< PreviousBARAKAH NUCLEAR POWER PLANT The Emirates Nuclear Energy Corporation (ENEC) announced the completion of hot functional testing for the fourth and final unit at the Barakah nuclear power plant. The Korean-designed APR-1400 reactor is set to start operations next year. These tests simulate the operational temperatures and pressures before loading nuclear fuel, ensuring that the reactor systems meet design requirements. Barakah, the first nuclear plant in the UAE and the Arab world, consists of four reactors with a total capacity of 5380 MW, aiming to provide up to 25% of the UAE's energy needs. Nawah Energy Company manages its operation and maintenance. 40 October 2024www.utilities-me.com THE BIG PICTURE UME_Oct2024_40-41_Big Picture_13385043.indd 4025/09/2024 11:41www.utilities-me.com October 2024 41 THE BIG PICTURE UME_Oct2024_40-41_Big Picture_13385043.indd 4125/09/2024 11:42HOW DIGITAL TWINS ARE TRANSFORMING WATER INFRASTRUCTURE IN THE MIDDLE EAST Slavco Velickov, Director of Water, Enterprise, and Product Sales at Bentley Systems, provided insight with Utilities Middle East into how digital twin technology is reshaping the water infrastructure sector across the region. Belikov discussed the opportunities and challenges this innovative technology presents, particularly in the water-scarce environment of the Middle East. Velickov began by highlighting Bentley Systems' role as a global provider of software solutions that enhance infrastructure to sustain both the economy and the environment. He explained that digital twins, which integrate engineering technology, operational technology, and information technology, are critical to advancing the water sector. These digital representations of physical assets enable real-time monitoring and predictive modelling, ensuring more efficient water management. “Digital twins allow for real-time monitoring of flow rates, pressures, water levels, and water quality,” Velickov stated. "By integrating AI and machine learning, we can improve efficiency, reduce water losses, and drive energy savings. These benefits are crucial for achieving carbon neutrality and proactive maintenance of infrastructure assets." He highlighted the application of digital twins in smart water networks, which improve operational efficiency, and reduce water losses by making distribution systems more intelligent. "We’re turning ‘dull’ pipes into intelligent infrastructure, allowing us to support the entire life cycle of water assets. By Dean Mikkelsen 42 October 2024 www.utilities-me.com PARTNER CONTENT UME_Oct2024_42-43_Digital Twins_13385372.indd 4227/09/2024 12:43In a region like the Middle East, where water reuse is essential, this technology is indispensable,” Velickov added. Addressing the region's specific challenges, Velickov pointed to the energy- intensive nature of water treatment and desalination. He noted that digital twin technology offers significant opportunities to optimise energy consumption in these processes. “Utilities in the region spend 30-40% of operational costs on energy. By implementing digital twins, we can achieve energy savings of up to 30%, which has a huge business impact.” The conversation also turned to water quality improvements in the region. Velickov cited advancements in real-time monitoring systems that have improved the region’s water quality over the past decade. Technologies like chlorination, ozonation, and advanced filtration, combined with digital twin simulations, help ensure water safety and security. "By using digital twins, we can take proactive measures before problems arise, preventing contamination and ensuring that water remains safe for the public," he explained. Velickov also discussed the pressing need for the water infrastructure to adapt to climate change, noting that the Middle East faces increased risks of floods and droughts. “We need to build more resilient water infrastructure, and digital twins can help us do that by providing real-time data and simulations for disaster response and long-term planning.” When asked about the challenges that water companies face when implementing digital twin technology, Velickov acknowledged that many organisations struggle with data silos and interoperability between systems. "Different departments within water companies—whether it’s planning, operations, or finance—often don’t have connected data environments," he noted. "But by implementing robust data governance and using open platforms, these issues can be addressed." Velickov emphasised that digital twins are designed to work with existing infrastructure rather than replace it, which can alleviate concerns over costs. “Budget planning is crucial for scaling up digital twins. Once companies see the initial return on investment from a small proof of concept, it becomes easier to scale up and achieve greater impact.” Cybersecurity was another topic of concern, particularly for critical infrastructure. Velickov explained that Bentley Systems develops secure-by- design solutions in collaboration with partners like Microsoft. "Security is paramount, especially for critical water infrastructure. With our systems, companies can be confident that their data is protected, both in the cloud and on local servers." Velickov also provided