< Previous10 Utilities Middle East / June 2020 www.utilities-me.com NEWS ANALYSIS renewables. Solar photovoltaic (PV) and wind power have become the cheapest sources of electricity in many markets, with other renewable power sources poised to reach cost parity within a few years. In the power sector, renewables have dominated new capacity additions and increas- ingly outpaced fossil fuels for the past seven years. Last year alone, renewables accounted for nearly three quarters of global power capac- ity additions. The economic fallout from the pandemic is far-reaching, with an adverse impact on many sectors including renewables. For many rea- sons, however, the impact may be diff erent than in other economic sectors. Governments can turn to a renewables-based energy transi- tion to bring a range of solutions at this diffi cult moment. Many renewable technologies can be ramped up relatively quickly, helping to revive industries and create new jobs. Decentralised solutions tend to be compar- atively labour-intensive. Adopting renewables can therefore create employment and boost local income in both developed and developing energy markets. Employment in the sector, which reached 11 million jobs worldwide in 2018, could quadru- ple by 2050, while jobs in energy effi ciency and system fl exibility could grow by another 40 mil- lion. Decentralised technologies also allow for greater involvement by citizens and commu- nities in energy decisions, with transforma- tive social implications. Importantly, they off er a proven approach for remote health care in energy-poor communities and add a key ele- ment to the crisis response toolkit. In the creation of future infrastructure, energy solutions aimed at scaling up renew- ables provide a safe and visionary strategic investment choice. Recovery measures could help to install fl exible power grids, effi ciency solutions, electric vehicle (EV) charging sys- tems, energy storage, interconnected hydro- power, green hydrogen and multiple other clean energy technologies. With the need for energy decarbonisation unchanged, such investments safeguard against short-sighted decisions and increased accumulation of stranded assets. The latest oil price developments and the heightened unpredictability of returns on hydrocarbon investments make the business www.utilities-me.com June 2020 / Utilities Middle East 11 NEWS ANALYSIS case for renewables even stronger. Current market dynamics could further weaken the viability of unconventional oil and gas resources and long-term contracts. The moment has come to reduce or redirect fossil- fuel subsidies towards clean energy without added social disruption. Research and innovation are vital to keep improving the technologies and reduce the costs for sustainable energy. This is especially true in end-use sectors like transport, heating and cooling, as well as for enabling technologies such as energy storage and green hydrogen. Governments must embrace these forward- looking options to ensure that public policies and investment decisions refl ect the true poten- tial for low-carbon economic development. These should be major considerations as policy makers put together recovery measures. A purely market-driven approach will not be adequate, either to respond to the immediate crisis or to mobilise longer-term investments. Governments will have to consider inno- vative approaches to secure fi nancing at the required scale and speed. Clear long-term objectives, combined with targeted public investment and appropriate market incentives, will also enable the private sector to act swiftly and confi dently. While the current crisis has undoubt- edly underlined global interconnections and strengthened the vision of a more resilient soci- ety at national and regional levels, it has also highlighted the vast diff erences in countries’ circumstances and capacities. International co-operation is needed to tackle deeply embedded shortfalls and vulnera- bilities, and crisis responses must refl ect global co-dependency. Investments must be directed everywhere they are needed, including to the most vulnerable countries and communities. This year was meant to be a turning point for climate and sustainable development, with 2020 marking the start of the decade of action. The unexpected pandemic, with its devastating consequences for communities and economies is upending plans, interrupting trends and test- ing assumptions. We are yet to see the contours of the post-COVID world. The mounting loss of life is devastating, and the strain on communities and economies will require thoughtful and far-reaching strategies. A wider perspective is needed, viewing energy, society, economy and the environment as parts of a unique, holistic system. The response must provide more than just a bail-out