ITP MEDIA GROUP / BUSINESS MARCH 2021• VOL. 15, ISSUE 03 A growing appetite for hydropower generation could change the Middle East electric power landscape SPINNING THE HYDRO TURBINESOPTIMISE COOLING TOWER EFFICIENCY WITH WATER CONDITIONING DECENTRALISED WATER TREATMENT: REDUCE OPEX PREVENT HEALTH RISKS AVOID RISK OF NON-COMPLIANCE Tr ademark s displa yed in this ma terial, including but not limited to Grundf os , the Grundf os log o and “be think inno va te” ar e register ed tr ademark s o wned b y The Grundf os Gr oup . All righ ts reser ved. © 20 20 Grundf os Holding A /S , all righ ts reser ved. INTELLIGENT WATER CONDITIONING AND BLOWDOWN CONTROL Avoiding biological contamination and maintaining proper water quality optimises cooling water’s operational efficiency. Water conditioning for this purpose requires extremely accurate dosing of chemicals. Grundfos iSOLUTIONS offers a smart dosing solution that reliably manages chemicals, surveillance and reporting. The solution combines our DID measuring and control system with our SMART Digital dosing pump technology, our chemical management app and cloud-based monitoring system. Not only does the solution reduce chemical, water and energy consumption but it also eases compliance reporting when authorities require. Read more about the benefits of Grundfos iSOLUTIONS in decentralised water treatment at grundfos.sa GRUNDFOS iSOLUTIONS A SMART SOLUTION FOR YOU 4011666_GSA-Water-Treatment_2020_Ad_WaterConditioning_ASSFY_205x275mm_5mmBleed_ART01_AT.indd 14011666_GSA-Water-Treatment_2020_Ad_WaterConditioning_ASSFY_205x275mm_5mmBleed_ART01_AT.indd 19/30/20 3:31 PM9/30/20 3:31 PMCONTENTS www.utilities-me.com March 2021 / Utilities Middle East 3 Volume 15 | Issue 03 Contents Securing future power needs Baset Asaba, Editor Email: baset.asaba@itp.com View point SPINNING HYDRO TURBINES A look at the potential of hydroelectric power in the Middle East and the promise of technologies such as pumped-storage hydro Despite the business challenges presented by Covid-19, the power sector in the GCC remains on a trajectory of growth. The GCC will require $81bn for the addition of 62GW of generating capacity and another $50bn for transmission and distribu- tion (T&D) over the next fi ve years, according to predictions by Arab Petroleum Investments Corporation (APICORP). In recent years, renewables have formed an important part in the GCC governments’ strategies to diversify the domestic energy mix with the region’s consumption anticipated to con- tinue growing at a fast pace over the next two decades. But what can governments do to take full advantage of their renewable and fossil fuels resources to secure their power supply? What role can the private sector play to help build a robust regional electric power network right from generation, transmission to distribution? Utilities Middle East seeks to answer these and more ques- tions by bringing together top government offi cials, senior power utilities executives and experts as well as members of the academia in its fi rst ever Power Week Forum. The virtual event will be held from 30th to 31st March 2021. POWER WEEK 2021 is our fi rst event designed for the power and energy industry. It provides 2 days of constructive engagement with C-level executives from government and pri- vate utilities. Here, you will meet industry peers from regional power companies, government regulators and policy makers, renewable & IPPs, investors and suppliers. POWER WEEK 2021 promises valuable insights on a diverse range of topics critical to the GCC electric power & energy industry today – renewable energy, energy transition, energy effi ciency, funding, investment facilitation, energy access, policies & regulations, tariff s, capacity development, technology, solar, off grid, public private partnerships, energy storage, digitalisation, aff ordability, energy mix, private sector participation and so much more. Do not miss to be a part of the insightful discussions that brings together C-level speakers and attendees all under one roof to discuss the challenges and opportunities in the GCC power sector.CONTENTS 4 Utilities Middle East / March 2021 www.utilities-me.com ADFD Finances 90 Renew- able Energy Projects Worth Dh4.7bn Over a Decade Cumulatively generating 9,755MW of electricity, these projects benefi ted 65 countries by supporting their economies and improving the quality