ITP MEDIA GROUP / BUSINESS JULY 2020• VOL. 14, ISSUE 07 Looking beyond and reimagining business models for a “new normal” BEYOND COVID-19Download the free White Paper containing a comprehensive report: - The business and ecological benefits - The practical application for energy, gas, heating and water meters - The device specification - LPWAN - Narrowband-IoT capabilities - Retrofitting and its benefits - How Comarch Smart Metering works in Dubai THE ROLE OF SMART METERING IN UTILITIES BUSINESSES. PROSPECTS FOR 2020-2040 Download:CONTENTS www.utilities-me.com July 2020 / Utilities Middle East 3 Volume 14 | Issue 07 Contents As the world continues to grapple with the Covid-19 pandemic, the utilities industry must prioritise new operational strate- gies aligned with the current realities if they are to remain com- petitive. It is true that in the face of the global pandemic, ensuring that critical lifeline services are not interrupted has created an unprecedented challenge. But the near-term decisions util- ity leaders make today to protect their employees, communities and business from COVID-19, will undoubtedly impact future operations. In order to ensure enterprise resiliency now and in the long term, priority must be placed on ensuring the safety of people and going the extra mile to serve customers while anticipating and minimising fi nancial impact. Leaders are already managing large reductions in produc- tivity as most employees grapple with the safety, care, and edu- cation of family and loved ones. As public health offi cials warn of a multi-month fi ght against the virus, these challenges will only be amplifi ed and exacerbated without adequate foresight and planning. Utilities around the globe understand that a rapid and well- coordinated response is required to proactively manage and adapt to an evolving environment. Critical success factors include unifying the response team, establishing clear priori- ties and communicating with consistency. It is important that everyone from the C-suite to fi eld crews understands their roles and responsibilities. Executives should be focused on strategic guidance, broad priorities, and miti- gating legal or policy issues. A single cross-functional response organisation should be established with one incident com- mander to align response objectives across the board. The uncertainty and complexity of a pandemic makes responding more complicated than a typical natural disaster. As a result, utilities should model diff erent scenarios focused on the impact that the current and potentially wors- ening operating conditions will have on the business over the next 12-24 months. The gaps identifi ed in the scenarios will help to inform key considerations when developing short and long-term strategies. Adapting to new realities Baset Asaba, Editor Email: baset.asaba@itp.com View point BEYOND COVID-19 When the economy hits the upside of the seesaw, utilities companies are expected to be among the fi rst to reboundCONTENTS 4 Utilities Middle East / July 2020 www.utilities-me.com Egypt calls for UN inter- vention over Nile dam dis- pute with Ethiopia Egypt has called on the United Nations Security Council to intervene to restart talks on the $4 billion hydroelectric dam being built by Ethiopia on the Blue Nile near the border with Sudan 02 Algeria to invest up to $3.6bn on 4GW of new solar capacity by 2024 The proposed capacity will be installed in the period between 2020 and 2024 and, apart from covering domestic demand, it will be used for export to international markets as well 03 GE steps up efforts to ensure electric power reli- ability during summer GE says it is supporting the next phase of the fi ght against COVID-19 in the Middle East by ensuring power grids are ready, as some countries announce plans to reopen major sectors of the economy just as summer arrives 05 35 31 05 UPDATES 08 NEWS ANALYSIS 18 INDUSTRY TRENDS 24 COVER FEATURE 29 SPECIAL REPORT 40 PRODUCTS 08 18 22 Masdar has signed an agreement with the Ministry of Investments and For- eign Trade of Uzbekistan and JSC National Electric Grid of Uzbekistan to design, finance, build and operate a 500MW utility-scale wind farm project SPECIAL EDITION ALSO THIS MONTH 08 CLEAN ENERGY To meet the SDGs targets by 2030, countries must safeguard the gains already attained and accelerate efforts to achieve affordable, reliable, sustainable and modern energy for all 31 RESILIENT WATER NETWORKS Technological