairs are necessary for safety reasons. “Does the economic damage have to be contained INDUSTRY TRENDS www.utilities-me.com April 2020 / Utilities Middle East 23RENEWABLES IN THE DOCK From the solar factory floors of China’s Jiangsu province to wind farm country in West Texas, the clean-energy industries are struggling to gauge the potential damage that lies ahead — and it’s not a pretty picture. Just a few weeks ago, the biggest COVID-19 concern for renewable energy appeared to be the supply of equipment, refl ect- ing the outbreak’s early impact in China. Would there be enough solar panels, wind tur- bines and batteries to meet demand and proj- ect deadlines, given the widespread factory shutdowns? But after a wild few days of escalating infec- tion numbers and increasingly frantic govern- ment responses around the world, the focus is quickly shifting to demand, as the reality dawns that a global economic slowdown may be inevitable. Late last month, Bloomberg New Energy Finance lowered its 2020 global solar demand forecast to a range of 108 to 143 gigawatts — a drop of 9 percent at the low end compared to the market research fi rm’s prior estimate. That could mean the fi rst down year for global solar installations since the 1980s. Jenny Chase, BNEF’s head of solar, says the issue of equipment supply seems to be sorting itself out as China’s factories rumble back into production. “You do hear screams of panic from develop- ers and people who are not getting their ship- ments exactly when they wanted them, but we think that is probably quite a temporary eff ect,” Chase says. “The factories, even the ones that shut down temporarily while workers self-isolated after they came back from their Chinese New Year travels, are coming back up. Companies are confi rming they are back in production.” The bigger concern now, Chase says, is the demand side of the equation. An economic slowdown could dent the demand for energy or reduce the amount of fi nance available. Indus- try conferences are being cancelled or post- poned, hampering networking and deal-mak- ing. Workforce shortages could knock project timelines off course. Meanwhile, the urgent and complex demands of the outbreak will leave lawmak- ers with little time for the fi ner points of energy policy. China has already pushed back its so- called solar mega-auction from May to June of this year, Chase says, and another fl are-up of COVID-19 could mean further delays. “We think there will be a recession,” Chase says, and the implications could spell trouble for solar manufacturers. “In general, this is a sector of companies that are heavily indebted and making slim margins.” For some companies, “this could be the straw that breaks the camel’s back.” The coronavirus outbreak is threatening to slow the global solar- energy revolution as it cuts the supply of key equipment for solar and wind farms in China and beyond. As cases of the disease mounted over the month, manufacturers including Trina Solar Ltd. sounded the alarm over production delays while developers like Manila Electric Co. in the Philippines said projects would be held up. 24 Utilities Middle East / April 2020 www.utilities-me.com COVER FEATUREwww.utilities-me.com April 2020 / Utilities Middle East 25 COVER FEATURE“If the virus outbreak lasts beyond the fi rst quarter and spreads to more geographies, as is currently happening in Korea and Italy, then it may very well slow down global renew- able energy deployment,” says Ali Izadi-Naja- fabadi, head of analysis in Asia for BNEF, which has downgraded its outlook for installations this year. Early this year, The Middle East Solar Indus- try Association (MESIA) predicted that energy investment in the Middle East and North Africa (MENA) region could hit $1 trillion by 2023. The organisation cited statistics from con- sultancy Frost & Sullivan valuing the region’s operational PV capacity at $5-7.5 billion, with an additional $15-20bn worth of projects set to come online by 2024. Potential headwinds loom on the horizon, however. The rapid spread of coronavirus is looking to have a big toll on current and future solar projects. Solar Industry analysts contacted by Utilities Middle East late last month said that there was every indication of a slowdown in solar deploy- ments as utilities in the region adopt “a wait and see” approach. For example, the planned public opening of commercial tariff s for the 2GW Al-Dhafra pho- tovoltaic (PV) solar project has been postponed due to the precautions being undertaken. Emir- ates Water & Electricity Company (EWEC) was preparing to open proposals during a public read-out on 18 March. However, bidders have been notifi ed that this has been postponed due to the requirement to avoid public gatherings as a result of corona virus, according to sources close to the project. Dubai is constructing the massive Moham- med Bin Rashid Solar Park with a planned total production capacity of 5,000 megawatts (MW) by 2030, and a total investment of $14bn. The emirate aims to provide 7% of its total power output from clean energy by 2020. This target will increase to 25% by 2030 and 75% by 2050. Early this year, Abu Dhabi announced the approval for the operating license for Unit 1 reactor at the