UAE State of Energy Report 2017 by Dubai Carbon

PUBLISHED BY:

IN PARTNERSHIP WITH:

Title Sponsor

Platinum Sponsors

Gold Sponsors

Bronze Sponsors

THE UAE STATE OF ENERGY REPORT

2017

HIS HIGHNESS

SHEIKH KHALIFA BIN ZAYED AL NAHYAN PRESIDENT OF THE UNITED ARAB EMIRATES

Our country is now blessed with greenery and continues to apply its strategies on conserving the environment and its natural resources, implementing its programs for water and energy consumption, and increasing its natural reserves to achieve Vision 2021 for a sustainable environment and well-being, inspired by the vision of the late Sheikh Zayed bin Sultan Al Nahyan - an environmental advocate, leader of greenery and founder of sustainable environment - who encouraged agriculture so that it became a way of life in the UAE.

HIS HIGHNESS

SHEIKH MOHAMMED BIN RASHID AL MAKTOUM VICE PRESIDENT AND PRIME MINISTER OF THE UNITED ARAB EMIRATES AND RULER OF DUBAI

We want the UAE to sustain its drive towards economic diversification, as this is the nationâ&#x20AC;&#x2122;s surest path to sustainable development in a future that is less reliant on oil. This means expanding new strategic sectors to channel our energies into industries and services where we can build a longterm competitive advantage. Balanced growth must be fuelled by a sustainable range of energy sources, within which the UAE will ensure an important role for alternative and renewable options such as nuclear power.

UAE STATE OF ENERGY REPORT 2017

FOREWORD Sustaining the economic growth and welfare of the society for the future generation is an important aim of the UAE, and innovation is the key, where both public institutions and private sector are called together to act towards the energy sector, focusing on preserving the precious and essential balance between economic and social development. In this purpose, the government has launched the “UAE Strategy for the Future”, to steer the nation’s transformational growth by identifying the needs and challenges of the future. Within this long-term planning, the UAE Strategy for the future covers fifteen areas including “the Future of Energy”, and the Ministry of Energy is the guide to achieve the shift towards sustainability and security of supply of the energy sector. In 2016, our country has seen the progress of such vision, by adopting more diverse energy sources and by implementing exciting and innovative projects. We have been more ambitious and have now set a new target for our country: 44% of the installed power capacity in 2050 will come from renewable energies. Nuclear energy, green gas and clean coal will contribute a further 6%, 38% and 12%, respectively. We need to look forward to these new figures now, without forgetting what we have achieved so far. In Abu Dhabi, the Solar Impulse Project, a 100% solar-powered aircraft, has been completed, making its 17-stage journey, covering 42,000km, taking in four continents, three seas and two oceans: a success story that inspired the world, confirming our country’s technological advancement primacy. Among other large-scale renewable energy projects, in September 2016 a consortium led by Marubeni of Japan and Jinko Solar of China submitted the lowest bid for Sweihan Solar Plant, with a price of 2.42 U.S. cents per kilowatt hour (kWh), which is the world’s lowest for 2016. The Al Reyadah project, a joint venture between Masdar and Abu Dhabi National Oil Company (ADNOC), aimed at commercialising carbon capture, utilisation

and storage (CCUS) technologies, captures carbon dioxide from the industrial complex of Emirates Steel in Abu Dhabi before reinjecting it into neighbouring oil reservoirs to enhance their output as a substitute for natural gas. An estimated 800,000 metric tons of carbon dioxide emissions will be displaced per annum in the process. In Dubai, the Green Mobility Initiative promotes hybrid cars encouraging citizens to use sustainable transport, contributing in carbon emission reduction. Another exciting project is the hyperloop technology, which has been announced as another green revolution in the public transport system in the UAE: levitating pods that are powered by electricity and magnetism will take passengers from Dubai to Abu Dhabi in just 12 minutes. In this report, you will also find a treasured article from the late Lt. General Khamis Mattar Al Muzainah, Commander-in-Chief of Dubai Police. I cherish his last words as an example for the UAE citizens to aspire to his sacrifice towards the people and the country. His vision and contributions to protect and transform Dubai into a safe and smart city are an inspiration for all of us. To facilitate the transformation process towards a green economy approach, the UAE Government has taken immediate action by implementing policies, partnerships, technology, financing and resource mobilization, establishing a strong commitment to significantly reduce the country’s overall carbon emissions. Thus, the imperative for the UAE to continue focusing on our long-term Energy Policy to progress with a sustainable development. The State of Energy 2017 Report is more than a summary of the current state of play. This unique body of work is an evolving forum for exchange.

HIS EXCELLENCY

ENG SUHAIL AL MAZROUEI MINISTER OF ENERGY UNITED ARAB EMIRATES

UAE STATE OF ENERGY REPORT 2017

HER EXCELLENCY

HELEN CLARK UNDP ADMINISTRATOR

The United Arab Emirates [is] where the national vision and strategy for the future – Vision 2021– embraces the concept of achieving sustainability across the social, environmental, and economic spheres. UNDP enjoys a solid partnership with the UAE, and aims to make it even more strategic. At the national level, we have partnered in promoting clean energy production and consumption.

HIS EXCELLENCY

DR SULTAN AHMED AL JABER MINISTER OF STATE UNITED ARAB EMIRATES ADNOC GROUP CHIEF EXECUTIVE OFFICER

In this new energy era, we must reflect on how to make the most of our resources, enhance our performance and find new ways to be more competitive. Time and again, our industry has shown it can engineer overcome obstacles, create groundbreaking solutions and catalyze human progress. Todayâ&#x20AC;&#x2122;s new energy landscape calls on us once more to break from old conventions and welcome new paradigms. By embracing the new energy era, we will thrive and we will shape our future.

UAE STATE OF ENERGY REPORT 2017

HIS EXCELLENCY

DR THANI AL ZEYOUDI MINISTER OF CLIMATE CHANGE AND ENVIRONMENT UNITED ARAB EMIRATES

The impacts of climate change are real and measurable, with 2016 being the hottest year recorded. Transformation of our energy systems is one of the critical factors in meeting the ambitious climate change objectives of the Paris Agreement. The UAE has been a pioneer in the region by adopting clean energy targets and deploying largescale nuclear and solar projects, along with energy and water conservation measures. While the impacts of climate change could be daunting, they are also opportunities for partnerships, innovation and continuous growth. Supported by our visionary leadership, the UAE will continue to be at the forefront of the climate change challenge.

HIS EXCELLENCY

DR MATAR HAMED AL NEYADI UNDERSECRETARY OF THE MINISTRY OF ENERGY UNITED ARAB EMIRATES

The United Arab Emirates is a responsible producer and critical partner in global energy markets. The diversification of energy sources is recognised as vital for the UAEâ&#x20AC;&#x2122;s energy security and economic outlook. Renewable resources are becoming increasingly competitive in terms of price, and are making significant inroads within the UAE energy portfolio. The UAE has set an ambitious goal of producing 27% of its energy from clean energy by 2021, and a share of 50% of capacities for clean energy by 2050, showing the determination of the government to diversify energy.

UAE STATE OF ENERGY REPORT 2017

HIS EXCELLENCY

SAEED MOHAMMED AL TAYER VICE CHAIRMAN OF THE DUBAI SUPREME COUNCIL OF ENERGY, MD & CEO OF DUBAI ELECTRICITY AND WATER AUTHORITY

We are working to achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to establish Dubai as a global hub in sustainability and innovation. To support the UAE Vision 2021, to make the UAE among the best countries in the world, and the Dubai Plan 2021, to propel Dubai to be among the worldâ&#x20AC;&#x2122;s smartest cities, His Highness Sheikh Mohammed bin Rashid Al Maktoum launched the Dubai Clean Energy Strategy 2050, to make Dubai a global centre for clean energy and green economy, and the city with the lowest carbon footprint in the world by 2050.

1. STATE OF ENERGY Chapter Statement, HE Eng. Suhail Al Mazrouei.....................

The Global Energy Revolution, HE Eng. Fatima Al-Foora Al Shamsi .....................................................................

UAE Energy Strategy 2050 in Figures.......................................

Interview: HE Saeed Mohammed Al Tayer..............................

ENOC’s Innovative Spirit, HE Saif Humaid Al Falasi................

Touching the Lives of Millions - The Zayed Future Energy Prize, Dr. Nawal Al-Hosany...........................................

TABLE OF CONTENT

A World First - Dubai’s Unconvential Shilaif, Frederic Chemin .........................................................................

Embracing New Frontiers for Energy, Christoph Frei.............

The Global Grid, Eng. Bilal Hassan............................................

2. IN FOCUS, UAE FUTURE OF ENERGY Chapter Statement, HE Dr Matar HamedAl Neyadi.................................. 49 A New Playbook of Energy Innovations, HE Saif Humaid Al Falasi.......................................................................................

Interview: HE Mattar Al Tayer ...............................................................

Federal and Local Energy Strategies, Waleed Salman........................................................................................

Committed to Sustainable Development, HE Lt. General Dhahi Khalfan Tamim...............................................................

Enablers for the Future of Clean Energy, Reshma Francy...................

The Carbon Ambassadors Programme, DEWA.......................................

Energy Eﬃciency and Potential Savings in the UAE, Marouane Temimi and Sameh El Khatib...............................................

Optimising Energy Eﬃciency, Tayeb Al Awadhi...................................

Emirates Energy Award ..........................................................................

Harnessing the Invisible Fuel, Dr. Michael P. Gallaher and Nadia Rouchdy..................................................................................

Data, A Vital Resource for Building Our Future, Amal Hamadeh.........................................................................................

3. ENERGY AND INNOVATION

6. ENERGY AND TRANSPORTATION

Chapter Statement, HE Dr. Sultan Ahmed Al Jaber............

Chapter Statement, HE Mattar Al Tayer...............................

UAE Energy Strategy 2050, HE Huda Al Hashimi................

The Transport Mobility Management Strategy

DEWA’s Innovative Projects in Hatta, Yousef Jebril.............

for Abu Dhabi and Encouraging Sustainable Transport, HE Khalid Mohammed Hashim..........................

Energy and Innovation, Driving a Sustainable Energy Future, Adel Ahmed Albuainain............................................

RTA’s Rail Sector Role in Conserving Natural

Interview: Marwa Alawadhi...................................................

Resources and Protecting the Environment,

Cooling Dubai, Challenges and Opportunities, Graeme Sims and James Grinnell.........................................................

151

152

AbdulMohsin Ibrahim Younes...............................................

156

Dubai Green Mobility Initiative, Taher Diab ......................

159

Dubai Creates Happiness Smartly,

EcoRunner, an Educational Game, Hind Ahmed Almutawa................................................................................

Abdulla Al Madani..................................................................

161

Shuaa - The Emirates Solar Calculator, Dr. Ahmad Yousef..

102

The Future of Driving, Fatma Abulhoul AlFalasi.................

163

LED Street Lighting, Eng. Maitha Bin Ada............................

165

Case Study: Minimizing Waste Heat Recovery at ENOC, ENOC.......................................................................................

105

Nasser Hamad Abu Shehab..................................................

Digitalization - The Key to Eﬃcient Management of Energy Assets, Mostafa AlGuezeri...........................................

RTA’s Energy Analysis,

108

169

Dubai Police Smart Services, HE The Late Khamis Mattar Al Muzainah............................

173

Smart Customer Services Increase People’s Happiness, Youssef Ahmad Al Reda......................................

4. GREEN CITIES AND ENERGY PRODUCTIVITY Chapter Statement, HE Saeed Mohammed Al Tayer.........

111

Energy Eﬃciency is Fundamental to Sustainability, HE Abdulla Kalban..........................................................

112

Demand Side Management Focuses on Reducing Energy Demand, Waleed Salman.........................................

116

The UAE’S First Four-Pearl Community, Yousef Ahmed Baselaib....................................................

120

Green Cities and Sustainability, Hussain Hassan Mohamed Khansaheb......................................................

122

Interaction Between Energy Use in Buildings and the Urban Microclimate, Dr. Afshin Afshari......................

125

A History of Green Building Initiatives in the Region, Saeed Al Abbar....................................................

127

Competitive Electricity Market, Abdullah Ali AlShahyari..................................................................

130

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY Chapter Statement, HE Sheikh Abdulla Bin Mohamed Bin Butti Al Hamed.................................................................

Chapter Statement, HE Dr. Thani Al Zeyoudi ...................

Mohamed Jameel Al Ramahi................................................. Al Neyadi.................................................................................

184

Alternative Fuel-Compressed Natural Gas (CNG), EMGAS

186

Surplus Solar Scenario, Eng. Bilal Hassan.............................

187

Is It the Time to Say ‘No’ to Food Wastage?, Mohamed Karam.....................................................................

189

District Cooling, Eng. Bilal Hassan.........................................

190

Powering the Future Growth and Prosperity of the UAE, Mohamed Al Hammadi..........................................................

133 134 136

Energy Eﬃciency and Climate Change Mitigation Plans, Jesus Gutierrez ...............................................................

138

Clean Energy Ministerial, Meshayel Omar Lehssoni...........

141

Charting a Way Forward for the Paris Agreement, Tanzeed Alam and Manuel Pulgar-Vidal...........................

193

UAE and Mission Innovation,

Pierre Samaties and Dr. Artus Ph. Rosenbusch....................

Clean Energy Solution to Climate Change, Fahed Mohamed Amer Alhammadi ..........................................

180

The Importance of Energy Diversification, HE Dr. Matar

195

Innovation in the Energy Industry,

Having the Knowledge to Take Eﬀective Action, HE Razan Khalifa Al Mubarak .........................................

179

Engaging Generation Z for a More Sustainable Future,

Reshma Francy and Meshayel Al Ali....................................

5. ENERGY AND CLIMATE CHANGE

176

143

Dubai Police Low Carbon Development,

197

8. ENERGY AND WATER DECOUPLING Chapter Statement, HE Eng. Fatima Al Foora Al Shamsi

201

The Water Commitment from the UAE to the World, Mohammed Abdulkareem Al Shamsi...................................

202

Evolution of Electricity-Driven Desalination, Steven Griﬃths ......................................................................

204

Mismanaging the Energy-Water-Food Nexus, Jeroen Van Der Veer .............................................................

207

Energy-Water Nexus Modelling Approach in the Context of Integrated Policy Making in the UAE,

Major General Mohamed Saeed Bakhit and Colonel Dr. Tamim Mohd Alhaj .......................................

146

UAE and Climate Change, Ameera Khalid .......................

148

Saeed Kaddoura, Marouane Temimi and Sameh El Khatib

209

National Campaign of Water and Energy Eﬃciency, Eng. Somayyah Abdullah Alyammahi..................................

212

INTRODUCTION

INTRODUCTION This report starts with Chapter 1, a brief description of the current and upcoming legislations within the UAE, the energy diversification targets that have been set, and how the UAE stands in the international discourse. Urgent and pressing challenges within the region and technological advancements, supporting policies and resources required to counter and regulate those challenges, are covered under this chapter as well.

It continues with Chapter 2 focusing on the future of the energy sector within the UAE. It highlights the UAE’s vision towards the evolution of the energy sector within the country and the best practices that must be implemented within the country to achieve that vision. We discuss the efforts by entities across the region to optimise the energyefficiency and enable the UAE to take on a larger leadership role in pioneering energy-efficiency technologies.

Chapter 3 discusses alternative solutions to meet the rising demand for water and electricity across the region by shifting the focus to renewable energy. We focus on technologies and methodologies that can be implemented within the UAE to meet the energy requirements.

Chapter 4 addresses the importance of sustainability in managing the country’s future growth in infrastructure, by ensuring the availability of clean energy sources and promoting sustainable consumption.

UAE STATE OF ENERGY REPORT 2017

This is followed by Chapter 5 highlighting and discussing the eﬀorts of various entities to meet “low carbon” targets including the resources deployed to achieve them.

Chapter 6 presents the importance of developing a modern, reliable transportation network as a priority for the UAE. We discuss the innovation in public transport, fuel eﬃciency and connectivity.

Chapter 7 highlights the importance of alternative sources of energy and the interaction between traditional and alternative sources of energy and energy management.

Chapter 8 covers the importance of water desalination and the inter-relationships between water desalination, natural resources and renewable energy costs. We also discuss the need to focus on new technologies and methodologies to make the UAE more energy eﬃcient along with any policies and reforms that need to be implemented within the field.

STATE OF ENERGY HIS EXCELLENCY ENG SUHAIL AL MAZROUEI MINISTER OF ENERGY, UAE

This report analyses the status of the energy and the potential for continued improvement of the sector in all its fundamental aspects, from the role of clean energy in the diversification goal of the UAE to the increasingly important role of energy eďŹ&#x192;ciency. Year after year, our commitment towards the importance of implementing changes in this sector continues to increase, along with our capacity to work together with energy stakeholders in the UAE and position our Nation as a case study in energy excellence. The Ministry is driven by the values of the Nation and the goals of the National Agenda of the UAE Vision 2021. Together with the regulators, operators and other key entities in the energy sector, we continue to ensure that energy remains a key factor in ensuring the wellbeing of our citizens and set the foundations for a healthy and happy society.

To achieve this, the Ministry instills a culture of continuous improvement, where a rigorous system of policymaking, as well as the latest tools to facilitate decision-making, are put in place. The report enumerates a few of many case studies of how energy entities across the UAE continue to deliver excellence and innovation. Much work lies ahead, but the UAE Ministry of Energy is committed to the sustainable future of the energy sector across all of its policy areas. As you will see, the findings in this report are enlightening, showing a proper insight of excellence in the energy sector.

1. STATE OF ENERGY

THE GLOBAL ENERGY REVOLUTION THE UAE, A WORLD-LEADING ADVOCATE OF CLEAN ENERGY TECHNOLOGY

EDITORIAL

ARTICLE BY HE Eng Fatima Al Foora Al Shamsi, Assistant Undersecretary, UAE Ministry of Energy

We are witnessing a global energy revolution that is transforming the way we think about power demand, generation, distribution and consumption. The scale and complexity of these changes is immense, as we look to address global environmental issues and the eﬀects of climate change through a variety of mechanisms, including energy management. It is imperative that we act now, to ensure a positive outcome for the future.

In recent years, in recognition of economic, environmental and societal shifts, the UAE’s leaders have worked to diversify the country’s economy and move into a new phase of growth. The ambition to foster innovation and knowledge-driven growth is documented in the national strategy, UAE Vision 2021, launched by H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and supported by a host of complementary strategies at both a national and Emirate level. The ultimate goal is for the UAE to be one of the happiest nations in the world, with happiness rooted in balancing good health and wellbeing, a high standard of living, economic prosperity and sustainable development, to ensure this happiness is also experienced by the generations to come. To complement this aim, the UAE has taken the lead on renewables projects in the region, driven by ambitious targets to diversify the energy mix, while meeting the rising demand for power and water. The UAE has consistently demonstrated its willingness to be a world-leading advocate of clean energy technology, increasing its target for power generation from clean energy to 27% by 2021. To further showcase the UAE’s commitment to

UAE STATE OF ENERGY REPORT 2017

achieving its clean energy targets, the Ministry of Energy in partnership with the key stakeholders in the energy sector, developed the UAE Energy Strategy 2050. Announced by H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the strategy aims to increase the contribution of clean energy in the total energy mix to 50%, which will enable savings of AED 700 billion ($190.5billion) by 2050.

economy of the future and Masdar is the Middle East’s largest exporter of renewable energy. It is also a leading developer and operator of utility-scale, grid-tied projects; small-scale applications providing energy access to communities away from the electricity grid; and carbon abatement projects and has invested around USD 2.7 billion renewable energy in projects across the world over the last 10 years.

Renewable energy developments thus play a crucial role in the UAE’s economic growth and diversification plans. There are myriad initiatives, investments and projects that illustrate the UAE’s clean energy ambitions and focus on innovation. The UAE is the home of the International Renewable Energy Agency and was one of the first countries in the region to start utility-scale solar projects, with Masdar City pioneering a ‘greenprint’ for how cities can accommodate rapid urbanisation and dramatically reduce energy, water and waste. The broader Masdar organisation is focused on advancing the development, commercialisation and deployment of renewable energy and clean technologies as a link between today’s fossil-fuel economy and the energy

Solar has become a major area of focus, with the country’s first solar energy generation plant feeding power into the grid for the first time in 2013. Since then, solar technology prices have been consistently decreasing, falling almost 70% in the past five years, according to data compiled by Bloomberg New Energy Finance. The Mohammed bin Rashid Solar Park in Dubai, the largest solar park in the region, set a record low price for solar in May, 2016, and more recently, the Sweihan utility-scale plant in Abu Dhabi received further record-breaking bids. The solar bid in Abu Dhabi is not only the cheapest solar power contract ever signed –it’s the cheapest contract for electricity ever signed, marking a bright future for solar as part of the energy mix.

1. STATE OF ENERGY

Renewable energy technologies can help address some of the trade-oﬀs inherent in the water-food-energy and climate change nexus, bringing substantial benefits in all four sectors, but it won’t be the sole solution. This is why the UAE Ministry of Energy is now finalising the UAE Water Security Strategy 2036, focusing on aspects including interconnection of the water network, water storage, the additional capacities of desalination, and recycled water. Additionally, a Sustainable Transport Strategy is under development to align with the new strategy direction of the energy sector, which will include a focus on the electrification of transportation. These strategies align with the objectives and goals of the UAE Energy Strategy 2050. To achieve real success in sustainability measures goes beyond government strategies and regulations; it is also the responsibility of the private sector and society. This is why the Government runs community engagement programmes, including in schools, and awareness campaigns, as well as establishing mechanisms such as the Zayed Future Energy Prize and the Emirates Energy Awards to

recognise achievement in these areas and encourage public and private-sector organisations, as well as individuals, to innovate in the sustainability arena. There is a key focus on promoting Research and Development in the UAE. In line with this, the Ministry of Energy conducted the first Future Lab in the UAE. The aim of the Future Lab was to stress test selected energy strategies. The Lab was attended by all the decision makers of the major stakeholders in the energy sector, at the end of which the UAE Energy Strategy 2050 was selected and announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The UAE Energy Strategy 2050 aims to cut carbon dioxide emissions by 70%, increase clean energy use by 50% and improve energy eﬃciency by 40% by the middle of the century, resulting in savings worth AED 700 billion.

UAE STATE OF ENERGY REPORT 2017

ABOUT

HE Eng Fatima Al Foora Al Shamsi Assistant Undersecretary

Fatima Al-Foora Al Shamsi is the Assistant Undersecretary for Electricity and Future Energy in the United Arab Emirates Ministry of Energy, with a rich background ranging from electrical engineering, renewables, Business Development and Project Management to diﬀerent Managerial roles. Currently, she is member of the UAE Board of Climate Change and Environment, member of the Board of Directors of Emirate Authority for Standardization and Metrology (ESMA), Head of the Emirates National Grid Planning and Operation Committee, and Member of the Board of Director of Nawah.

She worked as the Vice President of the Privatization and Business Development in Dubai Electricity and Water Authority (DEWA) and

Another very important milestone in the UAE energy industry, is represented by women, who play a key role in a sector that used to be mainly populated by men. Emirati women make up 20% of the workforce in the country’s nuclear energy industry showing how the UAE is committed to equality. Equal opportunity in our country is determinant: women have important roles at all levels, from leadership positions to middle management, from engineers to professionals in diﬀerent aspects of the energy and climate change sectors. Within the Ministry of Energy itself, women represent two thirds of the total employees. Last November, the Annual Conference of Women in Nuclear took place for the first time in the Middle East, and it’s been held under the patronage of Sheikha Fatima bint Mubarak, Supreme Chairwoman of the Family Development Foundation, President of the General Women’s Union and Chairwoman of Motherhood and Childhood Supreme Council. We have come a long way in the past few decades, but as always, our strength lies in our people, guided by the vision of our leaders for the ongoing development of our nation. It is this vision that will continue to propel us through the energy transition and on to a sustainable future.

Renewable energy technologies can help address some of the tradeoﬀs inherent in the waterfood-energy nexus, bringing substantial benefits in all three sectors, but it won’t be the sole solution.

as an Executive Director for Electricity in the Federal Electricity & Water Authority (FEWA). Her climb to the corporate leadership position was a result of her high work ethics. Before joining the Ministry, she was leading the Mohammed Bin Rashid Solar Park Project, IP(W)P program in Dubai, DEWA private investment portfolio development, DEWA corporate strategy team and R&D&I center development project. She succeeded to lead the team developing the UAE Energy Strategy 2050 (in-house developed strategy), and she is now leading the UAE Water Security Strategy, as well as the Power Sector Techno Economic Study in the UAE (which includes the development of an energy/power market, and all activities related to energy security & future of energy, energy and water productivity & DSM, electricity & energy market, and regulations & supervision of power sector in the Ministry of Energy).

She graduated from the United Arab Emirates University with an Honours Degree of BS in Electronics Engineering. She also holds an Honours Degree MBA in Financial Management.

1. STATE OF ENERGY

UAE ENERGY STRATEGY 2050 “Gulf countries are similar in terms of economic structure and we hope to have a unified GCC energy strategy to ensure the sustainable development of our people and the global strength of our economies” HH Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the UAE and Ruler of Dubai

25-50%

70%

The plan will increase the contribution of clean energy 25-50% by 2050

Will reduce carbon emissions resulting from the power generating process by 70%

40% Improve energy eﬃciency by 40% by the middle of the century

AED

700 BN

Savings resulting in AED 700 billion worth

Annual growth in demand for energy stands at 6%

UAE ENERGY PLAN 2050 FACTS

UAE STATE OF ENERGY REPORT 2017

‘clean energy’ A combination of renewable, nuclear and clean fossil energy

44%

from renewable energy

38%

from gas

12%

from clean fossil

6% TARGET

44%

from nuclear energy

AIM Clean Energy to account for energy production

Boost UAE’s leadership role in business, sustainability, energy sector and securing energy supply

PHASE APPROACH a. Ensure stable sources of energy sources b. Ensure the diversification of energy sources c. Accelerate the move to eﬃcient energy consumption a. Aim to find new energy-eﬃcient solutions for transportation a. Focus on research and development b. Enhance innovation and creativity in the supply of sustainability energy

Those who do not think about energy are not thinking about the future - HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai

1. STATE OF ENERGY

INTERVIEW

HE SAEED MOHAMMED AL TAYER Managing Director & CEO Dubai Electricity & Water Authority (DEWA)

UAE STATE OF ENERGY REPORT 2017

1. What is the Mohammed bin Rashid Al Maktoum Solar Park and what are the objectives DEWA aims to achieve?

2. Who are the key stakeholders of the solar park and what are the projects that are managed and operated by it?

The Mohammed bin Rashid Al Maktoum Solar Park was announced in January 2012 in line with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to enhance the sustainable development of Dubai. DEWA is managing the solar park, which is the largest renewable-energy project on a single plot in the world with a planned production capacity of 5,000 megawatts (MW) upon completion in 2030. The 13MW first phase became operational in 2013. The 200MW second phase of the solar park will be operational by April 2017, and its capacity will reach 1,000 MW by 2020 and 5,000 MW by 2030, making the UAE’s solar power market an attractive hub for any solar developer. The solar park is a key mean of achieving the Green Economy for Sustainable Development initiative launched by His Highness to build a green economy in the UAE and achieve sustainable development. The solar park oﬀers plenty of promising investment opportunities to strengthen energy partnerships and investments between the public and private sectors. Future phases of the solar park will produce renewable energy, based on the Independent Power Producer model. The Mohammed bin Rashid Al Maktoum Solar Park is one of Dubai’s energy diversification initiatives to increase the share of renewable resources.

Abu Dhabi’s Masdar will begin construction of the 800-megawatt (MW) phase three of the AED 50 billion (USD 13.6 billion) Mohammed bin Rashid Al Maktoum Solar Park. The Masdarled consortium was selected last June by Dubai Electricity and Water Authority (DEWA) to develop what will be the world’s largest single-site solar park on completion, after setting a record-low bid price for solar power generation of USD 2.99 cents per kilowatt-hour (kWh). The engineering, procurement and construction contract agreement has been awarded to an international consortium led by specialist renewable energy contractor GranSolar of Spain, Spanish specialist Acciona and Ghella from Italy. The Mohammed bin Rashid Al Maktoum Solar Park will have an interactive Innovation Centre, equipped with the latest technologies in clean and renewable energy to enhance national energy skills, support business competitiveness, develop renewable energy technologies, support the development process in the whole region, and encourage social awareness about renewable and sustainable energy. The solar park includes a Research and Development Centre to conduct studies on industrial and social needs, and scientific research in renewable energy. It also acts as a link between researchers and developers to form productive and innovative ideas. The solar park also has two testing facilities for

1. STATE OF ENERGY

photovoltaic and concentrated solar power (CSP) technologies. The first centre tests 30 types of photovoltaic panels from 20 international manufacturers. The panels are studied, evaluated and tested for long-term reliability in local weather conditions to study and evaluate the performance, long-term stability and reliability of photovoltaic technologies, both commerciallyavailable or under development, under real local weather conditions.

and implementing green development in Dubai. The solar park supports the Dubai Clean Energy Strategy to generate 7% of Dubai’s total power outputs by 2020, 25% by 2030 and 75% by 2050. The DEWA Strategy 2021 is fully aligned to this and will serve as a reference point to support DEWA’s operational planning. It defines our strategic objectives and our relationship with our stakeholders and partners to ensure the solar park achieves its objectives.

This facility concept is for innovative technology demonstrations with key companies in renewable energies and for international collaboration on soiling and dust mitigation on photovoltaic equipment. The tests that are currently being performed will set a baseline for development of specifications, tests and standards for photovoltaic equipment in the region. Operation and maintenance strategies are also at the core of our research. The solar park will also include a photovoltaic powered reverse osmosis water desalination plant for research and development purposes into solar-powered water desalination. DEWA built a pilot solar-powered reverse osmosis water desalination plant with a production capacity of 50 cubic metres a day of potable water by desalinating brackish water using solar energy with energy storage batteries.

4. How does the solar park support the Dubai Clean Energy Strategy 2050?

3. How does the solar park achieve the objectives of UAE Vision 2021 and DEWA Strategy 2021? The Mohammed bin Rashid Al Maktoum Solar Park is another milestone that puts Dubai and the UAE at the forefront in the region for generating clean energy, and supports the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum. Through the solar park, we are determined to continue building and developing a greener economy, to achieve the UAE Vision 2021 of a sustainable environment in terms of air quality, conserving water resources, more reliance on clean energy,

The Dubai Clean Energy Strategy 2050 aims to make Dubai a global hub for clean energy and green economy. The strategy consists of five main pillars: infrastructure, legislation, funding, building capacities and skills, and an environmentally-friendly energy mix. The Mohammed bin Rashid Al Maktoum Solar Park is included in the infrastructure pillar of the Dubai Clean Energy Strategy 2050. The infrastructure includes a comprehensive Innovation Centre and a R&D centre that feature a group of research and development centres specialised in the next generation of clean energy technologies such as solar testing facility, drones research centre, 3D-printing and a solar-powered desalination testing centre. AED 500 million will be invested in research and development in these areas, such as the integration of smart grids, energy eﬃciency and electricity generation from solar energy. The infrastructure pillar also includes the establishment of a new free zone under the name Dubai Green Zone dedicated to attracting research and development centres and emerging companies in clean energy. The solar park also contributes to the fifth pillar of the strategy, which is focused on creating an environmentally-friendly energy mix with solar energy providing 25%, nuclear power 7%, clean coal 7% and gas 61% by 2030. The mix will gradually increase clean energy’s share to 75% by 2050, making Dubai the lowest carbon footprint city in the world.

UAE STATE OF ENERGY REPORT 2017

ABOUT

HE Saeed Mohammed Al Tayer MD & CEO, DEWA

The Mohammed bin Rashid Al Maktoum Solar Park is included in the infrastructure pillar of the Dubai Clean Energy Strategy 2050.

