ITP MEDIA GROUP / BUSINESS APRIL 2021• VOL. 15, ISSUE 04 A NUCLEAR ERA OR ERROR? While nuclear energy appears to hold great promise for the region’s power generation future, concerns over its high capital cost and safety may put its viability into questionSafe connection for current and voltage transformer Forced short circuit mechanism for 100% safe handling (MAKE BEFORE BREAK) Accessories that enhance reliability during installation and maintenance Unique lever mechanism offering reliability & optimal visibility Dedicated cross-connection channel ensures maximum flexibility www.weidmueller.com/wttb6 Simple. Fast. Safe. Klippon® Connect TTB Range for instrument transformer wiringCONTENTS www.utilities-me.com April 2021 / Utilities Middle East 3 Volume 15 | Issue 04 Contents The evolving power landscape Baset Asaba, Editor Email: baset.asaba@itp.com View point NUCLEAR ERA OR ERROR? A look at the economics of nuclear power generation and its viability as it gains momentum in the Middle East GCC countries continue to invest heavily in new power gen- eration plants to address growing electric power needs. Last month, UAE headquartered TAQA Group announced plans to increase gross power capacity from 18GW to 30GW in the UAE, and add up to 15GW internationally. In its newly released 2030 strategic plan for sustainable growth and profi tability, TAQA, one of the largest listed inte- grated utility companies in the region, will scale up its renew- able energy installed capacity to comprise more than 30% of its power generation portfolio by 2030, up from the current 5%. The group will also expand its reverse osmosis desalination technology to make up two-thirds of its desalination capacity by 2030 with 200 MIGD already under construction. While renewable energy has been the main focus of recent GCC investments in power generation, it is clear that the region will continue to develop thermal power plants given their ability to stabilise the grid, and will also continue to invest in innovations to boost operational effi ciency. Industry experts say that to meet current and future power needs, the GCC will need to adopt a long-term strategy that will guarantee a mix of multiple power sources. The region will require an investment of $81bn for the addition of 62GW of generating capacity and another $50bn for transmission and distribution over the next fi ve years alone, according to recent industry reports. Digital integration will be key to the future of power gener- ation as market conditions continue to put more pressure on utilities to manage their costs and remain competitive. There is growing dependence on digital solutions to overcome oper- ational challenges, optimise the fl ow of information, improve asset performance, increase energy effi ciency and output. The renewed interest in synthetic fuel such as hydrogen and ammonia are expected to signifi cantly change the GCC energy landscape. The recent announcement for the creation of Abu Dhabi Hydrogen Alliance will make the UAE a hub for hydro- gen and a trusted leader of low-carbon power generation in emerging international markets. CONTENTS 4 Utilities Middle East / April 2021 www.utilities-me.com TAQA Group plans 27GW of new installed capacity and $10bn investment for T&D business As part of its 2030 growth strategy, TAQA Group has announced plans to increase gross power capacity from 18GW to 30GW in the UAE and add up to 15 GW internationally 02 Final tests at Qatar’s Umm Al Houl expansion SWRO desal- ination plant completed The Umm Al Houl desalination plant in Qatar has successfully reached a production of 282 million of liters per day, its full capacity, and has completed fi nal tests ahead of schedule. The twin RO desalination plants will produce 564 million of liters per day and supply drinking water to 1.1 million people 03 Saudi desalination plant sets new Guinness World Record for lowest energy consumption The Saudi Water Conversion Corporation (SWCC) has set a new Guinness World Records title for Lowest energy consumption for a water desalination plant with 2.27 kW/h per cubic meter of desalinated water 05 26 25 05 UPDATES 08 NEWS ANALYSIS 14 INDUSTRY TRENDS 20 COVER FEATURE 26 INDUSTRY FEATURE 34 FINAL WORD 08 20 The Federal Authority for Nuclear Reg- ulation (FANR), the UAE’s independent nuclear regulator, has issued the Oper- ating License for Unit 2 of the Barakah Nuclear Power Plant to Nawah Energy Company (Nawah) SPECIAL EDITION ALSO THIS MONTH 08 ENERGY STORAGE The growing share of VRE sources, such as solar and wind, calls for a more fl exible energy system to ensure that the variable renewable energy (VRE) sources are integrated in an effi cient and reliable manner 25 DATA CENTER DYNAMICS Ever-growing volumes of data and a constant drive for businesses to improve effi ciency and accelerate innovation have had a huge impact on the role of IT, requiring it to adapt to support new business models 20 NUCLEAR TRENDS Nuclear energy capac- ity in the Middle East is expected to increase but how sustainable are nuclear power plants given their high capital costs? 