several regional case studies to illustrate the success of digital twins in practice. He mentioned that Saudi Arabia’s National Water Company has implemented Bentley’s OpenFlow solutions across major projects like NEOM and The Red Sea, helping to optimise water management throughout these vast developments. Similarly, the Abu Dhabi Distribution Company (ADDC) has sectorised its network using Bentley’s solutions to improve water balance control and reduce water losses. “Dubai’s Electricity and Water Authority (DEWA) is another leader in the region, using digital twin technology for strategic master planning,” Velickov said. "These examples show how the Middle East is embracing digital twins to solve water management challenges, from efficiency to sustainability." Looking ahead, Velickov is optimistic about the future of water infrastructure in the Middle East. He believes that the widespread implementation of smart water networks and improved water resource planning will lead to more resilient, sustainable water systems. “The future is bright. The Middle East is poised to become a global leader in digital water solutions.” He concluded by emphasising the importance of customer engagement and the role of government regulations in driving the adoption of digital technologies. “At the end of the day, water utilities exist to serve the public. With the support of digital technologies, we can create better customer experiences, encourage water conservation, and ensure water security for future generations.” As the Middle East continues to invest in digital twin technology, the region’s water infrastructure is set to become smarter, more efficient, and better equipped to meet the challenges of tomorrow. Slavco Velickov, Director of Water, Enterprise, and Product Sales at Bentley Systems www.utilities-me.com October 2024 43 PARTNER CONTENT UME_Oct2024_42-43_Digital Twins_13385372.indd 4327/09/2024 12:43Public-private partnerships drive sustainable water management solutions, tackling urban challenges across the Middle East BUILDING RESILIENT CITIES: THE ROLE OF PPPS IN TACKLING WATER SCARCITY AND EXTREME WEATHER Michael Nielsen, Regional Sales Director for India, Central Asia, Middle East, and Africa (IMEA) Region for Grundfos, explores the pivotal role that public-private partnerships (PPPs) play in advancing effective water management solutions across the Middle East. As cities like Dubai grapple with the challenges of rapid urbanisation, scarce water resources, and the increasing threat of extreme weather events, Nielsen highlights how PPPs offer a structured and collaborative framework for deploying innovative, sustainable solutions. How can Public-Private Partnerships (PPPs) drive the adoption of effective water management solutions in cities like Dubai? From our perspective, public-private partnerships (PPPs) lay a strong foundation for driving the adoption of effective water management solutions in cities like Dubai by leveraging the strengths of both sectors to achieve more sustainable outcomes. UAE’s rapid urbanisation, coupled with its arid climate, presents unique challenges in water management. PPPs provide a structured approach to implementing innovative water management solutions that are both scalable and sustainable, offering a practical way to address the unique challenges faced by cities like Dubai. A notable example of this approach was the leadership roundtable we hosted in partnership with DEWA during WETEX & Dubai Solar Show 2023, where key stakeholders discussed strategies to enhance water management. Through PPPs, private companies like us can collaborate with government entities to deploy cutting-edge water management technologies that are aligned with UAE’s strategy under The UAE Water Security Strategy 2036. This collaborative model enables the pooling of resources, knowledge, and expertise from both sectors, facilitating the adoption of smart water management systems, such as digital water management platforms, intelligent pump solutions and real-time monitoring systems. By working together, the public sector’s regulatory oversight and the private sector’s technological innovation, we can create robust water management frameworks that address the specific needs of countries such as the UAE. What are the benefits of PPPs in addressing the unique water management challenges faced by Middle Eastern cities? By Dean Mikkelsen 44 October 2024 www.utilities-me.com PUBLIC-PRIVATE PARTNERSHIPS UME_Oct2024_44-45_Grundfos_13395010.indd 4425/09/2024 11:46By leveraging the strategic vision and governance of the public sector alongside the private sector’s cutting-edge technology and operational proficiency, public- private partnerships drive the creation and implementation of advanced water management systems. These partnerships enable the introduction of smart water networks, energy-efficient infrastructure, and real-time monitoring tools, ensuring that water resources are used efficiently and sustainably. The collaboration also allows for better risk- sharing and resource allocation, making ambitious projects more feasible and effective in the region's context. Moreover, PPPs foster knowledge transfer between sectors, enhancing local capacity and ensuring that water management solutions are