5. Tell us something about the new DEWA HQ, Al Sheraa, world’s largest and smartest government building, with zero carbon emissions and how this links to DEWA Strategy 2021? DEWA’s new headquarters, named Al-Sheraa (Arabic for sail), will be the tallest, largest, and smartest net Zero Energy Building (ZEB) in the world. DEWA’s new headquarters is planned to achieve a platinum rating by LEED (Leadership in Energy and Environmental Design). It is also designed to use 50% less water than conventional buildings. The Al-Sheraa building will have over a million square feet, over 200,000 square feet of land. It is being built in the heart of the Cultural Village in Al Jadaf. This latest achievement shows Dubai’s global position as a role model for leading organisations in sustainability, innovation, and shaping the future. The total built-up area of Al-Sheraa will be over 1.5 million square feet. The additional area comprises parking, engineering facilities, and green spaces. The building is designed to accommodate 5,000 employees, in addition to customers and visitors.

Total renewable energy generated by the building will be 5,400 megawatt hours (MWh) annually. The building will have an Energy Utilisation Intensity (EUI) of 60 kW/ m2 per year. Al-Sheraa’s design was inspired by the UAE’s traditional houses, where enclosed spaces overlook an open courtyard. The courtyard will be the focal point and most prominent feature of the building. To reduce heat in the open courtyard, a sail design is used to provide shaded areas. Natural light during the day will stream through specific openings in the sail, giving suﬃcient light without the associated heat. The courtyard features trees and planted areas within a sustainable environment. The courtyard will give occupants and visitors an outdoor feeling in an indoor setting. By building Al-Sheraa, we establish a role model in Dubai and the world to achieve a balance between development and the environment to protect the right of future generations to live in a clean, healthy and safe environment. This supports the UAE Vision 2021 to make the UAE one of the best countries in the world, and the Dubai Plan 2021, to make Dubai the preferred place to live, work, and visit.

His Excellency has an overall experience of more than 31 years in the field of telecommunications, energy and water. Under his leadership, since 1992, DEWA has achieved unprecedented successes and has become one of the very best distinguished utilities in all aspects world-wide. As an initiative of his own, several successful companies were established, including EMPOWER, and many other companies. He is a member of the Executive Council of Dubai and Chairman of Infrastructure and Environment Committee, Vice Chairman of the Dubai Supreme Council of Energy, Chairman of Dubai Smart City Oﬃce, Vice Chairman of EGA, Vice Chairman of ENOC, Chairman of SUQIA Board Of Trustees, and Chairman of WGEO. In addition, HE is a member, vice chairman, or chairman of various high-level committees and higher leading councils in the Emirate of Dubai.

The building will have over 16,500 square metres of photovoltaic solar panels to produce over 3,500 kilowatt hours (kWh). There will be about 2,000 square metres of Building Integrated Photovoltaics (BIPV).

1. STATE OF ENERGY

ARTICLE

ARTICLE BY HE Saif Humaid Al Falasi, GCEO, ENOC Group

In under half a century, Dubai’s astonishing rate of innovations has created a narrative of economic and cultural growth that is unparalleled worldwide. Our eﬀorts at ENOC demonstrate our commitment to enhancing our oﬀerings of novel energy solutions to support the city’s evolution as a smart and sustainable city, as per the Dubai Plan 2021.

ENOC’s innovative spirit is driven by our commitment to continually improve the benchmarks for operational safety and eﬃciency in the energy industry in Dubai and beyond.

ENOC’S INNOVATIVE SPIRIT Our commitment to continually improve

ENOC’s innovative spirit is driven by our commitment to continually improve the benchmarks for operational safety and efficiency in the energy industry in Dubai and beyond. Enhancing our offering for residents and businesses is equally important. To ensure that the pace of innovation continues to accelerate, we are forming an industrial innovation committee that will promote the need and benefits of new ideas and knowledge sharing in the oil and gas industry. ENOC is also playing a leading role in providing an efficient energy supply and logistical infrastructure to ensure that the EXPO 2020 Dubai is a commercial success, which will further elevate the emirate’s role as a global thought leader.

UAE STATE OF ENERGY REPORT 2017

ABOUT

HE Saif Humaid Al Falasi

Group Chief Executive Officer

ENOC’s pioneering and entrepreneurial attitude is more important than ever to ensure Dubai’s energy needs are met at a time of significant change; a 48% increase in global energy consumption between 2012 and 2040, increasingly strict environmental regulations and low oil prices since mid-2014. Innovation is multi-faceted and can vary from being an entirely new concept – an idea, a process, or a technology – to recycling an existing concept in a different way. More than 1,550 ideas have been submitted by ENOC’s employees to the internal Innovate programme since 2012, with the actioned ideas generating an astonishing AED 69 million in savings. ENOC’s novel efforts have lowered operational costs, boosted efficiency, improved environmental awareness, enhanced talent creation and increased training. Moreover, they thread into Dubai’s wider ecosystem of innovation serving as an important reminder that there are no boundaries to our imagination. We must continually share our ideas, no matter how simple, or insignificant they may seem.

In his role as Group Chief Executive Oﬃcer of ENOC Group, HE Saif Humaid Al Falasi spearheads the Group’s business strategy and operational excellence locally and internationally in alignment with the vision and plans of the Government of Dubai. A 34 year veteran in the energy industry, Al Falasi’s wealth of experience and in-depth industry knowledge spans a wide range of specialties, including project management and petroleum asset evaluation operations. Al Falasi is the Chairman of Gulf Energy Maritime (GEM), as well as a board member of the Dubai Supreme Council of Energy and the Green Energy Council.

Dubai already ranks 16th across 28 global cities, according to the Dubai Innovation Index Report 2015. ENOC is dedicated to ensuring that this impressive ranking rises even higher in 2017 and beyond. ENOC will continue to work closely with the Dubai government, shareholders, partners and employees to help the city succeed in its chapter of extraordinary growth.

1. STATE OF ENERGY

TOUCHING THE LIVES OF MILLIONS â&#x20AC;&#x201C; THE ZAYED FUTURE ENERGY PRIZE

ARTICLE

ARTICLE BY Dr Nawal Al-Hosany, MASDAR

Our nationâ&#x20AC;&#x2122;s founding father, Sheikh Zayed bin Sultan Al Nahyan, was a passionate advocate for conserving natural resources and preserving the environment. It is to honour his legacy that our leaders recognise and empower pioneers in renewable energy and sustainability through the Zayed Future Energy Prize. On the world stage, the UAE is demonstrating ambitious global leadership and collaboration in driving sustainable development. Nowhere has this been clearer than in international fora, such as the COP21 and COP22 summits in Paris and Marrakech. Equally, we see it in the tremendous worldwide impact of the Zayed Future Energy Prize. In less than 10 years, the contributions and actions of the 48 prize winners to date have enhanced more than 289 million lives and facilitated partnerships and innovations that will capitalise on global energy and sustainability opportunities.

UAE STATE OF ENERGY REPORT 2017

In less than 10 years, the contributions and actions of the 48 prize winners to date have enhanced more than 289 million lives and facilitated partnerships and innovations that will capitalise on global energy and sustainability opportunities.

It is not just this significant impact on people that highlights the prize’s successful role in encouraging exceptional contributions to the advancement of renewable energy and sustainability. Its ability to attract entries is just as important, as without these, there would be no winners. For that reason, the news was welcomed that the prize exceeded 10,000 submissions and nominations since inception when entries to the ninth awards closed on 27 June, 2016. Continuing a trend of extraordinary growth year after year, entries to the ninth cycle rose by 12% on 2015, to a record 1,678. The number is evidence of the wide reach and influence the prize has built. But this headline figure alone does not tell the full story, as the quality of entries has also continued to grow, presenting a greater challenge for our committees to identify the outstanding candidates – a challenge that demonstrates the attraction, relevance and strength of the prize. Selected from 30 finalists across the five categories and revealed at the awards ceremony on 16 January, 2017, during Abu Dhabi Sustainability Week (ADSW), the winners of the ninth Zayed Future Energy Prize are continuing a legacy of innovation. This is especially true of the project proposals in the Global High Schools category, the establishment of which was a significant moment for the Zayed Future Energy Prize in 2012.

In the case of our latest winners, examples of innovation range from breakthrough photovoltaic manufacturing to government policy advisory. The nine recipients include GE, a giant in the wind and solar energy markets; Sonnen, a developer of smart energy storage systems for home and business; and Practical Action for providing deprived communities with clean energy resources in Africa, Asia and Latin America. In similar fashion, for his unwavering

(…)the Global High Schools category underline the prize’s commitment to the UN’s Sustainable Energy for All agenda.

1. STATE OF ENERGY

commitment to the adoption of renewable energy in China, Li Junfeng received the award for Lifetime Achievement. Director General of China’s National Center of Climate Strategy Research, Mr. Li was instrumental in drafting and structuring China’s Renewable Energy Law, passed in 2005, and spearheaded the country’s recent boom in electricity generation from renewables. Joining these leading lights, and as important, if not more so, are the five schools from five regions – Africa, the Americas, Asia, Europe, Oceania – rewarded for their ambitious and transformative project proposals submitted in the Global High Schools category.

With its demonstrable leadership in achieving ambitious global goals for renewable energy generation and sustainable development, the UAE has issued a call to action.

ABOUT

Dr Nawal Al-Hosany Executive Director of Sustainability and Brand

Not only does the Global High Schools category underline the prize’s commitment to the UN’s Sustainable Energy for All agenda, it also provides a platform to encourage young people to become leaders for the future of sustainable development. There is strong local element to this particular mission, and it is one way in which the prize contributes to achievement of the UAE Vision 2021, through objectives that seek to ensure sustainable development, while preserving the environment. For example, with the funds from winning the Global High Schools category in 2013, Sheikh Khalifa bin Zayed Bangladesh Islamia School in Abu Dhabi installed rooftop solar panels that generate enough renewable energy to meet 30% of its electricity demand and engineered an experimental modern wind tower to naturally cool classrooms. Combined, the 19 winning high school projects since 2012 have resulted in a reduction of more than 1,600 tonnes of carbon emissions and the generation of more than two million kilo-watt hours of clean electricity, benefitting 339,000 people in surrounding communities. One year on from the adoption of the Sustainable Development Goals, the Zayed Future Energy Prize winners are already contributing to the achievement of five of the 17 aspirational targets for the year 2030, namely: ensure access to aﬀordable, reliable, sustainable and modern energy for all; take urgent action to combat climate change and its impacts by regulating emissions and promoting developments in renewable energy; make cities and human settlements inclusive, safe, resilient and sustainable; ensure availability and sustainable management of water and sanitation for all; and achieve gender equality and empower all women and girls. With its demonstrable leadership in achieving ambitious global goals for renewable energy generation and sustainable development, the UAE has issued a call to action. In their entries to the Zayed Future Energy Prize, that call has been answered by true industry pioneers, innovators and young people, who are forging a path to sustainable prosperity. The Zayed Future Energy Prize is necessary to incentivise action taken to advance renewable energy and sustainability by businesses, organisations, individuals and schools. The growing impact of the prize therefore demonstrates the tangible results that leadership in this sphere can produce.

In her role as Executive Director of Sustainability and Brand, Dr Nawal Al-Hosany oversees four Masdar departments: Sustainability, Marketing and Communications; Abu Dhabi Sustainability Week and the UAE Pavilion at EXPO 2020 Dubai; and the Zayed Future Energy Prize. She is also an Adjunct Professor and member of the External Advisory Board at the Masdar Institute of Science and Technology.

UAE STATE OF ENERGY REPORT 2017

A WORLD FIRST – DUBAI’S UNCONVENTIONAL SHILAIF DUBAI PETROLEUM’S SUCCESS STORY Exploration and production operations oﬀshore are one of the most demanding activities within the oil and gas industry, accounting for approximately 20% of oil and 30% of the world’s gas production and the development of oﬀshore unconventional reservoirs through hydraulic fracture stimulation has been debated for more than a decade. Attempted in isolated cases on a small scale, such operations have been considered complex, expensive, risky, and economically unattractive, compared to other development opportunities.

The strategy followed by Dubai Petroleum has potentially opened the door to a new oil producing era for generations to come in Dubai.

ARTICLE

ARTICLE BY Frederic Chemin, Dubai Petroleum Establishment

1. STATE OF ENERGY

Technological breakthroughs in hydraulic fracturing in the past decade have enabled the renaissance of the oil and gas industry, with the development of tight and source rock reservoirs, mainly onshore in North America. New and dramatically improved operational efficiency standards have been set for fracturing in the recent years, however, the same efficient operational set up cannot be directly emulated in an offshore environment, due to limited space, more complex logistics, cost and environmental constraints. Dubai Petroleum Establishment (DPE), has been able to overcome these challenges, and in 2016 drilled, completed and produced the world’s first offshore horizontal multi-stage proppant fractured well that targeted a tight carbonate source rock – the Shilaif Formation at 8,400ft true vertical depth – source rock for most of the oil produced in Dubai. The success of this project has allowed DPE to unlock a significant volume of reserves in the Dubai acreage and possibly in the region. Despite being one of the most complex and largest offshore stimulation jobs ever attempted, it was executed with minimum environmental impact; no freshwater was used, the post-frac flow-back was performed in a closed loop system, where clean-up and production testing packages were specially designed conveying the flow-back fluids directly to the offshore production facility. The use of a modular type frac-package with continuous seawater mixing capability minimised the environmental impact and avoided any freshwater consumption. The stimulation was executed from a lift boat, less sensitive to maritime conditions, which accommodated equipment and crews for continuous well-site operation. Eight proppant fracturing treatments were performed in 48 hours. Wellbore conditions and petrophysical data acquired while drilling allowed for a robust multi-stage open-hole completion design. The eight stage proppant fracturing treatment was engineered using channel fracturing techniques with 560,000 lbs of proppant. This specific technique was applied to optimise proppant volumes and operational footprint while limiting screen-out risk in this complex reservoir stress setting and maximising frac conductivity. Acid fracturing in Dubai is not new. In fact, it has been performed since the 1970’s, but only in vertical wells. During 2013-2014, DPE drilled and multi-stage acid fracced four horizontal drains in different fields. The campaign started with the drilling of DPE-14A well in Nov-2013, as the first Shilaif dedicated pilot hole followed by DPE-14B, which in Jan-2014 became the first offshore multi-stage acid fractured horizontal well for Dubai and the United Arab Emirates. After proving that the Shilaif was able to produce oil to surface with the first well in Jan-2014, the objective of the campaign evolved into a pure appraisal campaign. Despite the challenges, during April-2016, DPE along with multiple service providers in the United Arab Emirates, successfully completed the world` s first offshore multi-stage proppant fractured horizontal well, DPE-12A, that targeted tight carbonate source rock reservoir.

This highlights the potential of Dubai’s offshore Shilaif resources. DPE’s reservoir appraisal strategy followed during phaseone (2012-2016) has potentially opened the door to a new oil producing era in Dubai. This remarkable operation, performed with cutting-edge technology and innovative operative integration was able to set a new efficiency benchmark, not only for well completion and fracturing operations within the Middle East but also for offshore in general. The true innovation of this project is the unique synergistic approach of advanced technologies application and uncertainty management. This approach shaped one of the most efficient and effective offshore fracture stimulation processes. The design, planning and execution of this exceptional hydraulic fracturing project required intense fast loop multidisciplinary technical discussion, agreement and most importantly a coordinated team approach to overcome the operational challenges, including logistics, equipment, cost, and personnel challenges.

UAE STATE OF ENERGY REPORT 2017

ABOUT

Frederic Chemin General Manager

He is currently the General Manager at Dubai Petroleum. Previously, he was the Development and Exploration Manager at Dubai Petroleum and also held several senior positions in exploration and development internationally at various operating companies. Before working in management positions, his technical work had been focused on exploration and greenfield developments while managing integrated teams to deliver resourceful solutions to diﬃcult petroleum projects.

This remarkable operation, performed with cutting-edge technology and innovative operative integration was able to set a new eﬃciency benchmark

The Shilaif reservoir could not be developed using traditional field development practices. It required the use of innovative operational approaches, cost eﬀective technology and appropriate risk management. DPE built and managed an integrated multi-disciplinary, multicompany team that was critical to deliver the DPE-12A project as per plan, and took the development of the Shilaif source rock from a conceptual to a production stage.

Fred earned a MSc in Geology and a MSc in Petroleum Exploration from France. He also holds an Executive MBA from the INSEAD Business School.

While the Shilaif development project carries large technical and economic challenges, it has a much larger economic upside. The well DPE-12A became the world’s first successful oﬀshore horizontal multi-stage proppant fractured well that targeted tight carbonate source rock, a milestone for the Middle East and oﬀshore in general. The strategy followed by DPE has potentially opened the door to a new oil producing era for generations to come in Dubai.

1. STATE OF ENERGY

ARTICLE

ARTICLE BY Christoph Frei, World Energy Council

EMBRACING NEW FRONTIERS FOR ENERGY THE GRAND TRANSITION The world is undergoing a Grand Transition, driven by a combination of factors, including the fast-paced development of new technologies, an unstoppable digital revolution, global environmental challenges and changing growth, and demographic patterns. Over the coming years, this energy transformation has the potential to change

the way in which we produce and consume energy. This will impact operating models and the economic foundation of both nation states and businesses, leading to a rebalancing across sectors and regions, with knock-on eďŹ&#x20AC;ects on the wider global economy.

UAE STATE OF ENERGY REPORT 2017

From Peak Oil to Peak Demand

Spending the Carbon Budget

The peak oil debate belongs to the past: the reality is that per capita demand for energy will peak before 2030. Energy intensity reductions supported by primary energy substitution eﬀects, are set to increase at a faster rate than the increase in demand from a growing global middle class. This, therefore, shifts the discussion from peak oil to peak demand, with an anticipated growth limited to only a 20% increase over the next 45 years, translating into significant implications for energy companies in terms of their ability to achieve their growth expectations, which will need to be factored into investment strategies.

The new reality is that we haven’t done enough to decarbonise our economies: the world will have to accelerate the decarbonisation of the global GDP to a rate of 6% per year in order to remain within the carbon budget associated with 2oC global warming. This will take considerable eﬀorts, since with current trends we could reach and surpass the carbon budget between 2045 and 2055, even with optimistic assumptions on energy intensity reductions. At COP21, the Nationally Determined Contributions (NDCs) agreed to provide about one-third of the required ambition level. Rapid and successful transitioning of global transport to low-carbon solutions presents the biggest obstacle, or opportunity, in achieving climate goals.

Over the coming years, this energy transformation has the potential to change the way in which we produce and consume energy.

Current market signals alone are not enough to improve critical areas such as energy eﬃciency, improved electrical storage, penetration of clean transport and much needed adoption of Carbon Capture, Utilisation and Storage (CCUS). Clear, focused and unambiguous policies and institutional frameworks are required to reinforce a wider deployment of solutions that accelerate the transition and drive consumer choice towards the most carbon and cost-eﬀective solutions.

1. STATE OF ENERGY

We are beyond the tipping point of a technology revolution in the energy sector.

From Stranded Assets to Stranded Resources Changes in the way we produce energy define a risk for existing assets to end up stranded. But looking ahead, we can see a growing number of primary resources, particularly in coal, possibly in oil, remaining unused. While fossil fuels will continue to have a significant role in the energy mix, contributing between half and two thirds of our energy needs in 2060, coal could potentially only represent 5% in the overall mix. Oil will still be needed for transportation, providing over 60% of energy needs, but overall oil demand will flatten out. The golden age of gas will continue, with expected output growth between 25% and 70% by 2060.

With stagnating growth potential in the oil sector and with coal likely to be of little importance by 2060, there will be a shift in the discussion from stranded assets (predominantly enterprise owned) to stranded resources in oil and coal (predominantly state owned). This has the potential to cause significant stress to the current global economic and geopolitical equilibrium and will need to be part of a broader carbon and climate dialogue.

UAE STATE OF ENERGY REPORT 2017

A Path of Innovation

ABOUT

Christoph Frei We are beyond the tipping point of a technology revolution in the energy sector. Energy markets are increasing in complexity, accelerated by fragmented energy policy, fast-moving technological innovation, and shifting consumer expectations. New realities are increasingly characterised by growing zero marginal cost supply, low entry barriers, greater focus on decentralisation and local empowerment, digitalisation and commoditisation of technology, more flexible and rapid pay back solutions, increasingly active investors and servicing of emancipated consumers. Solar and wind power will continue their rapid growth, with the electrification of energy-use being an unstoppable trend. By 2060, as a percentage of total final production, electricity could reach penetration levels as high as 30%, with up to 98% coming from non-CO2 emitting technologies, a three-fold increase over the current share, with 40% coming from solar and wind technologies alone, representing a 10-fold increase over the current share. Current market designs and business models are unable to cope with these new realities and will require entirely new skill-sets, business models and financing solutions. Meanwhile, we will still depend on up to 45% of our generated electricity being provided by fossil fuels, supplemented by CCUS. To truly realise the potential, we need more focused research, development and demonstration (RD&D). Coordinated innovation initiatives will be critical to the credibility of the decarbonisation agenda.

Leading the Way

Gulf states and companies are at the forefront of this transition and are leading the way in many areas.

The Grand Transition is unstoppable and requires a global response and careful management, building on the Energy Trilemma’s principles. A successful energy transformation calls for worldwide political and economic collaboration at an unprecedented scale. Leaders and society need to embrace these new realities and strive for continued innovation, while maintaining stable investment frameworks. There will be intense pressure on the three dimensions of the Energy Trilemma: individual countries aspire to improve energy security, expand energy equity and reduce carbon emissions. One-sided focus on selective priorities creates additional tensions and undermines broad political support, as well as the necessary stability to encourage investments. Novel approaches will be needed to keep the three dimensions of the Energy Trilemma balanced. Gulf states and companies are at the forefront of this transition and are leading the way in many areas. Only with positive leadership can we manage the Grand Transition and avoid a low-growth, inward-looking scenario, resulting in a stagnating energy sector.

Secretary General

Born in Switzerland in 1969, Christoph Frei became the World Energy Council’s youngest Secretary General in April, 2009. He has an assignment as Adjunct Professor and acts as Advisor to the President of the Swiss Federal Institute of Technology (EPFL), Lausanne. He is also a member of the World Economic Forum’s Global Agenda Council on Energy Security. Before joining the WEC, Dr Frei was Senior Director, Energy Industries & Policy at the World Economic Forum (WEF) and a member of WEF’s Executive Council (2001–2009). Dr Frei’s work and publications have covered energy security, energy poverty, and urban innovation. He has initiated projects including EPFL’s Roundtable on Sustainable Biofuels, the South Africa based Energy Access Partnership, and the World Economic Forum’s Partnering Against Corruption Initiative, which in 2008 led Ethisphere to rank him among the 100 most influential people in business ethics.

Adapting to these new realities will require massive eﬀort, and our ability to respond will define both winners and losers.

1. STATE OF ENERGY

UAE STATE OF ENERGY REPORT 2017

ARTICLE

ARTICLE BY Eng. Bilal Hassan, UAE Ministry of Energy

THE GLOBAL GRID

Each supermarket in the UAE presents an interesting collage of fruits and vegetables procured from across the world, ranging from cherries from Chile, blueberries from the USA, bananas from Uganda and durian from Thailand to coconuts from Malaysia. This platter of divine gifts in a single store makes energy engineers curious about a missing commodity: electrons. Why is the trade of electrons limited, while more fragile and vulnerable products travel freely across the globe? While a 100% renewable energy scenario for the UAE is still considered an impossibility, could there be a day when the UAE is completely powered by not only green electrons from its own indigenous solar plants, but also hydro power from Europe, geothermal energy from the Rift Valley in Africa and wind energy from Egypt and Ethiopia?

Just like fruit and vegetables are grown in specific areas, generating renewable energy is more viable in some areas compared to others. This includes solar from the desert regions in the Gulf, hydro power in the mountainous regions of the north, wind power along some coastlines, and geothermal energy in specific mountain ranges.

Generating renewable energy is more viable in some areas compared to others. Globally, our societies thrive on an active and abundant supply of aďŹ&#x20AC;ordable power, primarily fossil fuel-based. However, with the human population projected to reach almost 10 billion people by 2050, will we have enough fossil fuels? We might. However, oil and gas resources will become more diďŹ&#x192;cult to squeeze from the crust of the Earth and their cost will no doubt increase. The solution is renewable energy. There is no doubt the technologies for harvesting solar and wind energy have progressed beyond expectations over the past 20 years. Solar today is the cheapest source of power generation in the UAE. Our rulers have taken aggressive strides towards clean energy deployment in the country, and further ambitious plans will be announced soon, as part of the UAE Energy Strategy 2050. The solution to our problems today and into the future is a paradigm shift in how we perceive our power sector. The power sector of tomorrow is not on the Emirate level, national level, or regional level, but on the global level: it is the global grid. It must be liberalised and competitive, delivering the greenest and cheapest electrons to consumers. It needs to be independent of regional geo politics and run under free markets, with common standards of operation and control. The power system of tomorrow will be so vast that sun shining on one part of the planet powers the opposite extreme on the globe. This power system will sustain our future generations for centuries. The only issues that bottleneck the development and deployment of such a power system are our intentions and our limited vision as humans.

1. STATE OF ENERGY

What is the global grid? On a physical level, the global grid will consist of a global network of ultra-high voltage, underground, above-ground or sub-sea power cables. Is that an impossible? No. Mankind has already proved itself in the past with the development of the telegraph network, another mesh of cables. However, as with any large-scale investment in infrastructure, the use of the infrastructure needs to be guaranteed through appropriate regulations and market reforms. This essentially de-risks the investment for banks, which bear the major burden of the investment. Electricity networks have evolved as centralised networks with a silo mentality, however, the future is about decentralised

The power system of tomorrow will be so vast that sun shining on one part of the planet powers the opposite extreme on the globe.

power, with free markets providing equal opportunity to all generation, transmission and distribution companies. This will maximise the use of the global grid and enable investors to pay for it.

SCANDINAVIAN ELECTRICITY GRID NETWORK

EUROPEAN INTERCONNECTED POWER NETWORK

THE MAGHREB COUNTRIES INTERCONNECTION

EAST AFRICAN POWER POOL

SOUTH AFRICAN POWER POOL

UAE STATE OF ENERGY REPORT 2017

Is the investment astronomical? No, it is not, especially for the UAE. The UAE is strategically located in a position that has immensely benefited the UAEâ&#x20AC;&#x2122;s aviation industry. The same strategic geographic location can be exploited for its potential connections to multiple power pools across the planet, whether it is the Maghreb Countries Interconnection, or the Eastern and Southern Power Pools, the Central Asian grid network or the European interconnected power network. Interestingly, the Saudi Arabia power network will soon be connected to the Egyptian and Jordanian power networks as per announced plans. This will enable electrons to flow from the UAE to Morocco, or even to England. However, like any perishable good, the system needs to be optimised to minimise wastage or loss of electrons. A significant portion of the investment will be for the enhancement or expansion of existing grids.

Solar today is the cheapest source of power generation in the UAE.

ABOUT

Eng. Bilal Hassan Project Manager

CENTRAL ASIAN ELECTRICITY GRID NETWORK

(GCC) Power Grid

GULF COOPERATION (GCC) POWER GRID INTERCONNECTION

Upon graduation from Masdar Institute of Science and Technology, Bilal joined the International Renewable Energy Agency (IRENA), where he instrumented many initiatives in relation to technology cooperation and capacity building. He joined the Ministry of Energy in 2015, developing more projects such as national energy strategy modeling, transport modeling, triple helix research partnerships, load and generation modeling, regional trainings and coordinating with international organisations.

For a country like the UAE, the development of the power grid is significant, in terms of handling the variable sun. On a seasonal timeline, the UAE consumes far more electricity in summer than in winter. However, unlike natural gas plants, solar plants canâ&#x20AC;&#x2122;t be easily tweaked to match lower power demand in the winter months. Our winter months therefore witness significant additional solar power that could be traded to other regions, especially Europe, where winters result in a substantial increase in power demand.

1. STATE OF ENERGY

UAE STATE OF ENERGY REPORT 2017

IN FOCUS, UAE FUTURE OF ENERGY HIS EXCELLENCY DR MATAR HAMED AL NEYADI UNDERSECRETARY, MINISTRY OF ENERGY, UAE

The UAE has long been an important supplier of energy, and with its economic growth, the nation is becoming an increasingly relevant consumer of energy. This is why it is so important for the UAE to continue its tradition of responsible energy stewardship, as it develops and diversifies its economy and energy portfolio. As part of its ongoing commitment to sustainability, in its ensuing energy diversification strategies, the UAE is establishing goals to drive progress in meeting energy needs through more eďŹ&#x192;cient and sustainable means. To meet rising energy demands while ensuring sustainable growth, the UAE aims to invest AED 600 billion by 2050, as part of the mandate

of the Energy Strategy 2050. This will also include further development and implementation of renewable energy sources, ranging from solar energy to nuclear, waste-to-energy and wind, as well as demand-side management and awareness and community engagement programmes. By pursuing ambitious energy diversification targets, the UAE is positioning itself as a regional leader, with the goal of being one of the most sustainable nations in the world, proving that it is possible to be a major energy producer and exporter, while continually advancing towards a diversified and green economy.

2. IN FOCUS, UAE FUTURE OF ENERGY

A NEW PLAYBOOK OF ENERGY INNOVATIONS

The commercialisation of energy markets over the last century is a testament to human creativity. Today, two drivers are accelerating energy stakeholdersâ&#x20AC;&#x2122; appetites to innovate. Firstly, low and volatile oil prices since mid-2014 have forced energy stakeholders to review their roadmaps, with the International Energy Agency (IEA) saying in September 2016 that the market could remain oversupplied until mid2017. The energy ecosystem spans far and wide, with stakeholders including national and international oil companies, traders, financiers and shipping companies.

EDITORIAL

ARTICLE BY HE Saif Humaid Al Falasi, GCEO, ENOC Group

UAE STATE OF ENERGY REPORT 2017

Firstly, low and volatile oil prices since mid-2014 have forced energy stakeholders to review their roadmaps, with the International Energy Agency (IEA) saying in September 2016 that the market could remain oversupplied until mid-2017. The energy ecosystem spans far and wide, with stakeholders including national and international oil companies, traders, financiers and shipping companies. Secondly, the US Energy Information Administration (EIA) forecasts that global energy consumption will rise by 48 per cent between 2012 and 2040, which correlates to separate forecasts that the global population will swell by a third from today’s 7.3 billion to 9.7 billion by 2050. The UAE and other Gulf countries are leveraging their strategic geographic position at the heart of trade routes to establish the region as a global hub of energy trade and innovation. China, the world’s largest energy consumer, and India, which

The UAE and other Gulf countries are leveraging their strategic geographic position at the heart of trade routes to establish the region as a global hub of energy trade and innovation.

is expected to be the fastest growing crude consumer up to 2040, are both long-time energy allies of the Gulf’s energy producers. There will also be many regional opportunities for energy producers, as BP’s Energy Outlook outlines a 60 percent increase in the Middle East’s energy consumption by 2035. To remain resilient to the rapidly changing market, governments and energy companies – whether they deal with oil, gas, renewables, or others – are ramping up their financial and human capital and investing in research and development (R&D) with the aim of incurring greater long-term savings. The need to innovate has climbed near the top of most governments and companies’ energy agendas in order to cut costs and maximise operational eﬃciency along the entire value chain. Over two-thirds (68 per cent) of respondents to a Lloyd’s Register survey last year planned to increase their R&D budgets by 2018.

Both the public and private sector are keen to focus on applied research, which aims to resolve a specific problem instead of exploratory science. ENOC’s internal Innovate programme has led to the implementation of 105 novel ideas and saved the group a staggering $19 million since 2012. ENOC introduced one innovation nearly every week in 2015, with new ideas over the last four years ranging from a specialised refueling hydrant for Boeing 737 aircraft to a Vehicle Identification Pass (ViP) concept at ENOC’s retail stations. Both ideas illustrate the value of solving targeted challenges and each boosts economic, operational and environmental eﬃciency for ENOC and Dubai.