for existing socio-economic struc- tures. Now, more than ever, public policies and investment decisions must align with the vision of a sustainable and just future. Such under- takings are certainly ambitious. But they are entirely achievable with a collective, co-ordi- nated response. DESPITE COVID-19, RENEWABLE ENERGY MARKET TO REACH $226BN BY 2021 A new report exploring the impact of COVID-19 on the global market for renewable energy has been released. Revenue generated from renewable energy is expected to increase from $184 billion in 2020 to $226 billion by 2021, according to the “COVID- 19 Impact on Renewable Energy Market – Global Forecast to 2021” report. The pandemic is causing uncertainties in regard to new investments and business strat- egies within the global renewables market, according to the study. Moreover, renewable energy fi rms are now facing unprecedented pressure of leveraging renewables not only to meet energy demand but to reduce carbon emissions and tackle climate FRANCESCO LA CAMERA Director General, IRENA12 Utilities Middle East / June 2020 www.utilities-me.com NEWS ANALYSIS change. The solar segment dominated the renew- able energy industry during the forecast period. This is a result of the majority of solar manufac- turers delivering orders on time despite logis- tics disruptions due to COVID-19. The utilities/power producers segment is projected to be the largest renewable energy market. The pandemic has created an opportunity for utilities to transition to 100% renewable energy following massive declines in demand for energy, fossil and transport fuels. Utilities/power producers who had already shifted or are planning to shift to the renew- able energy sector will be the gainers during the forecast period. Asia Pacifi c is projected to be the largest and most optimistic market during the forecast period. HOW CORONAVIRUS MAKES THE CASE FOR RENEWABLE ENERGY Reliance on fossil fuels has left countries more exposed to the economic shock of global crises like coronavirus, and governments should look to renewable energy to help reduce such risks, says a leading fi nancial economist. “I think we’re entering a whole new phase of volatility,” says Dr Charles Donovan, Executive Director of the Centre for Climate Finance and Investment at London’s Imperial College Busi- ness School. “These are the unfortunate reper- cussions 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-reli- ance 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 said. Guarding against the risks of further crises, from climate change to pandemics, would require not just short-term cash injections, but “joined-up thinking” by decision makers who should prioritize developing economies 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. “We’ve been like the frog in a pan of water that’s slowing warming up: the fi re has just been turned up several notches, and the only thing we can do now is jump out of the pan.” “There has to be recognition that the increased volatility in the oil markets will stand www.utilities-me.com June 2020 / Utilities Middle East 13 NEWS ANALYSIS in stark contrast to what may become the great virtue of renewable energy, which has noth- ing to do with its greenness, but more about the stability of cash fl ows from underlying assets,” Donovan says. “The relative stability of renew- able energy that’s fully contracted, that already has power purchase agreements ... should make it immune from deterioration.” This analysis rests in part on inherent charac- teristics of renewable energy: fuelled by wind, water or sunlight and captured by sustainable infrastructure, renewables are viewed as being more resistant to monopolization by cartels and outright manipulation. Yet current monetary policy is behind the curve, weighed down by an inherent, historical bias toward fossil fuels. This is a reality that is being increasingly recognized in Europe: in September, the former head of the International Monetary Fund Chris- tine Lagarde recommended that the European Central Bank (ECB) should phase out fossil fuel investments and opt for green bonds—though Lagarde noted the renewable energy market was not yet large enough to take up the ECB’s €2.6 trillion ($2.9 trillion) portfolio. Meanwhile, green bond issuance grew by 50% last year, reaching a record $255 billion, according to the Climate Bonds Initiative. Yet central banks will likely be called on to rescue ailing economies throughout the spring and summer, with the sort of large cash injec- tions and bailouts seen this week, when the U.S. Federal Reserve pumped $1.5 trillion into the markets in a failed attempt to calm investors. “We are coming to a very important point now where policymakers can ensure that this round of easing is not hugely biased towards keeping oil producers on a lifeline,” Donovan said. Bailouts could, instead, be structured around a strategy of decarbonization and preparing countries for low-carbon transitions. “To my mind those interventions need to be targeted towards structural investments and things like job retraining for people in indus- tries that can no longer keep going,” Donovan says. Whilst over the short term, the process of developing low-carbon infrastructure is unlikely to stand in the way of a pandemic or a wildfi re, over time such economies could prove more durable than those built on the back of fi nite, volatile hydrocarbons—and better able to withstand crises. 