both technically sound and aligned with strategic goals. Public-private partnerships are vital in addressing the unique water management challenges faced by Middle Eastern cities, where water scarcity and rapid urbanisation create significant pressures. Can you discuss real-world examples where PPPs have successfully tackled urban water management and improved resilience against extreme weather events? One of the practical examples of how PPPs can effectively tackle urban water management challenges is demonstrated in our collaboration with the Eastern Province Municipality in Saudi Arabia to upgrade the stormwater pumping station in Jubail. Originally built during a time when storms were infrequent in the region, the existing system was not equipped to handle the large volumes of water and high flows brought on by accelerating climate change. As a result, the outdated system frequently caused flooding, leading to equipment damage, environmental harm, and unnecessarily high maintenance costs. To address these challenges, we worked with the Eastern Province Municipality to design and implement a more robust solution. After years of rigorous testing, we installed six medium-voltage Grundfos KWM Mixed Flow Pumps, each capable of handling 10,000 liters of water per second. These powerful 550 KW pumps were specifically chosen to futureproof the stormwater station against increasingly severe weather conditions. With the new system in place, the municipality is efficiently manage large volumes of water during peak periods, significantly reducing the risk of flooding and enhancing the resilience of the infrastructure.. How do PPPs enhance the effectiveness and implementation of water management solutions in urban areas? Public-private partnerships signficantly enhance the effectiveness and implementation of water management solutions in urban areas by fostering a more integrated approach to problem-solving. Unlike traditional methods, where each sector might work independently, PPPs encourage a unified strategy where the public sector's long-term vision and regulatory framework align seamlessly with the private sector's innovation and operational efficiency. This alignment ensures that projects are not only technically sound but also strategically focused on meeting the broader needs of the urban environment. In the Middle East, particularly in countries like the UAE and Saudi Arabia, there are ambitious plans to double their populations by 2040. Saudi Arabia, for instance, aims to double the population of Riyadh and attract nine million people to The Line by 2045. This rapid urban expansion places immense pressure on water infrastructure, making it crucial for planning to accommodate future demands. PPPs ensure that this growth is integrated into the planning stages, allowing for the development of scalable and resilient water management systems that can effectively support the needs of rapidly urbanising areas. Furthermore, PPPs also offer the flexibility in the implementation of water management solutions, allowing for adaptive strategies that can be adjusted as urban needs evolve. By pooling resources and expertise, PPPs can quickly scale up or modify existing solutions to meet these dynamic needs, ensuring that water management systems remain effective and resilient over time. . How can the UAE’s goals for sustainable water management and flood risk mitigation be achieved by PPPs? The UAE’s goals for sustainable water management and flood risk mitigation can be achieved through public-private partnerships (PPPs) that inspire innovation and provide the chance to scale effective solutions. By leveraging the strengths of both sectors, PPPs provide a powerful framework for building sustainable and resilient water management systems across the UAE. Michael Nielsen, Regional Sales Director, Grundfos Grundfos pumps at a client facility in the Middle East www.utilities-me.com October 2024 45 PUBLIC-PRIVATE PARTNERSHIPS UME_Oct2024_44-45_Grundfos_13395010.indd 4525/09/2024 11:46CHALLENGES AND FUTURE PROSPECTS FOR INVESTMENTS IN THE RENEWABLE ENERGY SECTOR The renewable energy sector, once seen as the bedrock of a sustainable future, has encountered significant challenges in recent years. By late 2023, the iShares Global Clean Energy ETF, which tracks around 100 renewable energy stocks, had fallen by approximately 35% since the start of the year. This decline underscores the difficulties faced by investors, largely due to an unfavourable economic environment and specific sectoral issues. One of the primary challenges has been the rapid rise in interest rates implemented by central banks worldwide. These rate hikes have made capital-intensive renewable projects less attractive compared to bonds that now offer higher yields with similar cash flow profiles. This shift has strained the ability of companies in the renewable sector to finance new or expand existing projects, leading to reduced returns for investors. Moreover, a surge in production and material costs has further squeezed profitability in the sector. Renewable energy providers, unlike other industries, often lock in electricity prices years in advance, limiting their ability to pass on rising costs to consumers. This financial pressure has dampened