2. IN FOCUS, UAE FUTURE OF ENERGY

There are multiple examples illustrating the innovative spirit of the UAE’s energy sector. In the upstream markets, thinking outside the box to counter the bearish impact of low oil prices is merging the two worlds of fossil fuels and renewables more than ever before. For example, the Carbon Capture, Utilisation & Storage (CCUS) project of Emirates Steel is the first project under Al Reyadah, which is a joint venture between Masdar and ADNOC, and aims in part to improve enhanced oil recovery (EOR) technologies. Such projects will likely become more common, with the United Nations Environment Programme (UNEP) reporting a record high rate of global investments in the renewables market in 2015, at $286 billion.

ABOUT

HE Saif Humaid Al Falasi

There are multiple examples illustrating the innovative spirit of the UAE’s energy sector.

At the other side of the value chain, the UAE’s Port of Fujairah became home to the first very large crude carrier (VLCC) jetty on the Indian Ocean in September this year. Innovations that bolster the Port’s capacity are integral to the growth of the region’s global influence in energy markets. The Port is located south of the strategic oil chokepoint of the Strait of Hormuz, through which approximately 30 per cent of the world’s oil seaborne traﬃc flows. The use of crossover technologies is also gaining traction in the global energy sector. For example, automated image analysis used by the police for facial recognition can be adjusted to assess drill bit damage at a remote oil field, thus saving on repairs and reducing delays. Health and safety measures used in high risk industries, such as aviation and medicine, are most easily adjusted to benefit energy operations. Stakeholders in Dubai, the wider UAE and beyond face a fascinating and challenging outlook and improving students’ multidisciplinary education will create the intellectual creativity required to spearhead the next generation of energy innovators. The enhanced learning of science, technology, engineering and mathematics (STEM) must be complemented by an ability to think critically, imaginatively and quickly. Combined, these skills will create a holistic talent pool that will enable the energy sector to meet increasingly strict environmental targets and rapidly rising energy demand, while maintaining health profit margins. There is already an urgent need for more highly skilled workers, with nearly half of the world’s petroleum engineers expected to retire within the coming decade, for example. It is rewarding to see that Gulf countries’ eﬀorts to become thought leaders on the global energy stage are gaining traction with every fresh idea.

Group Chief Executive Officer

UAE STATE OF ENERGY REPORT 2017

MINISTRY OF ENERGY STRATEGY PLAN 2017 - 2021

OUR VISION

A community which preserves its resources and enhances such an energy that would achieve long lasting sustainability

OUR MISSION Organising and developing general policies and legislations under the consultation of the stakeholders involved to fit the energy sector as per the international standards and following up its implementation; also representing the statĂ¨s interests concerned with energy, water and mineral resources and drafting any related specialized studies

1. Achieving security and Sustainability of the Energy Sector, Water, Mining

STRATEGIC GOALS

2. Regulation of the Energy, Water, and Mining Sector and Buried Gases Emission to Support Economic Development

3. Sustainable Development and Integrated Management of Water Resources

4. Assurance of the provision of all administrative services in compliance with Quality, EďŹ&#x192;ciency and Transparency Standards.

5. Entrenching and promoting a culture of innovation in the workplace and within our corporate strategy.

https://www.moenr.gov.ae

2. IN FOCUS, UAE FUTURE OF ENERGY

INTERVIEW

HE MATTAR AL TAYER Director General, Chairman of the Board of Executive Directors, Roads and Transport Authority

UAE STATE OF ENERGY REPORT 2017

HOW IS RTA GEARING UP FOR THE EXPO 2020 DUBAI? STRATEGIC TRANSPORT PLANNING

The Emirate has capitalized on its fantastic location on the global map to act as a communication link between various continents as two-thirds of the world’s population is within 8-hours flight from Dubai.

Winning the bid to host the world EXPO 2020 Dubai in November 2013, was just a further addition to the proven record of accomplishments of Dubai, highlighted by an array of impressive world-class achievements. It was a culmination of the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, as well as the solid & unremitting Government policy to continuously develop the infrastructure and the services that have uplifted Dubai to the forefront of the global attention enabling the city to carve a niche as a premier global hub for business, finance & tourism. The Emirate has capitalized on its fantastic location on the global map to act as a communication link between various continents as two-thirds of the world’s population is within 8-hours flight from Dubai. The superb infrastructure, sterling

services, fine shopping centers, and the abundant tourist activities & events that set Dubai a class apart, attract millions of visitors every year. EXPO 2020 Dubai, which features the participation of about 200 entities and firms, is anticipated to attract about 25 million visitors, during the duration of Expo from 20 October 2020 to 10 April 2021. The maximum number of visitors of Expo per day is expected to touch 300,000 visitors. Accommodating this massive number of visitors obviously requires accurate planning to ensure smooth mobility between the exhibition site and their places of residence. To achieve this, Dubai counts on its global reputation and rich legacy of successful planning & managing of major events such as the hosting of the IMF and World Bank meetings, Dubai Airshow, Dubai Shopping Festival, and the New Year’s celebrations assembled in a small area beside Burj Khalifa and attended by around 1.7 million persons. As part of its preparations for hosting EXPO 2020 Dubai in a style befitting the profile of Dubai, the RTA has developed a master plan for roads & transport services in support of Expo. The plan includes multiple transit options for transporting visitors from their places of residence to Expo site including modes such as the metro, buses & taxis in addition to the private cars.

2. IN FOCUS, UAE FUTURE OF ENERGY

Considering that environmental sustainability is one of the key objectives of Expo, the plan advocates the use of mass transit means (bus and metro); which are expected to account for 46% of the total number of person trips from and to Expo. To accommodate this demand, key measures are initiated, such as extending the Red Line of the Dubai Metro from Nakheel Harbour and Tower Station up to the site of Expo in a 15 kmlong track comprising 7 stations; of which one is dedicated to the Expo service. Expo visitors using the metro are expected to clock 14,500 riders per hour per direction during the ceremony days. On the other hand, Expo Buses (EXPO riders) will transport people from 18 main stations across Dubai and 10 main stations in other emirates to the Expo site. These stations will be properly distributed to serve Expo visitors. Expo visitors using the buses are expected to clock 19,000 riders per hour per direction during the ceremony days. Visitors will first head to those stations and from there they will be transported by buses. The overall number of buses required to serve Expo is estimated at 625 buses.

According to the plan, about 30,000 parking slots will be provided within the perimeters of the site to serve visitors who opt to visit Expo by their private vehicles, where they will be picked up by shuttle buses and dropped off at the vicinity of the site. Expo will also be served by around 1,900 taxis, and this will require suitable parking areas and facilities for these vehicles on site. The plan also envisages the construction of roads network, and main interchanges to improve the accessibility to the site. The aim is to offer high flexibility in entry/exit movements and multi-modal options. The RTA is currently undertaking other projects to streamline the mobility to and from EXPO 2020 Dubai through a radical overhaul of the Traffic Control Centre as well as the establishment of a Unified Enterprise Command Control Center (EC3) to ensure multi-modal integration. The total estimated costs of road & transport infrastructure required for EXPO 2020 Dubai exceeds AED 12 billion.

UAE STATE OF ENERGY REPORT 2017

It is worth noting that EXPO 2020 Dubai is not the ultimate goal of Dubai’s drive towards excellence and global leadership. The emirate’s road & transport infrastructure will still witness further improvements. The next phase will focus on achieving higher levels of integration between transport services and social & economic activities, in addition to the transition to the smart mobility systems, which are viewed as an integral part of the Dubai plan to realize the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to rank Dubai as the smartest city world-wide by 2017. HH Sheikh Mohammed bin Rashid Al Maktoum has launched Dubai’s Self-Driving Smart Transport Strategy, which aims at diverting 25% of the total mobility trips in Dubai to self-driving trips made by various transit modes by 2030.

As part of its preparations for hosting Expo 2020 Dubai in a style befitting the profile of Dubai, the RTA has developed a master plan for roads & transport services in support of Expo

The emirate will also continue enhancing the role of mass transit means through counting on innovative means & smart services to facilitate people’s movement and accessibility to major stations and transport routes, including self-driving vehicles & buses operable on demand via smart applications. Small-scale test runs of such technologies were conducted during the UITP MENA Transport Congress & Exhibition held in Dubai from 25 to 27 April 2016. In the next phase, RTA will also be introducing new transport means and technologies including Teleferic (cable car system) and Bus Rapid Transit (BRT) in order to realize RTA’s vision of ensuring «Safe and Smooth Transport for All» and realizing the ultimate objective of the Government of “People Happiness”.

ABOUT

HE Mattar Al Tayer Director General, Chairman of the Board of Executive Directors

HE Mattar Al Tayer, a professional civil engineer, graduated from the University of Wisconsin in 1983, and holds an Honorary Fellowship of the British Institute of Civil Engineers (ICE), 2010. He was assigned the task of leading the Roads and Transport Authority in November, 2005. Under his leadership and driving force, he established a competent and experienced specialist workforce, thereby driving the organisation through remarkable achievements that have positioned RTA into a world-class organisation.

The emirate’s road & transport infrastructure will still witness further improvements.

2. IN FOCUS, UAE FUTURE OF ENERGY

FEDERAL AND LOCAL ENERGY STRATEGIES MEET UAE’S ECONOMIC REQUIREMENTS AND ACHIEVE ENVIRONMENTAL GOALS THE FUTURE OF THE UAE’S ENERGY SECTOR

EDITORIAL

ARTICLE BY Waleed Salman, Dubai Electricity & Water Authority (DEWA)

The UAE’s strategies and investments in clean and renewable energy are leading global eﬀorts to achieve environmental goals despite being one of the largest oilproducing countries in the world. In January 2017, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the UAE Energy Strategy 2050. This outlines the future of the UAE’s energy sector over the next three decades to increase the contribution of clean energy in the total energy mix to 50%, saving AED 700 billion by 2050. It targets an energy mix that combines renewable, nuclear and clean energy sources and aims to increase individual consumption eﬃciency by 40%, to meet the UAE’s economic requirements and environmental goals.

the Dubai Clean Energy Strategy 2050, to make Dubai a global centre of clean energy and green economy. The strategy aims to provide 7% of Dubai’s total power output from clean energy sources by 2020. This will increase to 25% by 2030 and 75% by 2050.

The UAE, and Dubai in particular, have already made clear commitments to achieving these goals. In November 2015, HH Sheikh Mohammed bin Rashid Al Maktoum launched

The infrastructure pillar includes a free trade zone called the Dubai Green Zone, to attract Research and Development (R&D) centres and emerging companies in clean energy. The

The Dubai Clean Energy Strategy 2050 consists of five main pillars: infrastructure, legislation, funding, building capacities and skills, and an environmentally-friendly energy mix. The first pillar includes the AED 50 billion Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world. It will produce 5,000 megawatts by 2030, saving approximately 6.5 million tonnes of carbon emissions annually.

UAE STATE OF ENERGY REPORT 2017

ABOUT

Waleed Salman EVP, Strategy and Business Development

second pillar establishes the legislative structure to support the Shams Dubai initiative, which encourages building owners to install photovoltaic panels to produce electricity and connect them to DEWAâ&#x20AC;&#x2122;s grid. For funding, the Dubai Green Fund covers financing solutions for investment in R&D on clean energy and its applications. This includes the Dubai Green Fund, which is worth AED 100 billion. The fourth pillar develops skills through global training programmes in clean energy, in cooperation with international organisations, institutes and R&D centres. The fifth pillar is focused on creating an environmentally-friendly energy mix, based on the agreed targets. These strategies are set to propel the UAE into a brighter future, for generations to come.

He has over 25 years of experience in the energy sector. Waleed is currently Executive Vice President of Strategy and Business Development at Dubai Electricity and Water Authority, Vice Chairman of the Dubai Nuclear Energy Committee, Director of the Emirates National Grid Project, Chairman of the Dubai Carbon Centre of Excellence, Vice Chairman of the Etihad Energy Service Company, Vice Chairman of Mai Dubai, member of the Dubai Supreme Council of Energy, and member of World Green Economy Organisation. Eng. Waleed graduated from Colorado Tech University and has an MBA from the American University of Dubai.

In January 2017, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the UAE Energy Strategy 2050.

2. IN FOCUS, UAE FUTURE OF ENERGY

COMMITTED TO SUSTAINABLE DEVELOPMENT

ARTICLE

ARTICLE BY HE Lt General Dhahi Khalfan Tamim, Dubai Police and General Security

Introduction The term sustainable development means different things to different people. Fundamentally though, it is concerned with meeting the needs of people today without compromising the ability of future generations to meet theirs. For any measure of success in the sustainability arena, a strong vision is required, supported by leaders who demonstrate personal commitment to the cause. The leadership of the UAE has demonstrated great vision with regards to sustainability, actively committing to global and national sustainable development goals and focusing on sustainability as a central tenet of high-level strategies such as the UAE Vision 2021 and the UAE Green Economy for Sustainable Development, as well as Emirate-level strategies including the Dubai Clean Energy Strategy 2050, amongst others. In Dubai, this vision is supported on both a strategic and practical level by governmental organisations including the Security Entities of Dubai. The Police and General Security Entities in Dubai play an inspirational leading role in the transformational vision towards achieving the Sustainable Development Goals (SDGs), officially known as “Transforming our world: the 2030 Agenda for Sustainable Development” and are decisive in their implementation in the region. The entities are at the forefront of aligning national strategies with international best practices with the aim of bringing justice to the people, and achieving a better and sustainable world.

UAE STATE OF ENERGY REPORT 2017

Inspirational Leadership The UAE has continued to fortify the safety and security of citizens and residents, and the nation has a dedicated goal to be the safest and most secure country in the world by 2021. The security entities are spearheading this initiative in Dubai and at the first annual conference of the Emirates Strategic Planning Association in 2015, we outlined 21 goals that we believe the country can achieve by 2021, addressing issues such as human rights, road safety, secure financial markets, environmental security, crime and unemployment. It is this unwavering belief in the Emirate and the nation that guides these entities onwards, to excel in environmental stewardship, ensuring social stability and a sustainable future.

We believe that organisations can only succeed in the long-term if they recruit and motivate people who are able to respond to and shape the challenges of the future. The topics of environmental security and sustainable development are some of those challenges and it is not just the responsibility of environmental specialists or communications professionals, but rather, a responsibility of all. It has become a major responsibility of leaders and planners all over the world to demonstrate personal commitment to the principles and values of sustainable development, encouraging and enabling others to make this a focus of business action.

Initiatives Since its establishment, Dubai Police has authored pioneering initiatives dedicated to serving the Emirateâ&#x20AC;&#x2122;s sustainable development. These initiatives include combating air pollution and marine pollution and developing marine conservation areas, as well as turning large areas of land into green zones by planting over a million trees across Dubai. The force has played an active and decisive role in pushing environmental legislation and strategies for adopting renewable energy and rationalising water and electricity in support of the green economy in Dubai in particular, and the UAE in general. Dubai

Police was the first to call for a marine emergency plan that has made a significant contribution to promoting environmental conservation and preservation. Additionally, Dubai Police has launched more than 22 diďŹ&#x20AC;erent establishments, such as the Police Operations Room, which is ranked as one of the best in the world; the criminal lab; forensic medicine section; land, sea and air rescue teams; the Dubai Police Academy; the Total Quality Department; Dubai e-TQM College; and the Research and Studies Centre, which has evolved into a centre for quick decision-making.

2. IN FOCUS, UAE FUTURE OF ENERGY

Our approach is geared towards acheiving more with fewer resources

ABOUT

The leadership of the General Security Entities is quick to transform thoughts into actions as evident by founding the Juvenile Welfare Association in Dubai, leading of the Emirates Talent Association and heading the Dubai Appreciation Award for Community Service and the Crisis and Disaster Committee to provide exceptional services to our citizens. We value the importance and preciousness of our resources and commit to dedicating our eﬀorts round the clock towards preserving our environment. Our approach is geared towards achieving more with fewer resources, in order to pursue true sustainable development with the support of our community and families.

In Conclusion The Police and the General Security Entities in Dubai are leading by example in diﬀerent sectors, from security to green initiatives, bringing Dubai and the UAE closer to achieving the goals of long-term environmental and community sustainability.

HE Lt General Dhahi Khalfan Tamim Deputy Chairman of Police and General Security in Dubai

He is playing a leading role in shielding society from crime, maintaining social stability and warding oﬀ any external threats that may arise. His eﬀorts extend to pushing environmental legislation and strategies, adopting renewable energy, rationalizing water and electricity, and promoting the green economy of Dubai in particular and the UAE in general. HE Lt General Dhahi Khalfan Tamim received numerous awards for his contributions to promoting environmental conservation and preservation, including the Environmental Personality Award and the World Energy Environment Award.

UAE STATE OF ENERGY REPORT 2017

ENABLERS FOR THE FUTURE OF CLEAN ENERGY NATIONAL TARGETS, INCENTIVES, INTEGRATION GUIDELINES, PUBLIC AWARENESS AND HUMAN RESOURCE DEVELOPMENT

ARTICLE

ARTICLE BY Reshma Francy, UAE Ministry of Energy

In recent years, the UAE has witnessed a sharp drop in the levelised cost of electricity for utility-scale solar PV, and the nation currently holds the record for the lowest price achieved for solar PV in the world. In 2015, the 100MW Mohammed bin Rashid Solar Park in Dubai set record prices when the Saudi renewables major, Acwa Power, snapped up the landmark solar contract at USD .058/Kwh. A year later, the 800 MW third-phase expansion of the Mohammed bin Rashid Solar Park witnessed yet another recordbreaking bid of USD .0299/Kwh by a Masdar-led consortium. A few short months later, the record was once again shattered, this time in Abu Dhabi, with the lowest bid from an Asian consortium for the upcoming 350MW solar PV plant in Sweihan coming in at USD .0242/Kwh per kilowatt-hour (kWh).

2. IN FOCUS, UAE FUTURE OF ENERGY

These bids clearly represent the declining costs of solar PV technology, making it increasingly cost-competitive with conventional energy. Solar PV prices are 75% lower than five years ago, according to the Middle East Solar Industry Association. To continue and further encourage this energy transition, governments will need to prepare the energy sector to accept the clean energy technologies through policy and regulation. There are several mechanisms that can be utilised to enable continued development within the sector. Firstly, it is important to set national targets to provide vision for the sector, including feasibility assessments on the potential of clean energy and developing an energy master plan to guide both current and future development. To simultaneously encourage development and adoption, incentives can be used, on both the supply and demand side. This includes feed-in tariďŹ&#x20AC; schemes, reverse-auctioning based on a set tariďŹ&#x20AC;, and the use of renewable energy certificates. It is also vital to proactively develop guidelines for the integration of clean technologies in the energy mix. This encompasses assessing and outlining the preferred corridors for development; providing a one-stopshop for licenses; establishing processes for

obtaining permits and approvals; interconnectivity guidelines for technologies; and outline guidelines for improvements in grid stability. Finally, public awareness and human resource development within the sector will determine the long-term success of renewable energy development. Activities in this realm include the creation of research and development centres, capacity building programmes and outreach programmes, to ensure buy in from all stakeholders. Now that prices for renewables are plummeting, perhaps the biggest barrier to broader adoption is the variability. Current measures to manage variability include the development of dispatchable plants. A dispatchable plant for energy refers to a power system that can adjust the power output supplied to the electrical grid, in order to meet changing electricity demands. As solar power is variable depending on weather and atmospheric conditions, ensuring the output is dispatchable will also ensure its eďŹ&#x192;cacy. Naturally, grid interconnection is vital in this regard, as is demand-side management, to ensure energy is available when and where it is needed. Energy storage is thus a significant issue and innovation in cost-

UAE STATE OF ENERGY REPORT 2017

ABOUT

Reshma Francy Project Manager Energy Strategy

Financing mechanisms must be formulated to improve investorsâ&#x20AC;&#x2122; faith in clean energy.

competitive energy storage solutions will be a deal-breaker for higher renewable energy penetration. Today, the most mature storage technology is pumped hydro, but emerging technologies include adiabatic compressed air energy storage, flywheels, power to gas and super capacitors, as well as thermal storage in forms such as boilers, heat pumps and chilled water. In addition to policies and procedures and technological development, financing mechanisms must be formulated to improve investorsâ&#x20AC;&#x2122; faith in clean energy. This necessitates working together with National Treasuries and Central Banks to develop financing frameworks and creating mechanisms through regular engagement between local technology innovators, academics, entrepreneurs, investors and public administrators. In addition, to generate investor confidence, financing options can be maximised through

initiatives such as providing guarantees and the use of long-term agreements, such as purchasing agreements. The creation of banking regulation and other measures that incorporate sustainability into financial decision-making also make a contribution. It is only through these enablers that the potential of renewable energy can be fully realised, lending confidence to investors and consumers, and ensuring a secure future for the new energy mix.

She is the Project Manager Energy Strategy at the Ministry Of Energy. She has been in the field of sustainability and climate change over the last four years, leading her to the current position and involvement in the National Energy Strategy. She is also an alumna of the Masdar Institute.

LINKS

REFERENCES: http://www.thenational.ae/business/ energy/tender-for-second-phase-ofmohammed-bin-rashid-solar-park-in-dubaiwon-by-saudi-consortium

2. IN FOCUS, UAE FUTURE OF ENERGY

THE CARBON AMBASSADOR PROGRAMME ENGAGING YOUNG PEOPLE IN ENVIRONMENTAL AND SUSTAINABILITY ISSUES

ARTICLE

ARTICLE BY DEWA

The Carbon Ambassador Programme is a youth engagement programme launched by Dubai Electricity and Water Authority (DEWA), Dubai Carbon Centre of Excellence (DCCE), and the United Nations Development Programme (UNDP), to train students in environment-related issues, such as sustainable buildings, climate change, green economy, and environmental awareness. DEWA oversees this initiative to support the Green Economy for Sustainable Development initiative launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. DEWA has a clear strategy to develop and train Emirati staﬀ as they have a key role in the sustainable development of Dubai and the UAE.

To achieve its vision to become a sustainable innovative worldclass utility, DEWA exerts all eﬀorts to protect the environment and save resources for generations to come. This will further promote the success of the Carbon Ambassador Programme and enhance its position through adopting international best practices to shape the future leaders of the UAE’s transition to a low-carbon economy. DEWA gives priority to training the youth and developing their abilities to actively contribute towards achieving sustainable development. DEWA encourages creativity by providing the necessary tools and training programmes that contribute to the growth of cognitive and innovative abilities. We provide all of the necessary capabilities for the success of the Carbon Ambassador Programme in engaging young people in environmental and sustainability issues. This adheres to the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, and supports the Dubai Plan 2021, which aims to make Dubai sustainable in terms of resources and ensure its environmental elements are clean, healthy, and sustainable. The Carbon Ambassadors are the next generation of leaders and experts, who will implement ambitious National strategies and plans as well as contribute to innovating new initiatives and programmes as part of the Dubai Clean Energy Strategy 2050, to establish Dubai’s position as a global hub for clean energy and energy eﬃciency.

UAE STATE OF ENERGY REPORT 2017

The Ministry of Climate Change and Environment (MoCCAE) is DEWA’s strategic partner for the Carbon Ambassador Programme. The MoCCAE’s collaboration with DEWA provides vital support for initiatives by the youth in the areas of environmental sustainability, in synergy with the Green Economy for Sustainable Development initiative, launched HH Sheikh Mohammed bin Rashid Al Maktoum. The MoCCAE always strives to contribute to the UAE’s eﬀorts in establishing the fundamentals of sustainable development and protection of the environment, in line with our leadership’s directive. DEWA’s Carbon Ambassador Programme has seen the number of enrolled students in the second batch in 2015-2016, doubled to 75. Students in the second batch support the former Ambassadors’ eﬀorts to building a greener and sustainable future, emphasising their commitment to supporting sustainable development in the region, as well as within Emirati youth networks. DEWA organised the third batch of training sessions and the course featured sessions held in both English and Arabic over 3 days, addressing the topic of greenhouse gases. The course covered the carbon footprint, climate change, and ISO 14064.1-2006. On completion, the students sat an exam and those who passed received certificates. The training sessions were conducted by Etihad Energy Service Company (ESCO) and aimed to involve the youth in achieving sustainable development objectives, as part of the UAE Vision 2021, which has the goal of transforming the UAE into one of the best countries in the world by 2021. The training sessions were held at DEWA’s Sustainable Building in Al Quoz from 8-9 August 2016, and featured presentations and discussions regarding concepts, Energy Performance Contracting (EPC), and Super-ESCOs. The training sessions also discussed project development, implementation, and ESCO’s approaches, with a focus on monitoring and verification (M&V) risks, and Dubai’s approach in regard to ESCO and Super-ESCOs. The sessions also included discussions on the sustainability assessment of buildings using the LEED rating system.

DEWA gives priority to training the youth and developing their abilities to actively contribute towards achieving sustainable development

The UAE Water Aid Foundation (Suqia), under the umbrella of the Mohammed bin Rashid Al Maktoum Global Initiatives, sponsored an innovative project by a team from the Carbon Ambassador Programme, with support from the United Nations Development Programme, and in cooperation with the Dubai Carbon Centre of Excellence. The project aims to provide one of the largest urban areas in Nairobi with clean drinking water and includes the innovative and sustainable transformation of a 20-foot converted shipping container into a water purification unit that uses reverse osmosis and can operate solely on solar energy, with a capacity of 800 gallons. Both the interior and exterior of the container employ the use of sustainable technology, such as LED lights, ventilation fans, PVC flooring, and heat-insulated glass doors and paint. The system produces 7.6 cubic metres of drinking water, aiding over 1,500 people per day and once drained, the water is used within an irrigation system.

The Carbon Ambassadors are the next generation of leaders and experts, who will implement ambitious National strategies and plans as well as contribute to innovating new initiatives and programmes as part of the Dubai Clean Energy Strategy 2050, to establish Dubai’s position as a global hub for clean energy and energy eﬃciency.

FACT BOX FACT BOX

The Carbon Ambassador Programme is a youth engagement and training programme engaging young Emirati graduates who fulfil carefully selected criteria, to get involved in sustainable development, low carbon development and green economy. The programme managed by DEWA is aiming to streamline the growth of future leaders of the UAE’s ambitious visions in line with the Green Economy for Sustainable Development. Since its inception in 2014, the programme has successfully trained and mentored 120 young Emiratis.

2. IN FOCUS, UAE FUTURE OF ENERGY

ENERGY EFFICIENCY AND POTENTIAL SAVINGS IN THE UAE A STEPPING STONE FOR ASSESSING THE FULL MARKET SIZE OF ENERGY EFFICIENCY ENHANCEMENT SAVINGS IN THE COUNTRY

ARTICLE

ARTICLE BY Marouane Temimi, and Sameh El Khatib, Masdar Institute

The U.A.E is classified as a high-income developing country, depending highly on hydrocarbon products supporting its economical accomplishments. During 2013, the UAE’s oil and gas activities accounted for 45% of its USD 383 Billion GDP, standing at USD42K per capita. Given the country’s strong economic activities, its population has been undergoing a continuous increase at a 7.7% annual growth rate, accumulating a total of 9.35 million people in 2014.

Moreover, the country has historically installed a highly subsidised electricity tariff structure, which has led to high electricity consumption, mainly driven by cheap tariffs. In addition, and in parallel to the country’s economic and population growth, electricity consumption is expected to grow by 7-10% annually in the period 2014-2020, at 2,425 GWh/yr. To meet the country’s electricity demand, the UAE depends 98% on natural gas (NG) for its power generation. Despite the country’s abundant NG resources, the UAE began importing gas to meet the NG supply-demand deficit. In addition, the UAE’s energy balance highlights the prominent role fossil fuels play in meeting the country’s internal demand, as well as the high level of fossil fuel exports that generate wealth for the country. Given the heavy reliance on NG, the UAE is looking to decrease its dependence on NG and increase its energy security. Therefore, the UAE started a number of initiatives towards increasing its energy security and diversifying its energy profile through various projects such as renewables and nuclear. Nevertheless, the country is still expected to face challenges in meeting its growing demand and transitioning to higher efficiency technologies along the electricity value chain.

UAE STATE OF ENERGY REPORT 2017

The interventions in oil and gas extraction include the instalment of natural gas engines as an alternative to flaring associated gases at onshore and oﬀshore oil rigs, along with the instalment of waste heat to power systems at oil refineries.

The findings provide a good sense of the potential magnitude of national wealth savings for the UAE from energy-eﬃciency measures, and will act as a stepping stone for assessing the full market size of energy eﬃciency enhancement savings in the country.

For power generation, three eﬃciency enhancement scenarios were explored of +1%, +2% and +3% to the overall power plant performance. While the power plants were treated as a black box, interventions within power plants that could lead to such eﬃciency enhancements were explored, such as enhancements to the natural gas turbines (through technologies such as advanced gas path (AGP)) and the optimisation of power-plant processes through the integration of hardware and software (industrial internet).

In our research, we have assessed the potential national wealth savings to the UAE government across the electricity value chain, using a number of interventions in oil and gas extraction, power generation, and electricity end-use. The in-house model devised calculated national wealth savings according to different types, which include fossil fuel subsidy savings (from natural gas and diesel); electricity tariff subsidy savings; and the opportunity cost savings from the potential sale of natural gas and diesel abroad. The model allows for modification of an array of prices reflecting the complex fossil fuel procurement and subsidy dynamics of the country. Furthermore, the model allows for different penetration rates per intervention across the electricity value chain, to reflect various adoption scenarios.

For end-use, multiple interventions were explored that were benchmarked to a business-as-usual scenario, including a combination of technical and behavioural aspects. The interventions generally fall under the categories of cooling/heating and lighting. They are applied across the different building types in the country and at a city level, reflecting the different dynamics per Emirate. Cooling/heating includes changes to the wall insulation values, set point temperature, and the efficiency value of chillers and air conditioners (COP value). Lighting includes the assessment of new halogen lighting, compact fluorescent lighting (CFL), and Light Emitting Diodes (LED), all benchmarked to the business-as-usual scenario of incandescent lighting. A summary of considered interventions is depicted in Figure 1.

RESOURCES (DOMESTIC/IMPORTED)

CONVERSION TECHNOLOGIES

FINAL ENERGY CARRIER

END-USE

Oil Extraction (R1, R2)

Oil Fired Gas Turbines

Coal Imports

Coal PP

Gas Imports

NG Simple Cycle PP

TRANSPORTATION

Petroleum & Derivatives

Natural Gas

Gas Extraction (R2)

Coal/ Bio-mass

(CT1)

INDUSTRIAL Equipment & machinery Petrochemical industry Power generation (oﬀ-grid) Cooling & heating

(CT1)

NG Steam Turbine PP

Rail Trucks/cars/buses Ships/freights Planes/jets

(EU2, EU3, EU4)

Lighting & appliances

NG Combined Cycle PP

(EU1)

(CT1)

Bio-mass

MSW based PP

Nuclear

Nuclear PP

Wind

Grid-Connected Wind Power

Solar

Grid-Connected Solar Power

NSEA

RESIDENTIAL /COMMERCIAL Cooking Cooling & heating

Electricity

(EU2, EU3, EU4)

Lighting & appliances (EU1)

Electricity

AGRICULTURAL Equipment & machines Cooling (Greenhouses) Irrigation & pumps

SEA

TECHNOLOGY INTERVENTIONS THROUGHOUT ELECTRICITY VALUE CHAIN ENERGY RESOURCE R1: Natural Gas Engines R2: Waste Heat to Power

POWER GENERATION R1: Natural Gas Engines R2: Waste Heat to Power

END-USE EU1: Lighting retrofits EU2: Wall insulation retrofits EU3: Temperature set point EU4: Cooling retrofits

LEGENDS SEA: Stationary Energy Application

NSEA: Non-Stationary Energy Application

MSW: Municipal Solid Waste

NG: Natural Gas

PP: Power Plant

Figure 1: Eﬃciency enhancement interventions investigated along the UAE energy value chain.