14 Utilities Middle East / June 2020 www.utilities-me.com COMMENTARY WATER SECURITY: AN URGENT PRIORITY DURING PANDEMICS AND EXCEPTIONAL TIMES In a region where 74 million people lack access to basic hand-washing facilities highlights the urgent need to make the optimal utilization of our available water resources, says Dr. Abdulla Al Mandous, Director of NCM and President of the Regional Association II (Asia) of WMO Achieving water security and address- ing water scarcity have topped the agenda of countries across the globe due to the strategic importance of water - a vital resource for sustaining life on the earth. Water is equally important for the healthy A recent study published by the United Nations Economic and Social Commission for Western Asia (ESCWA) highlighted the impact of the Coro- navirus pandemic on the water-scarce Arab region. The report indicated that water demand for handwashing alone is set to increase by 9 to 12 functioning of diff erent sectors, and any disrup- tion or fl uctuation in water supply systems can pose a serious threat to our existence. Therefore, fi nding eff ective solutions to global water-stress issues has become more urgent than ever, especially in exceptional circumstances such the present novel Coronavirus outbreak.www.utilities-me.com June 2020 / Utilities Middle East 15 COMMENTARY the awardees to achieve the objectives of their research. The Centre has also set up Emirates Weather Enhancement Factory that produces high-qual- ity fl ares to use in its cloud seeding operations. NCM’s custom-designed aircrafts carried out 95 cloud seeding operations across the country in the fi rst quarter of 2020, using the technolo- gies developed by the program awardees. The Centre relies in its cloud seeding opera- tions on a sophisticated network of radars that monitors the country’s atmosphere around the clock and provide data on clouds. A team of pilots and technicians based at NCM’s dedicated operations room analyse this data, and carry out cloud seeding operations with high accuracy and effi ciency if they detect seedable clouds. The tremendous achievements attained by NCM and UAEREP through its awardees have laid a solid foundation for further research and devel- opment in rain enhancement science, and we are committed to attracting and supporting more innovative and viable research projects in the years to come. Furthermore, we will continue to maximize the outcomes of our research projects through leveraging the latest technologies and scientifi c applications such as artifi cial intelligence and machine learning to support the advancement of rain enhancement program and achieve global water security under all circumstances and at all times. litres per person per day amid the pandemic, let alone other essential demands such as laundry, cleaning and food washing. The study further emphasizes that there will be an average daily increase of household water demand by 4 million to 5 million cubic metres across the region. Such a signifi cant surge in water demand in a region where 74 million people lack access to basic hand-washing facilities highlights the urgent need to make the optimal utilisation of our available water resources, and to direct both scientifi c and practical eff orts towards meeting the essential needs. In line with the vision of the country’s wise leadership to achieve long-term prosperity and sustainability, the UAE launched its Water Secu- rity Strategy 2036 to ensure sustainable access to water during both normal and emergency conditions. The proactive-strategy seeks to enhance the country’s emergency preparedness and miti- gate social and economic impact through ensur- ing the availability of 91 litres of water per person per day in cases of emergency, and 30 litres per person per day in cases of extreme emergencies. This helps the country to build a storage capac- ity for the water supply system that lasts for two days under normal conditions, 16 days in emer- gencies, and 35-49 days in extreme emergencies. As part of the country’s relentless eff orts to ensure water security not only locally but also around the globe, the UAE Research Program