investor confidence and slowed the sector's previous growth momentum. Despite these setbacks, the renewable energy sector is far from defeated. Positive indicators suggest that the sector is poised for recovery. As inflation pressures begin to ease, central banks are expected to reduce interest rates, making borrowing more affordable and renewing the attractiveness of green projects to investors. This would help the sector regain its growth trajectory. Structural demand for renewable energy also remains robust. The International Energy Agency (IEA) predicts that global investment in renewable energy will reach $2 trillion in 2024, marking a 65% increase since 2020 and nearly double the investment in fossil fuels. This surge in investment is part of a broader effort to achieve net-zero carbon emissions by 2050. To meet this ambitious goal, annual investments in renewable energy will need to more than double to $4.3 trillion by 2030, highlighting the sector's long-term growth potential driven by strong policy support and the urgent need to combat climate change. Notably, large-scale projects are still moving forward, signalling confidence in the sector’s future. For example, Australia recently approved a $13.5 billion project to export solar power to Singapore, showcasing the growing international commitment to renewable energy investments. Such projects reinforce the belief that the transition to renewable energy is both inevitable and necessary for a sustainable future. Claudio Descalzi, CEO of Eni, aptly stated, “The energy transition is irreversible, but it will only be sustainable if it allows returns that attract private capital.” This emphasizes a crucial factor for the sector's success: the need for renewable energy investments to generate attractive returns to draw in private capital. Without this, the sector's growth could stall, despite strong governmental and public support. Solar Innovation Center in Dubai By Gabriel Debach, Market Analyst at eToro 46 October 2024 www.utilities-me.com UTILITY UME_Oct2024_46-47_eToro Op-Ed_13385403.indd 4627/09/2024 13:03The Middle East, particularly the UAE, offers a promising outlook for renewable energy and the UAE has been at the forefront of the region’s renewable energy transition, with ambitious targets and significant investments in solar and wind energy. Projects like the Mohammed bin Rashid Al Maktoum Solar Park, one of the largest in the world, exemplify the UAE's commitment to becoming a global leader in renewable energy. As the UAE continues to diversify its energy portfolio away from oil, the region is likely to play an increasingly important role in the global renewable energy market, offering significant opportunities for investors. Looking ahead to 2024 and beyond, the outlook for renewable energy stocks appears increasingly positive. With valuations currently depressed, there is significant potential for recovery as the economic environment stabilises and structural tailwinds continue to support the sector. However, it is crucial to recognise that renewable energy is still a relatively new and evolving industry. Investors must exercise patience and adopt a diversified approach, spreading exposure across multiple companies and types of renewable energy solutions to mitigate risks and capitalise on the broad range of opportunities within the sector. While the renewable energy sector has faced considerable challenges in recent years, its future prospects remain bright. As interest rates ease, profitability improves, and demand continues to grow, the sector is well-positioned to deliver strong returns for investors. Those who can weather the current volatility and take a long-term view are likely to be rewarded as the world transitions to a more sustainable energy future. Gabriel Debach, Market Analyst at eToro www.utilities-me.com October 2024 47 UTILITY UME_Oct2024_46-47_eToro Op-Ed_13385403.indd 4727/09/2024 13:03HARNESSING AI AND IOT: Driving Energy Efficiency in Smart Cities Artificial Intelligence (AI) and the Internet of Things (IoT) profoundly shape a sustainable future and these technologies are transforming urban infrastructure development and energy use, paving the way for significant advancements in environmental sustainability and energy efficiency. The combination of AI and IoT is making cities greener, smarter, and more resilient and opening a world of possibilities for a more sustainable future. With the integration of AI, IoT, and smart cities can gather large volumes of data from sensors embedded in urban systems. These sensors monitor energy consumption patterns and collect real-time data about environmental conditions and infrastructure performance levels. According to Allied Market Research, the worldwide smart city IoT market reached USD 148.6 billion in 2022, growing at a compound annual growth rate (CAGR) of 20.5% between 2023 and 2032 and is anticipated to be worth $931.5 bn. Different parts of the world have adopted IoT technologies for sustainable development. For example, the Dubai Electricity & Water Authority (DEWA) launched the Smart Grids initiative that uses IoT to monitor real-time energy consumption. AI algorithms, driven by machine learning, are revolutionising energy management. These algorithms can identify