< Previous40 January 2024 www.utilities-me.com COP28 DEALSA COP worth billions of dollars Deals worth billions of dollars were signed during COP28 with the aim to boost renewable energy development and climate action across the African continent T he climate summit in Dubai has provided the ground for the signing of several major agreements on clean energy in Africa, a continent that has vast potential but still faces challenges from low access and high costs of electricity. The deals, worth billions of dollars, aim to boost renewable energy development and climate action in various African countries, as well as to foster regional cooperation and integration. GreenCo signs PPA for Zambia's first solar project amid several Africa focused deals Africa GreenCo Group, a London-based intermediary renewable power buyer and seller, signed a power purchase agreement with Serengeti Energy and Western Solar Power for the Ilute Solar PV Project in Zambia, one of several deals to boost renewable energy development in Southern Africa. The 25MWac Ilute Solar PV Project, developed by Western Solar Power, a Zambian renewable energy developer, and Serengeti Energy, an African renewable energy independent power producer owned by a group of development finance institutions, will be the first utility-scale $4.4B Deals announced by Kenya solar project in the country. It will supply power to the national grid, operated by Zambian National Power Utility, ZESCO Limited. The PPA, signed at the COP28, follows the successful execution of a system operations agreement signed in October between GreenCo and ZESCO, which allows GreenCo to act as an intermediary buyer and seller of renewable power in Zambia. GreenCo, which is backed by the British and Danish governments, among others, aims to increase private sector participation and investment in the African power sector by providing creditworthy offtake and risk mitigation solutions. It also hopes to foster regional power trade and integration through the Southern African Power Pool (SAPP), while connecting with other power pools and markets in the continent. Zambia has long relied on hydropower to meet its electricity needs. But droughts and climate COP28 in Dubai offered a platform to brainstorm on how to drive sustainability across all sectors www.utilities-me.com January 2024 41 COP28 DEALSNew deals signed during COP28 in Dubai last month “A 150-megawatt solar plant in southern Angola, to be developed by Masdar, the UAE’s flagship renewable energy company, and the Angolan Ministry of Energy and Water” Africa is home to 40% of the world’s renewable energy resources but only receives 2% of global investments change have made this source unreliable and expensive. The Ilute Solar PV Project, with direct foreign investment of $37 million, is expected to contribute to the southern Africa country's renewable energy targets and energy security. The project will also support GreenCo's mission to increase private sector participation and investment in the African power sector by providing creditworthy offtake and risk mitigation solutions. The PPA for the Ilute Solar PV Project is one of several deals signed at COP28 A 150-megawatt solar plant in southern Angola, to be developed by Masdar, the UAE's flagship renewable energy company, and the Angolan Ministry of Energy and Water. The project will be the largest solar plant in sub-Saharan Africa and will provide clean energy to more than 250,000 households and businesses. A wind farm on Sherbro Island in Sierra Leone, to be developed by Octopus Energy, a UK- based green energy supplier, and Sherbro Alliance Partners, a social enterprise co-founded by Iris Elba and Siaka Stevens. The wind farm will power up to 300,000 homes and create 250 local jobs. A 25MW solar PV plus 5- megawatt-hour battery storage project in Djibouti, to be developed by AMEA Power, a Dubai-based renewable energy developer, and the Djiboutian Ministry of Energy and Natural Resources. The project will double its capacity to 50-megawatt plus 10-megawatt-hour battery storage in its second phase. A 300-megawatt wind energy project in Ethiopia, to be developed by AMEA Power and the Ethiopian Electric Power (EEP) and the Ethiopian Ministry of Finance. The project, named Aysha One, will be the largest onshore wind project in the Horn of Africa and the first independent power producer (IPP) project in the country. AMEA Power says it is on track to sign the power purchase agreement and the implementation agreement for the project. A 20-megawatt solar PV project in the West Nile Region of Uganda, to be developed by AMEA Power and the Emerging Africa Infrastructure Fund (EAIF) and its liquidity supporter, African Trade and Investment Development Insurance (ATIDI). The project, named Ituka, marks AMEA Power's first green field IPP transaction in East Africa. AMEA Power has announced the successful project financing decision with EAIF and ATIDI for the project. 