advancements per- taining to smart meters and their integration with communication solutions have transformed water management to address the chal- lenges faced by water utilities 22 CLEAN DESAL Seawater desalination represents a major oppor- tunity for alleviating water stress across the globe. Energy-effi cient processes seek to streamline desali- nation processes 35 THE NEED FOR SMART GRIDS The coronavirus pandemic has highlighted the critical importance of smart grids to promote reliability and continuity of electricity supply, enable smoother remote operations, and improve digital experiences 24 BEYOND COVID-19 In looking beyond and reimagining business models for a “new normal”, the future looks brighter for the power and utilities (P&U) sector than it does for many others. 18 DIGITALISATION As customer expecta- tions increase exponen- tially with advances in technology, utility com- panies need to constantly evaluate their operations and leverage the latest mobile solutions Most popular news stories on www. Utilities-me.comitiesNews Masdar has signed an agreement with the Ministry of Investments and Foreign Trade of Uzbekistan and JSC National Electric Grid of Uzbekistan to design, fi nance, build and operate a 500-megawatt utility-scale wind farm project. The project has received, from the fi rst-ranked bidder, the world’s most cost-competitive tariff for solar PV energy, set at AED 4.97 fi ls/kWh (USD 1.35 cents/kWh) on a Levelised Electricity Cost (LEC) basis, which is approximately 44% lower than tariff set three years ago on the ‘Noor Abu Dhabi’ project – Abu Dhabi’s fi rst large-scale solar PV project and a world record tariff -setter at the time. The Power Purchase Agreement, PPA, and Investment Agreement was signed during a vir- tual ceremony by Sardor Umurzakov, Deputy Prime Minister and Minister of Investments and Foreign Trade, Dadajon Isakulov, Chairman of JSC National Electric Grid, and Mohamed Jameel Al Ramahi, Chief Executive Offi cer of Masdar. Under the agreements, Masdar will develop, build and operate the wind farm project, which will be located in the Zarafshon district of the Navoi Region. Commercial operation is expected to be achieved in 2024. “Masdar is our long-term trusted partner in expanding our renewable energy capacities and bringing their well-known international expertise to the country. This energy project with Masdar clearly illustrates the testimony to the strong commitment by the Government of Uzbekistan to increasing private sector participation in the country and support our ambitious clean energy goals,” said Umurzakov. Masdar’s Al Ramahi said, “Masdar is proud to be collaborating with the Government of the Repub- lic of Uzbekistan on our second utility-scale clean energy project in the country. The 500MW wind farm supports Uzbekistan’s long-term renewable energy ambitions and its strong commitment to not only modernise its power sector, but also invest in energy security. As a global leader in the development of utility- scale wind power, Masdar is committed to advanc- ing clean-tech innovation both regionally and inter- nationally by deploying the latest technologies at scale and enhancing their commercial viability.” The announcement comes after Masdar signed a PPA and Government Support Agreement with the Government of Uzbekistan in November 2019 to design, fi nance, build and operate the country’s fi rst public-private partnership solar power plant. Masdar was announced as the winning bidder for the solar project after tendering the lowest tariff of 2.679 US cents per kilowatt hour in the programme’s competitive auction to develop the 100MW utility-scale PV solar plant, which will be located in the Navoi region. The signing ceremony highlights Uzbekistan’s goal of developing 5 gigawatts, GW, of renewable energy by 2030. The power generating capacity of the renew- able energy projects in which Masdar is a part- ner is more than 5GW, representing a combined investment of approximately US$14.3 billion and spanning more than 30 countries. REGIONAL UPDATE // ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS Masdar to develop 500MW Uzbek wind project Masdar will develop, build and operate the wind farm project, which will be located in the Zarafshon district of the Navoi Region Wind www.utilities-me.com July 2020 / Utilities Middle East 59% Of Dubai’s electricity now comes from clean sources Dubai Electricity and Water Authority (DEWA) has announced that