Barakah Nuclear Power Plant with commercial operation expected to com- mence in the fi rst half of 2020. “With no clarity on how the coronavirus pandemic will phase out and the extent of the damage it will have on economies in the Middle East, any kind of forecasts at the moment would be pure conjecture,” says a senior solar indus- try analyst. While China is slowly starting to get back to work after an extended shutdown to contain the virus’ spread, many factories are still not at full capacity amid a lack of staff and raw mate- rials. Green manufacturers are not spared, with analysts and industry groups fl agging the potential for higher costs and a hit to overseas operations, especially if the outbreak contin- ues. For now, the impact on green companies remains manageable and mainly confi ned to areas in China where the coronavirus was fi rst found. Solar giant LONGi Green Energy Tech- The factories, even the ones that shut down tempo- rarily while workers self-isolated after they came back from their Chinese New Year travels, are coming back up. Companies are confirming they are back in pro- duction.” Jenny Chase, BNEF 26 Utilities Middle East / April 2020 www.utilities-me.com COVER FEATUREnology Co. has said it sees no signifi cant impact on its panel sales and production as it kept ship- ment targets for the year unchanged. Even so, the warnings that have started to trickle out are a reminder of China’s impor- tance in the global supply chains involved in building clean-energy plants and reducing the pollution that’s damaging the climate. The country leads the world both in install- ing new wind and solar farms and in producing photovoltaic panels used almost everywhere. Of the top 10 cell makers, nine are mainly Chi- nese manufacturers and one is from South Korea. Overseas plants could be hit as they will be unable to receive components from China given fl ight restrictions, according to the China Photovoltaic Industry Association. The group has asked the government to delay tariff cuts for domestic projects -- meant to encourage solar plants to compete on their own against conven- tional fuels like coal and natural gas. China’s New Energy Chamber of Commerce said earlier this month that production had been disrupted and will impact shipments of equipment to overseas markets. Its members include leading panel makers JinkoSolar Hold- ing Co., Tongwei Co., LONGi Green Energy and Trina. Trina’s deputy general manager, Yin Rong- fang, told the Economic Times on Feb. 20 that its factories had lower supplies than usual, boosting short-term logistics costs. Factory uti- lization took a hit but is rebounding. PV production capacity has been hit in Jiangsu province, where more than 60% of If the virus outbreak lasts beyond the fi rst quar- ter and spreads to more geographies, as is cur- rently happening in Korea and Italy, then it may very well slow down global renewable energy deploy- ment.” Ali Izadi-Najafabadi, BNEF China’s solar panels are made, according to the Gofa Institute, a wing of the government’s National Energy Administration. It said those plants are “gradually recovering.” In France, Claire Waysand, interim chief executive offi cer of the utility and developer Engie SA, said coronavirus will delay some solar and wind projects by “a few weeks” since some suppliers of PV panels and of blades for wind turbine are Chinese. In the U.S., the world’s second-largest renew- ables market after China, the biggest immedi- ate threat from COVID-19 is to the wind indus- try, which was otherwise on track for a record year of installations. The U.S. solar market installed 13.3 gigawatts (GW) of capacity in 2019, a 23% rise compared to the year before, new fi gures show. According to a report by the Solar Energy Industries Asso- ciation (SEIA) and Wood Mackenzie Power & Renewables, solar represented almost 40% of new electricity generating capacity added in the U.S. last year. 2020 is critical because it’s the last year for www.utilities-me.com April 2020 / Utilities Middle East 27 COVER FEATURE“A lot of these projects didn’t have a lot of extra time built in,” Shah says of the wind market. “Even a delay of several weeks could be problematic.” If the situation becomes dire enough, pres- sure will mount for U.S. tax authorities to post- pone the end date for fi nishing wind construc- tion beyond the current December 31 deadline, Shah says. Some manufacturers are relying on produc- tion outside of China to cope. That’s especially true for two of the largest makers of inverters, which convert solar power into electricity for the grid. SolarEdge Technologies Inc. said on an earn- ings call that increased capacity at factories in Hungary and Vietnam has helped it meet to customer demand. It expects, however, to do air shipments this quarter in part because of the coronavirus, which put pressures on gross margin. Enphase Energy Inc. is boosting manufactur- ing of microinverters in Mexico as a backup in case of supply disruptions. It’s seeing some sign of constraint from goods coming from China. For Enphase, Mexico helps it “sidestep coro- navirus challenges,” Philip Shen, analyst at Roth Capital Partners, wrote in a note to clients. So far, it’s the solar industry that has