of life 02 Masdar and EDF Renew- ables enter strategic alli- ance to explore renewable energy opportunities in Israel Masdar and EDF Renewables Israel will look to collaborate on existing renewable energy projects, and projects under development, while also exploring joint participation in new programs 03 EWEC announces partners to develop the world’s larg- est solar power plant The project was awarded to a consortium led by Abu Dhabi National Energy Company (TAQA) and Masdar, with partners EDF and JinkoPower, for the development of the 2GW Al Dhafra Solar Photovoltaic (PV) Independent Power Producer (IPP) project 05 26 23 05 UPDATES 08 NEWS ANALYSIS 14 INDUSTRY TRENDS 18 COVER FEATURE 26 ME ENERGY AWARDS 34 FINAL WORD 08 18 The installed renewable capacity of the United Arab Emirates, which until recently was nearly non-existent, concluded 2020 at 2.3 gigawatts (GW), around 91% of which comprises of solar PV projects, a Rystad Energy analysis shows SPECIAL EDITION ALSO THIS MONTH 08 WIRING RE Electric power is today the biggest driver in the mainstay of cable demand, accounting for more than three-quarters of the market. The push for renewable energy is expected to accelerate this demand in the com- ing year. 23 AGING WATER ASSETS Putting performance data, energy usage data, weather data and more at the centre of your work provides the visibility and needed insights that enables more strategic planning that can extend the life of your assets 18 HYDRO POWER A look at the hydropower promise in the Middle East and how the pumped- storage hydro technique could change the power generation landscape 26 ME ENERGY AWARDS 2020 Oil & Gas Middle East, Refi ning & Pet- rochemicals Middle East and Utilities Middle East are pleased to announce the winners of the Middle East Energy Awards 2020 along with the highly commended for each category Most popular news stories on www. Utilities-me.comities 14 IRRIGATION Recent cost reductions and increasing awareness of the potential benefi ts of solar pumping has compelled a growing number of countries to launch programmes to accelerate its deploy- ment for irrigation 16 DIGITAL GRID The coronavirus pan- demic has highlighted the critical importance of smart grids to promote reliability and continuity of electricity supply and enable smoother remote operations 14 16News The installed renewable capacity of the United Arab Emirates, which until recently was nearly non-existent, con- cluded 2020 at 2.3 gigawatts (GW), around 91% of which comprises of solar PV proj- ects, a Rystad Energy analysis shows. Solar PV additions are going to pile up, espe- cially from 2022, and drive the country’s total renewable capacity to an impressive 9 GW by the end of 2025. Rystad Energy, evaluating activity in the coun- try, expects solar PV capacity to reach 8.5 GW in the UAE by the end of 2025, being by far the tech- nology that will contribute the most to diver- sifying its energy mix. The share of renewable energy in the UAE’s power generation mix is set to increase from 7% in 2020 to 21% in 2030, and to 44% by 2050. Previous targets for 2020 have already been achieved, and a robust project development pipe- line suggests that the 2030 target is within reach. It is too early to predict the achievability of the coun- try’s 2050 target, but the resilience and determi- nation shown by the UAE’s renewable sector amid Covid-19 will surely make it attractive for investors and developers alike. This, together with some of the world’s lowest power purchase agreement (PPA) prices, suggests that 2050 targets are well within reach. Given the country’s current project pipe- line, UAE’s renewable capacity is on track for an impressive compound annual growth rate (CAGR) of more than 31% towards 2025. Among the seven emirates that make up the UAE, the majority of renewable activity is concentrated in Abu Dhabi and Dubai, which together account for over 90% (8.2 GW) of total capacity in 2025. Major projects expected to drive this growth include four solar farms, the Al Dhafra (2GW), Abu Dhabi PV3 (1500MW), MBR Phase IVa and IVb (950MW) and MBR Phase V (900MW), all of which are in various stages of development. The remain- ing 0.9 GW of capacity will come from projects in other emirates, such as Umm Al Quwain, Ras Al Khaimah and Sharjah. Dubai currently has more than 1 GW of installed capacity, all of which comes from the MBR solar park’s