42 January 2024 www.utilities-me.com COP28 DEALSWilliam Ruto, Kenya’s President at COP28 in Dubai highlighting the urgent need to boost renewables in Africa Building strong collaborations to close finance and technology gaps in Africa’s renewables sector A $150 million agreement between AMEA Power and BNI of Mozambique for a new solar PV plant, in addition to a MoU with Infinity Power for up to 1GW of renewable energy projects in the country, and an agreement between state- utility EDM and Africa50 for the 100MW Chicamba floating solar project, 100MW Montepuez solar PV plant, and 60 MW Angoche solar PV plant. Two deals to increase solar generation capacity in Togo, including an extension of AMEA Power’s flagship Sheikj Mohammed Bin Zayed Solar Project to 100-megawatt and 14-megawatt- hours of battery storage, and a 25-year Concession Agreement with Meridiam and EDF for the 64MW Sokode Solar PV Plant. Two major agreements with Nigeria to deliver liquefied natural gas (LNG) to the domestic and international markets were signed by the country’s state-owned oil company, NNPC Ltd. The first agreement was signed with Wison Heavy Industry Co. Ltd., a Chinese company, for the development of a floating LNG project in Nigeria that will target the international LNG market. The second agreement was signed with SDP Services, an independent oil and gas company, for a 421 tonnes per day LNG project that will target the domestic LNG market. The project, located at Ajaokuta in Kogi State, Central Nigeria, aims to ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide. The project is expected to be operational by December 2024. Kenya strikes multiple deals for green development Kenya, another African country with a strong presence at COP28, has also announced several deals worth a total of $4.48 billion for green development in the country. The seven separate deals seek to among others reinforce a commitment to develop a milestone green energy and fertilizer projects together as well as energy supply chains initiatives. The investors will work together with the government of Kenya to educate and upskill the next generation of workers in a bid to empower local economies. The deals notably include: • A $1 billion geothermal project at Suswa with the Indonesian government, through Masdar- backed Pertamina Geothermal Energy, to develop a 300MW geothermal power plant that will supply electricity to the national grid and support industrial development. • An $800 million geothermal project at Paka with AMEA Power, a Dubai-based renewable energy developer, and Geothermal Development Co. of Kenya, to develop a 200MW geothermal power plant that will also feed into the national grid and enhance energy security. • A $600 million data centre at Olkaria powered by green geothermal energy in partnership with EcoCloud, a US-based cloud computing company, to provide data storage and processing services to local and international clients. • A $200 million Clean Energy Supply Chain (CESC) initiative in partnership with the World Bank, the African Development Bank, and the International Finance Corporation, to develop a network of mini-grids, solar home systems, and clean cooking solutions to serve rural and peri- urban communities. • A $110 million geothermal project for 35-megawatt with Globeleq, a UK-based power producer, at Menengai, to expand the existing geothermal capacity and diversify the energy mix. These deals demonstrate the growing momentum and commitment of the public and private sectors to accelerate the energy transition and combat climate change in Africa and beyond. They also show that renewable energy is not only good for the planet, but also good for business. 150MW Angola solar plant awarded to Masdar www.utilities-me.com January 2024 43 COP28 DEALS44 January 2024 www.utilities-me.com WATER TREATMENTUtico shifts gears Utico is strategically redefining its business approach to focus on geographical expansion and a deliberate exploration of new technologies to support diversification initiatives and optimise asset performance U tico’s regional footprint is undergoing a strategic transformation, shifting from a predominant focus on the northern Emirates to a more expansive pan-GCC presence. The UAE-based utility firm Utico signed a Water Purchase Agreement (WPA) with the Oman Water and Wastewater Services Company (OWWSC) following the winning of a contract to develop an independent desalination project in Ghubra in the Muscat Governorate. The Ghubra project will supply 20,000 M 3 /d potable water to OWWSC at the lowest water tariff ever in Oman. Utico will develop the Ghubra project at a highly efficient and affordable economic scale with optimal use of renewable energy. The company is also aligning with Oman government long-term strategy by supporting Oman’s 2040 vision through investments into diversified base of projects in the utilities sectors including IWPs, ISTPs, sustainable IPPs as well as related infrastructure projects. Ram Srivastan, General Manager for Water at Utico says that recognising the dynamic nature of its customer landscape, the company is proactively enhancing its capacity to meet increasing demands. This commitment