for Rain Enhancement Science (UAEREP) was launched by His Highness Sheikh Mansour bin Zayed al Nahyan, UAE Deputy Prime Minister and Minister of Presidential Aff airs in 2015. Managed by National Centre of Meteorology (NCM), the program plays a central role in achiev- ing global water security through supporting the research projects carried out by the scientists who obtained its grants. To fi nd innovative solutions for water scar- city around the world, the awardees have under- taken groundbreaking research covering a diverse range of areas including innovative algo- rithms to enhance precipitation, nanotechnol- ogy to accelerate water condensation, ice pro- duction processes in cumulus clouds, modifying the electrical properties of clouds and studying the role of atmospheric aerosols in precipitation enhancement. The awardee projects also focused on the cre- ation of artifi cial clouds to induce rain, using unmanned aircraft system (UAS) to target suit- able clouds for seeding and advanced experi- mental-numerical approaches to rain enhance- ment, among others. The program articulates the UAE’s sustained eff orts to tackle the urgent challenges facing the world by spearheading scientifi c research and developing innovative applications. Through innovation and eff ective interna- tional collaboration, the country demonstrates its inspiring vision to advance rain enhancement science in line with its commitment to promoting global sustainability and ensuring a better future for the entire mankind. NCM extends crucial support for UAEREP awardee projects through providing advanced technologies and facilities including a network of radars, weather stations and aircrafts, and ensuring support from subject matter experts. It also facilitates testing and practical applica- tion of the research projects in the UAE, enabling DR. ABDULLA AL MANDOUS Director, NCM & President of the regional association II (Asia) of WMOAcwa consortium to boost KSA water security with Jubail 3A IWP DESALINATION SOLAR A consortium led by ACWA Power includ- ing Gulf Investment Corporation (GIC) and AlBawani Water & Power Company (Albawani) announced the signing of a water purchase agreement with the Saudi Water Partnership Company (SWPC) for a green- fi eld sea water reverse osmosis desalination project in Jubail, KSA. The Jubail 3A Independent Water Plant (IWP) will have an investment value of $650mn and a capac- ity of 600,000 m3 of potable water/day, greatly contributing to Saudi eff orts to ensure water security. The 25-year agreement was signed with Abdul- rahman Abdulmohsen A. AlFadley, Minister of Environment, Water and Agriculture and Chair- man of the Board Directors of SWPC. Under the terms of the partnership, the consortium led by ACWA Power will design, construct, commission, operate and maintain the desalination plant as well as associated potable water storage and elec- trical special facilities. “In alignment with our mission to ensure ade- quate water production capacity for the King- dom of Saudi Arabia, we are keen to work closely with ACWA Power, a Saudi company with international expertise, as our trusted partner,” said Khaled Al Qureshi, CEO, Saudi Water Part- nership Company. “The Jubail 3A is a highly signifi cant project for the KSA water sector, featuring storage facili- ties as well as in-house solar power to reduce any burden on the energy grid. It will also be crucial in meeting growing water demand, supplying Riyadh, Qassim and the Eastern Provinces with much needed potable water.” ACWA Power said it is well positioned to ensure long term availability and supply of reliable, low- cost water resources. THE LATEST NEWS YOU NEED TO KNOW ON THE GCC & IRAQ TENDERS, CONTRACT WINS AND PROJECTS UNDERWAY Dubai Electricity and Water Authority (DEWA) has signed a 25-year Power Purchase Agree- ment (PPA) for the 5th phase of the Mohammed bin Rashid Al Maktoum Solar Park with a capac- ity of 900 megawatts (MW). This phase will use photovoltaic solar panels, and will be commissioned in stages starting from the third quarter of 2021. This supports DEWA’s eff orts to achieve the Dubai Clean Energy Strategy 2050 to provide 75% of Dubai’s total power output from clean energy by 2050. The PPA was signed by Saeed Mohammed Al Tayer, MD & CEO of DEWA, and Mohammad Abu- nayyan, Chairman of ACWA Power, via video confer- encing. In November 2019, DEWA announced the con- sortium led by ACWA Power and Gulf Investment Corporation (GIC) the Preferred Bidder to build and operate the fi fth phase of the Mohammed bin Rashid With an investment of $650mn, the plant will produce 600,000m3 of potable water/day The order are for supplying power transform- ers and gas insulated switchgears to Saudi Elec- tricity Co. and Saudi Aramco. Hyundai Electric, a unit of shipbuilding