2. IN FOCUS, UAE FUTURE OF ENERGY

ABOUT

Marouane Temimi Associate Professor

He is Associate Professor, Water & Environmental Engineering Program in Chemical and Environmental Engineering Department at Masdar Institute of Science and Technology Dr Temimi obtained his Ph.D. degree in Water resources/Remote Sensing from the University of Quebec/ ETS, Montreal, Canada. Dr Temimi holds over 10 years of extensive experience in industry and academia. He served in leading international engineering firms and before joining Masdar Institute, Dr Temimi worked at the NOAACREST Institute at the City University of New York. He led/ co-led several research projects, including those funded by The National Aeronautics and Space Administration (NASA) and the National Oceanic and Atmospheric Administration (NOAA).

The UAE started a number of initiatives towards increasing its energy security and diversifying its energy profile through various projects such as renewables and nuclear.

Based on the findings from the developed model and scenario analysis carried out, it is clear the absolute national wealth savings from eﬃciency enhancements are highly dependent on the complex dynamics of natural gas and diesel procurement, along with the associated costs. However, the key findings of this preliminary work, based on the array of assumptions made, suggest the highest savings that can be potentially reaped are in electricity end-use, followed by oil and gas and power generation – a relationship that is relatively independent from changes in energy costs or subsidies. The electricity end-use market size for potential savings revealed high annual savings, particularly from higher cooling eﬃciencies (COP values), and from increasing the set point temperature from 22°C to 23/24°C as well as the adoption of CFL/LED lighting. Furthermore, based on the use of marginal abatement cost curves (MACC) developed for each intervention, we were able to asses which interventions end-users/customers would see a positive return on investment from. Interventions with a negative return on investment for customers (indicating the market would not encourage such adoption) could potentially be incentivised by the government through various policy instruments.

Following electricity end-use, savings from interventions in the oil and gas sector were found to be the most significant, particularly from waste heat to power at the country’s oil refineries. Such findings are unsurprising, given the scale of the oil and gas industry in the country and the huge volumes of crude oil processed on a daily basis. Power generation saw the least national wealth savings, due to marginal opportunities for efficiency enhancement hindering natural gas savings. The findings provide a good sense of the potential magnitude of national wealth savings for the UAE from energy-efficiency measures, and will act as a stepping stone for assessing the full market size of energy efficiency enhancement savings in the country.

ABOUT

Sameh El Khatib Assistant Professor

He is the Assistant Professor in Engineering Systems & Management at Masdar Institute of Science and Technology. Dr El Khatib received his Bachelors and Masters in electrical engineering from McGill University, Canada, in 2002 and 2005, respectively. He received his Doctorate of Philosophy degree from McGill University in 2011, where his research interests included power system economics, electricity market restructuring and planning, as well as decision-making in the energy sector, specifically in the context of oligopolistic electricity markets. Currently, his research group focuses on analysis of integrated engineering systems, as well as power system economics to meet national energy sustainability targets.

UAE STATE OF ENERGY REPORT 2017

OPTIMISING ENERGY EFFICIENCY INNOVATIVE AND OUT-OF-THE-BOX THINKING DRIVES THE QUEST FOR CONTINUAL IMPROVEMENT

ARTICLE

ARTICLE BY Tayeb Al Awadhi, Emirates Global Aluminium PJSC (EGA)

As a responsible corporate citizen, Emirates Global Aluminium (EGA) – the largest primary aluminium producer in the Gulf region – wholeheartedly supports the UAE’s eﬀorts in optimising energy utilisation and diversifying energy sources. The business is avidly committed to protecting the environment by minimising its operational impact. By consciously striving to reduce energy consumption and improve energy eﬃciency, EGA minimises its fossil-fuel consumption and contains its carbon footprint.

2. IN FOCUS, UAE FUTURE OF ENERGY

Innovative and out-of-the-box thinking drives a quest for continual improvement, with tangible results. For example, the EGA smelter complex at Jebel Ali implemented bestpractice initiatives that dramatically improved the captive power plant’s thermal eﬃciency over a five-year period, from 2011 to 2015. EGA’s Jebel Ali power plant has an installed power generation capacity of 2,350 MW (at 35˚C). Through combustion, chemical energy in fuel, either natural gas or distillate, is converted into heat energy. This passes through a gas turbine, which is coupled with a generator that converts the mechanical energy into electrical energy. The EGA Jebel Ali utility has 23 gas turbines with an associated heat recovery steam generator (HRSG), which utilises the heat energy within the gas turbine exhaust to generate steam. The steam is supplied to five condensing-type steam turbines, as combined cycle plants and two back pressure-type steam turbines as one large co-generation cycle for the Jebel Ali complex’s desalination plant evaporator units. A cogeneration and combined configuration means that above 30% of the power generated by the utility is fuel-free.

The thermal eﬃciency of EGA’s Jebel Ali power plant in 2015 reached the highest-ever level of 46.21% (a 2.67% incremental improvement over the 43.54% recorded in 2011). The power plant’s gas fuel consumption simultaneously reduced by 22.8 million standard cubic feet per day (mscfd), and carbon dioxide (CO2) emissions in the surrounding air reduced by 445,000 tonnes. These achievements are the product of the following initiatives: •

GTX Cogeneration – A unique co-generation cycle, comprising one E-class gas turbine and one HRSG, that produces steam at double pressure levels has been operational since the end of 2011. The steam is supplied to two existing steam turbines, enabling an increase in generating output, while saving gas consumption of 10 mscfd. Additional steam produced by the HRSG is also available for water production through EGA’s existing seawater desalination plant. The improved generation eﬃciency also means reduced fuel consumption and lower CO2 and oxides of nitrogen (NOx) emissions.

•

High Efficiency (HEPA) Filtration – Previously, the large gas turbines’ inlet filtration required multiple replacements and frequent off-line compressor washes to recover losses and maintain healthy operating conditions – especially as the compressors faced frequent fouls resulting in performance deterioration. By introducing heavy duty, high-efficiency filters developed specifically for gas turbines into the second stage of the air inlet structure, the compressors stay clean. This has led to greater generation output, along with increased air filter life and gas consumption savings of 0.5 mscfd.

•

Frame 9BE Upgrade – By upgrading five old Frame 9B units to 9BE technology, generation output increased by 14.2% and eﬃciency improved, leading to gas consumption savings of 3.5 mscfd and reduced CO2 emissions. The Frame 9BE HRSGs have also been replaced with state-of-the-art technology, producing more steam with the same energy input, thereby contributing to further gas consumption savings.

•

GT17 and GT20 AGP Project – By implementing an advanced gas path (AGP) upgrade on two Frame 9E gas turbines, the electrical output and thermal eﬃciency of both improved, leading to gas consumption savings of 1.6 mscfd.

•

Evaporative Cooling – The concept of evaporative coolers is to run gas turbines in hot dry conditions, but spray water past the inlet structure to evaporate latent heat and reduce the temperature of the compressor inlet. By experience and in theory, as the ambient temperature increases, the electrical output and thermal eﬃciency of gas turbines reduces. The aim is thus always to reduce the temperature of the inlet air stream. By installing evaporative cooling on six Frame 9E gas turbine air inlet filters, the air reaching the turbines is substantially cooler, leading to greater generation eﬃciency and associated savings in gas consumption of 2.9 mscfd, plus substantially reduced CO2 emissions.

•

Combined Cycle Power Plant (CCPP): MXL2 – By changing the CPP22 unit (comprising two GT13E2 gas turbines) from MXL to MXL2 type, power generation has increased by 1% absolute to 23 MW, leading to gas consumption savings of 2.3 mscfd and reduced CO2 emissions. The multimode MXL2 retrofit also enables switching between performance and maintenance cost-optimised operation, oﬀering substantial improvements to operational eﬃciency and asset lifetime, together with longer inspection intervals.

UAE STATE OF ENERGY REPORT 2017

•

Turbine Inlet Temperature Increase – Modifying the setpoint temperature of three 13E gas turbines contributed to increased thermal eﬃciency and yielded gas consumption savings of 1.5 mscfd.

•

Margin/Outage Optimisation – In a CCPP, keeping the gas turbines running saves on the gas fuel bill as the steam turbines run more. Reducing outage times and implementing new technologies that widen the gap between subsequent inspections has achieved higher eﬃciencies, with associated gas consumption savings of 0.5 mscfd.

•

Power Consumption Reduction – As a member of the Dubai Supreme Council of Energy (DSCE), EGA implemented the energy demand abatement directives issued to all DSCE member companies in April, 2011. This included

re-setting air-conditioning thermostats to optimal levels; turning off all non-essential lights after working hours and installing sensor lights where practical; turning off all office automation equipment outside working hours; and installing a mini solar field with a maximum output of 70kW (enough power to run the electricity requirements of the site’s residential area office in the day time, including air conditioning). These initiatives, which saved 54,091,484 kWh and 27,000 tonnes of CO2 emissions by December 2015, support the Dubai Integrated Energy Strategy 2030, which targets efficient energy use.

Through its quest for continuous improvement and plant eﬃciency enhancement, as evidenced above, the EGA Jebel Ali power plant sustains world-class power generation operating eﬃciency, consequently protecting the environment by reducing fossil fuel consumption and greenhouse gas emissions.

ABOUT

Tayeb Al Awadhi Senior Vice President, Midstream

He is Senior Vice President, Midstream, at Emirates Global Aluminium PJSC (EGA), with responsibility for the Energy portfolio. Tayeb strives to improve the availability, reliability and eﬃciency of EGA’s power plants, while optimising operating costs and minimising the plant’s environmental impact. He holds an MSc (Engineering Science) from University College, Dublin.

2. IN FOCUS, UAE FUTURE OF ENERGY

EMIRATES ENERGY AWARD

ARTICLE

BEST PRACTICES AND PIONEERING ACTIVITIES IN THE AREAS OF ENERGY EFFICIENCY, ALTERNATIVE ENERGY AND SUSTAINABILITY

ARTICLE BY EEA

To support sustainable development, formalised by the Green Economy for Sustainable Development initiative launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the Dubai Supreme Council of Energy launched the Emirates Energy Award (EEA). This biennial Award recognises best practices and pioneering activities in the areas of energy eﬃciency, alternative energy, and sustainability. It is a global platform designed to award recognition for achievements in energy management and conservation, highlighting the eﬀorts made in energy-related fields, in successful practices and innovative projects in the UAE and the MENA region.

The Emirates Energy Award aims to increase awareness amongst individuals, organisations and society to drive sustainable development, not only in the UAE, but also in the region.

UAE STATE OF ENERGY REPORT 2017

Organised under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the Award encourages the rationalised use of energy and resources through highlighting the best implemented practices in energy conservation that showcase innovative, cost eﬀective and exemplary measures.

The award recognises the efforts of both public and private sector entities across the region in energy efficiency, energy projects and education and research in the energy sector. A special recognition award is also available for outstanding contributors to the energy sector. Acknowledging these practices and innovative approaches manifests a positive impact on the MENA region to steer energy awareness on a broad level across different facets of society. The Emirates Energy Award aims to increase awareness amongst individuals, organisations and society to drive sustainable development, not only in the UAE, but also in the region. Managed by The Dubai Supreme Council of Energy, which reviews and conducts the award assessment and selection based on specific criteria, the Award grants winners and their organisations prestigious recognition for their best practices in energy management and conservation, along with positive exposure and publicity. Furthermore, best practices are shared and disseminated to the rest of the candidates and the community. There are 10 categories in the EEA: Energy Efficiency in the Public Sector, Energy Efficiency in the Private Sector, Large Energy Project, Small Energy Project, Solar Energy Projects Large Scale, Solar Energy Projects Small Scale, Education and Capacity Building, Research and Development, Young Professional Energy Award and Special Recognition Award. Each of the first 9 awards have a Gold, Silver and Bronze Category, except for the Special Recognition Award which will be nominated and selected by the EEA Technical Committee. The third cycle has seen the addition of a new category, ‘Connecting Solar Power to Buildings’, to encourage large and medium enterprises to choose solar, in line with the Shams Dubai Initiative. The EEA 2014-2015 received 112 entries from 12 countries, including the UAE, Saudi Arabia, Bahrain, Oman, Qatar, Morocco, Kuwait, Jordan, Iran, India, Germany, Egypt and Palestine highlighting both its importance and relevance. Winners in the gold category included Oman Oil Company S.A.O.C / BAUER Nimr LLC for the world’s largest commercial reed-bed sewage treatment plant; The Dubai Airport Free Zone for its energy efficiency and resource conservation measures; Dubai Police for their rationalise energy consumption project; Consolidated Contractors Company for its project in energy conservation in residential communities; The Children’s Museum Jordan for its interactive educational programme for children, called «I Am Change»; Dr Farqad Al-Hadiethi of the Royal Scientific Society of Jordan (RSS) for his project in generating energy and drinking water from seawater using hydrogen; and Mohammed Maher Al Refaai from the UAE for his project in reducing emissions from the use of diesel fuel, amongst others. The Emirates Energy Award incentivises achievement through financial reward, with a total prize of USD 1 million distributed

to the winners in each category, however, perhaps the biggest reward is the public recognition awarded to energy innovation, which builds both local community and regional awareness of sustainable initiatives. In this way, the award is an eﬀective driver of the country’s economic and social development strategies and energy security, with a tight focus on sustainable development.

FACT BOX FACT BOX

Emirates Energy Award commenced in 2012 and is managed by Dubai Supreme Council of Energy. To foster energy conservation and increase awareness, the Emirates Energy Award has been launched to recognise the best implemented practices in energy conservation that showcase innovation, cost eﬀectiveness, and exemplary measures. Acknowledged practices and nnovation shall manifest a positive impact in the Middle East and North Africa (MENA) region to steer energy awareness on a broad level across the diﬀerent facets of society.

2. IN FOCUS, UAE FUTURE OF ENERGY

HARNESSING THE INVISIBLE FUEL UNLOCKING THE ENERGY AND WATER POTENTIAL FOR THE UAE

ARTICLE

ARTICLE BY Dr Michael P. Gallaher, RTI International, and Nadia Rouchdy, Climate & Energy, EWS - WWF

While the UAE has been taking steps towards encouraging energy efficiency investments, many barriers still exist to achieving the massive potential demand-side management (DSM) has to offer. These barriers range from lack of information on the energy and water efficient landscape to limited availability of efficient products in the market, to a lack of financing options for retrofitting.

In order to encourage policy dialogue and action, EWS-WWF and RTI International delved into the key barriers1 and recommendations in achieving energy and water eﬃciency to better understand the factors that contribute to them. The three top barriers and their associated underlying causes are as follows, with further details available in the EWS-WWF & RTI report, ‘Harnessing the invisible fuel’, published in 20162:

1. Priority barriers were ranked by a face-to-face survey of 363 private sector employees, the first statistically representative survey of the private sector on energy and water eﬃciency barriers in the UAE. The full results of the survey are captured in EWS-WWF’s ‘What is Holding Back the Private Sector?’ available online on uae.panda.org. 2. Report available on uae.panda.org

UAE STATE OF ENERGY REPORT 2017

1. Prioritised Barrier #1: Perceived High Cost of Energy and Water-Efficient Technologies Analysis indicates that a contributing factor to the perception that efficient technologies are costly is the lack of accurate information on the full range and life-cycle costs and benefits of efficient products. Without information on factors such as the installation costs, availability, compatibility, reliability, life expectancy, and maintenance costs, it is difficult to make an informed decision on whether a high-efficiency technology is costeffective. This is compounded by the fact that low tariffs increase payback time and an immature market with few products fails to increase competition that leads to economies of scale. The most immediate solutions are to address informational issues and provide direct incentives, such as rebates and low-cost green financing.

3. Prioritised Barrier #3: Electricity and Water Subsidies Historically, subsidies and a lack of awareness of them have distorted price signals and limited the development of a robust market for high-efficiency products. Recent tariff changes are solid steps in the right direction, however, all sectors, across all Emirates, need to be charged the full cost. Low tariffs and their associated subsidies distort the cost-benefit evaluation of efficient technologies, which, if reformed, would lead to a change in the perception of technology costs and increase the availability of financing. The social and political issues associated with tariff reform are not trivial, and a comprehensive approach needs to be developed and implemented while energy prices are low and the initial impact on customers can be minimised. Tackling the issue will need to include developing a federal roadmap for tariff reform to manage and inform expectations, and developing transparent true-cost calculations so companies can forecast how costs may change in the future and manage risks.

In order to encourage policy dialogue and action, EWS-WWF and RTI International delved into the key barriers and recommendations in achieving energy and water eﬃciency to better understand the factors that contribute to them.

2. Prioritised Barrier #2: Low Availability and Lack of Market Accessibility In a climate of rapid economic growth, the UAE market has been flooded with an abundance of inefficient and low-quality products, making it difficult to access efficient technologies. Increased information and awareness of efficient products will increase demand. However, information alone is not likely to transform the market at a pace sufficient to meet the various efficiency goals put forth by federal and local governments. The UAE must ensure only trusted products reach the market through entire supply chain management, which can be achieved through the development of energy efficiency standards, more rigorous customs requirements, and thorough market monitoring and enforcement to ensure regulations are being met and consumer information is available for products on the shelf (e.g. labels and peer-to-peer platform, amongst others). Ideally, this effort would be coordinated at the federal level, with implementation at the local level, to leverage economies of scale and compensate for the different levels of resources and capabilities across the Emirates. The private sector can play an important supporting role in promoting programmes and educating consumers about product benefits. Without centralised coordination and full-scale implementation, however, fragmented efforts will only be modestly successful.

2. IN FOCUS, UAE FUTURE OF ENERGY

ABOUT

Dr Michael P. Gallaher Director

He is the Director of RTI International’s Environmental, Technology, and Energy Economics Center. He specializes in energy and environmental policy analysis and has focused on the evaluation of new technologies and their associated economic and climate impacts. Dr Gallaher has worked for the Executive Aﬀairs Authority (EAA) on energy topics in Abu Dhabi for the past 7 years, and is currently leading the development of the Abu Dhabi Distribution Company’s (ADDC’s) demand side management program for electricity and water conservation.

A broad suite of policies trigger these market conditions, which are leading to under-investment in electricity and water efficiency. The following levers must be initiated to rapidly increase efficiency adoption to drastically reduce emissions: 1. Develop Science-Based Standards, Labels and Codes: The development of strong standards and labels can drive demand and stimulate the supply market. More minimum efficiency performance standards (MEPS) would generate economies of scale and lower costs of efficient equipment. This also includes rigorous enforcement of existing standards so poor quality and inefficient products are removed from the market and do not distort customer perception of prices for efficient technologies. 2. Develop Financing Initiatives to Support Energy and Water Efficiency Uptake: Whilst there has been momentum in the ESCO market in providing finance solutions, a diversity of financing mechanisms across the Emirates must be available for SMEs, large corporations and the household sector, as their needs will naturally differ. Examples include green loans, product rebates and green bonds and sukuks [Sharia-compliant bonds]. 3. Continue Reform of Electricity and Water Tariffs: While much progress has been made, especially in the light of Abu Dhabi’s latest tariff reform planned in 2017 (with previous reform in 2015), more is still needed. An energy policy that eliminates subsidies on electricity and water tariffs would not only incentivise investment in energy efficiency; it would also further unleash financial resources that could be re-invested into the economy.

ABOUT

Nadia Rouchdy Project Manager

She joined Emirates Wildlife Society in association with WWF (EWS-WWF) in 2013 and supports the Climate Change & Energy Programme by spearheading projects, research and stakeholder engagement on the topics of UAE climate change risks, adaptation, mitigation and energy and water eﬃciency. Nadia holds a bachelor degree in Commerce and Business Administration from McGill University in Montreal, Canada and is currently pursuing an MSc in Environmental Management from SOAS, University of London.

4. Develop Policies Based on Sound Science, Open and Inclusive Stakeholder Engagement: Policy development and consultation cannot be a boxticking exercise to demonstrate buy-in and cut corners. A comprehensive and open process needs to be developed across government, private sector and civil-society that builds trust, shares information, seeks feedback and remains open to change.

REFERENCES:

REFERENCES

Priority barriers were ranked by a face-to-face survey of 363 private sector employees, the first statistically representative survey of the private sector on energy and water eﬃciency barriers in the UAE. The full results of the survey are captured in EWS-WWF’s “What is Holding Back the Private Sector?” available online on uae.panda.org

Report available on uae.panda.org

Priority barriers were ranked by a face-to-face survey of 363 private sector employees, the first statistically representative survey of the private sector on energy and water eﬃciency barriers in the UAE. The full results of the survey are captured in EWS-WWF’s ‘What is Holding Back the Private Sector?’ available online on uae.panda.org.

UAE STATE OF ENERGY REPORT 2017

DATA, A VITAL RESOURCE FOR BUILDING OUR FUTURE TRANSFORMING CONVENTIONAL DATA COLLECTION AND STORAGE: ATMATA

ARTICLE

ARTICLE BY Amal Hamadeh, UAE Ministry of Energy

Forecasting the United Arab Emirate’s energy demand and planning for the energy supply that meets this demand is vital to ensure the energy security of the UAE in the long term. It is vital to ensure forecasting energy demand as accurately as possible and planning for the supply required and the resources needed to achieve continuous economic productivity of the country as well as the environmental sustainability and resident’s long term happiness. In order to achieve this the availability of accurate and detailed data for demand and supply statistics is vital for forecasting and modelling energy accurately.

ATMATA is a web portal for smarter and more eﬃcient data collection which provides a web interface for easy and simple data collection.

The most important issues that require data in this aspect are having the ability to set Key Performance Indicators (KPIs) and calculating them accurately, as well as having the data required to feed in to complex energy models. Finally, the output of energy models are ultimately as good as the quality of data that is fed into them. Continuous engagement between all energy stakeholders in the UAE has been constantly ongoing in the Ministry of Energy for the aforementioned objectives in its annual data collection, and this has been done through conventional communications; mainly formal letters between the high level leadership of entities. Despite going on for several years, this method of data collection requires a lot of time and effort from all parties involved. The lack of specified focal points from energy stakeholders and absence of a centralised database to store collected data, require increased efforts from the Ministry of Energy as well as its stakeholders and resulted in duplicate requests being sent out at different times during the year.

2. IN FOCUS, UAE FUTURE OF ENERGY

Total Electricity Capacity

UAE STATE OF ENERGY REPORT 2017

Total Electricity Capacity - 2014 (MW) This has been a very significant milestone in improving the data collection process in the UAE.

ABOUT

Amal Hamadeh Project Engineer

A solution for more eﬃcient data collection was developed at the Ministry to streamline this process of data collection between the Ministry and all key energy consumers and producers in the country. This portal was named ATMATA.

ATMATA is a web portal for smarter and more eﬃcient data collection which provides a web interface for easy and simple data collection. This is done through a web interface using an option of two methods. The first and basic method involves data collection through an agreedupon excel template which is uploaded and downloaded from the portal, while the second option provided through the system is a smart collection of data using an automated link with the entity’s statistics database. ATMATA also includes a user interface where energy data statistics can be viewed. Confidentiality is ensured through defining diﬀerent access rights for all users of the system, ensuring that only the stakeholder’s submitted data are viewed as well as any public data that the Ministry collects and reports. This platform will reduce duplicate requests of data from ministries in the UAE as through the written agreement of parties involved access rights can be modified to allow them to view agreed upon data points. Through ATMATA primary and secondary focal points are determined from stakeholders that are responsible for the ongoing periodic data collection. One time agreements were signed with several entities to document their collaboration and participation in ATMATA.

She was leading phase 1 of ATMATA and was also highly involved in the development of the UAE Energy Strategy 2050. In addition, she is currently working on multiple Ministry projects.Amal holds a Master’s of Science degree in Renewable Energy and Clean Technology from the University of Manchester in the United Kingdom and has completed her Bachelor of Engineering degree in Energy and Environmental Engineering from the University of Leeds in the United Kingdom. She continues to develop her career aspiring to become a pioneer of the energy sector.

The first phase of ATMATA has been completed in the last quarter of 2016, and all main data collection in 2017 will be carried out through the portal. This has been a very significant milestone in improving the data collection process in the UAE, resulting in the development of the first energy specialised federal database for the UAE. This system will be continuously developed in the coming years to improve it and include more and more relevant sectors and entities.

ENERGY AND INNOVATION HIS EXCELLENCY DR SULTAN AHMED AL JABER MINISTER OF STATE, UAE ADNOC GROUP CHIEF EXECUTIVE OFFICER

The evolving energy market requires the industry to reshape business models and drive new ways of thinking in order to capitalize on emerging opportunities and to remain resilient. A key factor in fully unlocking the value of our natural resources will be the deployment of new and innovative technologies that help us reduce our production cost per barrel, sharpen our competitive edge and ensure our longterm resilience. Technological innovation has made it possible to extract fossil fuels that weren’t accessible just a decade or two ago. Oil from reservoirs that were considered too diﬃcult or expensive to access in the past, are transforming the marketplace. At the

same time, new technologies are making oil and gas more available and price cycles less predictable. If we are to thrive in this changed energy landscape, we must push the boundaries of our business. Breakthrough technology and transformational thinking will be the catalyst for future success. Whether it is the automation of subsea operations, digital oilfields, robotics, or remote sensing, innovation not only drives operational eﬃciencies, it also optimises costs and maximises performance. In the future, the companies with an innovation edge will be the companies that have a strong competitive advantage.

3. ENERGY AND INNOVATION

UAE ENERGY STRATEGY 2050 PLANNING FOR THE FUTURE TO ACCELERATE DEVELOPMENT

EDITORIAL

ARTICLE BY HE Huda Al Hashimi, Ministry of Cabinet Aﬀairs and the Future, UAE

In September 2016, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the UAE Strategy for the Future, which outlined “…a new approach to planning for the future by predicting, analysing, and implementing highly eﬀective action plans that accelerate development”. H.H. directed government agencies to place the UAE Strategy for the Future at the heart of their strategic planning, along with the formulation of future scenarios. Heeding H.H. Sheikh Mohammed’s call, The Mohammed Bin Rashid Centre for Government Innovation (MBRCGI) –in collaboration with the Ministry of Energy – organised the Future of Energy Lab in January. It is the first Future Lab organised by the UAE Government. The Future of Energy Lab used innovative methods to examine diﬀerent energy scenarios until 2050 with a number of key stakeholders, in a bid to

develop the UAE’s energy strategy until 2050. Building a threedecade energy strategy plays an important role in making the government more responsive and adaptive to future changes. The Future Lab builds on Mohammed Bin Rashid Centre for Government Innovation’s experience in developing procedures for government innovation labs and assisting entities across government with implementation. The Labs are a multi-stakeholder process, where participants are invited to contribute their expertise and perspectives, with the aim of collaboratively bringing about change. The same method was used for the Future of Energy Lab – albeit with a forwardthinking approach. The methodology of the Future Lab tests diﬀerent future scenarios using specialised simulation techniques and taking into account various disruptive technologies. This ensures

UAE STATE OF ENERGY REPORT 2017

ABOUT

HE Huda Al Hashimi Assistant Director General for Strategy and Innovation

Her Excellency oversees the Strategy & Policy Sector and Mohammed bin Rashid Center for Government Innovation, at the Prime Minister’s Oﬃce in the Ministry of Cabinet Aﬀairs and Future; to ensure the successful execution of the UAE Vision 2021 and National Innovation Strategy.

multiple future possibilities are explored in full by all stakeholders, enhancing the awareness of potential risks and opportunities. The stress-testing methodology used in scenario-building helps create strategies to mitigate losses in the future. It is also used to proactively create future scenarios that could help governments withstand market fluctuations.

Her Excellency is a member of the supreme committee for the Mohammad bin Rashid Smart Learning Program, Board Member of the UAE Gender Balance Council and the Dubai Women Establishment. She holds a BSC in Business Administration from the Higher Colleges of Technology. She is also an Alumni of London Business School, and was enrolled in the Sheikh Mohammed Bin Rashid Leadership Program.

The outcomes of the Future Lab will enable authorities to anticipate and plan the future of the UAE’s energy sector eﬀectively, all the while harmonising and monitoring the government’s energy plans, programmes, policies, and legislation. This ultimately helps position the UAE as a global destination for sustainable future technologies and projects.

“The outcomes of the Future Lab will enable authorities to anticipate and plan the future of the UAE’s energy sector eﬀectively…”

3. ENERGY AND INNOVATION

DEWA’S INNOVATIVE PROJECTS IN HATTA TO BOOST ITS SOCIAL AND ECONOMIC ATTRACTIVENESS AS A WORLD-CLASS DESTINATION FOR ENVIRONMENTAL TOURISM SUPPORTING THE SUSTAINABLE DEVELOPMENT OF HATTA

ARTICLE

ARTICLE BY Yousef Jebril, Dubai Electricity & Water Authority (DEWA)

Dubai Electricity and Water Authority (DEWA) has announced a number of innovative projects to be implemented in Hatta to support the Hatta Comprehensive Development Plan, which was launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. DEWA’s projects include the first pumped storage hydroelectric power station in the GCC. The power station will be completed within five years and will produce 250MW. Other projects include installing photovoltaic panels on rooftops to produce electricity from solar power and installing smart meters in buildings. These other projects will be completed by the end of 2018. DEWA will also install electric vehicle charging stations in Hatta. The pumped storage hydroelectric power station will generate electricity by making use of the existing water

stored in the Hatta reservoir, which can store up to 1,716 million gallons, and an upper reservoir that will be built in the mountain to store up to 880 million gallons. The upper reservoir will be 300 metres above the lower reservoir level. During oﬀ-peak hours, turbines that use clean and cheap solar energy will pump water from the lower to the upper reservoir. During peak-load hours, when production cost is high, turbines operated by the speed of waterfall from the upper reservoir will generate electricity that will be exported to DEWA’s grid. The eﬃciency of power production will reach 90% with response to demand for energy within 90 seconds. The project will provide other services including irrigation, flood control, and storing fresh drinking water. DEWA’s initiatives will involve Hatta’s citizens in the projects. The projects will create 200 construction jobs in the technical, administrative and operational areas. Another 300

UAE STATE OF ENERGY REPORT 2017

ABOUT

Yousef Jebril Executive Vice President of Power and Water Planning

Yousef Jebril is Executive Vice President of the Power & Water Planning Division at DEWA. He leads the planning in Dubai for power & water generation/desalination capacity expansion, power transmission & distribution system expansion, water transmission facilities, Demand Side Management and pricing. Jebril has an MSc in Electrical Power Systems Engineering from UMIST University, Manchester, UK. He is a member of the British Institution of Engineering & Technology and the British Engineering Council (Chartered Engineer). He has published numerous studies, articles and papers covering modern power systems. jobs are expected to be created in the Visitor Centre, outdoor activities, and the tourist facilities associated with the project. Over 2,000 construction jobs will be required for the implementation. The pumped storage hydroelectric power station will increase the share of cleanenergy use, support the sustainable development of the region, and enhance the position of Hatta as one of the most prominent tourist attractions in the Emirate of Dubai. This supports the Dubai Plan 2021 to make Dubai the preferred place to live, work, and visit.

“DEWA’s projects include the first pumped storage hydroelectric power station in the GCC. The power station will be completed within five years and will produce 250MW...”

3. ENERGY AND INNOVATION

ENERGY & INNOVATION DRIVING A SUSTAINABLE ENERGY FUTURE A NEW ENERGY LANDSCAPE IS DEVELOPING

ARTICLE

ARTICLE BY Adel Ahmed Albuainain, Dolphin Energy

Like the rest of the world, the regional oil and gas sector is in transformation. A new energy landscape is developing which is being driven by a number of factors – a rapidly rising population demanding access to aﬀordable, reliable energy; the transition to a low carbon future that addresses the challenges of climate change while boosting economic development and a new, fluctuating oil price environment which is now more prone to instability and uncertainty. Today, the way energy is being used is changing. Governments, IOCs, NOCs and businesses are collaborating in new, exciting ways to develop energy eﬃcient solutions that will help create and drive a sustainable, clean energy future.