three phases. Thanks to the MBR solar park, Dubai exceeded its 2020 target in June, increas- ing the share of renewable energy in the emirate’s energy mix to nearly 9%. Abu Dhabi, the capital of UAE, has set itself a target of 5.6 GW of solar PV capacity by 2026. Abu Dhabi’s currently installed capacity stands at 1.3 GW, the majority of which comes from the 1.17 GW Noor Abu Dhabi (Sweihan) project, in addition to the Abu Dhabi virtual battery (108 MW) and the Shams solar CSP project (100 MW). UAE is home to one of the lowest tariff prices in the world, with prices declining by more than 76% in the past four years. The country has gotten into a habit of breaking the world record for the lowest PPA prices and has set records nearly every time recent auction results have been announced. The Al Dhafra project, the latest solar PV award in UAE, recently agreed upon a tariff of $13.50 per mega- watt-hour (MWh) – among the lowest solar PPA prices in the world. “Renewable energy seems to be a top priority in the UAE. Despite the Covid-19 shock, the gov- ernment has provided a reasonable amount of investment to continue ongoing projects. UAE has already attracted big international players in the renewable sector – a healthy sign for future busi- ness,” says Gaurav Metkar, senior analyst at Rystad Energy. REGIONAL UPDATE // ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS Renewable capacity in UAE set to increase fourfold to 9GW by end-2025 Solar PV additions are going to pile up, especially from 2022, and drive the country’s total renewable capacity to 9GW by the end of 2025 Renewable Energy www.utilities-me.com March 2021 / Utilities Middle East 5Dubai Beats 2020 Clean Energy Target Dubai Supreme Council of Energy has announced that there has been a marked increase in the clean and renewable energy share in Dubai’s energy mix which now stands at 9 per cent, thus exceeding the Clean Energy Strategy 2050 target. Dubai will provide 7 per cent of its total power capacity from clean energy sources by 2020 and 75 percent by 2050, said the Council at its 63rd meeting held remotely. The meeting, chaired by Sheikh Ahmed bin Saeed Al Maktoum, discussed several topics including the precautionary measures taken by the Emirates Global Aluminium (EGA) against Covid-19 and the council’s decision to reduce fuel surcharge for electricity and water starting from December 1, 2020. Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy, Ahmed Buti Al Muhairbi, Secretary-General of the Supreme Council of Energy, also attended the meeting along with the board members. The members reviewed progress on Dubai Municipality’s Waste to Energy project to treat solid waste using direct burning technologies to generate thermal energy and convert it into clean electrical energy for export to the grid. this year. The 243 MW Coyote wind project is located in Scurry County, Texas; the 273 MW Las Majadas wind project is in Willacy County, Texas; and the 300 MW Milligan 1 wind project is in Saline County, Nebraska. Of the fi ve projects in California, four started commercial operations in December 2020, all located in Riv- erside County. These include the Desert Harvest 1 and Desert Harvest 2 PV projects, which total 213MWdc of solar, and the Maverick 1 and Mav- erick 4 PV projects which total 309 First close on Masdar’s 1.6GW US clean energy portfolio Masdar announced that it has achieved the fi rst closing on the acquisition of 50% of a 1.6-gigawatt (GW) clean-energy portfolio of proj- ects in the United States (US) from EDF Renewables North America. Masdar and EDF Renewables North America announced last year that they had agreed to partner in eight renewable energy projects, including three utility-scale wind projects in Nebraska and Texas total- ling 815 megawatts (MW), and fi ve photovoltaic (PV) solar projects in California totalling 689 MW – two of which include lithium-ion battery energy storage systems represent- ing 75 MW. All three wind projects are cur- rently in the fi nal stage of construc- tion and expected to begin commer- cial operations in the fi rst quarter of Masdar Solar Mai Dubai produces more than 30 million KWh from solar Company achieves net-zero energy consumption in 2020 with more than 4 mil- lion kWh of electricity sent to DEWA grid as surplus Masdar and EDF Renewables North America announced last year that they had agreed to partner in eight renewable