giant Hyundai Heavy Industries Co., said the state-run utility order came to $69mn, while the rest came from Saudi Aramco. This contract raises Hyundai Electric’s deals in Saudi to more than $180mn in the January-April period, up more than triple from the same period last year. Hyundai Elec- tric was spun off from Hyundai Heavy Industries Co. in 2017. Hyundai in KSA deal Hyundai Electric and Energy Systems Co. said it has bagged two orders worth $28.6mn in Saudi Arabia. Al Maktoum Solar Park. DEWA achieved a world record by receiving the lowest bid of USD 1.6953 cents per kilowatt hour (kW/h) for this phase. DEWA received 60 Requests for Qualifi cation (RFQ) from international develop- ers for this project. To implement the project, DEWA established Shuaa Energy 3 in partnership with the consortium led by ACWA Power and GIC. Contracts DEWA inks PPA for 900MW of MBR park TRANSFORMERS DEWA achieved a world record by receiving the lowest bid of USD 1.6953 cents per kilowatt hour (kW/h) for this phase 16 Utilities Middle East / June 2020 www.utilities-me.comTabreed announces Q1 fi nancial results and Covid-19 countermeasures TRANSMISSION ADNOC, ADpower in joint tender for sub- sea power transmission network HVDC sub-sea transmission network to connect ADNOC’s off shore oil and gas facilities to ADPower’s onshore electricity grid National Central Cooling Company PJSC (DFM: Tabreed), the leading international dis- trict cooling developer based in UAE, released last month its consolidated fi nancial results for the fi rst three months of 2020, reporting net profi t of AED 82.2 million, an increase of 3% compared to its 2019 Q1 performance. In the midst of the global COVID-19 pandemic, the company has taken every precaution to ensure continuous uninterrupted service is main- tained to all of its customers while also adopting industry-leading health and safety practices and sanitization programmes to ensure the safety of its staff during these challenging times. Notwithstanding the unprecedented global pandemic, the company continues to meet the growing demand for district cooling solutions and has recently announced the acquisition of its Downtown Dubai district cooling business in a long-term partnership with Emaar, one of the world’s largest real estate companies and a global property developer, to provide up to 235,000 RT of cooling from the largest integrated district cool- ing scheme in the world to some of Emaar’s most prestigious developments. Financial highlights – three months ended 31 March 2020: • Decrease in revenue of 1% driven by results from value chain businesses • Chilled water revenue in line with prior year • Gross margins marginally up on prior year at 55% • Finance costs down due to lower rates • Increase in administrative and other expenses • EBITDA increased by 5% to AED 178.2 million. DISTRICT COOLING line with its continued objective to drive effi cien- cies and bolster resilience, brings together two vital UAE entities. Together, ADNOC and ADPower will deliver valuable long-term synergies in national infrastructure and jointly attract interna- tional partners to Abu Dhabi. In addition, this milestone project demon- strates the two entities’ commitment to contin- uously drive responsible and sustained invest- ment and value creation for Abu Dhabi and the UAE, and support the ongoing development of the national economy in this complex and challeng- ing period. The project is expected to reduce the carbon footprint of ADNOC’s off shore facilities by up to 30% through ADPower’s effi cient onshore power production. It also off ers power supply cost optimization potential for ADNOC’s off shore facilities and will drive operational effi ciency and system reliabil- ity by replacing the existing off shore localized gas turbine generators with diverse, more effi - cient and environmentally sustainable sources of energy, including renewable and nuclear power. The Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Power Corporation (ADPower) have announced the issuance of a joint tender for a fi rst-of-its-kind project in the Middle East & North Africa (MENA) region. The joint tender sets out to develop and oper- ate the region’s fi rst high-voltage, direct current (HVDC) sub-sea transmission system that will connect ADNOC’s off shore production facilities to ADPower’s onshore electricity grid using state-of- the-art technology. This innovative project, initiated by ADNOC in The Saudi publicly-owned company Saline Water Conversion Corporation (SWCC) has awarded ACCIONA and its partner RTCC the construction of the Al Khobar 2 desalination plant at Khobar, on the east coast of Saudi Arabia around 400 kilometres from Riyadh. It is a turnkey contract valued at around $500 million. The ETRR-2 experimental training research The