is reflected in ongoing efforts to add capacity and optimise operations. The company’s strategic focus, according to Srivastan, involves the seamless integration of new technologies, innovative ideas, and the digitisation of operations and processes. Utico’s performance in the years 2022 and 2023 has been marked by a strategic emphasis on serving large-scale industrial consumers, particularly in the northern Emirates. Ram Srivastan, General Manager for Water at Utico “Utico’s long-term strategic vision is through a hybrid approach, seamlessly integrating conventional and solar power across its various plants” www.utilities-me.com January 2024 45 WATER TREATMENTThe operational base, located in Ras Al Khaimah, provides water supply across the region, even reaching Sharjah, where Sharjah Electricity, Water and Gas Authority (SEWA) stands as one of the principal customers. The Ras Al Khaimah to Sharjah pipeline serves as a dedicated corridor, ensuring a continuous and seamless water supply. Today, the company is exploring opportunities in Oman, Qatar, Saudi Arabia, and other regions within the GCC. The company is also directing its attention to specific markets in North Africa, targeting countries such as Egypt where the demand for development projects aligns seamlessly with Utico’s strategic objectives. Utico’s strategic initiatives and geographic expansion align seamlessly with the commitment to innovation, technological advancement, and responsiveness to the evolving needs of its growing customer base. The company remains dedicated to ensuring the seamless provision of water services and contributing to the sustainable development of the regions it serves. Utico plans to integrate solar energy as a supplementary product, actively contributing to mitigating its carbon footprint. A 3-megawatt solar project, in collaboration with the Canadian company Electron Energy, is currently underway, demonstrating Utico’s commitment to environmental sustainability. “Utico’s long-term strategic vision is through a hybrid approach, seamlessly integrating conventional and solar power across its various plants,” says Srivastan. Srivastan highlights the significance of this hybrid model, designed to optimise the benefits of solarisation while meeting the non-negotiable mandate of continuous 24/7/365 operation, a fundamental requirement for any utility company. “In the long term, our commitment is to balance innovation, sustainability, and operational reliability. The hybrid approach ensures that we harness the advantages of solar energy without compromising on the uninterrupted service our “The hybrid approach ensures that we harness the advantages of solar energy without compromising on the uninterrupted service our customers depend on” Utico is exploring opportunities in Oman, Qatar, Saudi Arabia, and other regions within the GCC The company’s strategic focus involves the seamless integration of new technologies and innovative ideas 46 January 2024 www.utilities-me.com WATER TREATMENT“Our focus on conventional desalination aligns with the increasing demand for potable water in commercial, residential, and semi-residential applications” customers depend on,” says Srivastan. Srivastan underscores the company’s commitment to shaping the future trajectory by leveraging specific projects and available spatial resources. The vision includes a strategic pivot towards larger-scale solar projects, marking a pivotal component of Utico’s sustainable initiatives. “As we look to the future, our trajectory involves a thoughtful exploration of larger-scale solar projects. Additionally, we are venturing into the preliminary stages of technical and feasibility evaluations in the area of wind energy, foreseeing potential developments surfacing around 2024 and 2025,” says Srivastan. In the water sector, Utico focuses on conventional desalination, a process vital for generating potable water from seawater. This sector is experiencing substantial growth, with the company pivoting more towards public- private partnerships. Srivastan elaborates, “Our focus on Integrating digital solutions to boost productivity conventional desalination aligns with the increasing demand for potable water in commercial, residential, and semi-residential applications. We actively participate in public- private partnerships, collaborating with entities such as the Saudi Water Partnership Company (SWPC), NAMA Water in Oman, and Ethical Water in Ras Al Khaimah.” Utico’s strategic vision also includes a commitment to fostering innovative solutions in wastewater and sewage water recycling. Srivastan envisions the emergence of advanced and polished solutions to address the escalating demand for sustainable water management. “As the sector evolves, we are committed to innovating in wastewater and sewage water recycling. Our strategic vision anticipates the emergence of advanced solutions to meet the growing demand for sustainable water management,” says Srivastan. Recognising the need to be more conscious to the environment, Utico Group is venturing into the