energy projects Mai Dubai, the bottled water com- pany fully owned by the Dubai Electricity and Water Authority (DEWA), has become a net-zero energy consumer following the strong performance of its rooftop solar panel installations which produced more than 30 million kWh of power in 2020, while it consumed only 26 million kWh, according to its latest report. This achievement makes Mai Dubai’s operations which include its entire bottled water produc- tion and offi ce to be fully powered by the sun’s energy. The surplus of 4,190,213 kWh of energy were sent back to DEWA’s power grid, which means the company not only consumed 100 per cent of its own electric- ity from a clean energy source, but it also exported extra elec- tricity into the grid. As such, the DEWA subsidiary contributed to the efforts of the UAE govern- ment to increase its energy pro- duction targets that come from renewables. “We are proud to announce that Mai Dubai has reached the net-zero energy consumption in 2020 in line with our core values which integrate sustainability in every aspect of our operations. Our efforts have further led to the company abating 15,500 metric tons (MT) of carbon dioxide emis- sions,” said Alexander van ‘t Riet, CEO of Mai Dubai. MWdc. The fi nal project in California is Big Beau, a 128 MWdc solar PV and 40 MW/160 MWh battery energy storage system, which is in Kern County and will reach commercial operation in December 2021. “This is a signifi cant milestone in our collaboration with EDF Renew- ables North America, with these projects now actively contributing to the US renewable energy objectives,” said Mohamed Jameel Al Ramahi, Chief Executive Offi cer of Masdar. “As the second-largest renew- able energy producer in the world in terms of installed power capac- ity, the US offers considerable scope for further growth, and with Presi- dent Joe Biden having made clean energy investment a key priority for his administration, we anticipate greater opportunities in this market.” “Mai Dubai is convinced that renewable energy is one of the key paths to achieving our environ- mental sustainability and the lead- ing steps that we have taken are delivering great results, enabling us to continue providing high qual- ity, innovative and safe products, as well as effi cient services while becoming an example of sustain- able production practices.” In 2020, the company had a 15% surge in demand for bottled water. NEWS 6 Utilities Middle East / March 2021 www.utilities-me.comDo you want to learn more? www.eh.digital/2Zq6Vrm You meet your efficiency goals and reduce costs without compromising on water quality. OBSERVE + CONSERVE We understand the challenge of finding the right balance between plant efficiency and compliance with industry standards and legal requirements. Improve your processes with our comprehensive portfolio of measuring instruments: Micropilot FMR20: Level radar with the process indicator RIA15 simplifies remote commissioning and operations. Proline Promag W 800: Battery-powered magmeter with integrated cellular radio module for off-grid applications with no power. iTHERM ModuLine TM121: Cost-efficient modular thermometer for standard applications in non- hazardous areas.8 Utilities Middle East / March 2021 www.utilities-me.com NEWS ANALYSIS WIRING CLEAN ENERGY Electric power is today the biggest driver in the mainstay of cable demand, ac- counting for more than three-quarters of the market. The push for renewable energy is expected to accelerate this demand as the world’s biggest suppliers draw investors looking at green boomwww.utilities-me.com March 2021 / Utilities Middle East 9 NEWS ANALYSIS Historically, cable makers have pro- duced a wide range of cables — including fi bre-optic cables, wiring for cars and ships, and for buildings, as well as electricity transmission lines — but competition is growing to capture the lucrative segment linked to renewables. The biggest cable projects, typically with the highest margins, are off shore wind cables and undersea interconnectors, which involve laying heavy cables on the seabed fl oor up to 1500m deep using specialised ships. While cables revenues are presently rela- tively modest, with annual turnover of Prys- mian, Nexans and NKT at about €10bn, €6bn, and €1.5bn respectively, the market is destined to grow alongside the off shore wind industry and the clean energy transition. “The