facility will be equipped with reverse osmo- sis technology and a daily capacity of more than 600,000 m³, making it one of the biggest in the country and the largest RO plant under EPC scheme awarded in a single shot in KSA. It will provide a service to three million people It will be one of the largest in the country, with a capacity of 600,000 m³ per day to serve a population of It will be one of the largest in the country, with a capacity of 600,000 m³ per day to serve a population of three million Acciona bags deal for desal plant in Saudi Arabia DESALINATION in the area. ACCIONA thus consolidates its pres- ence in the water treatment sector in Saudi Arabia. Last year, a €750-million contract was awarded for the fi nancing, design, construction, operation and maintenance (for 25 years) of the Shuqaiq3 desalination plant. It is expected to be completed sometime in 2021. CONTRACTS www.utilities-me.com June 2020 / Utilities Middle East 17INDUSTRY TRENDS 18 Utilities Middle East / June 2020 www.utilities-me.com Saudi Arabia will be one of a handful of countries expected to receive state-of- the-art advanced nuclear reactors from China and Russia, according to a new report.. The report, “Advancing Nuclear Innovation: Responding to Climate Change and Strengthen- ing Global Security,” was commissioned by the Global Nexus Initiative. This is a project estab- lished by the Partnership for Global Security, a Washington DC-based think tank, and the Nuclear Energy Institute (NEI), which represents reactors as part of a mix of alternative energy sources is compelling. The Global Nexus Ini- tiative report says the international commu- nity should strive to make sure that any race for market share among geopolitical competitors strengthens nuclear governance rather than weakens it. “In order to meet the energy and climate chal- lenges which the world faces, advanced reactors should be ready for deployment in the 2025 to 2030 framework,” said John Bernhard, a senior associate at the Partnership for Global Security the US nuclear energy industry. It is a publicly available assessment of the non-proliferation, security, and geopolitical characteristics of advanced nuclear-reactor technology. The report, which took 16 experts over a year to produce, says that advanced reactors will likely be ready for deployment within one to two decades, setting the stage for major technolog- ical competition among powerful geopolitical rivals. Although complicated by politics, the eco- nomic case for countries to invest in civil nuclear The case for investing in advanced nuclear reactors as an alternative energy source is compelling. Russia and China have an advantage in the development of advanced reactors thanks to state financial backing ADVANCED NUCLEAR REACTORSINDUSTRY TRENDS www.utilities-me.com June 2020 / Utilities Middle East 19 who earlier served as Denmark’s ambassador to the International Atomic Energy Agency (IAEA). “These reactors will generally have various advantages — they are smaller and more fl exible than traditional reactors, which means inter alia that in many countries, including Saudi Arabia, they can be deployed in remote and arid areas.” Saudi Arabia’s growing electricity needs are currently met almost entirely by oil and natural gas. In 2016, for example, 40 percent of its elec- tricity came from oil. The result is a loss of poten- tial export revenue. What is more, Saudi Arabia expects a 40 percent jump in electricity demand between 2019 and 2030, according to Khalid Al- Falih, the energy minister. Electricity use will rise in the Kingdom due to the ongoing growth of urban areas and plans to develop a strong manufacturing sector. At the same time, according to the Electricity and Cogeneration Regulatory Authority (ECRA), nine percent of the electricity is used for desalination, on which Gulf countries are heavily dependent in the absence of fresh-water sources. Compared with traditional nuclear reactors, the advanced ones can off er reduced construc- tion time and costs, and a wider variety of sizes and outputs for diff erent locations and applica- tions. “Besides emission-free electricity generation, they may help in desalination of sea water, which could provide a new source of fresh water to areas in need,” Bernhard said. “A general benefi t of nuclear energy is its potential role in producing carbon-dioxide emis- sion-free electricity for a number of purposes. For the foreseeable future, renewable energy sources like wind and sun will probably not be able to deliver the output needed, such as in industrial development.” Nuclear-energy experts say advanced reactors off er interesting new possibilities, especially for nuclear newcomers such as Saudi Arabia. “From a climate-change standpoint, this may be a valuable contribution to the