26 AMMONIA FOR GAS TURBINES Several countries have outlined ambi- tions to integrate ammonia in their future energy system, including as a fuel for internal combustion engines, while researchers chase the same vision of an “ammonia economy Most popular news stories on www. Utilities-me.comities 14 WASTEWATER TRENDS Greater focus on ad- vanced wastewater treat- ment is expected to scale over time, shaped not only by regulations but the bottom line. Water represents a key input to industrial production 16 PLANT RETROFIT Increasing the fl exibility of conventional power plants will often require retrofi tting certain physical components, as well as making opera- tional modifi cations with emerging innovations 14 16News The Federal Authority for Nuclear Regu- lation (FANR), the UAE’s independent nuclear regulator, has issued the Oper- ating License for Unit 2 of the Barakah Nuclear Power Plant to Nawah Energy Company (Nawah), the Emirates Nuclear Energy Corpora- tion’s (ENEC) subsidiary, responsible for the oper- ation of the nuclear power plant located in the Al Dhafra region of Abu Dhabi. The Operating License, with an estimated dura- tion of 60 years, authorises Nawah to commis- sion and operate the Unit 2 of the Barakah Nuclear Power Plant. The decision to issue the Operating License is a culmination of eff orts made by FANR since it received the Operating License Application from ENEC, on behalf of Nawah, in 2015 for Units 1 and 2. FANR followed a systematic review process that included a thorough assessment of the applica- tion documentation, conducting robust regulatory oversight and inspections. The assessment included reviewing the plant’s layout design and the analysis of the site’s loca- tion in terms of geography and demography. The assessment also included the reactor design, cool- ing systems, security arrangements, emergency preparedness, radioactive waste management and other technical aspects. FANR also assessed Nawah’s organisational and manpower readiness with all the required pro- cesses and procedures to ensure the safety and security of nuclear power plant. FANR reviewed the 14,000 page Operating License Application for Units 1 & 2, conducted more than 220 inspections and requested approx- imately 59 additional pieces of information for Unit 2 on various matters related to reactor design, safety and other issues to ensure the Barakah Nuclear Energy Plant’s complete compliance with all regulatory requirements. “This is another historic moment for the UAE, being the fi rst Arab country in the region to oper- ate a nuclear power plant and culminating eff orts of 13 years in building such a programme. This mile- stone was achieved due to the UAE’s vision and its leadership to build a peaceful nuclear energy pro- gramme to cater for the future needs of energy in the country,” said Ambassador Hamad Al Kaabi, UAE Permanent Representative to the Interna- tional Atomic Energy Agency (IAEA) and Deputy Chairman at FANR. “The UAE Nuclear Energy Programme, includ- ing the nuclear law and regulations, conforms to the safety standards of the IAEA and the interna- tional best practices, where FANR has ensured its implementation during the construction of the Barakah Nuclear Power Plant. The decision announced today follows many years of intensive work and collaboration with national and interna- tional stakeholders such as International Atomic Energy Agency, Republic of Korea and other inter- national regulatory bodies,” added Al Kaabi. Following the issuance of the Operating License for Unit 2, Nawah will undertake a period of com- missioning to prepare for the commercial opera- tion where FANR will conduct around-the-clock inspections, using its resident inspectors located at the Barakah Nuclear Energy Plant in addition to deploying other inspectors, to ensure the Fuel Load and Power Accession processes are com- pleted according to regulatory requirements. “The Federal Authority for Nuclear Regula- tion played an indispensable role in regulating the Barakah Nuclear Power Plant since 2009 and especially after we received the Operating License Application for Unit 1 and Unit 2 in 2015. We con- ducted extensive reviews and robust inspections to ensure it fulfi ls our regulatory requirements and thus is ready to operate safely. FANR also prepared for the operations phase which include putting all arrangements in place to conduct regulatory over- sight and necessary inspections to ensure protec- tion of the community and environment when the unit 2 starts operating,” said Sara Al Saadi, Director of Nuclear Security Department and Acting Direc- tor of Nuclear Safety Department at FANR. To ensure implementing the highest interna- tional standards of nuclear safety, security and non-proliferation, the UAE received in the past decade 11 major peer review missions from the IAEA to review and assess various aspects from nuclear infrastructure, the legal and regulatory system, nuclear safety, nuclear security, emer- gency preparedness and non-proliferation. The reports from the missions of the IAEA are publicly available. REGIONAL UPDATE // ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS FANR issues operating license for unit 2 of Barakah NPP 60 years licence authorises Nawah to commission and operate the Unit 2 of the Barakah Nuclear Power Plant Nuclear www.utilities-me.com April 2021 / Utilities Middle East 59.5GW Jebel Ali plant named in Guinness World Records Dubai Electricity and Water Authority’s (DEWA’s) Jebel