emerging frontier of greywater reuse. Srivastan says that this is a growing sectors where the company is strategically positioning itself. “Greywater reuse is a critical aspect of our environmental commitment. We actively collaborate with our clients within our markets, offering technical solutions in this evolving domain. Oil companies are increasingly evaluating strategies to repurpose and refine greywater for industrial applications, and Utico is strategically set to contribute to this transformative shift,” reveals Srivastan. “Our strategic approach is adaptable, aligning seamlessly with the evolving landscape of water management. As we navigate these opportunities, our commitment to innovation, sustainability, and providing technical solutions remains at the forefront of our mission.” Last year, it was widely reported that Utico had hired several banks to prepare for a potential initial public offering (IPO) on the Dubai Financial Market (DFM). Utico said at the time, that it planned to list its shares in the fourth quarter of 2022, and that it would consider the possibility of a dual listing. “Our objectives are clear, and our ambitions are aligned with the goal of eventually pursuing an IPO. However, the journey towards an IPO must be very carefully planned, and should be contingent on successfully navigating initial challenges and consolidating our regional footprint,” explains Srivastan. The specific timeline, whether in 2025 or beyond, remains flexible, with the IPO materialising when the optimal window of opportunity presents itself, according to Srivastan. In addressing the exploration of green hydrogen technology, Srivastan acknowledges its significance in the energy landscape. However, he stresses that it stands slightly apart from Utico’s core competencies rooted in water- related technologies. Preliminary explorations have been conducted, but concrete details are still evolving. Green hydrogen remains on Utico’s strategic horizon, potentially explored not as a standalone project but in collaboration with other ventures—a hybrid model aligning with the company’s expertise and vision. “While green hydrogen is not our core competency, it remains on our radar. Our approach may involve collaboration with projects like a diesel plant, water plant, or in conjunction with an oil and gas company—a hybrid model that leverages our strengths in diverse areas,” says Srivastan. www.utilities-me.com January 2024 47 WATER TREATMENTG E Vernova’s Gas Power business has signed a multi-year services agreement with TNB REMACO – Al Dhow Joint Venture for the Shuaiba North Power Station in Al Ahmadi, Kuwait. The 5-year deal focuses on servicing gas turbines at Kuwait’s Ministry of Electricity & Water & Renewable Energy’s 876 Megawatt Shuaiba North Power Station, aligning with Kuwait’s broader modernisation efforts in power generation infrastructure. Announced at COP28 in Dubai, the agreement sees GE Vernova providing services for the three electricity-generating blocks at the Shuaiba North Power Station. Each block is equipped with GE Vernova’s 9F.03 gas turbine and generator. The deal includes the upgrade of combustion technology to GE Vernova’s advanced Dry Low Nox DLN2.6+ combustion system. The upgrade is set to improve combustor operability, reduce emissions, and extend hardware inspection intervals. The agreement also includes the supply of parts, repairs, field services, and the integration of GE Vernova’s Asset Performance Management (APM) software. The incorporation of APM within the service agreement aims to enable predictive maintenance for the gas turbines and accessory equipment at Shuaiba Power Station. APM Reliability, powered by Predictive Analytics, is expected to enhance asset reliability, availability, and productivity, contributing to Kuwait’s long-term energy security needs. The ceremony at COP28 was attended by key figures including Dato’ Abdul Razak bin Abdul Majid, Chairman of Tenaga Nasional Berhad; Datuk Ir. Megat Jalaluddin Megat Hassan, Chief Operating Officer; Joseph Anis, CEO and President Gas Power- Europe, Middle East and Africa; KV Pandian, General Manager - Gas Power Services; Ir. Muhammad Nazri Bin Pazil, Chairman of TNB REMACO Board of Director (BOD); and Mr. Joe Chidiac, Managing Director of Al-Dhow. Ir. Muhammad Nazri Bin Pazil, Chairman of TNB REMACO Board of Directors, expressed confidence in GE Vernova’s technological expertise, anticipating enhanced efficiency and performance at Shuaiba North Power Station. Joseph Anis, President & CEO, Europe, Middle East & Africa of GE Vernova’s Gas Power business, highlighted the enduring relationship with TNB REMACO– Al Dhow Joint Venture. He underscored GE Vernova’s commitment to Kuwait’s power sector development and expressed gratitude for the trust placed in GE Vernova by TNB REMACO. With GE Vernova delivering over a third of Kuwait’s power, this agreement reaffirms its dedication to local talent development and knowledge transfer through initiatives like the GE Kuwait Technology Centre. The company said it remains committed to