Innovation – Driving Both the Past and Future In its 2015 Energy Technology Perspectives, the International Energy Agency (IEA) says an incredible chain of innovations in the energy sector has led social and economic transformation for over a century, citing fuel economy improvements for cars and the progress made in solar technology as two recent examples. As demand for energy in this region has risen steadily the sector has responded. Witness the splendid development of the UAE’s energy mix, the wonderful work by Masdar, whether through its 100 megawatt Shams 1 solar power plant or the new substantial solar and wind generation projects it is developing. Then there is ADNOC’s Al Reyadah project which is designed to reinject captured carbon dioxide into oil fields to maintain reservoir pressure.

UAE STATE OF ENERGY REPORT 2017

No Innovation Without Collaboration Developing solutions to harness Abu Dhabi’s sour gas reserves has been a phenomenal achievement and indeed our own Dolphin Gas Project is a strong example of energy innovation and collaboration to develop a unique project and meet rising demand.

The wider population must also learn to appreciate that energy in all forms should be treasured and nurtured.

And yet, more is needed. According to the BP Energy Outlook Report, Middle East energy consumption will rise by 60% by 2035. To that end, the UAE’s response has been far reaching, First by developing the UAE Vision 2021 strategy and implementing a series of initiatives and programs (for example the civilian nuclear energy program) that not only seeks to address how that demand will be met, but in a manner that supports clean energy usage, advances innovation and technological breakthroughs through partnerships and collaboration to embrace energy eﬃciency, support economic growth and energy security. And second, in the recently announced UAE Energy Plan 2050 which aims to enhance the sustainability of the country’s energy resources while balancing environmental stewardship and economic growth.

3. ENERGY AND INNOVATION

The UAE signed up to ‘Mission Innovation’, a collaboration between 20 countries and the European Union to develop new, innovative technology driven solutions designed to meet rapid growth in power demand while supporting economic growth and energy security. I think both the Vision and Plan are reflected in the UAE’s decision to sign up to ‘Mission Innovation’, a collaboration between 20 countries and the European Union to develop new, innovative technology driven solutions designed to meet rapid growth in power demand while supporting economic growth and energy security. This move also compliments the positive steps being taken in boosting the levels of research and development (R&D) in the UAE to produce new, innovative technologies. Abu Dhabi’s plans to enhance its commitment to developing a hub for R&D (the planned Petroleum Institute Research Center will support the country’s recent move to enhance R&D and become the hub of innovation by 2023) supports the fantastic work already undertaken by The Masdar Institute of Science and Technology and will, according to research conducted by Gulf Intelligence, boost international oil company support and help create a culture of innovation.

And while research and development brings the human element or people as innovators into the equation, there are many examples where engineers play their part in their day to day work, looking at ways to innovate, to enhance the operational environment and boost eﬃciencies. We have a strong innovation culture at Dolphin Energy and one we encourage and celebrate at all times – whether it be providing solutions to install three new export gas compressors in the shortest time possible, without compromising our commitments to HSE or gas volumes for our customers; in pioneering brand new technology for our wastewater project or in the way we sponsor important science festivals that seek to inspire the young and engage them in science, technology, engineering and mathematics. We have also launched a long term cost optimization program that implements ideas suggested by our employees that help maximize our asset value and produce at the lowest possible cost. Much progress has been made and today’s challenging environment needs partnerships and mutually beneficial commitments to research and development of new technologies. As I have said, the industry has adapted to change in the past. However, this is a new, diﬀerent era and much is still required from all stakeholders if we are to succeed in what we seek to achieve. There are three things I would still like to see.

UAE STATE OF ENERGY REPORT 2017

The energy sector needs to stay committed to investment. The IEA wants to triple annual government spending on energy R&D, from the current level of US$17 billion. This will help foment partnerships that drive technological development. Investment now will also mean companies will be able to respond quickly when the market recovers, a point made recently by the UAE Minister of Energy, HE Suhail Mohamed Faraj Al Mazrouei. Second, the private sector needs to contribute more in playing a role to develop new technologies. Introducing new laws and a supportive regulatory framework will help do that. Extremely interesting developments are taking place in solar energy but more is required to incentivize the development of technology that will make solar viable in a shorter space of time.

ABOUT

Adel Ahmed Albuainain Chief Executive Officer

Third, the human element must continue to play its part. Closer links to academia and industry need to be forged so that students are more closely aligned to the needs of the industry. The oil and gas sector needs to oﬀer more to academia to mentor and help students build careers and support the talent pool in the process. Also, the wider population must also learn to appreciate that energy in all forms should be treasured and nurtured. Our current lifestyles are at odds with the natural resources at our disposal and the sooner more people realize this, the better. But as we have seen, the industry has adapted before and through collaboration, commitment and innovation the challenges associated with this new energy era will be met.

He is Chief Executive Oﬃcer of Dolphin Energy Limited, responsible for the direction of the company and its activities in the UAE and Qatar. Prior to his appointment, Mr. Albuainain was the company’s General Manager in Qatar since 2007. With more than 36 years’ experience in the oil and gas industry, Mr. Albuainain also served as Vice President for Projects and Site Support at Abu Dhabi Polymers Company (Borouge) and has held various project, engineering, safety, operations and senior management positions including senior refining roles in ADNOC refineries between 1980 and 1998.

Today, the way energy is being used is changing. Governments, IOCs, NOCs and business are collaborating in new, exciting ways to develop energy eﬃcient solutions that will help create and drive a sustainable, clean energy future.

3. ENERGY AND INNOVATION

Marwa Alawadhi, UAE Ministry of Energy INTERVIEW

UAE STATE OF ENERGY REPORT 2017

What is awareness? Marwa Alawadhi: Educational and awareness work is the process that determines the strength of the link between the individual and society, by developing and promoting certain values and concepts. It is important that we work on expanding the knowledge of society to increase their understanding of the current situation, based on information and experience.

What makes the awareness program successful? Marwa Alawadhi: There are five main factors that make the awareness programme successful:

1. Communicate:

2. Engage:

3. Listen:

Communicate with responsible bodies and aﬀected stakeholders (individuals,the government, and private sectors)

Highlight the risks that may occur in future

Listen to the people aﬀected and seek their input to understand how the issue is aﬀecting them

4. Support:

5. Encourage:

Give support by implementing procedures and activities that decrease risks

Encourage them to work towards solutions on a clear track.

It is important that we work on expanding the knowledge of society to increase their understanding of the current situation, based on information and experience.

How does the Ministry of Energy build awareness? Marwa Alawadhi: Energy conservation is a key part of energy productivity and demand-side management, playing an important role in creating a sustainable environment for the UAE. The Ministry of Energy works on several projects as part of awareness-building.

3. ENERGY AND INNOVATION

What are the Ministry of Energy eﬀorts with regards to educating on Oil?

ABOUT

Marwa Alawadhi Marwa Alawadhi: The Ministry of Energy has prepared, in accordance with the Ministry of Education, oil related materials that may be found on the Educational Curriculum. This endorsement is useful to strengthen the oil-related culture in the tenth grade curriculum: it shows the importance of the energy sources and how to rationalize their use to increase a sustainable energy awareness in our lives.

Head of Awareness and Applications Section in Production and Demand Management Department

What is the EcoRunner game? Marwa Alawadhi: EcoRunner is the UAE’s first sustainable game, developed by the Ministry of Energy. The Ministry of Energy aims to educate the new generations from the age of six, on how to save energy and be conservative to save resources. We are looking to change behaviour towards saving energy and water and being aware of the environmental impact from the overuse of these resources. EcoRunner has two types of level to play: adventures and quizzes. The game is available on iOS and Android platforms “ECORunner3D”.

Tell us about the new Tarsheed platform. Marwa Alawadhi: The Ministry of Energy has launched the Tarsheed platform, which is filled with activities, quizzes and energy calculations that provide a closer look at energy conservation and eﬃciency, encouraging users to be part of the solution and discover new ways to conserve energy, beginning with a lifestyle that is environmentally friendly. The Tarsheed platform includes some activities related to energy and water conservation, such as an energy calculator and conservation calendar. http://tarsheed.fi-demo.com

EcoRunner is the UAE’s first sustainable game, developed by the Ministry of Energy.

She is Head of Awareness and Application Section in Production and Demand Management Dept., at the Ministry of Energy. She has a Bachelor’s Degree in Environmental Health from the Zayed University. Marwa has 5 years of experience on Climate Change within the Ministry of Environment and Water. She joined the Ministry of Energy in 2016 as a Head of the Climate Change Section. She was later assigned as Head of the Awareness and Applications Section. Marwa is Responsible for the preparation of the fourth National Communication Report to be submitted to the United Nations Framework Convention on Climate Change, as well as of the UAE State of Energy 2017 Report.

UAE STATE OF ENERGY REPORT 2017

The Dolphin Gas Project is one of the largest energy-related business ventures in the Middle East, and the region’s only trilateral gas grid.

Offshore Production We extract gas from Qatar’s North Field and transport it onshore to our plant at Ras Laffan.

Ras Laffan Gas Processing Plant Byproducts are stripped and 2 billion scf/day of processed lean gas is ready for export.

Export Pipeline

Taweelah Receiving Facilities

Our 364km subsea export pipeline, the region’s longest, sends the gas to our Receiving Facilities in Taweelah, Abu Dhabi.

The gas arrives and is filtered, heated, regulated and metered before distribution to our customers in the UAE and Oman.

Pipeline Distribution Network The network helps us meet 30% of the UAE´s energy requirements by supplying clean, reliable natural gas to power and water desalination plants.

3. ENERGY AND INNOVATION

COOLING DUBAI CHALLENGES AND OPPORTUNITIES

ARTICLE

DEMAND FOR COOLING RAPID GROWTH Setting the thermostat in your home or oﬃce to 24˚C is good practice, but in a climate where the average maximum temperature is only below that level one month a year and the average minimum is above that level for six months of the year, even with sensible conservation measures, there remains a substantial need for cooling where we live and work. It is little wonder then, that cooling accounts for over 50% of annual electricity use in Dubai, and at peak times, cooling accounts for over 60% of electrical demand. Demand for cooling has grown rapidly with the social and economic development of the country. At the birth of the UAE, the nation’s population was just 275,000; it has grown by more than 30 times that figure since. The climate may also be playing a role in increasing the need for cooling. Cooling Degree Days (CDDs) are the standard way of assessing how much cooling a given climate requires, measuring by how much and for how long outside air temperature is above a base level (24 degrees, for instance). In 2015, CDDs were

ARTICLE BY Graeme Sims and James Grinnell, Regulatory and Supervisory Bureau

some 23% higher than they were in 2000, reflecting a steady upward trend over the past 15 years. It is debatable whether this increase in CDDs is driven by climate change or an increasing heat island1 effect as Dubai grows, but what is not in doubt is the potent combination of rapid population growth and a higher underlying cooling requirement. In efforts to better manage demand, the Dubai Supreme Council of Energy (DSCE) has made efficient cooling a common theme in many of its demand-side management (DSM) strategy programmes. Green Building regulations for new buildings require better insulation to reduce cooling needs; the Retrofit programme seeks to reduce demand in existing buildings and improves the efficiency of their cooling systems; the Standards and Labelling programme ensures only energy efficient cooling products are imported for consumers in Dubai; and the District Cooling programme focuses on further enhancing major cooling systems.

FIGURE 1: NORMALISED CDDs 125 120 115 110 105 100

2000

2002

2004

2006

2008

2010

2012

2014

2016

Dubai’s Cooling Market With so much resting on raising cooling eﬃciency, it is vital that we have a firm grasp of the cooling market in Dubai: how big is it, what technologies are currently being used, how eﬃcient are these technologies in use? This was the motivation behind our recent study of Dubai’s cooling market. At the summer peak, some 3.3 million refrigeration tonnes (TR) of cooling is used in Dubai, requiring almost 5GW of electricity generation capacity. The technologies in use range from small

split and window units, with which we are all familiar and which are just a few TR in size, to central district cooling plants of tens of thousands of tonnes. Smaller units comprise about half the cooling market and the other half is in the form of large chiller systems. Here, the main distinction is whether air or water are used as the cooling medium, with a roughly 50:50 split.

1. A heat island is a metropolitan area warmer than its surrounding rural areas due to human activities.

UAE STATE OF ENERGY REPORT 2017

These different technologies have different electrical efficiency. The smaller units typically need over 1.7kW to produce a tonne of refrigeration, the larger and watercooled chillers use scarcely more than half that amount. Water-cooled chillers also need, of course, a source of water, but they can use recycled water or seawater, and even if they use desalinated water, their overall energy use remains significantly lower that chillers cooled by air. We also discovered how efficiency changes over time, as shown in Figure 4. This could be because new systems contain improved technology that offers better efficiency, but it may also be that the performance of systems deteriorates with age, due to harsh weather conditions, dust accumulation, and poor maintenance. District cooling company data shows that systems have improved performance over the last few years without any fundamental change in plant equipment. This suggests a well-managed maintenance regime may be key to achieving continued efficiency from AC systems.

FIGURE 2: MARKET SHARE OF COOLING TECHNOLOGIES IN DUBAI 571 KTR

Split Units/ Windows AC 18%

930 KTR

Ducted Split/ Packaged Units 30%

550 KTR

District Cooling 18%

51 KTR

Variable Refrigerant Flow 2%

224 KTR

784 KTR

Central Cooling Air Cooled 25%

Central Cooling Water Cooled 7%

ABOUT

Graeme Sims Executive Director

He is the Executive Director of Dubai’s Regulatory and Supervisory Bureau for the Electricity and Water Sector in Dubai. An Oxford-educated economist, he has over 20 years’ experience of utility regulation in the UK and the UAE.

3. ENERGY AND INNOVATION

FIGURE 3: AVERAGE EFFICIENCIES FOR COOLING TECHNOLOGIES OPERATING IN DUBAI 1.8

1.62

KW/Ton

1.6

1.42

1.4 1.2 1

1.73

1.07 0.92

0.93

District Cooling

Central Cooling Water Cooled

0.8 0.6

Central Cooling Air Cooled

Variable Refrigerant Flow

Ducted Split/ Packaged Units

Of course, energy is not the only cost associated with a cooling system. Larger systems typically have a higher initial capital outlay; water-cooled plants have a bigger space requirement. But those who decide which cooling technologies to install should consider whole-life cost alongside the practical application of each technology when considering their options. Raising all cooling in Dubai to the performance of the most eﬃcient, may not be immediately realistically achievable, but when the size of the prize is a saving of a quarter of all electricity use, there are huge gains to be made from any steps in that direction.

FIGURE 4: COOLING EFFICIENCY FOR DIFFERENT AGED SYSTEMS 2.00

KW/TON

1.50

1.00

0.50

0-5 Years

Water Cooled

Air Cooled

5-10 Years UNIT AGE

Ducted Split/ Packaged

>10 Years

Window AC

Split Units/ Windows AC

ABOUT

James Grinnell Head of Electricity and Water Sector

He is an international utilities professional with 20 years of experience gained across the UK, EU and Middle East. Currently the Head of Water at the Regulatory and Supervisory Bureau for the Electricity and Water Sector in Dubai, James develops and implements regulations to support Dubai’s Clean Energy Strategy, with a particular focus on IWPP’s, Energy Service Companies (ESCO’s) and District Cooling. James holds a BSc (Hons) in Civil Engineering and is an Alumni of the London Business School and a Certified Energy Manager.

UAE STATE OF ENERGY REPORT 2017

ECORUNNER, AN EDUCATIONAL GAME LEARNING THE PRINCIPLES OF ENERGY AND WATER CONSERVATION

ARTICLE BY Hind Ahmed Almutawa, UAE Ministry of Energy

EcoRunner is an educational and fun game that teaches children between the ages of 6-16 years the principles of energy and water conservation. The game was developed to convey a conservation message to children in order to promote eco-friendly behaviours in UAE homes, school facilities, cities, beaches and deserts and to prepare the next generation of energy consumers to be aware of the need for conserving energy and water. The game provides interactive sessions that

ARTICLE

mix education and entertainment, providing learning through gamification. It engages childrenâ&#x20AC;&#x2122;s senses through colours, music, icons, incentives and bonuses and touches on the school curriculum via quizzes and questions about the ecosystem with a focus on energy and water conservation. The game uses UAE landmarks to help players visualise the impact of energy conservation and how it applies to the real world.

3. ENERGY AND INNOVATION

With the continuous rise in electricity consumption, which means a corresponding increase in consumption of primary resources, the Ministry of Energy believes one way of saving resources is to reduce demand by making efficient use of energy and water. The demand for energy and water will certainly continue to increase, so it is necessary to reach the community sector to address this challenge by the most effective approach. The residential, commercial, industrial, transport and industrial sectors are the main pillars of the comprehensive energy efficiency awareness campaign programme. This programme supports the 2021 Energy Vision objective regarding educating youth, citizens and residents within the UAE about energy use. Kids are the heart of the community, so it is important to equip future generations with a relevant mind-set, which needs to be created at an early age. Eco-Runner is thus a seed of innovation to assist in early learning and the Ministry will continue to monitor its growth at schools and developing learning modules to make sure the principles are instituted as a culture within school communities, resonate with curriculum and are carried back to homes for parents and siblings to also learn. Changing behaviours to create a habit takes time, hence, it is vital to start now.

To develop the game, the Ministry team met with a sample of 50 children from schools and the community for observation to come up with a novel approach. The team recognised the attractiveness of digital media for youth and the happiness children drew from game-playing activities. They concluded that a successful way to engage and communicate information to children would be through a mobile game application. The team then engaged a firm with expertise in the development of software applications to visualise a concept that was first represented on a storyboard. For the storyboard, the team needed to choose a central character for the game, deciding the character needed to reflect the game’s objective of taking on a challenge in the national interest. They eventually settled on a character dressed in national clothing to satisfy this objective.

The game provides interactive sessions that mix education and entertainment, providing learning through gamification.

UAE STATE OF ENERGY REPORT 2017

Their next task was to create content with the sense of progression that the best electronic games are known for. This requires the creation of increasingly diﬃcult challenges that must be overcome by the player in order to advance to a higher level. The team worked with the developers to create an appropriate environment, stages and sub-stages around the theme of energy and water conservation. In addition, the levels were designed to be highly interactive so the player has to make an eﬀort to think through a solution. This may involve moving obstacles or solving riddles in order to continue progressing through the game. Given that energy and water conservation is an important goal for the UAE as an advanced modern state, the team included national landmarks across the country, such as the Immar building in Abu Dhabi, Burj Khalifa and Burj Al Arab in Dubai, and the central souq of Sharjah in the game. These landmarks help children visualise their impact in the game and understand how energy and water consumption applies in a local real-world context. After the concept for the game was developed, the overall aesthetics, icons and menus were revised to ensure the theme was consistent, as well as eye catching, and that the focus was fun in some activities, while others were intellectually focused. To achieve this, they asked the developers to reward players who achieved particular levels of progress with intermittent rewards, such as the ability to customise their avatar and unlock additional game features.

The game uses UAE landmarks to help players visualise the impact of energy conservation and how it applies to the real world.

ABOUT

Hind Ahmed Almutawa Director of Regulation & Supervision Department CIO of Innovation

With the design of the game complete, the team wanted to ensure players retained the conservation messages conveyed within. Moreover, they wanted to reinforce these messages by encouraging players to play the game again. For this, the team created a five-question quiz players must answer correctly at the conclusion of each stage before they can move on to the next one.

If the player fails to answer correctly, they must review the stage to acquire the correct information. To avoid repeating the same questions when the user plays the game again, a bank of 55 questions was added to the application, from which it randomly selects five questions when required. So far, the 55 questions cover subjects related to primary energy resources (oil, gas, nuclear, solar, clean coal and wind); water and energy usage, energy efficiency, units of energy and water, some logical thinking energy calculations, and names of scientists. In Phase 2 of the game the number of questions increases so children have a larger pool of questions to fish. The questions are versatile and were inspired by reviewing the current school curriculums at this stage. This is also an area of future development, as we have a phase-two plan to engage with schools and the Ministry of Education as stakeholders to assist us with questions that resonate with the changing subjects at schools regarding the science environment, energy and water. After the application was finalised, the concept was transitioned into a working model and submitted to the Apple App Store and the Google Play Store for review. At this point, the Ministry team began creating a social media presence for the application by promoting it at outlets that would help it reach its target market. The final application has five levels, as shown in figure 1. Each level has four different stages. Each stage is comprised of different activities. Each level has a specific environment with its own consistent theme. Each stage has its own puzzles and obstacle to overcome. The stages offer different activities as shown in figures 2 and 3, where the user completes an “energy saving run” (in two different ways), or finds the source of unnecessary energy consumption, and finally the five-item quiz at the end.

She is Director of Regulation and Supervision Department. Her main focus is the Policies and Regulations supporting the Ministry vision toward 2021 and the energy strategy to 2030 in the sector of Electricity and Clean Energy and Desalinated water. As CIO of innovation, she is also in charge of the inception of the Innovation program in the Ministry. She holds a MSc in Engineering System Management (ESM) and a BSc in Electrical & Electronics Engineering from the American University of Sharjah.

When each stage is completed, the player earns a trophy. When the user earns four trophies, they may then progress to the next level. The user can replay the game multiple times, due to the quiz level’s 55-item question bank. The game currently has five levels, but the team intends to add more over time, as well as an online mode so children around the world can play and run through competitions through their computing devices, iPads, or smart phones. In summary, the Eco-Runner application is designed to be a learning platform that is attractive and entertaining for children. It represents a clever way of educating youth about the importance of energy and water conservation without them realising that they are being ‘educated’. The feedback received by the Ministry from children about the game has been positive to date, which suggests this is an eﬀective approach.

101

3. ENERGY AND INNOVATION

SHUAA – THE EMIRATES SOLAR CALCULATOR ENABLING UAE RESIDENTS TO PERFORM PRELIMINARY CALCULATIONS FOR ESTIMATING SOLAR-POWER GENERATION POTENTIAL WITHIN THEIR VICINITY.

ARTICLE

ARTICLE BY Dr Ahmad Yousef, UAE Ministry of Energy

Within only four decades, the UAE’s leaders have converted a sprawling desert into a megalopolis with modern infrastructure and a high standard of living. The crucial question is: can we sustain what we have achieved? Together, we can, and one of the easiest ways is to harvest the power of the sun. Solar energy is a promising alternative to fossil fuel as a major energy source, as it is clean and renewable, with the potential for supplying energy infinitely.

Large- or utility-scale solar is being aggressively pursued by the UAE in the transition to renewable energy. As a result, the UAE witnessed a record reduction in the levelised cost of power generation from utility-grade solar PV plants. The latest auction for an 800 MW plant in Dubai achieved a record price of US.0299/kWh, marking the cheapest solar price in the world, as well as the cheapest power available in the UAE. Additionally, another 350 MW solar power project tender was floated in Abu Dhabi and received bids from over 30 companies, highlighting a rapidly evolving solar market in the country.

UAE STATE OF ENERGY REPORT 2017

In contrast, the small- to medium-scale solar market is still developing. With higher and more cost-reflective electricity tariﬀs, the potential for small- to medium-scale, grid-connected solar plants has significantly improved. Many commercial and industrial entities have already invested via the Shams Dubai Initiative, which provides easy grid connection and netmetering facilities for such plants. In addition, the Dubai Clean Energy Strategy 2050, launched by HH Sheikh Mohammed bin Rashid al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, aims to install solar panels on the roofs of all buildings in the city by 2030. At the individual level, to encourage adoption it is crucial to reduce the ambiguities consumers face prior to investing in solar PV at their properties. To this end, at the 18th Water, Energy, Technology and Environment Exhibition (WETEX 2016) in October, 2016, the UAE Ministry of Energy launched the online solar web application “Shuaa”. Shuaa, meaning solar beam or radiation in Arabic, is a free, web-based application that estimates the electricity production of small-scale distributed photovoltaic systems based on a few simple inputs. This enables UAE residents to easily perform preliminary calculations for estimating solar-power generation potential within their vicinity, whether it is on the roof of a property or at a farm, mall, warehouse, factory or parking lot. Shuaa employs solar resource and technology data within a Geographic Information System (GIS) platform to address the key issues that confuse most small-scale solar investors. These include questions such as: “How much roof area do I require to

Within only four decades, the UAE’s leaders have converted a sprawling desert into a megalopolis with modern infrastructure and a high standard of living.

install a rooftop solar PV system at my property?” “Does my property get enough sun?” and “How much could I save on my electricity bills?” Using the system’s potential location (gathered via GIS) and basic design parameters, the application can estimate values for the system’s annual and monthly electricity production and the monetary value of the electricity based on the respective tariﬀ in the UAE. In this manner, the application allows home, farm and business owners, communities and industries, as well as the installers and manufacturers, to develop preliminary estimates of the cost and performance of potential PV installations in the country.

(…) In October, 2016, the UAE Ministry of Energy launched the online solar web application “Shuaa”.

103

3. ENERGY AND INNOVATION

ABOUT

Dr Ahmad Yousef Geographic Information System Expert

To facilitate use, Shuaa utilises a user-friendly, map-based approach that allows selection of a specific property in any Emirate of the UAE and marking space available for the deployment of solar panels. Thereafter, the application evaluates the optimal size of the solar PV system, the monthly solar power generated and potential savings on electricity bills, as well as potential emission savings. Shuaa incorporates various data sources, user specifications and basic algorithms to evaluate useful outcomes for the prospective investors in distributed solar systems. This includes climate data, such as solar radiation and air temperature, and location data, incorporating satellite images and the building footprint, from sources including the Solargis database, known for providing accurate and eďŹ&#x192;cient solar energy assessment, and the municipalities of each of the Emirates. This ensures the integrity of the output. The first version of Shuaa is already online and can be used by users free of charge. The Ministry of Energy is planning to add more features to the application soon, such as secondgeneration solar photovoltaic technologies and additional information on balance of system components, all with the aim of making the tool a comprehensive solution for the evaluation of small-scale solar PV systems, for the benefit of consumers, investors, and the healthy future of the planet.

The application allows (â&#x20AC;Ś) to develop preliminary estimates of the cost and performance of potential PV installations in the country.

With over 15 years of professional and academic work experienced in GIS, Dr Ahmad is a Geographic Information System Expert, Ministry of Energy of the UAE. Beside his BSc degree in Civil Engineering, he holds a Master of Science in Photogrammetry and Geoinformatics from Stuttgart HFT, and a Doctoral degree in GIS from Freiburg University / Germany. His experience includes GIS, renewable energy, water resources, hydrology, infrastructure networks, teaching and training to the job. Dr Ahmad was responsible for establishing GIS as a tool for decision making within the Desertec industrial initiative (Dii GmbH).

UAE STATE OF ENERGY REPORT 2017

MINIMIZING WASTE HEAT RECOVERY AT ENOC ENOC PRESENTS TWO CASE STUDIES THAT REFLECT HOW INNOVATION IN PRODUCTS AND SERVICES HELPS ENHANCE ENERGY EFFICIENCY AND SAVINGS.

CASE STUDY

Case Study 1: The ENOC Refinery Naphtha Hydrotreater debottlenecking project Naphtha Hydrotreating is an essential step for refiners like ENOC Processing Company (EPCL) to produce cleaner gasoline from diﬀerent feedstocks. In the naphtha hydrotreating unit, the oil reacts with hydrogen in the presence of a catalyst. Once this occurs, the product then splits into the lighter gas stream, middle fractions and bottom fractions. The EPCL Naphtha Hydrotreater debottlenecking project was designed to address increased energy demand for additional process heating. Normally, this would involve the installation of additional furnaces to increase supply. A concern was that although very simple, the contaminants stripper and a naphtha splitter sections use huge amounts of heating utilities. Conventional energy recovery methods fail to optimise waste heat recovery within and between the processes. The Naphtha Hydrotreating process is also important to pretreat naphtha for downstream units, like paraﬃn isomerisation and catalytic reforming, where severe

In a team eﬀort with the EPCL Engineering Department taking the lead role, alternative solutions were sourced and investigated. specifications are required and catalysts used are very sensitive to impurities. The objective is to reduce sulfur and nitrogen contents but also olefins. Heavy Naphtha cut from the atmospheric crude oil distillation column in the refinery is sent to the Naphtha Hydrotreater Unit. The naphtha hydrotreating unit then uses a cobaltmolybdenum catalyst to remove sulfur by converting it to hydrogen sulfide that is removed along with unreacted hydrogen. Using a compressor, some of the hydrogen sulphidehydrogen mixture is recycled back to the reactor to utilise the unreacted hydrogen..

105

3. ENERGY AND INNOVATION

In a team eﬀort with the EPCL Engineering Department taking the lead role, alternative solutions were sourced and investigated. In January 2013, after considering the environmental and commercial factors, it was decided not to install an additional furnace, but rather to recover waste heat from existing furnaces by installing a dedicated waste heat recovery system within the EPCL Naphtha Hydrotreater process. Waste heat recovery in conventional naphtha hydrotreating processes significantly reduces the amount of energy consumed. In such processes, the extra waste heat in the heavy naphtha stream from the naphtha splitter section is sent to the air and water coolers. In this case, the energy demand savings are evident, with reduced natural gas consumption of 0.52 MMscfd per annum and from an environmental perspective, a reduction of existing flue gas temperatures from 250 degree C to 150 degree C. The waste heat recovery system continues to ensure more eﬃcient energy usage along the lifetime of the naphtha hydrotreating plant.

FACT BOX FACT BOX

FACT BOX for Case Study 1 Naphtha is an ancient, general term that has been used to refer to flammable liquid hydrocarbon mixtures. Derived from Persian, it is used in Latin and Greek languages and also appears in Arabic as ‫ َﻧ ْﻔﻂ‬naft (“petroleum”). Mixtures labeled naphtha have been produced from natural gas condensates, petroleum distillates, and the distillation of coal tar and peat. The term is used diﬀerently across industries and regions to refer to gross products like crude oil or refined products such as kerosene. The waste heat recovery system continues to ensure more eﬃcient energy usage along the lifetime of the naphtha hydrotreating plant.

The energy savings expected are evident, with an expected reduced electricity consumption of 16.6 million kWh per year which is equivalent to avoiding 7000 tCO2 emission per year into the environment. The electricity saved by this project in DUGAS will be equivalent to powering about 500 homes in Dubai annually

Case Study 2: Avoiding holding compressor in propane storage in DUGAS Since the decision in late 1992 to build a plant to produce methyl tertiary butyl ether (MTBE) - an additive for unleaded gasoline – DUGAS has reduced its energy consumption substantially, thereby reducing GHG emissions. One of the key initiatives taken recently by DUGAS is in the Propane Storage area. One source of MTBE Feed is mixed LPG which contains Propane and Butane. The Propane is separated from the mixed stream and sent to refrigerated storage. The Butane is then used as a MTBE feed. The tanks are maintained at 0.5 psi pressure and are insulated to maintain refrigeration but this step, however, requires a holding compressor to constantly maintain the temperature and pressure of the tank leading to continuous electricity consumption.

UAE STATE OF ENERGY REPORT 2017

FACT BOX FACT BOX

Emirates National Oil Company Group (ENOC) is a leading integrated global oil and gas player operating across the energy sector value chain. A wholly owned company of the Government of Dubai, ENOC Group oďŹ&#x20AC;ers a diverse portfolio of assets, servicing thousands of customers across 60 markets. The Group employs a workforce of over 9,000 employees..