suff ered more, with wind turbine makers bouncing back. Facilities owned by Vestas Wind Systems A/S and Siemens Gamesa Renewable Energy SA in the city of Tianjin, in the northeast of the country, are close to major ports and as yet not subject to any World Health Organization warnings on cargo transport from China. “Vestas restarted production as planned on Feb. 15 and received further approval on Feb. 23, which has enabled us to signifi cantly ramp- up our production in China,” a spokesperson for the Danish turbine maker said. “We expect to return to full capacity soon, provided local conditions allow. We are seeing more suppliers resuming operations.” Solar is not the only renewable energy sector to be aff ected by the coronavirus. Last month, Wood Mackenzie said the outbreak could have a signifi cant impact on the wind energy indus- try in China. At the time, the research and consultancy fi rm said the virus had “brought much of Chi- na’s wind turbine component production to a standstill in recent weeks.” In the U.S., the utility-scale wind and solar markets are dealing with uncertainty in their supply chains. Utility-scale wind developers A lot of these projects didn’t have a lot of extra time built in. Even a delay of several weeks could be prob- lematic. If the situation becomes dire enough, pressure will mount for U.S. tax authorities to postpone the end date for finishing wind construction beyond the current December 31 deadline.” Amish Shah, Eversheds Sutherland developers to complete projects that qualifi ed for the full Production Tax Credit (PTC), the industry’s main subsidy. As a result, the indus- try was already expected to be pushed beyond its limits this year. Wood Mackenzie previously warned of many U.S. wind projects being “at risk” of missing the 2020 deadline, threatening their underlying economics. Even a small delay at a wind project can cause major knock-on eff ects, given the need for spe- cialised construction machinery like cranes that are often rented far in advance. Amish Shah, a partner at law fi rm Eversheds Sutherland who works with a range of devel- oper clients in wind and solar, says he had not heard of projects being delayed yet, but it may only be a matter of time. Construction compa- nies may face labour shortages in the weeks and months ahead. Government agencies may need to slow down their approval processes. 28 Utilities Middle East / April 2020 www.utilities-me.com COVER FEATURE Vestas restarted production as planned on Feb. 15 and received further approval on Feb. 23, which has enabled us to significantly ramp-up our production in China. We expect to return to full capacity soon, provided local conditions allow. We are seeing more suppliers resum- ing operations.” Vestas Wind Systems have received “force majeure” notices from wind turbine suppliers in Asia who cannot ful- fi ll their contract obligations in time. The term refers to a common clause in con- tracts that gives companies some leeway in the case of extreme disruptions, like wars, natural disasters, and pandemics. The delay jeopardizes wind projects that were banking on taking advantage of the wind production tax credit, which expires at the end of this year. Solar developers that can’t get their hands on enough panels are issuing their own “force majeure” notices to utilities in the U.S. Inven- ergy and NextEra Energy, the developers of the fi rst two utility-scale solar farms in the state of Wisconsin, both cited the clause in late Febru- ary and warned of delays to the projects. Now NextEra claims its 150 megawatt solar farm is back on track, while Invenergy’s 300 megawatt project is still up in the air. Meanwhile, some industry analysts are con- vinced that the outbreak of coronavirus makes the case for renewable energy. They argue that reliance on fossil fuels has left countries more exposed to the economic shock of global crises like the coronavirus, and governments should look to renewable energy to help reduce such risks. “I think we are entering a whole new phase of volatility,” says Dr Charles Donovan, Execu- tive Director of the Centre for Climate Finance and Investment at London’s Imperial College Business School. “These are the unfortunate repercussions of a global market that’s exposed to the volatility of the oil markets, and suff ers when unforeseeable events like coronavirus arise at the worst time.” Donovan suggests that such volatility was built into the global economy owing to over- reliance on fossil fuels. “We are now seeing the downsides of the choices we’ve made about the kind of energy economy that we have,” he says. He argues that guarding against the risks of further crises, from climate change to pan- demics, would require not just short-term cash injections, but “joined-up thinking” by decision makers who should prioritise developing econ- omies that are not coupled to oil and gas. While campaigners and climate scientists promote renewable energy on environmen- tal grounds, Donovan stresses that sustainable energy sources such as wind, solar and tidal power ought to be more attractive to investors and policymakers than fossil fuels on a purely economic basis. www.utilities-me.com April 2020 / Utilities Middle East 29 COVER FEATURENext >