supporting Kuwait’s power sector. GE Vernova to service Kuwait’s Shuaiba North power station The deal includes the upgrade of combustion technology to GE Vernova’s advanced Dry Low Nox DLN2.6+ combustion system “The 5-year deal focuses on servicing gas turbines at Kuwait’s Ministry of Electricity & Water & Renewable Energy’s 876 Megawatt Shuaiba North Power Station” 48 January 2024 www.utilities-me.com PRODUCTS NEWSG lobal technology leader Hitachi Energy has surpassed a significant milestone, enabling over 150 gigawatts (GW) of high-voltage direct current (HVDC) links worldwide. The achievement aligns with the company’s commitment to advancing a sustainable energy future. The announcement comes in the wake of the successful delivery of power from Dogger Bank, the world’s largest offshore wind development, where Hitachi Energy’s HVDC technology made its debut in a UK wind farm. Since initiating a strategic investment plan in 2020, Hitachi Energy has made substantial strides, expanding its workforce by over 8,000 and investing $3 billion in manufacturing, engineering, and research and development (R&D). These efforts align with the Hitachi Energy 2030 Plan and Hitachi’s Mid-term Management Plan 2024. Claudio Facchin, CEO of Hitachi Energy, highlighted the central role of electricity in steering the clean energy transition, stating, “Today’s announcement shows how we are enabling our customers to accelerate the development of the power grids that the energy system requires.” Key Highlights of Hitachi Energy’s investments include the establishment of key facilities, such as a power quality factory, a global technology and innovation centre in India, and a transformer factory in China. Hitachi Energy is focusing on R&D focus for sustainable solutions such as EconiQ™ with no sulphur hexafluoride (SF6) and next-gen power semiconductors. In the areas of digitalisation and services, the company is doubling efforts with the introduction of Lumada Asset Performance Management software. The acquisition of a majority stake in eks Energy is a major achievement, enhancing storage and flexibility at the edge of the energy system. Notable projects enabled by Hitachi Energy’s technologies include Champlain Hudson Power Express, TenneT’s 2GW Programme, and Project Lightning. The International Energy Agency’s report emphasises the need for increased grid investment to over $600 billion per year by 2030. Hitachi Energy remains committed to reinforcing its business to meet the forecasted 2050 energy system, supporting rapid electrification and ensuring a secure, sustainable, and flexible electricity supply globally. Hitachi Energy achieves milestone with 150GW of HVDC links Hitachi Energy is investing $3 billion in manufacturing, engineering, and research and development (R&D Schneider Electric and Volts to establish UAE’s first BESS facility The deal includes the upgrade of combustion technology to GE Vernova’s advanced Dry Low Nox DLN2.6+ combustion system S chneider Electric has signed a Memorandum of Understanding (MoU) with Volts, the UAE’s premier energy storage manufacturer, based in Masdar City. The collaboration seeks to redefine the UAE’s energy landscape through the creation of the country’s first giga industrial facility dedicated to manufacturing Battery Energy Storage Systems (BESS) in Abu Dhabi. Under the agreement, Schneider Electric and Volts will explore collaborative opportunities in technological advancements, consulting services, and automation for the project. The facility will specialise in the production of industrial and home energy storage systems, along with battery cells, marking a significant stride in the region’s commitment to sustainable energy. Ahmed Khashan, President of Gulf Countries at Schneider Electric, underscored the company’s dedication to innovation and industry leadership. The collaboration aligns with Schneider Electric’s mission to be a key partner in sustainability, digitisation, and decarbonisation. Khashan stated, “With this collaboration, we are steps closer to transformative changes in the UAE’s industrial sector, fostering sustainability, innovation, and resilience.” Vladimir Mlynchik, founder of Volts UAE, described the collaboration as a shared commitment to shaping a sustainable energy future in the UAE. “The focus is on producing Energy Storage Systems that power homes and electric vehicles, contributing to a cleaner and more efficient energy landscape,” he said. Osama Amir Fadhel, assistant undersecretary for the industrial accelerators sector at the UAE ministry of industry and advanced technology said that the MoU reflects the country’s ideal environment for international firms to join local industries in accelerating sustainable industrial and technological development. Volts, founded in 2019 by entrepreneurial engineers and based in Masdar, stands as the pioneering manufacturer of energy storage devices in the Middle East. The collaboration highlights a major step in the commitment to sustainable energy. www.utilities-me.com January 2024 49 PRODUCTS NEWSNext >