FACT BOX FACT BOX

A multi-disciplined team within DUGAS was formed to investigate the energy consumption of the holding compressor and alternative solutions were identified. In January 2015, after considering the environmental and commercial factors, it was decided to install non-refrigerated pressure vessels for Propane, which will completely avoid the refrigeration requirement thereby avoiding the operation of a holding compressor. Immediate steps were taken to initiate the project which is on schedule to be completed by end-2016. The energy savings expected are evident, with an expected reduced electricity consumption of 16.6 million kWh per year which is equivalent to avoiding 7000 tCO2 emission per year into the environment. The electricity saved by this project in DUGAS will be equivalent to powering about 500 homes in Dubai annually.

FACT BOX for Case Study 2 The energy savings expected are evident, with an expected reduced electricity consumption of 16.6 million kWh per year which is equivalent to avoiding 7000 tCO2 emission per year into the environment. The electricity saved by this project in DUGAS will be equivalent to powering about 500 homes in Dubai annually. MTBE is a gasoline additive used as an oxygenate to raise the octane number. MTBE also helps gasoline to burn better, which lowers harmful carbon monoxide and other emissions from vehicles, reducing air pollution

107

3. ENERGY AND INNOVATION

DIGITALIZATION – THE KEY TO EFFICIENT MANAGEMENT OF ENERGY ASSETS THE FOURTH INDUSTRIAL REVOLUTION

ARTICLE

ARTICLE BY Mostafa AlGuezeri, ABB

With the launch of the UAE’s new Energy Strategy 2050, early in 2017, His Excellency the Minister of Energy, HE Eng. Suhail Mohamed Faraj Al Mazrouei has reset our country’s energy consumption targets onto a new and exciting trajectory. The global Energy Revolution is truly upon us and is fundamentally changing how power is generated, transported and consumed. At ABB, we feel a key driver to achieving the plan’s goals will be the eﬃcient digital management of all the UAE’s power assets. The upside for state utilities will be significant with improved asset uptime, speed, yield, process performance, as well as in reduced maintenance and production costs. New business models that focus on OPEX rather than traditional CAPEX costs can also be deployed.

The transformation of entire industries through digital technologies has been variously described as the Fourth Industrial Revolution, Industrie 4.0 and the Industrial Internet of Things. At ABB, we’ve been a hidden digital champion having been at the forefront of the Energy and Fourth Industrial Revolution for the past 40 years. Today we have an installed base of 70,000 digital control systems and more than 70 million connected, digitally-enabled devices - one of the world’s largest installed base of connected industrial devices.

UAE STATE OF ENERGY REPORT 2017 ABB one of the world’s top innovators ABB has been chosen by Thomson Reuters as one of the planet’s top 100 Innovators. Each year ABB invests about $1.5 billion in research and development and employs more than 8,000 technologists in more than 20 countries.

ABOUT

Mostafa AlGuezeri ABB’s Managing Director Gulf & Near East

ABB’s digitalization and technical innovations in the field of power and energy will play a central role in improving the efficient production, transmission and distribution of energy. With the seismic changes that digitalization will bring, ABB is wrapping its digital products and services into a new customer offering, called ABB Ability™. This will be our common digital solution set and enabling platform. The obvious value of ABB Ability™ for our customers will be advanced analytics, related digital services and optimization solutions, and predictive maintenance – all driving increased efficiencies and reduced cost. Going forward, ABB Ability™ will provide a unified digital platform which can be deployed across multiple power and infrastructural assets in the UAE. An example of the benefits of digitalization is the digital substation, which can cut downtime by up to 50 percent. By replacing expensive copper wires with fiber-optic connectivity, ABB is able to lay the foundation for automated, high-performance digital substations. Then we collect and analyse data through cloud-based Asset Health Center software that generates prescription actions, arriving at solutions that optimize the conditions of the mission-critical assets within the power grid.

The ABB legacy in the UAE – sustainable solutions ABB is pleased to share the UAE’s vision to build a future that’s smart, clean and sustainable. Here in the Middle East, where we have been established since 1926, we are technology partners for landmark projects like the Mohammed bin Rashid Solar Park, Burj Khalifa, Office of the Future, Dubai Metro and Dubai airport to name a few. Our recent projects in the UAE include the substation at the Mohammed bin Rashid Solar Park, where ABB was responsible for the design, engineering, supply, installation and commissioning of the substation. Key product supplies include 11 bays of 400 kV and 21 bays of compact 132 kV Gas Insulated Switchgear (GIS), power transformers and IEC 61850-based open architecture automation and control systems. Recently the 400 kV substation project was completed in 26 months to the highest health and safety standards. This is a record time for the construction of power stations with a capacity of 400 kV. Almost 40 percent of end-use energy demand comes from residential and commercial buildings. ABB is fully supportive of the Shams Dubai initiative and has powered one of the largest privately owned solar roofs at ABB’s workshop in Dubai. The initiative allows customers to install photovoltaic panels on their rooftops to generate electricity from solar power, and connect the systems to DEWA’s grid. ABB has also provided the lighting control and other electrical supplies for safe and reliable power at the world’s first 3D printed office - the ‘Office of the Future’ in Dubai. ABB intelligent power solutions also ensure a steady and efficient flow of power to the Dubai fountain, Abu Dhabi’s Yas Marina Hotel and to what is often described as the eighth wonder of the world – Dubai’s Palm Jumeirah Island. The UAE is embracing sustainable transport, encouraging the use of electric and hybrid vehicles. As a leader in Internet-based charging infrastructure, with over 5,000 web-connected fast chargers installed around the world, ABB looks forward to sharing its experiences as the UAE embarks on this journey. As a leader in the energy revolution, ABB is perfectly positioned to support growth of renewables in the UAE energy mix, strengthen its power infrastructure and make the country one of the leaders in energy innovation.

ABB, the pioneering technology leader, has appointed Mr Mostafa AlGuezeri as the new Managing Director for its operations in the United Arab Emirates and Gulf countries. Al Guezeri joined ABB in 1998 and has held a number of key management positions in the United Arab Emirates (UAE) and wider Gulf region. Most recently, he was Managing Director for ABB in Qatar. He holds a Bachelor of Science in Physics and Solid State (Electronics) from the American University in Cairo, Egypt, an MBA in Finance from Southeastern University Washington DC, USA, and a Doctorate in International Business from Atlantic International University, USA. Egyptian-born Al Guezeri has acquired a deep understanding of business coupled with hands-on exposure to all aspects of power technology management in a career spanning over 20 years in the power industry.

ABB’s digitalization and technical innovations in the field of power and energy will play a central role in improving the eﬃcient production, transmission and distribution of energy.

109

GREEN CITIES AND ENERGY PRODUCTIVITY HIS EXCELLENCY SAEED MOHAMMED AL TAYER VICE CHAIRMAN, DUBAI SUPREME COUNCIL OF ENERGY MD & CEO, DUBAI ELECTRICITY AND WATER AUTHORITY

The UAE’s wise leadership has a vision to predict the future, and to make the UAE the smartest and most sustainable country in the world in line with the UAE Vision 2021. We strive to achieve the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the happiest city on earth. We seek to create happiness by embracing innovative technology for an eﬃcient, seamless, safe and impactful experience for residents and visitors. To achieve these goals, Dubai is implementing 100 initiatives and 1,000 smart services in order to become a smart, integrated and connected city that

is sustainable with its resources, with elements that are clean, healthy and sustainable. Energy-source diversification and sustainability are the main foundations in our transition towards a smart and sustainable city. To meet the aims of the Dubai Clean Energy Strategy 2050, we are working to diversify the energy mix, so that clean energy will generate 7% of Dubai’s total power output by 2020, 25% by 2030 and 75% by 2050. Dubai has also launched the Carbon Abatement Strategy that aims to reduce carbon emissions by 16% by 2021.

4. GREEN CITIES AND ENERGY PRODUCTIVITY

ENERGY EFFICIENCY IS FUNDAMENTAL TO SUSTAINABILITY INCREASING PRODUCTIVITY THROUGH ENERGY EFFICIENCY

EDITORIAL

ARTICLE BY HE Abdulla Kalban, EGA

In a world where sustainable development is not just a buzzword, but rather a fundamental approach to issues that affect all of our lives, the importance of energy efficiency cannot be overestimated. Defined as managing energy consumption so as to deliver more from the same amount of energy (or maintain the same output using less energy), energy efficiency has the potential to increase productivity, while reducing both operating costs and environmental impact by minimising greenhouse-gas emissions and conserving water.

Seeking these benefits, Emirates Global Aluminium (EGA) – the largest industrial company in the UAE, outside the oil and gas industry – has put the principles of sustainable development into practice for over 35 years, with a specific focus on energy eﬃciency. Definitive results have been achieved. By investing substantial resources in technical research over the years, we’ve developed advanced electrolytic reduction cell technologies in-house that deliver greater productivity. Our latest generation smelting technology – DX+ Ultra – produces 3.5 tonnes of liquid aluminium per pot per day, more than double the pot productivity of our original D18 Technology. The fundamental step-change behind this achievement is improved energy eﬃciency. DX+ Ultra technology operates at 12.85 kilowatt-hours per kilogram of aluminium produced (DC kWh/kg Al), which is well below D18 technology’s 14.79 DC kWh/kg Al and also amongst the lowest in the industry, where the global average is 13.40 DC kWh/kg Al. These performance indicators were instrumental in our licensing DX+ Ultra technology to Aluminium Bahrain BSC in 2016, making EGA the first UAE industrial company to licence its own large-scale industrial technology internationally.

UAE STATE OF ENERGY REPORT 2017

Conversely, issues relating to energy availability have placed the sector under pressure, leading to smelter closures in several regions. At EGA, our primary aluminium smelters at Jebel Ali and Al Taweelah have captive power stations to ensure energy self-suﬃciency. Far from being complacent, we place strong By using our own smelting technologies for every expansion at EGA since the 1990s, we’ve successfully raised the operating amperage of our technologies by 213%, which has reduced the total amount of electricity we use to produce each kilogram of aluminium by 70%. Given that aluminium smelting is an extremely energy-intensive industry, where energy accounts for up to a third of production operating expenses, this has lowered our unit costs significantly. It has also enhanced the environmental performance of our smelters by minimising carbon emissions from fuel combustion. Indeed, our latest proprietary EGA smelting technology ranks in the global top quartile performance in cost, eﬃciency and environmental responsibility (according to independent industry benchmarks). A sustained supply of energy is nevertheless critical for business continuity in primary aluminium smelting, where smelters must operate continuously.

emphasis on conserving energy. A cogeneration and combined cycle configuration means that more than 30% of the power generated by either utility is fuel-free. Ongoing eﬀorts to enhance the thermal eﬃciency of our power plants have yielded an overall improvement to over 46% at Jebel Ali and about 52% at Al Taweelah. These improvements mean increased power generation to produce liquid primary aluminium, while the fuel requirement increment is proportionately less – with direct environmental benefits in terms of reduced fossil fuel combustion and associated carbon dioxide emissions.

113

4. GREEN CITIES AND ENERGY PRODUCTIVITY

With 5.4 gigawatts (GW) of installed generation capacity at our two power plants, EGA accounts for approximately 20.2% of the 27 GW installed capacity in the UAE. As the third-largest power producer after Abu Dhabi Water & Electricity Company (ADWEC) and Dubai Electricity & Water Authority (DEWA), EGA is an important player in the nation’s energy sector. Our power plants already play an instrumental role in the UAE government’s ambition for power-sharing across the nation, in itself a cornerstone of sustainable development through energy eﬃciency. Our Al Taweelah operation’s power plant is interconnected to the ADWEC Transco power system, while our Jebel Ali operation’s power plant is interconnected to DEWA’s network. These interties allow electricity to be imported or exported based on supply and demand principles, thus increasing reliability.

Energy eﬃciency has the potential to increase productivity, while reducing both operating costs and environmental impact by minimising greenhouse-gas emissions and conserving water.

The arrangement supports the region-wide cooperation in electricity supply across the GCC states, where an integrated grid is managed by the GCC Interconnection Authority. Direct and instantaneous transfer of the required power across the grid has prevented about 1,100 incidences of power blackouts in the region since 2009, thus avoiding losses that might otherwise have been triggered due to full or even partial interruptions. Should the proposed GCC Energy Exchange be activated, the resulting ‘power trade’ could save the GCC electricity network up to USD1.8 billion in fuel operating costs over a 25-year period. The proposed investments in electrical generators using nuclear energy and expanding the use of renewable energy sources in the GCC grid would not only reduce the capital cost per megawatt of installed capacity in the region, but also ensure greater energy eﬃciency with its spinoﬀ economic and environmental benefits.

UAE STATE OF ENERGY REPORT 2017

Both our power plants are linked to captive seawater desalination plants. At our Al Taweelah operation, power is supplied directly to a reverse osmosis technology plant that produces up to 17,000 m3 of fresh water per day. Waste steam exhausted from two of the steam turbines at our Jebel Ali plant is used to produce up to 136,000 m3 of fresh water per day, using multi-stage flash evaporator technology. These utilities fulfil EGA’s on-site water needs, with excess production at Jebel Ali being piped or trucked to external users. Water management strategies ensure optimal water usage levels, complemented by extensive water recycling. Closer to home, EGA’s focus on energy efficiency is aligned with UAE Vision 2021, where the UAE government is targeting the sustainable development of the nation while preserving the environment, simultaneously achieving a perfect balance between economic and social development. Environmentally speaking, UAE Vision 2021’s National Agenda focuses on improving the quality of air, preserving water resources, increasing the contribution of clean energy and implementing green growth plans. EGA’s efforts produce cleaner, greener energy; improve air quality in our nation; and produce water efficiently.

ABOUT

HE Abdulla Kalban MD & CEO

HE is MD & CEO of Emirates Global Aluminium, the UAEbased aluminium conglomerate with interests in primary aluminium smelting and upstream raw material production. A BSc (Industrial Engineering) graduate, he is also inter alia a Director of the Federal Electricity & Water Authority and serves on the Dubai Supreme Council of Energy.

We’ve also supported renewable-energy generation through our investment in the DEWA-operated Sheikh Mohammed bin Rashid Solar Park, and the solar field built at our Jebel Ali site. Additionally, we participated in a feasibility study related to the establishment of clean coal-fired power stations in the UAE, prompting DEWA to build a 3.6 GW coal-fired power station in two phases. Phase I (2.4 GW) is scheduled to be operational in March 2023.

115

4. GREEN CITIES AND ENERGY PRODUCTIVITY

ARTICLE BY Waleed Salman, Dubai Electricity & Water Authority (DEWA)

ARTICLE

DEMAND SIDE MANAGEMENT FOCUSES ON REDUCING ENERGY DEMAND, RATIONALISING THE USE OF ENERGY, AND THE ADOPTION OF BEST INTERNATIONAL TECHNIQUES THE MOST-INTEGRATED APPROACH TO REDUCING ENERGY AND WATER DEMAND GLOBALLY The Dubai Supreme Council of Energy launched the Demand Side Management Strategy in June 2013, to reduce energy and water demand by 30% by 2030. Demand Side Management (DSM) focuses on reducing energy demand, the rational use of energy, and the adoption of best international techniques and practices to reduce the consumption of resources, by raising awareness about the practices and techniques to save energy and reduce costs. The strategy is built around 9 core programmes that address every facet of our everyday life, making this the most-integrated approach to Demand Side Management globally. The 9 DSM components include: building regulations, building retrofits, district cooling, standards and labels for appliances and equipment, water reuse and eﬃcient irrigation, outdoor lighting, demand response, and the Shams Dubai initiative to regulate the generation of solar energy in buildings.

As a member company of the Supreme Council of Energy, Dubai Electricity and Water Authority (DEWA) is actively working to implement the Demand Side Management Strategy, which uses enabling mechanisms in line with international best practices and similar programmes implemented globally. These include organisations, capacity-building, public awareness and appropriate policy and regulatory frameworks, information systems and measurement, and suitable funding mechanisms for Dubai. These programmes and public awareness campaigns have taken diﬀerent forms, with climate change champions going to Antarctica in 2015 and the Amazon basin in 2016 to record and study the eﬀects of climate change. These have been coordinated with a range of activities to promote environmental awareness and encourage demand-side management throughout Dubai. An important segment is

UAE STATE OF ENERGY REPORT 2017 the next generation while at school and university. DEWA’s Conservation Award has been running for over 10 years and recognises the students, staﬀ and parents who have made their best eﬀorts to reduce how much electricity and water is used. Since its inception, educational institutions have made considerable savings in electricity and water over the last 8 years (2009—2016): reducing electricity usage by 9%, saving 135,554,443 kilowatt hours (kWh),and reducing water use by 24%, equating to 991,511,073 imperial gallons.

DEWA will invest AED 65 billion in Dubai’s energy and water sector.

DEWA’s customers can also take part every year in the Best Consumer Award, which encourages and rewards households that have managed to decrease their use of electricity and water over the year. Another set of campaigns over the summer tackles the higher temperatures and how to deal with them. DEWA has a travel tips section to encourage people to turn oﬀ or reduce their air conditioning while away and keep air conditioning temperatures to 24 degrees Celsius, which is the most sustainable temperature for buildings. The Peak Load campaign encourages customers not to use electrical appliances and equipment between 12-6pm when the most electricity is used. Residential outreach programmes also target certain parts of Dubai to encourage households to encourage greater energy eﬃciency by distributing free LED light bulbs and

117

4. GREEN CITIES AND ENERGY PRODUCTIVITY

Looking at the future, our targets are becoming more ambitious. The challenges we face are those we must all unite to resolve.

These savings set the scene for future plans to create further savings, to achieve the Dubai Integrated Energy Strategy 2030 to reduce demand by 30%, and the Demand Side Management Strategy.

encouraging the use of energy-eﬃcient appliances during Green Week. This has resulted in residential communities reducing their electricity demand by 19% and their water by 28%, which is equivalent to 61,271,388 kWh and 430,846,398 imperial gallons. DEWA’s outreach to commercial and industrial customers have also recorded significant successes. Commercial customers have saved 897,221,762 kWh, saving 10%, while the Industrial sector has cut its electricity usage by 15%, saving 75,414,957 kWh. Real savings have been made with water,

too. Commercial customers cut water by 30% (3,695,807,979 imperial gallons) and the Industrial sector by 21%, saving 120,779,539 imperial gallons. Working with Government and semi-government departments has also resulted in electricity savings of 374,950,688 kWh, reducing their usage by 12%, and water savings of 21% (927,343,621 imperial gallons). This has meant overall electricity savings of 1,544,413,238 kWh and water savings of 6,166,288,610 imperial gallons, which equate to AED 956,716,921 worth of savings. That’s equivalent to 95,334,150 LED lamps, 11,211 Olympic swimming pools, and an oﬀset of 943,479 trees planted, and prevented 830,527 tonnes of carbon dioxide emissions. These savings set the scene for future plans to create further savings, to achieve the Dubai Integrated Energy Strategy 2030 to reduce demand by 30%, and the Demand Side Management Strategy. Investment in projects to implement the Demand Side Management Strategy of electricity and water requires a total cost of about AED 30 billion, while current savings are AED

UAE STATE OF ENERGY REPORT 2017

ABOUT

Waleed Salman EVP, Strategy and Business Development

82 billion of the pure total saving of AED 52 billion. The Dubai Green Fund, which is part of the Dubai Clean Energy Strategy, encourages investment in the UAE of over AED 100 billion. It is a major pillar for financing and encouraging green project investments. Over USD 30 billion of green investment is anticipated in Dubai by 2030. Some studies suggest that international energy consumption will double over 2040 to 2050. This is considered a major future challenge. The demand for electricity and water in Dubai is expected to grow by 4-6%. DEWA will invest AED 65 billion in Dubai’s energy and water sector. This will support the growth of a green economy and create a competitive advantage for the UAE in clean energy and energy-eﬃciency technologies.

With over 25 years of experience in the energy sector,Waleed is currently Executive Vice President of Strategy and Business Development at Dubai Electricity and Water Authority. He is Vice Chairman of the Dubai Nuclear Energy Committee, Director of the Emirates National Grid Project, Chairman of the Dubai Carbon Centre of Excellence, Vice Chairman of the Etihad Energy Service Company, Vice Chairman of Mai Dubai, member of the Dubai Supreme Council of Energy, and member of World Green Economy Organisation. Waleed graduated from Colorado Tech University and has an MBA from the American University of Dubai.

DEWA launched a number of major innovative electricity and water generation projects to improve eﬃciency that will make cumulative savings of up to AED 60 billion in Dubai and will also contribute to reducing carbon emissions by 201 million tonnes by 2030. Looking at the future, our targets are becoming more ambitious. The challenges we face are those we must all unite to resolve. I believe that through collaboration and teamwork we can achieve our goals and make Dubai the world’s leading sustainable city, for us and for generations to come.

119

4. GREEN CITIES AND ENERGY PRODUCTIVITY

ARTICLE

ARTICLE BY Yousef Ahmed Baselaib, Masdar

THE UAE’S FIRST FOUR-PEARL COMMUNITY THE ESTIDAMA PEARL COMMUNITY RATING SYSTEM The UAE Vision 2021 sets out the UAE Government’s goal of ensuring sustainable development, while preserving the environment and achieving a perfect balance between economic and social development. This commitment can be demonstrated through Masdar City in Abu Dhabi, which was established with the aim of building the world’s most sustainable, low-carbon urban development. Through its ground-up approach to sustainable development, Masdar City is a critical initiative in demonstrating what is achievable today, in order to transform the way we use and conserve energy. In 2016, the goals of Masdar City took an important step forward with the Abu Dhabi Urban Planning Council’s (UPC’s) approval of the detailed master plans for the next two stages of development – Phases 2 and 5.

Combining traditional Arabic architectural techniques with modern technology, Masdar City creates a cool and pedestrianfriendly environment in which people can live, work, learn and play.

Phase 2 of Masdar City involves a dedicated research and development cluster built around many of its existing pilot research projects, served by a residential community including 2,000 apartments, a GEMS Education school, restaurants, cafés and parkland. Phase 5 is primarily villas and townhouses, surrounded by recreational amenities and green open spaces.

UAE STATE OF ENERGY REPORT 2017

Combining traditional Arabic architectural techniques with modern technology, Masdar City creates a cool and pedestrianfriendly environment in which people can live, work, learn and play. Through the City, Masdar – Abu Dhabi’s clean energy company – has realised a ‘green-print’ for sustainable urban development in the UAE and potentially other countries, setting new standards for reducing energy and water demand, waste and carbon emissions. Masdar City is targeting a four-Pearl Estidama Community Rating, and in doing so will become the first such development in the UAE. The City’s plans meet, and in many cases exceed, the requirements of the UPC’s standards and manuals, while giving the development a strong identity and the flexibility to accommodate future organic growth. This was achieved thanks to a highly collaborative approach between Masdar’s Master Planning and Design Team and the UPC’s Urban Development & Estidama Sector. The result is an optimised urban framework focused on sustainability and innovation, with a continuous public realm that promotes community building and knowledge exchange. Estidama, which means ‘sustainability’ in Arabic, is a UPC initiative aimed at transforming Abu Dhabi into a model for sustainable environmental, economic, social and cultural urbanisation.

The Estidama Pearl Community Rating System (PCRS) promotes the development of Complete Sustainable Communities (CSCs) and advocates improvements in the quality of life of all residents. Achieving a Pearl Community Rating requires the integration of the four pillars of Estidama – social, environmental, economic and cultural – and a collaborative, interdisciplinary approach to master planning. Maximising water and energy eﬃciency, reducing waste, and using locally sourced building materials are priorities – both to reduce the environmental impact of urbanisation and to improve the overall supply chain for sustainable products and services. Achieving the UAE’s first four-Pearl Community Rating is an exceptional goal, and doing so will ensure future residents of Masdar City are living in one of the most sustainable areas of the UAE. Around 35% of the planned built-up area for Masdar City will be completed over the next five years, and nearly 30% has been committed to, including private homes, schools, hotels and more oﬃce space.

FACT BOX FACT BOX

This growth is taking place in partnership with an increasing community of developers, investors and private-sector companies. The community is actively contributing to and benefitting from the sustainable building practices and advanced technologies deployed in the realisation of the City, whether it is the application of renewable energy, energy- and watersaving processes, or the use of low-carbon cement and recycled metals.

Masdar City is targeting a four-Pearl Estidama Community Rating, and in doing so will become the first such development in the UAE.

ABOUT

Yousef Ahmed Baselaib

Executive Director

He is Executive Director of Masdar’s Sustainable Real Estate division and its flagship project Masdar City, a ‘greenprint’ for the sustainable development of our future cities. He is responsible for driving the overall growth and direction of Masdar City’s initiatives, strategic partnerships and the development of research and innovation clusters within the City, and developing future opportunities in sustainable urban development in the MENA region and beyond.

121

4. GREEN CITIES AND ENERGY PRODUCTIVITY

GREEN CITIES AND SUSTAINABILITY THE UAE CAN INSPIRE THE WORLD

ARTICLE

ARTICLE BY Hussain Hassan Mohamed Khansaheb, UAE Ministry of Climate Change and Environment

Inspired by the directives of the late Sheikh Zayed bin Sultan Al Nahyan, the founding father of the UAE, and in accordance with our traditional and religious values, the UAE leadership has been implementing the most eďŹ&#x20AC;ective methods of sustainable development since the countryâ&#x20AC;&#x2122;s inception. In the context of global progress in combating climate change after the historic Paris Agreement of 2015, our focus on implementing green development rules has further intensified.

The UAE has a host of impressive achievements in sustainable development under its belt, which has positioned the country as the regional leader in the field. Moreover, in June 2016, Dubai featured in the list of the top 10 green cities in the world that comply with global sustainable living standards. The current development boom is clearly going to set a new challenge for the city, with regard to achieving its sustainability ambitions by 2020. Although we have already proven we are capable of competing with the leading cities of the world, we still have a long way to go. Among the orders of the day are motivating people to change their lifestyles, inspiring companies to commit to protecting the environment, and adopting innovative sustainable designs in future projects.

UAE STATE OF ENERGY REPORT 2017

In order for a city to be sustainable, it needs to encompass the three main pillars of sustainability: environmental, economic and social. Ultimately, the key objective should be to provide residents with the highest possible standard of living, combined with the lowest possible environmental footprint. An ideal sustainable city is one where people want to live, work and visit. Once completed, Masdar City in Abu Dhabi will have all of these attributes. The project utilises sustainable technologies that will dramatically reduce tenants’ operating costs. In the future, we hope to export our expertise in sustainable urban development to other countries – in the same way we export renewable energy. Another example closer to home is Dubai Sustainable City, where Phase 1 is now ready to welcome tenants. Dubai recently announced plans for additional sustainable projects,

The UAE leadership has been implementing the most eﬀective methods of sustainable development since the country’s inception. such as Desert Rose, a 14,000-hectare smart city expected to accommodate 20,000 plots for Emiratis, which will cost AED 20 billion to build. Our optimism soars higher on seeing the overwhelming number and scale of development projects in Dubai at recent events, such as Cityscape Global and the International Property Show.

123

4. GREEN CITIES AND ENERGY PRODUCTIVITY

A key challenge is educating private and publicsector stakeholders about the main principles of sustainable construction and its viability for businesses and the community at large. Sustainable buildings are not necessarily more expensive to build. In fact, in the early stages of any green project, basic design decisions, such as orientation, layout and material selection, can result in substantial environmental benefits, even while requiring low investment. From the outset, developers have the chance to considerably reduce energy consumption at little cost. We would certainly run out of space if we were to list all of the sustainable projects in the UAE. However, among the most significant ones, it is necessary to highlight Mohammed bin Rashid Al Maktoum Solar Park, the Sheikh Zayed Housing Programme (SZHP), the Emirates Mars Mission and Mohammed bin Rashid Space Centre (MBRSC). Moreover, the country has implemented several sustainable initiatives in the transportation arena, such as Dubai Metro, Dubai Tram, Dubai Trolley, the Sharekni carpooling scheme, the National Railway Network, the GCC Railway Network and the Roads and Transport Authority’s (RTA) pilot project of electric buses, launched in early 2015. In the field of sustainable energy, the most notable projects include Abu Dhabi Municipality’s public lighting, the RTA’s electric vehicle (EV) charging stations, and Dubai Electricity and Water Authority’s Shams Dubai solar energy initiative. The list would be incomplete without mentioning Dubai Municipality’s directive on the mandatory use of sustainable concrete materials and Sharjah Municipality’s zero waste-to-landfill goal. By 2020, Dubai Municipality also aims to increase the share of greenery by turning 4% of the city into parks and filling a quarter of the Emirate – nearly 380 square kilometres – with nurseries and cultivated land. In order to illustrate the magnitude of the challenge, it is worth pointing out that at the moment, parks only account for 0.49% of the city’s total area, and the Emirate uses 5.09% of its land for cultivation purposes. By cultivating arid lands and expanding green spaces, as well as instilling a culture of planting trees among individuals, we can preserve essential water supplies for the coming generations. We set out to increase green areas per capita to 25 square metres by 2020. By 2013, we had already achieved half of the target, with the help of strategies including planting trees such as ghaf, mangrove, ashraq, markh and wild figs along busy highways and in wildlife sanctuaries. The UAE’s focus on greenification is evident all around us. In 2003, Dubai only had 191,655 square metres of greenery, with 63,237 trees. By 2012, the green spaces expanded to a total of 529,827 square metres, with 105,340 trees. It is a true historical achievement for a desert city to become one of the top 10 sustainable cities in the world. This great success would have been impossible without the support of the visionary leadership of the UAE and its dedicated people. As we enthusiastically prepare to host the much-awaited EXPO 2020 Dubai, we are equally keen to work collaboratively with sustainability advocates, including Paris, London and Singapore, on inspiring the world to achieve green milestones for a brighter tomorrow.

It is a true historical achievement for a desert city to become one of the top 10 sustainable cities in the world

ABOUT

Hussain Hassan Mohamed Khansaheb, Director of Green Development

He has been working in the Marine Sector for the last 10 years. Currently, he serves as Director of Green Development at the UAE Ministry of Climate Change and Environment. He was the Director of Marine Transportation Department at RTA. He started his career as coastal engineer with Dutco Balfour Beatty then with Wagner Biru Gulf. Hussain holds Bachelor’s degree in Civil Engineering and Master’s degree in Maritime Engineering from the University of Liverpool in the UK

UAE STATE OF ENERGY REPORT 2017

INTERACTION BETWEEN ENERGY USE IN BUILDINGS AND THE URBAN MICROCLIMATE HOW THERMAL CONDITIONS WILL DETERMINE THE DESIGN OF FUTURE CITIES

ARTICLE

ARTICLE BY Dr Afshin Afshari, Masdar Institute

Urban thermal conditions will be determinant in the design of future cities and the enhancement of existing ones. They influence energy consumption in buildings and outdoor thermal comfort, but they can also impact on air pollution levels and therefore, indirectly, public health. The interfaces between the urban microclimate on one hand, and the atmospheric boundary layer, the buildings, the vegetation and the water surfaces on the other hand, are increasingly being investigated.

125

4. GREEN CITIES AND ENERGY PRODUCTIVITY

Converging approaches in human comfort, building physics, hydrology and urban climatology are emerging. At the same time, increased computational capacity enables tackling ever-larger problems. However, significant research challenges persist. As a result, although it is highly desirable to tune design and retrofit parameters to optimise competing performance indices characterising said thermal conditions, as well as other – mainly financial – variables, systematic exploration of the urban microclimate at early stages of the design process and during post-occupancy retrofits is absent from current practice. A consensus has developed among urban planners and energy policy-makers that minimisation of energy demand in the built environment holds the greatest potential for cost-eﬀective abatement of carbon emissions. About 60% of the annual electricity consumption and 75% of the peak demand of the UAE can be traced back to indoor space conditioning. Similar conditions prevail in many regional cities. The cooling demand is mainly driven by climatic conditions; however, the situation is exacerbated in urban areas. On summer days, the sun heats dry, exposed urban surfaces, such as roofs and pavements, to temperatures significantly higher than the ambient air, while in rural areas, the surface temperature remains close to the ambient air temperature. Additional heat is released into the urban canyons by motorised traﬃc and air-conditioning equipment. At night, the urban structures slowly release the heat captured during the day, substantially increasing the average local air temperature. Consequently, the cooling load of buildings rises, while air quality and outdoor thermal comfort deteriorate. This phenomenon is commonly referred to as the Urban Heat Island (UHI). It is crucial for the UAE to better understand the complex interaction between energy performance in the built environment and the urban microclimate and, in particular, to quantify the UHI and its repercussions.

