5 minute read
Annual Power Review
Prospects and fundamentals for power sector look robust.
Building back better
Clean energy solutions making rapid headway as Gulf states transition away from traditional thermal-based generation. Martin Clark reports.
THERE IS NO doubt that the pandemic has significantly impacted all businesses and industries in the Gulf, but prospects and fundamentals for the power sector still look robust, nonetheless.
Energy demand has been strong for many years as the region’s economies have grown, placing huge requirements on developers for new energy infrastructure, from power stations to miles upon miles of connections.
This has helped fuel both industrial expansion, including major projects in petrochemicals and transport, as well as meeting the rise in demand for domestic energy services.
Saudi Arabia, for instance, has turned to crude oil to meet some of its electricity needs, as well as drawing on cleanerburning natural gas.
This is changing, however, with the kingdom moving to use more gas in its energy mix — not only to generate cleaner electricity, but also to free up more oil for export — and exploring other avenues.
Saudi Arabia is likewise moving swiftly with its renewables agenda: the kingdom aims to produce as much as 50% of its electricity from renewable sources by 2030.
Indeed, Crown Prince Mohammed bin Salman said in April that his country had signed power purchase agreements (PPAs) with seven new solar projects that will will produce more than 3,600 megawatts (MW) capacity and provide electricity for more than 600,000 households.
Utilityscale PV plants
Better technology and improved economics are opening up new utilityscale opportunities for both solar and wind power.
This is bringing with it serious investment from major international investors.
A consortium led by the UAE’s Masdar and EDF Renewables, along with Nesma Company, has reached financial close on a 300 MW utilityscale photovoltaic (PV) solar power plant in Jeddah, Saudi Arabia. “This project demonstrates Masdar’s commitment to Saudi Arabia’s Vision 2030 objectives and its climate goals,” said Masdar chief executive Mohamed Jameel Al Ramahi. “Through its National Renewable Energy Programme, Saudi Arabia is fast developing into a global renewable energy player, and Masdar will continue to work closely with the Saudi government and our partners here to help the kingdom achieve its clean energy transition, while reducing environmental impacts in line with the Saudi Green Initiative.”
It follows the inauguration of the kingdom’s first utilityscale solar plant earlier this year — the 300 MW Sakaka PV independent power project (IPP). State of the art technology
Nuclear power milestone
At the same time, nuclear power is also disrupting the Gulf’s traditional energy mix.
The UAE’s Barakah nuclear plant started commercial operations from its Unit 1 at the start of April — a major milestone for the region.
The plant, located in the Al Dhafrah region of Abu Dhabi, is the first nuclear power station in the Arab world and a key part of the Gulf oil producer’s efforts to diversify its energy mix. “After more than a decade of strategic planning, programme development and construction, we are confidently marking the start of a new chapter in for the UAE’s transition to cleaner energy sources,” said HE Mohamed Ibrahim Al Hammadi, ENEC’s chief executive.
Despite this advance into nuclear technology, maintaining broad energy diversity remains integral to the UAE’s longerterm plans, which underscores its rationale for rolling out the 2,400 MW Hassyan coalfired power plant at a cost of US$3.4bn.
The first 600 MW unit was hooked up to the grid at the end of 2020 and will play a key role in meeting sustained, baseload demand in the country.
There are several other projects underway.
Leading Gulf states are looking to work smarter by pooling electricity.
SirajPower, a leading distributed solar energy provider in the UAE, has unveiled a major partnership with Al Shirawi Group, one of the largest industrial conglomerates in the GCC, spanning trading, industrial, distribution, contracting, and service industries.
Hitachi ABB Power Grids has unveiled a portfolio of transformer products for offshore floating applications, designed to overcome the challenging offshore environment and withstand the physically demanding conditions on floating structures
The portfolio will enable much greater volumes of wind to be efficiently harvested and integrated into the global energy system, directly supporting the transition to a sustainable energy future.
Separately, leading Gulf states are also looking to work smarter going forward by pooling electricity around the wider region.
Both Saudi Arabia and the UAE have announced plans to provide power for export to other countries as more surplus becomes available. ■
There is serious investment in renewables projects across the region.
DEWA collaborates with Siemens Energy for green hydrogen project
SIEMENS ENERGY, IN collaboration with Dubai Electricity and Water Authority (DEWA) and Expo 2020 Dubai, has inaugurated the first industrial scale, solardriven green hydrogen facility in the Middle East and North Africa (MENA)
Located at DEWA’s Outdoor Testing Facility of the Research and Development (R&D) Centre at the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the Green Hydrogen Project serves as a major milestone in the advancement of the sustainable energy industry in the region. The integrated facility was developed with electrolysis, storage, and reelectrification capabilities, to maximise the benefits of the pilot project. Daylight solar power from the solar park will enable the pilot project to produce around 20.5kg/hr of hydrogen at 1.25MWe of peak power.
Utilising this pilot project, DEWA aims to demonstrate the production of green hydrogen from solar power, as well as the storage, and reelectrification of hydrogen. This is a system that allows for buffering renewable energy production, both for fast response applications, as well as for longterm storage.
HE Saeed Mohammed Al Tayer, managing director and CEO of DEWA, added, “Through this pilot project, DEWA aims to demonstrate the production of green hydrogen from solar power, its storage and reelectrification. This is a system that allows for buffering renewable energy production, both for fast response applications, as well as for longterm storage. The plant has been built to accommodate future applications and test platforms for the different uses of hydrogen, including potential mobility and industrial uses.”