achievement of the Paris Agreement goals from some of the big- gest oil-producing countries,” Bernhard said. “I would expect that for various reasons, several Gulf states will be interested in including nuclear energy, partly from advanced reactors.” The economic case for countries to invest in civil nuclear reactors as part of a mix of alterna- tive energy sources is compelling. (Shutterstock) A case in point is Saudi Arabia. Among the many goals of its Vision 2030 is a reduction in dependency on oil revenues. To this end, the gov- ernment has set ambitious goals for renewables, such as 9.5 gigawatts of solar and wind power by 2023. According to Lady Barbara Judge, former head of the UK Atomic Energy Authority, advanced nuclear reactors are modern, safer, smaller, more convenient and compact. So, “if a country like Saudi Arabia is starting a nuclear program, it might as well start with the best new technol- ogy on the market because that’s a great advan- tage,” she told Arab News. “Saudi Arabia starts with a clean slate and it’s a very fortunate posi- tion to be in.” With their nuclear-export strategy linked to their geopolitical ambitions, Russia and China have an advantage in the development of advanced reactors thanks to state fi nancial backing. Bernhard said: “Several countries with a nuclear energy tradition and industry are involved in the development of advanced reac- tors. “At the moment, it seems that in particular Russia and China have positioned themselves strongly, because of years of experience in this fi eld and state involvement in fi nancing. “There is a clear geopolitical angle to this. For instance, the sale and servicing of new facilities normally will promote and uphold strong politi- cal and economic relations between the provid- ing and the receiving countries for a long period of time.” The peaceful use of nuclear energy has been globally important for more than 60 years, resulting in 452 nuclear reactor units in 32 coun- tries, most of them in Europe, North America, East Asia, and South Asia. “Nuclear energy is clean and generates 24/7 so it’s a good companion to sun and wind. Renew- ables such as solar and wind are excellent sources of energy but dependent on weather conditions, which aren’t always stable,” said Lady Judge, who is also a member of the Inter- national Advisory Board for the development of nuclear energy in the UAE. “So you need to have a stable force of clean energy which is available around the clock to back up any other system of power generation.” Of course there is no glossing over the impor- tance of the newcomers ensuring, in coopera- tion with the IAEA, that their nuclear facilities, whether advanced or traditional, live up to the highest standards and requirements with regard to security. Nuclear technology can have dual use, peace- ful or weaponized. An extensive and eff ective international safeguards regime, implemented by the IAEA, exists to contain the potential prolif- eration of nuclear weapons. However, because of their unique features, advanced reactors do not easily fi t into the exist- ing national regulatory or international gover- nance regimes, according to the Global Nexus Initiative’s report. In fact, they pose new chal- lenges for the safeguards system. As such, they will be subject to new secu- rity measures to help prevent a hostile outside attack, nuclear terrorism and insider sabotage. “These new technological challenges must be eff ectively addressed,” the authors of “Advanc- ing Nuclear Innovation” say. “Several countries are focused on developing advanced reactors, including the US, Canada, South Korea, the UK, France, Russia and China. But the lack of a devel- oped regulatory system and regulator experi- ence is a challenge for all nations.” As advanced nuclear reactors move through the design and development phase, it is also vital to have well-developed test beds to demonstrate the technology, the report says, adding that Russia and China have an advantage in this area. According to Dr. Peter Bode, a former associ- ate professor in nuclear science and technology at Delft University in the Netherlands, the use of nuclear-power plants in the future energy mix is beyond debate. “Solar, wind and other renewables will not be suffi cient,” he said. “But the future of nuclear in the region is positive, with plants in the UAE expected to be operational soon and used as an example that will quickly be followed by others.” In a region where the future of oil and gas is unknown, nuclear power is expected to play a signifi cant role. “It is a good companion, even currently, and certainly in the future,” Lady Judge said. “And that feeling of energy security and energy independence, which nuclear brings, is one which many countries in the Gulf would like to share.” Next >