Ali Power Generation & Water Production Complex has been confi rmed by Guinness World Records as the largest single-site natural gas power generation facility in the world. The Complex has an electricity generation capacity of 9,547 MW, adding to DEWA’s record of global achievements. Saeed Mohammed Al Tayer, MD & CEO of DEWA, received the certifi cate from Guinness representatives. “This global certifi cate crowns DEWA’s efforts to provide a state-of-the-art infrastructure for electricity and water to drive comprehensive sustainable development. It also consolidates Dubai’s position as a global economic hub, a leading destination for foreign direct investment, and a preferred place to live, work, and visit,” said Al Tayer. Al Tayer said that the total assets of the power production and water desalination plants in the Jebel Ali complex are valued at over Dh45bn. In 2019, DEWA completed the extension project for M-Station in Jebel Ali, the largest power generation and water desalination plant in the UAE. The project focused on capacity building and the transfer of international expertise to UAE nationals. Strategy 2050 to provide 75% of Dubai’s total power capacity from clean energy sources by 2050,” said Al Tayer. Al Tayer said that the total value of DEWA’s power transmission net- work under construction exceeds AED 8.5 billion. Shams substation, with a total cost of AED 562 million, included over 2 million safe working hours without injuries. It was implemented according to the highest standards of qual- ity, effi ciency, and safety despite 400/132 kV substation at MBR Solar Park commissioned Dubai Electricity and Water Author- ity (DEWA) has commissioned a new 400/132 kV substation named ‘Shams’ at the Mohammed bin Rashid Al Maktoum Solar Park. It has a conversion capacity of 2020 megavolt-amperes (MVA) with 223 kilometres of 400kV over- head lines to connect with DEWA’s network. The commissioning was pre- sided over by Saeed Mohammed Al Tayer, MD & CEO of DEWA. “Inaugurating the 400/132 kV Shams substation at the Moham- med bin Rashid Al Maktoum Solar Park is part of DEWA’s efforts to raise the capacity of the power transmission network and increase the share of clean energy in Dubai’s energy mix. This achieves the objec- tives of the Dubai Clean Energy Substation District cooling Dubai issues new district cooling regulations Legal framework includes power generation for cooling plants, distribution and delivery of services and billing systems It has a conversion capacity of 2020 megavolt-amperes (MVA) with 223 kilo- metres of 400kV overhead lines Dubai has issued a resolution that establishes a legal framework for regulating district cooling services including power generation for cool- ing plants, distribution and delivery of services and billing systems. The resolution supports the implementation of the Dubai Inte- grated Energy Strategy by facili- tating an increase in the share of renewable electricity and the reduc- tion of Dubai’s total energy con- sumption. It also supports sustainable development and the development of a green economy, apart from enhancing the operational perfor- mance of district cooling systems. The resolution is applicable to providers of district cooling and billing services, including service providers in private development zones, free zones and Dubai Inter- national Financial Centre. According to the resolution, the Regulatory and Supervisory Bureau for Electricity and Water of Dubai (RSB) is responsible for regulating the district cooling service sector and billing services. RSB will defi ne the standards and requirements for licensing, set the technical specifi cations for district cooling systems, regulate the rela- tionship between service providers and the customer, and seek to ami- cably settle disputes between ser- vice providers and the customer. After coordination with con- cerned government departments, the obstacles associated with the Covid-19 pandemic. Drones were used to follow work progress remotely round the clock as well as arrange for virtual site visits. This ensured implementing the project according to the high- est standards of safety and secu- rity to protect the health of all work- ers. Hussein Lootah, Executive Vice President of Transmission (Power) at DEWA, said that Shams substa- tion uses the latest digital technol- ogies in line with DEWA’s efforts to enhance digital transformation in all its services and operations. He noted that the new substa- tion at the Mohammed bin Rashid Al Maktoum Solar Park increases the total number of 400/132 kV substations in Dubai to 24. RSB will prepare and approve the contracts and forms needed to implement the provisions of this Resolution. Pursuant to this Resolution, only service providers duly licenced by RSB and other concerned depart- ments are permitted to provide dis- trict cooling and billing services in Dubai. DC service providers and billing service providers are required to obtain necessary approvals before installing cooling units. NEWS 6 Utilities Middle East / April 2021 www.utilities-me.com Next-generation sustainable multimedia filtration at reduced cost, energy & footprint KEY BENEFITS: Low whole life cost High solids holding capacity and low daily backwash volume DESALINATION PRE-TREATMENT No chemicals • Reduced biofouling Low SDI and turbidity TERTIARY TREATMENT Phosphorus removal Pathogen removal FIND OUT MORE: www.bluewaterbio.com/filterclear UAE: +971 (58)218 7140 Anthracite Silica Alumina Magnetite8 Utilities Middle East / April 2021 www.utilities-me.com NEWS ANALYSIS The growing share of VRE sources, such as solar and wind, calls for a more fl exi- ble energy system to ensure that the vari- able renewable energy (VRE) sources are integrated in an effi cient and reliable manner. Bat- tery storage systems are emerging as one of the potential solutions to increase system fl exibility, due to their unique capability to quickly absorb, hold and then reinject electricity. According to the Energy Storage Association of North America, market applications are com- monly diff erentiated as: in-front of the meter (FTM) or behind-the-meter (BTM). FTM batteries are connected to distribution or transmission net- works or in connection with a generation asset. They provide applications required by system operators, such as ancillary services or network load relief. BTM batteries are interconnected behind the utility meter of commercial, industrial or residential customers, primarily aiming at elec- tricity bill savings through demand-side manage- ment (ESA, 2018). Also referred to as front-of-the meter or large- scale, grid-scale battery storage can help eff ec- tively integrate VRE sources into the power system and increase their share in the energy mix. Unlike conventional storage systems, such as RAMPING UP BATTERY STORAGE Also referred to as front-of-the meter or large-scale, grid-scale battery storage can help effectively integrate VRE sources into the power system and increase their share in the energy mixwww.utilities-me.com April 2021 / Utilities Middle East 9 NEWS ANALYSIS pumped hydro storage, batteries have the advan- tage of geographical and sizing fl exibility and can therefore be deployed closer to the location where the additional fl exibility is needed and can be easily scaled. Deployment of pumped hydro stor- age, on the other hand, requires specifi c geologi- cal conditions (i.e. mountains and water). The global grid-scale battery storage technol- ogies market size is estimated to be $2.11b in 2019 and is predicted to reach $10.51bn by 2030 with a CAGR of 15.7% from 2020-2030. Grid scale battery storage technologies are meant to store electricity in power grids to be used later. Large-scale battery systems can store excess energy produced by power plants during lower demand periods and supply it during peak time. This process is known as load levelling, load bal- ancing or energy arbitrage. Batteries can also store the power generated by intermittent renewable energy sources and provide a more balanced distribution. They can be used for T&D purposes, by using portable sys- tems that minimize ineffi ciencies and provide support during the T&D process. Also, such bat- teries can be used for power quality and energy management purposes in micro grids or for com- mercial, industrial and even residential custom- ers. Utility-scale battery storage systems have a typ- ical storage capacity ranging from around a few megawatt-hours (MWh) to hundreds of MWh. Dif- ferent battery storage technologies, such as lith- ium-ion (Li-ion), sodium sulphur and lead acid bat- teries, can be used for grid applications. However, in recent years, most of the market growth has been seen in Li-ion batteries. The increasing share of Li-ion batteries in stor- age capacity additions has been largely driven by declining costs in Li-ion technology, which has in turn been driven by the ramp-up in production to meet growing demand for electric vehicles. Although large-scale stationary battery stor- age currently dominates deployment in terms of energy storage capacity, deployment of small scale battery storage has been increasing as well. Utility-scale battery storage systems will play a key role in facilitating the next stage of the energy transition by enabling greater shares of VRE. For system operators, battery storage systems can provide grid services such as frequency response, regulation reserves and ramp rate control. It can also defer investments in peak genera- tion and grid reinforcements. Utility-scale battery storage systems can enable greater penetration of variable renewable energy into the grid by storing the excess generation and by fi rming the renew- able energy output. Further, particularly when paired with renew- able generators, batteries help providing reli- able and cheaper electricity in isolated grids and to off -grid communities, which otherwise rely on expensive imported diesel for electric generation. Key factors leading to the growth of the grid scale battery storage technology market are increased demand of renewable energy in conjunction with rapid modernization in the energy infrastructure. Also, the rapid population growth has increased the demand for energy around the world. This along with the integration of T&D net- works is expected to contribute to the growth of the market. Further, the increased demand of electric vehicles is also among the key factors accountable for the growth of the market. How- ever, high cost of grid scale battery storage instal- lation and development is anticipated to restrict Next >