Research indicates that in major UAE urban areas the average annual UHI intensity (difference between urban and rural air temperatures) stands at about 2-3 degrees Celsius, with peaks of up to 8 degrees Celsius. It has been estimated that the rise in buildings’ cooling demand, specifically due to UHI, is about 10-15%. Because the UHI and building cooling processes are closely coupled and mutually reinforcing, any intervention on one will impact the other. Consequently, enhancing the energy efficiency of buildings and cooling plants should proceed alongside an equivalent effort to mitigate the UHI. Considering recent and forthcoming electricity tariff adjustments, buildings in the UAE can now be rendered more energy efficient in a costeffective manner through retrofitting of buildings’ fabric and better maintenance of airconditioning systems. On the other hand, UHI can be mitigated by ‘cool’ (highly reflective) urban surfaces, urban vegetation and shading, traffic regulation, and the like. Current R&D aims to develop a decision support tool, specifically designed and parameterised for UAE conditions, that accurately captures the complex modes of interaction between buildings and the urban microclimate. The tool can inform energy policy-makers on the life-cycle cost/energy impact of different policies aimed at improving the existing situation. It can also be used by urban planners seeking to identify the best urban design strategies, such as urban canyon design, street orientation, and distributed versus central (district) cooling. The accuracy of the tool will be validated using a multitude of microclimatic weather stations installed on light poles in Abu Dhabi and Dubai.

The cooling demand is mainly driven by climatic conditions; however, the situation is exacerbated in urban areas.

ABOUT

Dr Afshin Afshari Professor of Practice

He has 25 years of experience in buildings’ energy eﬃciency and demand-side management (DSM). Since 2011, he has been a Professor of Practice at Masdar Institute of Science and Technology. His current research interests include urban energy modelling, load forecasting, fault detection and diagnosis, decision support for DSM and renewable energies. He holds an Engineering Diploma in Energy Engineering from INSA (France), an MSc in Control and Signal Processing and a PhD in Physics from the University of Paris XI (France), and an MBA from INSEAD (France). He has three registered patents and more than 50 conference/journal papers.

UAE STATE OF ENERGY REPORT 2017

A HISTORY OF GREEN BUILDING INITIATIVES IN THE REGION CONTRIBUTING TO THE DEVELOPMENT OF A KNOWLEDGE ECONOMY The story of the Emirates Green Building Council (EmiratesGBC) is one that is resonant with the UAE’s eﬀorts in reducing the carbon footprint of the built environment. The last 10 years of the council has seen several collaborative initiatives that have redefined how the building sector is making eﬀorts to promote sustainable practices in the UAE.

ARTICLE

ARTICLE BY Saeed Al Abbar, Emirates Green Building Council

It was in 2005 that like-minded industry representatives, motivated by sustainable green building practices, came together to discuss how they could shape eﬀective workable policies for the UAE by providing input for the entire building supply chain through membership from the industry. As ideas began to evolve, the discussion was promising enough to oﬀshoot into something much larger and substantial. Several meetings later, in July 2006, the EmiratesGBC became a reality, becoming the eighth Green Building Council in the world.

Education and training activities have been a part of the core agenda for the council to build capacity within the industry.

127

4. GREEN CITIES AND ENERGY PRODUCTIVITY

When the first board meeting was held in July 2006, the council embarked on an exciting journey to engage the industry and authorities in working together for a sustainable built environment. Some of the key government organisations we work with include the UAE Ministry of Infrastructure Development, Emirates Authority for Standardization and Metrology (ESMA), Abu Dhabi Urban Planning Council (UPC), Abu Dhabi Quality and Conformity Council, Masdar City, Dubai Supreme Council of Energy, Dubai Chamber, Dubai Municipality, Dubai Central Laboratory, Ajman Municipality, and Ajman Tourism, amongst others. Over the past few years, the EmiratesGBC has worked with a purposeful mission and vision to support the UAE in achieving new benchmarks in sustainable built environments. The eﬀorts of the council and its members to create an environmentally conscious core within the building industry have borne measurable results through several programmes that have been implemented. Education and training activities have been a part of the core agenda for the council to build capacity within the industry. The first such programme was started in 2007 and to date, over 40 technical workshops have been held for members, which has raised the bar of learning for the industry. In 2013, an awards programme was instituted to recognise outstanding sustainable building principles and practices along with a hospitality programme to set benchmarking and training to reduce the industry’s carbon footprint in the UAE. 2013 also saw a Green Key programme developed, through which the EmiratesGBC could act as a national operator for Green Key hotel certification in the UAE. The following year saw the Energy Eﬃciency Programme set up to support the UAE building retrofit programme. The Emirates Coalition for Green Schools was introduced this year, to create a national vision of healthy, high-performance schools that are conducive to learning, while saving energy, resources and money. This programme will be fully active in 2017. While the EmiratesGBC has remained close to its vision of reducing the carbon footprint of the built environment, it has also paid significant attention to contributing to the development of a knowledge economy – one of the key pillars of the UAE Vision 2021 National Agenda. Through several initiatives, the EmiratesGBC is a recognised source of

Over the past few years, the EmiratesGBC has worked with a purposeful mission and vision to support the UAE in achieving new benchmarks in sustainable built environments.

technical expertise. Some of the in-depth reports produced include the EmiratesGBC Impact report in 2014, measuring the green building progress in the country; Technical Guidelines for Retrofitting Existing Buildings report in 2015; and the Energy and Water Benchmarking for UAE Hotels in 2016. These reports have become a benchmark for industry players and the council has become a go-to body to seek counsel on these subjects. Ever since HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, introduced Innovation Week in 2015, the country has moved into high gear when it comes to innovation and new ideas being generated across diverse sectors. The green building movement has received a boost through this initiative, as it has proved to be a catalyst for several companies to look at new and diﬀerent ways of how they can reduce their carbon footprint. To recognise such initiatives, the EmiratesGBC organises two flagship events annually, to identify the latest green building trends and celebrate innovation, best practices and success stories. In 2012, the first Annual Congress was held, in which members could debate and discuss these trends, while the EmiratesGBC Annual Awards set up in 2013 recognise and reward members for their contribution to the green building sector. The EmiratesGBC has also been playing an active role in highlighting its achievements and contributing to the global green building movement. Its global eﬀorts commenced in its inception year, when it was the eighth Green Building Council to be recognised by the World Green Building Council (WorldGBC). In 2010, the EmiratesGBC led the establishment of the WorldGBC MENA Network jointly with the JordanGBC and QatarGBC. It also remained the Founding Chair in 2011-12.

UAE STATE OF ENERGY REPORT 2017

The council was held in high regard globally for its leadership role in the region and was therefore appointed to the WorldGBC Board of Directors in 2013 – a proud moment for the council and for the green building sector in the UAE. In 2016, the council also set up the MENA Green Building Awards as its contribution to the efforts being made in the wider region. This year, the EmiratesGBC also participated in the 22nd Conference of the Parties to the UNFCCC (COP 22) Marrakech Summit, where the Council participated in a meeting of cities participating in the World Resources Institute Building Efficiency Accelerator (BEA) Program. The EmiratesGBC shared how the council was working alongside the Dubai Supreme Council of Energy to fulfil Dubai’s commitment to the BEA. At COP21 held last year in Paris, the EmiratesGBC joined 24 other Green Building Councils from around the world, to make an ambitious commitment to support efforts in fighting climate change through green buildings. The council also leads by example, having itself

met international standards, thus demonstrating leadership in quality and environmental management. In 2011, the council achieved ISO 9001:2008 and the following year, ISO 14001:2004, thus ensuring its processes and procedures too, were internationally recognised. The council could not have achieved such great results within its short life of 10 years if it was not for several strategic partnerships that helped lift its profile, as well as push the message of sustainability in the built environment in the UAE. Entities supporting the EmiratesGBC along its journey include government departments such as the UPC, Ministry of Infrastructure Development and the Dubai Supreme Council of Energy; notfor-profit organisations like the Clean Energy Business Council, EWS-WWF, FEE and the EEG; and educational organisations like the British University in Dubai, Heriot Watt University, the RAK Research and Innovation Center and RIT Dubai.

ABOUT

Saeed Al Abbar Chairman

He is the Director of AESG, a UAE-based specialist consultancy firm focusing on sustainable urban development. Saeed has been involved in managing and directing a variety of energy eﬃcient and sustainable design, construction and retrofit projects throughout the Middle East. He is currently the Chairman of the Emirates Green Building Council and sits on the Board of Directors of the World Green Building Council. In this role, Saeed actively works in promoting the advancement of sustainable building, both in the UAE and globally. FACT BOX FACT BOX

EMIRATES GREEN BUILDING COUNCIL CHAIRMEN 2006-07 - Dr Mohsen Aboulnaga 2007-08 - Dr Sadek Owainiti 2008-09 - Ali bin Towaih

2009-10 - Jeﬀrey Willis 2011-13 - Adnan Sharafi 2014-16 - Saeed Al Abbar

129

4. GREEN CITIES AND ENERGY PRODUCTIVITY

COMPETITIVE ELECTRICITY MARKET THE ACHIEVEMENT OF DEMAND AND SUPPLY BALANCE IN A MORE EFFICIENT MANNER

ARTICLE

ARTICLE BY Abdullah Ali AlShahyari, UAE Ministry of Energy

The Ministry of Energy is looking to facilitate and develop a competitive electricity market in the United Arab Emirates. A competitive market will allow the achievement of demand and supply balance in a more eﬃcient manner, where utilities and members in the market will be encouraged to use the cheapest source of generation to meet demand and be more competitive. Trading in such an environment will promote eﬃciency and economies of scale in investment in power supply projects. Therefore, this environment will help promote an optimal energy mix for the country.

The migration from cooperation to competition will add a lot to the electricity sector.

UAE STATE OF ENERGY REPORT 2017

There are three technical building blocks that provide opportunities for a competitive market in UAE. Firstly, a good generation mix will provide diﬀerent electricity commodities in the market. These commodities will vary depending on the power source in the mix, availability of the power source during the day, and the price for each commodity. Secondly, good transmission interconnection will allow exchange of the most possible power between the utilities and members in the market. Thirdly, there is an availability of a surplus in production with some utilities, while others are in deficit. If we look at the current situation in the UAE, we can see that all three building blocks are available, especially if we take into account nuclear power, as well as solar energy, which will enter service in large quantities in the near future.

In this regard, it is important to take a look at the structure of the competitive electricity market and what the trading opportunities are in this market, as well as how the utilities and members can meet demand in the most eﬀective way in the presence of such a market. Bilateral trading is the basic component in the structure of the competitive market, as it will allow utilities and members to meet long-term demand and supply balance requirements. Bilateral trading always comes after a shortage in the production of owned generation in the utilities. Bilateral trading also aims to underpin generation and transmission investments. After that, monthly forward trading is introduced into the market as to balance mid-term demand and supply. This type of contract comes in the case of any access or shortage in the owned generation and bilateral contracts. In short-term demand and supply balance, the competitive market introduced three options (Weekly forward trading, Day Ahead Market (DAM) and Intraday Market (IDM).

To the end, the UAE needs to evolve into a competitive electricity market, where political and regulatory support have to be initiated to shape the future of the market.

The first option, weekly forward trading introduces the opportunity for utilities and members to make contracts a week ahead for the access or shortage power. DAM and IDM are considered to be the corner of the market where a lot of bids will be available to exchange between members on a day-ahead basis or on the same day. DAM and IDM trading optimises supply and demand portfolios to minimise the cost of supply and maximise participants’ profits. It assists in managing load and generation fluctuations. The following chart explains more about how the balance is optimised on the day.

ABOUT

Abdullah Ali AlShahyari Director of Electricity and Power Trading Department

Balancing on the Day – Hourly Contracts 250

IDM Trading DAM Trading

200

Weekly Forward Trading (OP) Weekly Forward Trading (TD)

150

Weekly Forward Contracts Monthly Forward Contracts

100

Bilateral Contracts

Weekly Forward Trading (PK) Monthly Forward Trading Bilateral Contracts Own Production

Own Supply

Demand Forcast

He is the Director of Electricity And Power Trading Department in Ministry of Energy. He also worked as Director of Systems Control Center in Electricity Sector of Federal Electricity and Water Authority (FEWA).

Total Supply 0 1

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

-50

To the end, the UAE needs to evolve into a competitive electricity market, where political and regulatory support have to be initiated to shape the future of the market. The migration from cooperation to competition will add a lot to the electricity sector.

131

ENERGY AND CLIMATE CHANGE HIS EXCELLENCY DR THANI AL ZEYOUDI MINISTER OF CLIMATE CHANGE AND ENVIRONMENT, UAE

As we witness more frequent occurrences of extreme weather events and rising temperatures that aﬀect our society and the environment we live in, concrete action is vital to ensure our long-term sustainability. Our visionary leadership has set a bold economic diversification agenda through which the UAE has been leading the region with a strong track-record in deploying clean energy projects – guided by the UAE Vision 2021 and its ambitious clean energy target of 27 per cent by 2021 – while protecting the environment.

The UAE sees clean energy as an enabler of the United Nations’ Sustainable Development Goals (SDGs) and the landmark Paris Agreement. Clean energy brings opportunities for job creation and development of new industries, where innovation and research play a critical role. Clean energy has also led to the collaboration between the government and private sector, as well as achieving great strides in youth engagement. However, this engagement can be further enhanced. While climate challenge is daunting, it is matched by opportunity. In the following chapter, you will learn more about the initiatives and projects the UAE is undertaking in the pursuit of a more prosperous and sustainable future for all.

5. ENERGY AND CLIMATE CHANGE

HAVING THE KNOWLEDGE TO TAKE EFFECTIVE ACTION DEVELOPING EFFECTIVE EMISSION REDUCTION PROGRAMMES

EDITORIAL

ARTICLE BY HE Razan Khalifa Al Mubarak, Environment Agency Abu Dhabi (EAD)

Nations came together in December 2015 to negotiate the Paris Climate Agreement, which officially came into force on the 4th November, 2016. The Agreement aims to reduce emissions of greenhouse gases and limit global warming to 2o°C, and ideally no more than 1.5°C, which it is hoped will be enough to avoid the worst effects of climate change. These global goals will be achieved by individual countries playing their part through the implementation of Nationally Determined Contributions (NDCs) and reporting progress to the United Nations (UN). But in order to develop an effective emission reduction programme, countries first need to understand the sources of emissions and assess the potential for reduction. In Abu Dhabi, the measurement of greenhouse gas (GHG) emissions is led by the Environment Agency – Abu Dhabi (EAD) supported by partners from the major emitting sectors and other government entities. Every two years this partnership produces a GHG inventory which is provided to the Ministry of Climate Change and Environment as part of the UAE’s emissions report to the UN Framework Convention on Climate Change (UNFCCC).

In November 2016, EAD published the second greenhouse gas inventory for Abu Dhabi, a comprehensive assessment of 2012 emissions. Through rigorous data collection and analysis, emissions for each sector were calculated from the bottom up, by working directly with major emitting sectors. This inclusive approach resulted in capacity development and a greater commitment within emitting sectors to support future monitoring, reporting and implementation of emission reduction initiatives. The inventory tells us that between 2010 and 2012 our total emissions increased from 99 million tonnes of CO2 equivalent to 115 million tonnes, broadly reflecting economic and population growth over this period. The energy sector comprising of electricity and water production, oil and gas, manufacturing and transport, represent 74.1% of total GHG emissions. Emissions also increased when measured on a per capita or per GDP basis, and are high when compared to other countries.

UAE STATE OF ENERGY REPORT 2017

ABOUT

HE Razan Khalifa Al Mubarak Secretary General

Reducing emissions through resource efficiency and pursuing low-carbon energy solutions will not only help us contribute to the Paris Agreement, but also help enhancing our economic diversification and competitiveness, and provide additional benefits such as improved air quality, a significant cause of environment-related disease. Based on the analysis of the GHG inventory, Abu Dhabi has the potential to reduce emissions by around 40% from a “business as usual” scenario by the year 2030. This can be achieved by pursuing ambitious policies for the generation and consumption of water and electricity, optimising efficiency of our oil and gas production, managing transportation and city expansion, and encouraging innovation within manufacturing. Much work to implement these policies has already been done. The government subsidy reforms of water and electricity are helping to reduce consumption, and the Abu Dhabi Water and Electricity Authority (ADWEA), in partnership with Masdar and Emirates Nuclear Energy Company, are leading our efforts to diversify energy generation. The Abu Dhabi National Oil Company (ADNOC) has renewed its commitment to efficiency in production and its zero flaring policy. The full implementation of carbon capture, use and storage project is being actioned through a joint venture between ADNOC, Masdar and Emirates Steel. For transport, the Department of Municipal Affairs and Transport, working with EAD and other partners, has updated the Surface Transport Master Plan and developed a strategy for low-emissions vehicles, both of which will have the added benefit of making our cities more liveable.

She is Secretary-General of the Environment Agency Abu Dhabi (EAD). She is Managing Director of the Emirates Wildlife Society in association with the WWF (EWS-WWF) and Mohamed Bin Zayed Species Conservation Fund (MBZ Fund). She is also the Chairperson of Abu Dhabi Sustainability Group Advisory Board (ADSG). She holds an MSc in Public Understanding of Environmental Change from the University College London, UK and a BA (hons) in Environmental Studies and International Relations from Tufts University, Massachusetts, USA.

The GHG inventory enables us to track the cumulative impact of implementing these policies. However, it is also important that we further develop our capacity to monitor and track the effectiveness of individual policies and projects in reducing emissions to enable us to promote successful projects or take corrective action if necessary. The managed transition to a low-carbon, diversified economy should be seen as an opportunity, helping to build a balanced, strong and sustainable economy for the future. This transition will be most effective with participation of all sectors and should present attractive opportunities for the private sector on both energy demand and supply. With the reduction in subsidies and the subsequent increase in cost to the consumer of electricity and water, projects to improve efficiency have already become more attractive. The Government must continue to implement policies that encourage, the acceleration of implementation of low carbon energy solutions, which will benefit both the climate and the economy and ensure that Abu Dhabi and the UAE continue to influence the climatechange debate from a position of strength

135

5. ENERGY AND CLIMATE CHANGE

CLEAN ENERGY SOLUTION TO CLIMATE CHANGE THE UNITED ARAB EMIRATESâ&#x20AC;&#x2122; ROLE

ARTICLE

ARTICLE BY Fahed Mohamed Amer Alhammadi, UAE Ministry of Climate Change and Environment

Through the landmark Paris Agreement, all countries will work together to limit global warming and avoid the negative consequences of climate change. Countries will do this through a series of self-determined actions, which will be communicated through Nationally Determined Contributions (NDCs). These NDCs will be submitted every five years, and each NDC will be more ambitious than the last. In this way, the agreement will continuously strengthen the global response to climate change. The United Arab Emirates is playing its part in meeting the ambitious goals of the Paris Agreement, and clean energy is at the center of this. Guided by a national clean energy target of 27% by 2021, the UAE has been a pioneer in the deployment of clean energy at scale, both domestically and abroad. We believe in the vital role that clean energy will play in both reducing our emissions, and furthering our economic diversification eďŹ&#x20AC;orts.

The UAE is committed to addressing climate change, and clean energy will be a strong focus.

UAE STATE OF ENERGY REPORT 2017

Technological advancements including improved eﬃciency, end-use applications, storage, and grid integration, and the rapidly decreasing cost of renewable energy have been working in our favour, and some of the recent figures are truly encouraging. In 2015, global investment in renewables reached a world record of USD 286 billion, and new power generation capacity additions totalled around 152 GW, higher than coal, gas, oil and nuclear combined. In the UAE, the costs of solar power came down to a world-record low at 2.42 US cents per kilowatt hour (compared to 7 US cents for natural gas) in September 2016, making renewables more competitive than ever before. Soon, renewable energy will be the conventional energy, from power to transport. The private sector will play a critical role in accelerating the deployment of clean energy. The promotion of public-private partnerships has in fact been one of the success factors for the UAE. Notable projects such as the 100 MW Shams 1 CSP plant in Abu Dhabi and the 5,000 MW Mohammed bin Rashid Al Maktoum Solar Park under development in Dubai for completion by 2030 set the example for innovative renewable auction designs and Independent Water and Power Producer agreements. We have also invested in commercial renewable energy project overseas, mainly through Masdar, totaling around USD 2.7 billion, including the London Array and Dudgeon Oﬀshore Wind Farms in the UK. Adequate financing mechanisms are also important.

We believe in the vital role that clean energy will play in reducing our emissions.

ABOUT

Fahed Mohamed Amer Alhammadi Director of Climate Change

For example, the AED 100 billion Dubai Green Fund is expected to further accelerate investments through public-private partnerships and innovative solutions, and the National Bank of Abu Dhabi has committed to lend and invest USD 10 billion over the next 10 years for sustainable solutions including clean energy.

Another pillar that is core to our efforts to grow the clean energy sector is research and development as well as capacity building of research institutions, businesses and industry and fostering of partnerships. The UAE’s researchers and scientists continue to make pioneering and ground-breaking discoveries and advancements, particularly in the solar energy field, most notably through Masdar Institute of Science and Technology, in collaboration with research entities and businesses worldwide. And as the host and a member country of the International Renewable Energy Agency (IRENA), the first intergovernmental organization dedicated to renewable energy and the first international organization headquartered in the Middle East, the UAE is working closely with the Agency and other countries to accelerate the deployment of renewable energy. To date, the UAE has supported other developing countries with renewable energy projects by dedicating more than USD 840 million to over 25 countries to date. In addition to its environmental benefits, the modular nature of renewables, namely its off-grid and on-grid applications, is particularly beneficial for developing countries. Renewables also serve as a vehicle of economic growth and provide many socio-economic benefits contributing to poverty alleviation, improved health, education and overall wellbeing, helping these countries meet their climate objectives, but also many of the Sustainable Development Goals. The UAE has also taken concrete steps to make our cities sustainable and energy efficient. We have been pioneering energy reform initiatives in the region, revising electricity tariffs and fuel prices, implementing net metering systems, solar water heating regulations, building codes and appliances efficiency standards. All of these contribute to reducing our carbon emissions and in bringing growth opportunities.

He is the Director of Climate Change in the UAE Ministry of Climate Change and Environment. Al Hammadi worked in the Ministry of Foreign Aﬀairs and International Cooperation as head of climate change and sustainability section. He started the career in 2005 in the field of petrochemicals in Abu Dhabi Polymer Company in the Health, Safety and Environment Department where he focused on implementing the HSE Management system. Al Hammadi holds Bachelor’s degree in Mechanical Engineering from the Tulsa University, USA.

The UAE is committed to addressing climate change, and clean energy will be a strong focus. We have been translating our commitment through a long-term vision, clear policies, financing solutions, and research and partnerships. We have the opportunity now more than ever to capitalize on these resources to build a strong, low-carbon green economy and a sustainable energy mix that meet the Paris Agreement objectives and ensures the well-being of our people for generations to come.

137

5. ENERGY AND CLIMATE CHANGE

ENERGY EFFICIENCY AND CLIMATE CHANGE MITIGATION PLANS

ARTICLE

ARTICLE BY Jesus Gutierrez, Smart4Power

ACHIEVING THE 2OC CARBON EMISSION REDUCTION TARGETS Unleashing the Full Potential of Energy Eﬃciency The Paris Climate Agreement has clearly set the path to keep the rise in temperatures below 2°C above preindustrial levels, which many climate scientists view as the upper limit to avoid catastrophic eﬀects (IPCC 2007).

Charting the Paris Climate Pledges

GLOBAL GREENHOUSE GAS EMISSIONS*

Different initiatives have been discussed on how to bridge this gap, in order for global emissions to start declining as early as 2020. Not surprisingly, energy efficiency has been identified as one of the most effective and efficient instruments to achieve this ambition. Firstly, energy efficiency, often referred as the hidden fuel, is widely available as a resource that costs less than conventional electricity. The average cost of saving one kWh is significantly lower than the actual cost of generating a kWh. In other words, generating a “negawatt” is much cheaper than producing a Kilowatt. For example, in Dubai, the average cost of a negawatt is around AED 0.12-0.15, significantly lower than the actual costs of generating a kWh, or the price paid by end users: AED 0.44. Other direct and indirect benefits of embracing energy efficiency include reducing government subsidies, boosting business productivity, creating jobs and reducing the burden of disease from air pollution.

GLOBAL ENERGY-RELATED GHG EMISSIONS

Gt CO2-eq

INDC Scenario

Charting the Pads Climate Pledges To stave oﬀ potentially cataclysmic eﬀects of climate change, the world must keep global warming under 2°C. The climate pledges that countries have submitted so far would reduce emissions enough to hold warming to 3.5°C.

GLOBAL GREENHOUSE GAS EMISSIONS* 140

Gigatons of CO2 equivalent

To stave oﬀ potentially cataclysmic eﬀects of climate change, the world must keep global warming under 2°C. The climate pledges that countries have submitted so far would reduce emissions enough to hold warming to 3.5°C.

During the long negotiations prior to the agreement, it became evident the countries’ climate pledges to curb their CO2 emissions would not be enough to meet the 2°C target and the temperature could rise between 2.7 and 3.5°C if no additional measures were taken. This is shown in the graph below.

120

Business are usual If no steps are taken to reduce emissions

100

With climate pledges Assuming countries only reduce emissions as outlined in their climate pledges as of Oct 1,2015

2°C path Emission reductions needed to keep temperature increase to within 2°C

projections

*Chart includes emissions of oil greenhouse gases, expressed in carbon dioxide equivalent SOURCES: Climate Interactive

PAUL HORN / InsideClimate News

In a recent report published by the International Energy Agency, it was pointed out almost 50% of the emissions savings necessary to bridge the gap could come from energy-eﬃciency measures, as shown in the graph below:

EMISSION SAVINGS FROM ENERGY-EFFICIENCY Fossil-fuel subsidy reform

35 Bridge Scenario

Upstream methane reductions

10%

Energy eﬃciency

15% 49%

25 17%

20 2000

2014

2020

Source: World Energy Outlook Special Report: Energy and Climate Change (2015).

2025

2030

Renewables investment

Reducing ineﬃcient coal

Source: International Energy Agency

UAE STATE OF ENERGY REPORT 2017

V2.1 GLOBAL GHG ABATEMENT COST CURVE BEYOND BAU - 2030 ABATEMENT COST

40 20

Iron and steel CCS new build

Reduced pastureland conversion

80 60

Gas plant CCS retrofit

Reduced slash and burn agriculture conversion

€ per tCO2e

Lighting – switch incandescentto LED (residential)

Coal CCS new build

Grassland management

Appliances electronics Motor systems efficiency 1st generation biofuels Cars full hybrid

Coal CCS retrofit

Organic soils restoration

0 20-

40-

Rice management Small hydro Waste recycling Efficiency improvements other industry Landfill gas electricity generation

6080100120140160180200-

Geothermal

Clinker substitution by fly ash Building efficiency new build Insulation retrofit (residential) Tillage and residue management Cropland nutrient management Cars plug-in hybrid Retrofit residential HVAC 2nd generation biofuels Appliances residential

Solar CSP Reduced intensive agriculture conversion High penetration wind Solar PV Low penetration wind Degraded forest reforestation Pastureland afforestation Degraded land restoration Nuclear

ABATEMENT POTENTIAL

GtCO2e per year

Note: The curve presents an estimate of the maximum potential of all technical GHG abatement measures below 80€ per tCO2e if each lever was pursued aggressively. It is not a forecast of what role diﬀerent abatement measures and technologies will play. Source: Global GHG Abatement Cost Curve v2.1

The value of energy-efficiency in mitigating climate change has also been highlighted through McKinsey’s global greenhouse gas abatement curves. As can be seen in the figure below, most of the carbon-reduction initiatives on the left side of the graph (the ones with negative net costs of CO2 abatement) are energy-efficiency measures that offset much of the cost of the emission reductions on the right side of the graph – those with net positive costs. In summary, without the implementation of energy-efficiency measures and continued investment in energy-efficiency technologies, it would be almost impossible, to achieve the 2°C carbon emission reduction targets.

Not surprisingly, energy-efficiency has been identified as one of the most effective and efficient instruments to achieve this ambition. The GCC countries are embracing energy-efficiency as part of their core energy strategy. We have seen the gradual reduction of energy subsidies in Saudi Arabia, Bahrain, Abu Dhabi and Dubai, and the creation of specific energy-efficiency programmes and targets. The UAE has recognised the value of investment in energyefficiency and demand-side management, with clear targets and initiatives at the federal and local level. The government of Dubai, has been extremely active in this field, creating the conditions to foster wide implementation of energy-efficiency measures in new and existing buildings. The Dubai energy efficiency programme, Taqati, has launched nine key initiatives to reduce electricity consumption in the Emirate by 30% (compared with business as usual). The energy-efficiency market in the region has picked up in the last two to three years as a result of these initiatives, but at Smart4Power, we believe the full potential has not yet been realised.

139

5. ENERGY AND CLIMATE CHANGE

We have observed three factors acting as major deterrents: 1) organisational behaviour and practices 2) project finance and contracting, and 3) electricity prices. 1. Energy-efficiency has yet to reach the agenda of most companies’ top management. Energy management is not their core business and, apart from simple actions like lighting replacement, most of the solutions are technically complex for decision-makers to understand. Companies’ internal procurement policies do not help either. Often, the selection criteria are based purely on the lowest price, rather than assessing energy-saving solutions based on their energy and cost-savings performance in relation to cost (ROI) and lifetime. We believe initiatives aimed at raising awareness on energy consumption performance, and even enforcement of energy audits for large end-users, will accelerate the buy-in process from decision-makers. 2. The energy-efficiency projects are on average too small and complex for finance institutions to fund. The cost of retrofitting a 400-room 5-star hotel in Dubai with energy efficiency measures could range between AED 3-5 million, to achieve savings of AED 1.52.5 million per year. The investment in a school hosting 2,000 students would be close to AED 1 million if aiming to generate savings of AED 0.4 million per year. This translates into 15 hotels or 50 schools requiring a minimum investment of AED 50 million. The fact that the investment is made on equipment installed at customer facilities and the client will pay back to the ESCOs only if there are actual savings makes the banks understandably cautious regarding the projects’ operational and financial risks This means higher interest rates and transaction fees. We believe only the creation of special funds for energy-efficiency (whether backed-up by government or by private funds), where investment can be committed at portfolio level, would increase the project size and spread the risk over different projects. 3. Electricity and water tariffs do not yet recognise actual generation and distribution costs. This is the case in places like Qatar, Oman and Bahrain, where actual tariffs for commercial and industrial customers are just a third of the prices paid in Dubai. Not having the right price signals distorts the energy-efficiency market, as the value of energy savings is significantly lower and so is the return on investment of energy conservation measures. Energy-efficiency has all the attributes to actively contribute to mitigating climate change, as well as to spur business productivity and economic growth in the region. Governments should facilitate the energy-efficiency market to unleash its full potential and accelerate its full adoption by public and private entities. Recent measures taken by the GCC countries are gearing towards this end, and we should see spectacular results in the region in the next three to five years if the existing effort is continued.

FACT BOX FACT BOX

Smart4Power (S4P) is a UAE-based engineering company that identifies and implements energy-efficiency solutions in existing buildings. Smart4Power is today one of the leading ESCO companies, with over 40 energy savings projects in the UAE alone and over 120 energy audits. Smart4Power’s list of clients includes companies such as Jumeirah (hospitality), RAK Hospital (health), Innoventures (education), Unilever (industry), Dubai properties (real state), and NBAD (banks), amongst others. Jesus is passionate about energy-efficiency and innovation and firmly believes energy-efficiency is one of the most attractive and sustainable investments companies can make, as well as being a major driver to mitigate climate change. The fact that Smart4Power clients have managed to reduce their energy bills by 23% on average, with investment payback just under two years, is solid proof.

