Middle East Electricity & Solar 2017

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INDUSTRY NEWS
Analysis of UAE
RE Projects
Dewa approves US$
7.34 billion on IPP
Fewa to spend
US$354 million
Four Nuclear Power Reactors Under
Contruction in UAE
South Korean consortium are building four commercial nuclear power reactors, total
5.6 GWe (Gigawatt of electrical output), the first is more than 75% complete
and is expected to be completed in 2017.
The United Arab Emirates is currently
transitioning from an electricity
generation system to 100% powered by
nuclear, solar and other renewables in
order to substantially reduce its carbon
emissions. The UAE has massive solar
generation potential.
The United Arab Emirates has retracted
several assumptions about the Middle
East and hydrocarbon-exporters with its
embrace of renewable energy. The costcompetitiveness
of renewable energy
gives the country the opportunity to
dramatically increase its ambition and
demonstrate the industry’s financial
viability in the region, while also
securing a stable and very low-risk
supply of energy, thereby extending the
lifetime of its fossil fuel reserves.
According to IRENA report,
Renewable energy technologies – such
as solar
Renewable energy is now economically
attractive in the United Arab Emirates
(UAE). Increasing renewables to 10% of
the country’s
total energy mix, and 25% of total power
generation, could generate
annual savings of US$ 1.9 billion by
2 0 3 0 b y r e d u c i n g f o s s i l - f u e l
consumption and could lower energy
costs.
PV, wind power, and waste-to-energy –
are already economic in the UAE above
USD 8/MBtu, with solar PV potentially
competitive with gas prices as low as
USD 4.5/MBtu. There is a clear financial
rationale for accelerated and greater
deployment, surpassing the UAE’s
existing targets in the power sector. A
25% share of renewables in power
generation by 2030 could be cheaper to
achieve than the current targets. The
most important enabling factor for
renewable energy in the UAE will be the
empowerment of government agencies
to take strategic measures, comparative
views of energy costs – and to act on
these through regulation and tendering.
The governance model in the Emirate of
Dubai, and the creation of the UAE
federal energy policy taskforce, are key
local references. The new business case
for renewables in UAE,
will be realised with policy reform and
stakeholder awareness. The
United Arab Emirates
Nuclear Power Plant
Photo: venturesonsite
federal and emirate-level governments
will need to clarify their respective
responsibilities for project initiation and
implementation, regulate the integration
of renewable energy technologies where
needed, and set timelines.
South Korean consortium won UAE
contract to build US$ 20 billion nuclear
power plants. South Korean officials
said the deal was the biggest single
contract the country had ever won
abroad. The nuclear reactors should all
be in operation by 2020, by which time
demand for electricity in the UAE is
expected to have more than doubled. The
first is scheduled to begin supplying
power in 2017.
The winning consortium includes
Samsung, Hyundai and Doosan Heavy
Industries, as well as US firm
Westinghouse and Japan's Toshiba. The
South Korean president's office
described the deal as "the largest megaproject
in Korean history". South Korea
first introduced atomic power in 1978
and now has 20 nuclear reactors in
operation.
Dubai Electricity and Water
Authority (Dewa) has approved
strategic projects worth over
US$ 7.34 billion based on the
independent power producer
(IPP) model in its new budget.
The utility firm's move is aimed
at leveraging public private
partnerships (PPP), building
new capacity in renewable
energy, and diversifying the
emirate’s energy mix in the long
term. Dewa total budget of US$
6.43 billion for 2016, a slight
increase from US$ 6.2 billion in
2015. The project will include
construction of an 800MW solar
photovoltaic independent
power plant at Seih al-Dahal
along the Dubai - Al Ain Road.
The facility, to be developed as
an independent power producer
(IPP) model, is the largest
single-site solar project in the
world. It will produce 1,000MW
by 2020 and 5,000MW by 2030,
at a total investment of US$ 13.6
billion. This supports Dubai
Government’s Clean Energy
Strategy 2050, which is aimed at
reducing carbon emissions.
Under this plan, initially 25% of
Dubai's energy will come from
clean sources by 2030, which
will be increased to 100% by
2030.
The Federal Electricity and
Water Authority (Fewa) of the
UAE is set to spend about US$
354 million on the development
of new power distribution
stations and expansion of key
facilities in the Northern
Emirates. The major projects
include construction of 25 new
power distribution stations,
expansion of 17 existing
stations and replacement of
overhead electric cables with
underground ones in the
emirates of Ajman, Fujairah,
Ras Al Khaimah and Umm Al
Quwain (UAQ).
Many governing institutions
have now been empowered to
take a holistic view of the
energy sector (comparing
different supply options), or to
introduce a deployment
programme and schedule that
could incentivise local industry
development and further bring
down costs.