the share of clean energy in Dubai’s energy mix has increased to around 9%. This exceeds the target set in the Dubai Clean Energy Strategy 2050, which aimed to provide 7% of Dubai’s total power output from clean energy sources by 2020 and 75% by 2050. DEWA’s total installed capacity is 11,700MW of electricity. This includes 1,013MW from photovoltaic solar panels at the Mohammed bin Rashid Al Maktoum Solar Park, the largest solar park in the world. Total capacity of the projects under construction at the solar park is 1,850MW from photovoltaic and Concentrated Solar Power (CSP), with future phases to reach 5,000MW by 2030. “Since its launch, the solar park’s projects have received considerable interest from global developers, which refl ects the confi dence of investors from around the world in DEWA’s major projects,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA. “We recently signed the power purchase agreement for the 900MW 5th phase of the solar park with a consortium led by ACWA Power.” this trend accelerating – reinforc- ing the case to phase-out coal entirely. Next year, up to 1 200 gigawatts (GW) of existing coal capacity could cost more to operate than the cost of new utility-scale solar PV, the report shows. Replacing the costliest 500 GW of coal with solar PV and onshore wind next year would cut power system costs by up to $23bn every year and reduce annual emissions by around 1.8 giga- tons (Gt) of CO2, equivalent to Renewables become more competitive than coal power Renewable power is increas- ingly cheaper than any new elec- tricity capacity based on fossil fuels, a new report by the Interna- tional Renewable Energy Agency (IRENA) published last month fi nds. Renewable Power Generation Costs in 2019 shows that more than half of the renewable capac- ity added in 2019 achieved lower power costs than the cheapest new coal plants. The report highlights that new renewable power generation proj- ects now increasingly undercut existing coal-fi red plants. On average, new solar photo- voltaic (PV) and onshore wind power cost less than keeping many existing coal plants in oper- ation, and auction results show Renewables Wastewater APICORP in $40mn fi nancing for Saudi’s fi rst ISTP The financing was provided in collaboration with The National Commercial Bank (NCB) and Sumitomo Mitsui Banking Corporation Europe Limited Competitive power generation costs make investment in renewables highly attractive as countries target economic recovery from COVID-19 The Arab Petroleum Investments Corporation (APICORP) says it has provided $40mn in fi nanc- ing to Saudi Arabia’s fi rst Inde- pendent Sewage Treatment Plant (ISTP) sponsored by the private sector – out of a total project fi nance facility worth US$160mn Financing for the facility was provided in collaboration with The National Commercial Bank (NCB) and Sumitomo Mitsui Banking Corporation Europe Limited (SMBC). The total cost of the proj- ect stands at approximately US$245mn, and is in line with the Saudi Vision 2030 reform plan goal for the optimal use of water resources and to encourage pri- vate sector participation in eco- nomic development initiatives. Located in Dammam, the Dammam ISTP was awarded to a consortium which comprises Metito, Mowah Company CJSC, and Orascom Construction – who each own 40 per cent, 40 per cent and 20 per cent respec- tively – by the Saudi Ministry of Environment, Water and Agricul- ture (MEWA) acting through the Saudi Water Partnership Com- pany (SWPC). The $160mn fi nancing facil- ity, which has a tenor of 27 years, will be used for the overall devel- opment, engineering, construc- tion, operation and maintenance of the Dammam ISTP. 5% of total global CO2 emissions in 2019. It would also yield an investment stimulus of $940bn, which is equal to around 1% of global GDP. “We have reached an impor- tant turning point in the energy transition. The case for new and much of the existing coal power generation, is both environmen- tally and economically unjustifi - able,” said Francesco La Camera, Director-General of IRENA. “Renewable energy is increas- ingly the cheapest source of new electricity, offering tremendous potential to stimulate the global economy and get people back to work. Renewable investments are stable, cost-effective and attractive offering consistent and predictable returns. “The project will upgrade the existing infrastructure and enable it to effectively recy- cle waste water. Partnerships between the