connection of off shore wind farms, solar farms, nuclear — there are 200GW of new off - shore wind that will be connected in the coming nine years,” says Nexans’ chief executive Chris- topher Guérin Guérin. “It is a huge market that is emerging for us.” For a typical off shore wind project, about 25% of the cost is spent on cables that connect the turbines to a substation, and the substation to the shore, according to data from Prysmian. (By comparison, 37% of the cost is the wind turbine, and 23% of the cost is the turbine foundation.) The off shore wind cable market in Europe and the US is expected to expand from €1.5bn in 2019, to about €5.9bn in 2035, Credit Suisse esti- mated. “There is a growing market for the subsea power,” says Sean McLoughlin, head of indus- trial and clean energy research at HSBC, point- ing to both off shore wind cables, and intercon- nectors. “It is the sexy part of the business . . . and it is all tied to the changing energy mix.” McLoughlin adds that cable companies used to be considered low-growth businesses that merited low valuations, but that was no longer the case. Demand for interconnectors is rising as the EU and other countries work to develop more fl exibility in their grid systems, boost cross-bor- der electricity trade, and connect new renew- able power to the cities where it is in demand. The market for interconnectors is expected to grow 14.3 per cent per year over the next decade, according to a report by consultancy Roland Berger and Nexans. Another big area of growth for cable makers will be the US, where several large off shore wind projects are under way on the East Coast and wind development is expected to accelerate under the Biden administration. According to analysts, cable companies were benefi ting from a “scarcity premium” among so- called green stocks. “There is a ‘green premium’ on a lot of these stocks,” says Max Yates, research analyst at Credit Suisse, giving the example of highly valued wind companies Vestas and Orsted. “But there is also a very real reason behind this, which is that ultimately the outlook for these companies has dramatically improved.” Prysmian says about one-third of its inves- tors were ESG funds, a level that had increased greatly over the last 12-18 months, but rejected the suggestion that its share price had been pushed up by the hype. Chief executive Valerio Battista says that, unlike Nexans, Prysmian had decided to hold on to a diversifi ed cable-making portfolio, which includes cables for telecoms, buildings, ships and railways, because these businesses gener- ated cash. “Not a lot [of cash], but constant,” he adds. The Milan-based group, which accounts for about 40% of global undersea interconnector installation, also said it was eyeing a new fron- tier — laying ultra-deep cables as far as 3km below the ocean surface. This would enable cables to be laid across the Mediterranean, potentially connecting solar resources in North Africa with power demand in Europe, said Battista. Such projects were previously not technically feasible but could happen “in the next few years”, he says. In the Middle East, the cables industry has been on a growth trajectory over the past decade, transforming to one of the largest and crucial business sectors in the region. Electric power is today the biggest driver in the main- stay of cable demand, accounting for more than three-quarters of the market. The market for cables in the region is expected to reach $12.33bn by 2022, according to a recent industry report. The GCC cable market represents $6.5bn, one of the highest cable markets per capita in the world. This is expected to continue at high levels as growing applications across the utility and industrial sectors coupled with product and technology innovation are expected to catapult demand across Saudi Arabia and UAE. Renewable electricity generation (solar, wind and nuclear) can be considered the fastest grow- ing energy source for the coming years, with mega projects populating the region’s pipeline. Renewable energy is a focus of governments throughout the Middle East as they seek to move away from hydrocarbon reliance and develop more diverse energy grids. Customised cabling is thus in high demand for projects that seek to harness the power of solar, wind, and nuclear energy. Ducab HV, a subsidiary of Ducab Group, announced during WETEX 2020 that it will Next >