inefficiencies through predictive analytics, forecast future power demands, and optimise resource utilisation. The practical application of these technologies is clear: cities can gather the data they need for informed decision- making, dynamically adjusting their energy use to reduce wastage across sectors. This not only improves energy efficiency but also significantly impacts the environment. The impact of AI and IoT in building management and energy conservation is truly transformative. Imagine living in a smart home with sensors that communicate with AI systems. These systems can automatically adjust heating based on occupancy or weather forecasts and even respond to fluctuations in electricity prices. These HVAC (Heating, Ventilation and Air Conditioning) controls, powered by advanced algorithms, save energy and enhance building comfort levels. Moreover, these systems can detect failures and other forms of inefficiency before they occur, providing real-time feedback and enabling corrective actions to be taken early enough to minimise downtime. This proactive approach extends the lifespan of assets and saves power by preventing malfunctioning appliances. Transportation is another sector where AI and IoT integration have driven energy efficiency and sustainable development. Roads are becoming smarter, thanks to IoT- enabled sensors that better manage traffic flow. These devices help collect data about road conditions or even vehicular movements using AI algorithms that help reduce fuel consumption by optimising traffic flow, hence minimising city congestion levels, especially during peak hours when most people travel simultaneously. In fact, with such information, authorities can apply adaptive management techniques like changing signals dynamically based on demand patterns or pricing signals, thereby easing traffic jams while cutting down on emissions from cars stuck idling along congested routes. Parking systems also use this technology to identify available spots, thus reducing urban traffic jams and lowering car emissions. According to a Tata report, the global IoT automotive market size might Mutasim Nour, Associate Professor, Director of MSc Energy and MSc Renewable Energy Engineering Programmes, School of Engineering and Physical Sciences, Heriot-Watt University Dubai By Mutasim Nour, Associate Professor, Director of MSc Energy and MSc Renewable Energy Engineering Programmes, School of Engineering and Physical Sciences, Heriot-Watt University Dubai 48 October 2024 www.utilities-me.com SMART CITIES UME_Oct2024_48-49_HW_13384999.indd 4827/09/2024 13:19increase to $191bn by 2028 from its previous value of about $59.70 billion. AI combined with IoT has also significantly transformed the management of utilities and energy grids in urban areas. Such intelligent grids monitor production and distribution consumption in real time. They use sensors that work in conjunction with machine learning algorithms. Analysing vast volumes of such data makes it possible for these systems to optimise production, balance supply, and integrate renewable energy more effectively. By interconnecting systems, sharing data, and optimising resource allocation on a citywide scale, cities create system efficiencies among various sectors and address pressing global challenges. The role of AI and IoT in addressing climate change, resource scarcity, and rapid urbanisation is crucial. This underscores the urgency and importance of their adoption in urban development, making the audience feel the need to act now. According to a McKinsey report, IoT applications could generate $11.1 trillion in economic value annually by 2025. However, the full potential of AI and IoT in driving energy efficiency in smart cities has its challenges. Privacy and data security concerns must be carefully addressed to ensure the responsible use of sensitive data collected by IoT sensors. Moreover, establishing interoperability standards and protocols is crucial to facilitate seamless integration and communication between IoT devices and systems. These challenges underscore the need for careful planning and collaboration in implementing these technologies. A new Guidehouse Insights report suggests that the yearly revenue for global smart city cybersecurity is projected to increase from $7.6 billion in 2021 to $26.0 billion in 2030, with a CAGR of 14.6%. Furthermore, investments in digital infrastructure, workforce training, and regulatory frameworks are essential to support the widespread adoption of AI and IoT technologies in urban environments. Collaboration between government agencies, private sector stakeholders, and research institutions is key to fostering innovation and scaling up successful initiatives. In conclusion, AI and IoT are revolutionising urban development and sustainability practices by enabling data-driven decision- making, optimising resource utilisation, and enhancing energy efficiency in smart cities. By harnessing the power of these transformative technologies, cities can create greener, more resilient urban environments that improve residents' quality of life while safeguarding the planet for future generations. www.utilities-me.com October 2024 49 SMART CITIES UME_Oct2024_48-49_HW_13384999.indd 4927/09/2024 13:20Next >