private and public sectors in fi nancing sustainable energy projects remains a stra- tegic focus for APICORP now more than ever. We are pleased to contribute to the Kingdom’s Vision 2030,” said Dr Ahmed Ali Attiga, CEO of APICORP. NEWS 6 Utilities Middle East / July 2020 www.utilities-me.com8 Utilities Middle East / July 2020 www.utilities-me.com NEWS ANALYSIS COVID-19 INTENSIFIES THE URGENCY FOR SUSTAINABLE ENERGY To meet the Sustainable Development Goals (SDGs) targets by 2030, coun- tries must safeguard the gains already attained and accelerate efforts to achieve affordable, reliable, sustainable and modern energy for allwww.utilities-me.com July 2020 / Utilities Middle East 9 NEWS ANALYSIS DnDespite accelerated progress over the past decade, the world will fall short of ensuring universal access to aff ordable, reliable, sustainable, and modern energy by 2030 unless eff orts are scaled up signifi cantly, reveals the new Tracking SDG 7: The Energy Progress Report released last month by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO). According to the report, signifi cant progress had been made on various aspects of the Sus- tainable Development Goal (SDG) 7 prior to the start of the COVID-19 crisis. This includes a nota- ble reduction in the number of people world- wide lacking access to electricity, strong uptake of renewable energy for electricity generation, and improvements in energy effi ciency. Despite these advances, global eff orts remain insuffi cient to reach the key targets of SDG 7 by 2030. The number of people without access to elec- tricity declined from 1.2 billion in 2010 to 789 mil- lion in 2018, however, under policies that were either in place or planned before the start of the COVID-19 crisis, an estimated 620 million people would still lack access in 2030, 85 percent of them in Sub-Saharan Africa. SDG 7 calls for universal energy access by 2030. Other important elements of the goal also continue to be off track. Almost 3 billion people remained without access to clean cooking in 2017, mainly in Asia and Sub-Saharan Africa. Largely stagnant progress since 2010 leads to millions of deaths each year from breathing cooking smoke. The share of renewable energy in the global energy mix is only inching up grad- ually, despite the rapid growth of wind and solar power in electricity generation. An acceleration of renewables across all sec- tors is required to move closer to reaching the SDG 7 target, with advances in heating and trans- port currently lagging far behind their potential. Following strong progress on global energy effi - ciency between 2015 and 2016, the pace has slack- ened. The rate of improvement needs to speed up dramatically, from 1.7 percent in 2017 to at least 3 percent in coming years. Accelerating the pace of progress in all regions and sectors will require stronger political com- mitment, long-term energy planning, increased public and private fi nancing, and adequate policy and fi scal incentives to spur faster deploy- ment of new technologies An increased empha- sis on “leaving no one behind” is required, given the large proportion of the population without access in remote, rural, poorer and vulnerable communities. The 2020 report introduces tracking on a new indicator, 7.A.1, on international fi nancial fl ows to developing countries in support of clean and renewable energy. Although total fl ows have doubled since 2010, reaching $21.4 billion in 2017, only 12 percent reached the least-developed countries, which are the furthest from achieving the various SDG 7 targets. The fi ve custodian agencies of the report were designated by the UN Statistical Commission to compile and verify country data, along with regional and global aggregates, in relation to the progress in achieving the SDG 7 goals. The report presents policymakers and devel- opment partners with global, regional and coun- try-level data to inform decisions and identify priorities for a sustainable recovery from COVID- 19 that scales up aff ordable, reliable, sustainable and modern energy. This collaborative work highlights once more the importance of reliable data to inform poli- cymaking as well as the opportunity to enhance data quality through international cooperation to further strengthen national capacities. The report has been transmitted by SDG 7 custodian agencies to the United Nations Secretary-Gen- eral to inform the 2030 Agenda for Sustainable Development’s annual review.Next >