The average cost of saving one kWh is significantly lower than the actual cost of generating a kWh.

ABOUT

Jesus Gutierrez Co-founder and Managing Director

He has been living in the UAE for the last eight years and brings to Smart4Power over 20 years of international experience in the energy sector. Previously he worked at the United Nations Development Program (UNDP) in Mexico, PricewaterhouseCoopers in the Philippines, utility company Gas Natural-Fenosa in Spain, and technology group INDRA in the UAE. Jesus holds a BA in Business Administration and an MPhil in Technology & Innovation from the Science Policy Research Unit (SPRU) at the University of Sussex.

UAE STATE OF ENERGY REPORT 2017

CLEAN ENERGY MINISTERIAL ACCELERATING THE GLOBAL TRANSITION TO CLEAN ENERGY ARTICLE BY Meshayel Omar Lehssoni, UAE Ministry of Energy

The Clean Energy Ministerial (CEM) is a global forum to promote policies and share best practices to accelerate the global transition to clean energy. CEM brings global energy policymakers together with visionaries from the business and investment communities and other clean-energy experts to drive high-impact, real-world action. The 24 countries and the European Commission that are members of the CEM account for about 90% of global clean energy investments and 75% of global greenhouse gas emissions. They also fund the vast majority of public research and development in clean energy technologies. CEM initiatives help reduce emissions, improve energy security, provide energy access, and sustain economic growth. Initiatives are based on areas of common interest among participating governments and other stakeholders.

ARTICLE

The United Arab Emirates is a member of the Clean Energy Ministerial and hosted the second Clean Energy Ministerial (CEM2) in 2011. CEM initiatives focus on empowering energy decision-makers around the world with the up-to-date information and tools they need to improve the policy environment for clean energy. The work takes place through three main activities: high-level policy dialogue at annual ministerial meetings to advance international collaboration and accelerate the adoption of clean energy policies and practices; public-private engagement to build the industry, government, and civil society cooperation needed to scale up clean energy around the globe; and yearround work through action-driven, transformative clean-energy initiatives and campaigns to encourage the deployment of clean energy technologies, policies, and practices.

141

5. ENERGY AND CLIMATE CHANGE

ABOUT

Meshayel Omar Lehssoni Director of Future Energy and Security of Supply Chief Happiness and Positivity Officer

The United Arab Emirates is a member of the Clean Energy Ministerial and hosted the second Clean Energy Ministerial (CEM2) in 2011. This high-level, annual global forum promotes policies and programmes to advance clean energy, bringing together Ministers from the world’s major economies. Currently, the UAE is participating in a variety of CEM initiatives and campaigns. This includes appliance and equipment efficiency measures, which aim to create a common technical foundation to allow governments to more easily adopt cost-effective appliance efficiency policies and programmes, thereby reducing energy demand and carbon emissions while lowering energy costs for consumers, businesses, and institutions. Additionally, the UAE supports energy management, with the Energy Management Working Group (EMWG) seeking to accelerate broad use of energy management systems in industry and commercial buildings worldwide, and the Energy Management Campaign, which promotes a proven framework to manage energy use: the ISO 50001 international energy management system standard. The UAE has endorsed the Global Lighting challenge, making tangible and specific commitments to transition to highly efficient LED lamps, and supports women in energy. Under the International Clean Energy Education & Empowerment (C3E) women’s initiative designed to enable greater gender diversity, the UAE will host an event in 2017 to bring together a number of female pioneers in the energy field to inspire a new generation of women to participate in the future energy sector, in particular with regards to renewable and clean energy. The goal is clear – to promote policies and programmes that advance clean energy technology, to share lessons learned and best practices, and to encourage the transition to a global clean energy economy. Focused dialogue between the world’s major economies can accelerate the global clean energy transition and amplify each government’s clean energy deployment efforts.

Focused dialogue between the world’s major economies can accelerate the global clean energy transition and amplify each government’s clean energy deployment eﬀorts.

Eng. Meshayel is responsible for the Department of Future Energy and Security of Supply Activities, including the preparation of the Greenhouse Gas Inventory of the United Arab Emirates Country and the Fourth National Communication Report. Previously she held the position of Head of Climate Change and Director of Clean Energy and Climate Change in the Ministry. She was responsible for Clean Energy and Climate Change Activities. She is a member of the international Clean Energy Education & Empowerment (C3E) Ambassador and focal point of Clean Energy Ministerial and Mission Innovation from UAE.

UAE STATE OF ENERGY REPORT 2017

CHARTING A WAY FORWARD FOR THE PARIS AGREEMENT THE URGENT NEED TO CLOSE THE GLOBAL EMISSIONS GAP

ARTICLE

ARTICLE BY Tanzeed Alam and Manuel Pulgar-Vidal, Emirates Wildlife Society – WWF (EWS-WWF)

Governments and other actors must continue to scale up and accelerate climate-change actions. ABOUT

Tanzeed Alam Climate and Energy Director

In the last year, many records have been broken when it comes to climate change. 2016 is oﬃcially the hottest year since records began, beating 2015 and 2014, which were also recordbreaking years. We are currently experiencing a climate that is 1o°C warmer than preindustrial times, a threshold that is already alarmingly close to the goals set by the 2015 Paris Agreement (PA) of limiting warming to 1.5°C during the 21st Century. In November 2016, the Arctic had its lowest ever recorded levels of sea ice, with scientists increasingly alarmed that this could trigger ‘runaway’ climate change, where oceans would absorb more heat and melt more ice as a result, causing further warming and a rise in sea levels.

However, 2016 also showed how united the world is in addressing climate change, with the PA being ratified at a record-breaking rate and entering into force in November 2016, just before COP22 in Marrakech. To date, 141 countries have ratified the PA, including most major emitters, such as the USA, China, the EU and India, in total covering about 80% of greenhouse gas emissions. The UAE and Kingdom of Saudi Arabia also ratified, which is an important sign, showing that major exporters of fossil fuels are also coming to the table to address this crucial issue.

Since joining EWS-WWF in March 2008, Tanzeed Alam has overseen the development of climate change, energy and sustainability for the organisation. In his current position as Climate & Energy Director at EWS-WWF, Tanzeed is responsible for developing the organisation’s strategic direction and vision for climate change and energy and leads its implementation in the UAE and the Gulf Region.

One of the critical issues is the urgent need to close the global emissions gap, to have a fighting chance of achieving the goals of the PA. Analysis shows that at current levels of emissions, there is only about six years left to have a 66% chance of staying below 1.50C of warming. During the recent COP22 in Marrakech, we saw some welcome signs of progress in this regard:

143

5. ENERGY AND CLIMATE CHANGE

1. A political statement adopted by the Parties, calls for “urgently raising ambition and strengthening cooperation amongst ourselves to close the gap between current emissions trajectories and the pathway needed to meet the long-term temperature goals of the PA” and increasing climate finance flows. 2. There was progress on the “rulebook” to implement the PA, with an agreed end date of 2018. 3. Launch of preparatory work to make 2018 a political moment to raise ambition of national pledges and close the emissions gap. Governments and other actors must continue to scale up and accelerate climatechange actions. A key opportunity is the review and revision of national climate pledges before 2020, ensuring the political moment around the “Facilitative Dialogue” in 2018 sends a strong signal that countries will redouble their eﬀorts. 4. The need to support scaled-up climate action before 2020 was recognised through the launch of the Marrakech Partnership for Global Climate Action, which sets out the way forward for what was the Lima-Paris Action Agenda. The Partnership aims to continue to provide a concerted push for climate action by bringing together State and non-State actors to identify opportunities and barriers and launch new collaborative eﬀorts to address them. The Partnership will showcase the best examples and serve as a platform to encourage greater ambition, track progress of initiatives, and report the achievements to create greater confidence and momentum. 5. Outside the negotiations process, there was leadership coming from countries at the frontline of climate change. The Climate Vulnerable Forum group of almost 50 countries announced specific commitments by all members to pursue a goal of

reaching 100% renewable energy by 2050, or sooner if possible; review and improve their NDCs before 2020, with a view to closing the emissions gap; and explore joining the voluntary phase of ICAO’s market-based measure for aviation emissions. WWF will continue to engage on many fronts to mobilise a range of actors to take action on the ground in the short- and medium-term to implement and strengthen existing national goals and policies, and to create new initiatives and strengthen existing ones, including through the Global Climate Action Initiative under the UNFCCC. In the UAE, where we have been working since 2001, we would like to see the country taking on more of a leadership role in the region, by accelerating its economic diversification away from oil into one powered primarily by renewable energy that is less energy intensive. Some analysis shows that implementing the PA means the oil, gas, and coal in already-developed fields and mines (ie. where infrastructure already exists) significantly exceeds the amount that can be burned while staying below 1.5°C. In this context, the UAE and other regional exporters of oil and gas have a crucial role to play in the required global energy transition, especially as the resources here are relatively less energy intensive to extract, such as Shale, tar sands and Arctic oil. WWF is already working to help address some of these issues and is willing to continue working with the UAE government and private sector to find practical solutions.

ABOUT

Manuel Pulgar Global Energy and Climate Practice Leader

With 30 years of experience in environmental law and policy, he served as Minister of Environment of Peru (2011 to 2016) and President of UNFCCC’s COP20. In 1986 he founded the Peruvian Society for Environmental Law, an influential institution in Latin America, serving as its Executive Director for 20 years. Mr Pulgar Vidal holds a law degree from Pontificia Universidad Católica del Perú –where he is professor- and has concluded studies for a master’s degree in business law at Universidad Peruana de Ciencias Aplicadas.

UAE STATE OF ENERGY REPORT 2017

Unlock Your Solar Potential Now We are your first step. Dubai Carbon, Your Independent Renewable Energy Consultant.

FINANCIAL

ENVIRONMENTAL

• Financial & Risk Modeling • Cash Flow Review • Cost benefit and analysis • Access to Environmental Financing Schemes

• Renewable Energy Certificate and Carbon Credit Advisory • Environmental Benefits Assessment

TECHNICAL • Feasibility Analysis • Tender documentation and evaluation • Contractor Assessment & Selection • Quality Assurance and Quality Control • Project Management

As Shams Dubai Accredited Independent Renewable Energy Consultants, we offer a bespoke approach to provide dynamic solutions in the complex and ever-evolving solar industry. Phone: +971 4 307 2600 | Email: yalla@dcce.ae

www.dcce.ae #Decarbonize #GetRenewableReady #GreenEconomy

145

5. ENERGY AND CLIMATE CHANGE

DUBAI POLICE LOW CARBON DEVELOPMENT

ARTICLE

ARTICLE BY Major General Mohamed Saeed Bakhit, Dubai Police Colonel Dr Tamim Mohd Alhaj, Dubai Police

As a leading large-scale organisation, with over 20,000 employees serving more than 2.5 million people round the clock, Dubai Police is geared towards mitigating challenges and improving the living environment in the Emirate, operating under the principles of knowledge-sharing and leading by example. Naturally, the core duties of Dubai Police are law enforcement, crime reduction and the provision of public safety. The objective is to perform these duties to the highest possible standard, while pursuing sustainable development, in line with the ambitions of the nation and in support of the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai. Coupled with the UAE’s current profile of having one of the highest carbon footprints per capita and Dubai’s consequent march towards becoming one of the world’s cities with the lowest carbon footprint by 2050, the objectives and strategies of Dubai Police have expanded to face challenges related to advocating sustainable practices and promoting environmental education and awareness. The initiatives undertaken by Dubai Police are intended to

maximise long-term benefits at both the organisational and community levels and rely on a strategy of knowledge sharing, augmented by a culture of participation. The objectives include providing solutions that can be implemented by the police force and the community to reduce greenhouse gas emissions and promoting sustainable and environmental practices. Concurrent with its community safety and security practices, Dubai Police aims to be the world’s first carbon neutral police force, with a focus on promoting environmental education and awareness, addressing the limited resources encountered, combating environmental crimes and building strong personal and community engagement practices to reduce carbon emissions through clean and efficient energy and environmental practices. The Dubai Police Zero Carbon Police Force initiative was launched in partnership with Dubai Carbon Centre of Excellence to enhance energy efficiency, reduce operational costs, manage GHG emissions linked to policy and adaptation, and aggregate low-carbon initiatives in a central repository. The initiative adopts the monitoring, reporting and verification framework for GHG emissions control in line with ISO14064, and the Intergovernmental Panel for Climate Change. A network of facilitators, the Carbon Champions, has been established to manage emissions to achieve the zero-carbon target by 2020. Dubai Police commitment to educating and involving the public boosts the development of resources preparedness and increases energy efficiency gains. The Police Academy recently announced a new programme in Law and the Environment, with the aim of deepening students’ legal environmental awareness and knowledge and creating experts dedicated

UAE STATE OF ENERGY REPORT 2017

to combatting environmental issues. To date, 15 students have enrolled in this programme. The force also continues to raise awareness and share knowledge through other platforms, such as Emirate-wide energy conservation campaigns and workshops with leading organisations in the region, including the UAE Special Army Forces. Dubai Police recognises that education is the tool of knowing and transferring. Thus, the force encourages the growth of local talents and sponsors their higher education in green energy and sustainable development studies, graduating the first Emirati with a Doctorate in Solar Energy from the University of Ulster in the United Kingdom and appointing him to initiate, manage and direct the Environment, Health and Safety (EHS) department. The department works with peers, hosting projects in energy savings, green mobility, smart services, sustainable procurement, sustainable waste management, greening landscapes, and marine life rehabilitation.

ABOUT

Major General Mohamed Saeed Bakhit Director of General Department of Services and Supplies

He is the Director of the General Department of Services and Supplies in Dubai Police. He holds a Bachelors Degree of English Literature from UAE University, and a License of Law from Dubai Police Academy. His dedication to serve the force for over 30 years earned him several honorary first class appreciation medals for his contribution in weapons and electronic ammunition management and customers’ satisfaction management. In 2009, the force awarded Major General / Mohamed Bakhit an honorary insignia in recognition of his participation in Dubai Government Excellence Programme.

Amongst other initiatives, the EHS department conducted a baseline energy audit to evaluate electricity and water consumption and sought technical recommendations and solutions from experts at Dubai Electricity and Water Authority to increase the efficiency of energy consumption for more than 400 buildings. Dubai Police also adopted the strategies of South Yorkshire British Police Force as a benchmark to enhance its energy performance. Major implementations include the UAE Energy Star project in police departments to control electricity usage, installing of LED lighting and light sensors, implementing the Green Buildings Codes in new buildings, building a 412,000-square-foot LEEDcertified forensic science laboratory, and applying green information technologies to optimise fleet performance. With major achievements marked in increasing operational efficiency, Dubai Police is continuing the transition towards clean energy resources, with plans to cover its 400+ rooftop buildings and empty spaces with solar panels to generate clean energy. The EHS Department is actively and continuously striving for environmental sustainability and the benefits continue to cover the three pillars of sustainability, with increased social awareness and involvement, a substantial reduction in GHG emissions, and a reduction in current running costs. Currently, new plans are being drafted to develop a sustainability department within Dubai Police, spearheaded by a committee that encourages stakeholder engagement. Additionally, Dubai Police participates in public exhibitions; sponsors certified training and higher education for staff, along with voluntary guidance and mentoring programmes; and has initiated educational toolkits for further development. Further education opportunities and a comprehensive series of training programmes are offered internally, including programmes developed with international agencies such as the United Nations and locally with the UAE Ministry of Climate Change and Environment.

ABOUT

Colonel Dr Tamim Mohd Alhaj Director of Environment, Health and Safety Department

He is the Director of the Environment, Health and Safety Department in Dubai Police and holds a Ph.D. in Solar Energy from University of Ulster, UK. He also holds BEng (Hons) and MSc (Hons) in Mechatronics Engineering from London South Bank University. Prior to taking up his current position in 2009, Dr Tamim worked as a supervisor for a number of university students for several years in the UK. His field of specialty revolves around environmental policies and strategies, climate change, renewable energies and sustainability.

There will always be more that can be done, and as technology and society advances, there will be diﬀerent ways of instituting initiatives to ensure maximum success. To continue being an example of best practice in improving the living environment of Dubai and impacting environmental and societal sustainability, Dubai Police aims to continually ensure respect towards the operating environment is upheld to benefit the country both now and well into the future. We advocate for sustainability and encourage pursuing it with joy. We are all police.

147

5. ENERGY AND CLIMATE CHANGE

UAE AND CLIMATE CHANGE

ARTICLE

THE RISE IN THE DEMAND FOR ENERYGY

Climate change is a harsh reality that requires action today, if we wish to preserve this world for our future generations.

The initiative to conserve our planet has to come from the leaders of all nations. We need to combat this issue with a top-down approach, where the policies are set in place by the government, and then trickled down into the economy.

ARTICLE BY Ameera Khalid, Dubai Carbon Centre of Excellence

Advancing clean energy, primarily solar power, is a key component in the UAE’s eﬀorts to diversify energy production while promoting sustainable development.

The main culprit for the crisis we face today is the greenhouse gases emitted when we burn fossil fuels. At the same time, cutting these emissions down and providing electricity for a growing global population is a massive and critical challenge. With a rapidly growing global population, urbanisation and burgeoning demand for goods and services in emerging economies, the demand for energy is on the rise, with increasing pressure on energy suppliers to meet that demand. There is a movement to add renewables to the global energy mix to do so. It is expected that 26% of the world’s energy will be generated by renewable sources by 2020.

UAE STATE OF ENERGY REPORT 2017

The Paris Agreement requires all parties to put forward their best efforts through “Nationally Determined Contributions” (NDCs) and to strengthen these efforts in the years ahead. This includes requirements that all parties report regularly on their emissions and implementation efforts. In 2018, the parties will take stock of their collective efforts in relation to progress towards the goals set in the Paris Agreement and use this to inform the preparation of NDCs. There will also be a global stocktake every five years to assess the collective progress towards achieving the purpose of the Agreement and to inform further individual actions by parties. The UAE falls under the category of NonAnnex 1 countries. It is, therefore, not mandatory for the UAE to take measures or implement policies to combat climate change. Despite this, the UAE is playing a major role in GHG mitigation at every level, as the government understands the threat posed by climate change. The UAE submitted their NDCs in October 2015 ahead of the Paris Agreement, signed agreement in April 2016 and later ratified it in September 2016, in order to achieve their emission reduction targets and strategies that will be employed on a nation-wide level to combat climate change.

and efficiency. DIES 2030 sets a strategic direction towards secure and sustainable energy supply and demand, to address the rising demand for water and energy in the UAE with the growing population and increasing economic activity. Advancing clean energy, primarily solar power, is a key component in the UAE’s efforts to diversify energy production while promoting sustainable development. The Mohammed bin Rashid Al Maktoum Solar Park, the largest Concentrated Solar Power plant in the world, is a prime example of one of the large-scale projects in the region. Pioneered by Dubai Electricity and Water Authority (DEWA), the facility is expected to provide power for 800,000 homes. The Solar Park will produce 1,000MW by 2020 and 5,000MW by 2030, with total investments of AED 50 billion. Upon completion, the solar park will offset over 6.5 million tonnes of carbon emissions annually.

Within the UAE, the commitment to shift from an oil-based economy towards other sources of energy can be found through investment in a number of initiatives and projects. To this end, HH Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice-President of the UAE and Ruler of Dubai, launched the UAE Vision 2021 strategy. The strategy focuses on improving the quality of air, preserving water resources, increasing the contribution of clean energy and implementing green growth plans. To support the UAE Vision 2021, the Dubai Integrated Energy Strategy (DIES) 2030 was developed to fulfil Dubai’s vision of leadership in energy security

ABOUT

Ameera Khalid Project Officer

She is a Project Oﬃcer in the Publications’ Department at Dubai Carbon Center of Excellence, where she provides strategic project support for the Knowledge Products. She is an accomplished finance professional with a strong background in accounting and corporate finance and extensive experience in public and corporate trainings. Her professional career coupled with her strong academic background has equipped her with a unique perspective and executive skills that she is now applying to the exciting world of project management.

Despite this, the UAE is playing a major role in GHG mitigation at every level, as the government understands the threat posed by climate change.

149

ENERGY AND TRANSPORTATION HIS EXCELLENCY MATTAR AL TAYER DIRECTOR GENERAL, CHAIRMAN OF THE BOARD OF EXECUTIVE DIRECTORS, ROADS AND TRANSPORT AUTHORITY

As a party to the United Nations Framework Convention winning the bid to host the world Expo 2020 in November 2013 was just a further addition to the proven record of accomplishments of Dubai highlighted by an array of impressive world-class achievements. It was a culmination of the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, as well as the solid & unremittinggovernment policy to continuously develop the infrastructure and the services that have uplifted Dubai to the forefront of the global attention enabling the city to carve a niche as a premier global hub for business, finance and tourism.

The Emirate has capitalized on its fantastic location on the global map to act as a communication link between various continents as two-thirds of the worldâ&#x20AC;&#x2122;s population is within 8-hours flight from Dubai. The superb infrastructure, sterling services, fine shopping centers, and the abundant tourist activities and events that set Dubai a class apart, attract millions of visitors every year. As part of its preparations for hosting Expo 2020 in a style befitting the profile of Dubai, the RTA has developed a master plan for roads & transport services in support of Expo.

6. ENERGY & TRANSPORTATION

THE TRANSPORT MOBILITY MANAGEMENT STRATEGY FOR ABU DHABI AND ENCOURAGING SUSTAINABLE TRANSPORT IMPLEMENTING SUSTAINABLE INITIATIVES TO RAISE EFFICIENCY

EDITORIAL

ARTICLE BY HE Khalid Mohammed Hashim Department of Municipal Aﬀairs and Transport (DMAT)

The Abu Dhabi Government continues to promote sustainable mobility and the development of a mobility management programme as part of its commitment to meet the needs and aspirations of the public and citizens. The Department of Municipal Aﬀairs and Transport benchmarks against the best international standards to develop and implement sustainable transport initiatives, raise the eﬃciency of the transport network to make Abu Dhabi a preferred destination for workers, residents and visitors, and strengthen its position at the local, regional and global level.

Abu Dhabi. Population growth, economic expansion and increased land development will result in an increase in the number of trips per day in the Emirate, from 2 million in 2008 to 10 million in 2030. The cost of traﬃc congestion is estimated to be in excess of AED 4.8 billion per year, which compromises the Emirate’s ability to grow sustainably and is an environmental risk.

The Transportation Mobility Management (TMM) initiative was launched in 2011 and the TMM Strategy was published in 2012. This initiative is designed to support the objectives of other strategic DoT and Abu Dhabi Government policies, in particular the Surface Transport Master Plan (STMP), Abu Dhabi Plan 2030, Abu Dhabi Economic Vision 2030 and Abu Dhabi Environment Vision 2030.

The Abu Dhabi TMM Programme is one of the largest and most comprehensive sustainable travel programmes in the world. TMM is a package of measures designed to change and influence the way people travel daily. These measures focus on promoting and supporting sustainable travel options for a range of end users to reduce reliance on single-occupancy car journeys. TMM is particularly important in the context of Abu Dhabi Emirate, where there is a growing demand for travel, coupled with high car dependency and rising living costs.

TMM is also a key mean through which the DoT will achieve its own strategic objectives, in particular, reducing traﬃc congestion and improving mobility within the Emirate of

The Abu Dhabi Government developed a comprehensive vision, plans and programmes to change and influence the way people travel and reduce reliance on private

UAE STATE OF ENERGY REPORT 2017

cars through promoting and supporting sustainable travel options and rerouting journeys away from congestion hotspots. This includes spreading traﬃc more widely across the network and alleviating key pinch points, as well as encouraging flexible working policies to reduce congestion and improve health and wellbeing. The programme continues to see initiatives implemented and promoted through the “Move Right Abu Dhabi” campaign, whereby residents and visitors to Abu Dhabi receive advice and information on the wide range of sustainable options available. Since its launch, the programme has rapidly expanded, engaging over 15,000 people at public and business events throughout 2015. The TMM Programme is part of the wider TMM Strategy developed by the Department of Transport (now the Department of Municipal Aﬀairs and Transport), with ambitious goals set to provide tangible, long-lasting results for the benefit of Abu Dhabi residents. The following are some of the programme’s achievements:

• Move

Right Abu Dhabi brand awareness level, as indicated through brand awareness surveys

• More than 57.000 kms pledged to sustainable travel during roadshow events

• Development

of a compressive assistance programme for developers, schools and event destinations

• Development

of the first Low-emission Vehicles Strategy in Middle East and North Africa

• 5,000 trips recorded using park and ride services • Regional

recognition, winning the Dubai Award for Sustainable Transport (DAST) 2015, Mobility Management category, and second place for Transport Mobility Management Implementation.

153

6. ENERGY & TRANSPORTATION

“

The Abu Dhabi TMM Programme is one of the largest and most comprehensive sustainable travel programmes in the world

“

Additionally, 33% of DMAT staff, 25% of ADAC staff, and 60% of Corniche Hospital staff are using sustainable modes of transport. TMM will continue to provide information on the available choices to help people determine alternative ways of travelling. This element of the overarching TMM strategy is composed of a number of sub-strategies aimed at specific target groups Segmentation and target-group-specific actions and TMM measures are crucial in achieving the desired outcomes. Each substrategy focuses on TMM plans for the relevant target groups, as well as a number of stand-alone initiatives. The following sub-strategies are included within the overarching strategy

• TMM workplace travel strategy • TMM education travel strategy • TMM visitor travel strategy • TMM residential travel strategy These strategies aim to facilitate meeting the rapidly growing requirements for mobility witnessed by the Emirate of Abu Dhabi at all levels. To achieve this, the DMAT is working with stakeholders from both public and private sectors to develop plans for the implementation of sustainable travel measures. This includes taking into consideration the needs of the transport sector in Abu Dhabi, with the aim of addressing issues related to a reduction in the number of vehicles on the road in order to minimise traﬃc congestion and improve the use of sustainable public transport, while educating the public through awareness campaigns. To achieve the TMM objectives, a sustainable travel guide has been produced for the Sheikh Hazza Bin Zayed Stadium in Al Ain. The sustainable travel guide recommends measures for promoting and developing sustainable travel opportunities for users and visitors to the stadium and associated facilities. These are divided into immediate, medium and longer term implentation measures as well as identifying other places in the Emirate of Abu Dhabi to take similar steps. Other initiatives encouraging sustainable transport in Abu Dhabi include:

• Undertaking study to identify sustainable travel areas in the Emirate of Abu Dhabi

• Producing the Low-Emission Vehicle (LEV) Strategy • Developing a workplace assistance programme • Launching a Cycle to Work UAE Toolkit for organisations that would like to promote cycling

• Signing

a Memorandum of Understanding (MoU) with the Environment Agency Abu Dhabi, to engage with schools, campuses and ADEC, and integrate into existing sustainable school initiatives.

EVENTS

“

Since its launch, the programme has rapidly expanded, engaging over 15,000 people at public and business events throughout 2015.

“

• Abu Dhabi Municipality Move Right (February 2016) • Train Yas (January 2016) • Cycle to Work UAE campaign (January 2016) • St Joseph’s School (Feb 2015) • National Drilling Company (Feb 2015) • ACTVET Festival of Fun (April 2015) • Run for a Cause (April 2015) • NBAD Workplace Roadshow (Sep/Oct 2015)

UAE STATE OF ENERGY REPORT 2017

• Abu Dhabi Tour (Oct 2015) • More than 57,000 kms pledged to sustainable travel during roadshow events

• Potential market of 25,000 users for carpooling website Priorities of TMM and Sustainable Transport PRIORITY 1

• Developing the core identity of Move Right Abu Dhabi • Streamlining development of material and communications • Improving events and roadshow kits • Increasing support internally • Moving the TMM website forward • Initiating TMM Travel Action Plan Awards • Reviewing initiatives available to workplaces • Developing the Park & Ride service • Improving the carpooling website • Building the workplace stakeholder campaign • Developing the Education Assistance Programme PRIORITY 2

• Social media presence of Move Right Abu Dhabi • Developing initiatives • Gamification • Hafilat trial • Rolling out event planning • TMM for residential developments PRIORITY 3

• Sustainable Travel Day • Campaign • Targeting visitor and leisure audiences. PRIORITY 4

ABOUT

HE Khalid Mohammed Hashim Executive Director - Surface Transport Sector

Prior to joining DMAT, he occupied many public sector positions in the United Arab Emirates. He is also a member of the Infrastructure and Environment Committee of the Executive Council in Abu Dhabi. He was also the Executive Director of Dubai Transport Corporation where he managed all taxi operations. He has also held the position of Director of Planning & Business Development in the Public Transport Agency of the Roads and Transport Authority of Dubai.

• Sustainable travel app • TMM for construction. TMM AWARDS AND RECOGNITION • Dubai Award for Sustainable Transport (DAST) 2015 and 2013 winner, Mobility Management category, second place for Transport Mobility Management Implementation

• Presented to the European Conference on Mobility Management • Key part of the DoT’s exhibition space at the World Future Energy Summit held in Abu Dhabi

Using sustainable modes of transportation is beneficial for society and the environment, significantly improving the level of residents’ health and wellbeing. If just 5% of staﬀ in an organisation with 1,000 employees convert to Park & Ride, there will be 50 less vehicles looking for onsite parking spaces and less road congestion. Carpooling 25 kms with another person three times a week saves 9 kgs CO2– the equivalent of AED 311.22 and 468 kgs CO2 annually (equivalent to a flight between London and Abu Dhabi). By 2020, 15% of public-sector organisations, 10% of private sector companies, 15% of public and private schools and 30% of public and private universities with over 500 employees or students at any site will be required to have a sustainable travel plan.

155

6. ENERGY & TRANSPORTATION

RTA’S RAIL SECTOR ROLE IN CONSERVING NATURAL RESOURCES AND PROTECTING THE ENVIRONMENT DUBAI METRO, AN ENVIRONMENTALLY FRIENDLY MEANS OF TRANSPORT

ARTICLES

ARTICLE BY AbdulMohsin Ibrahim Younes, RTA

Dubai Roads and Transport Authority (RTA) is committed to environmental sustainability and attaches considerable importance to protecting the environment and saving natural resources, by adopting the highest international standards in optimising energy and water consumption. RTA’s rail sector contributes significantly to achieving these goals. One of the biggest infrastructure and mass transit projects in the region is Dubai Metro, which has revolutionised the way both residents and tourists move around the city. The metro plays a significant role in conserving energy and reducing carbon emissions. Guinness World Records acknowledged it as the longest fully automated metro network in the world. Currently, there are two lines, the Red Line and Green Line, with 47 stations. Both metro Red and Green lines lifted 191.3 million riders in 2016, compared with 178.647 million riders in 2015, providing aﬀordable public transport and improving the traﬃc condition in some key areas by 25%.

“

Dubai Metro reduced carbon dioxide emissions by around 305,618 tonnes in 2015, an average of 837 tonnes per day, because of shifting from using private vehicles to using the Metro. This also results in reducing traﬃc on Dubai roads. The graph on the next page shows contribution of Dubai Metro in reducing carbon emissions as a result of shifting people from using private cars to use the metro.

The metro plays a significant role in conserving energy and reducing carbon emissions.

“

Dubai Metro is an environmentally friendly means of transport. RTA has implemented a number of measures to make the stations and other facilities environmentally friendly as well. Design and implementation of the metro stations’ thermal insulation systems take advantage of the movement of the sun and shade to regulate the energy consumed for air conditioning and lighting. The escalators in the stations stop when not in use, while the train itself runs on electricity, the consumption of which is regulated automatically with the changing speed of the trains, helping reduce power consumption.

UAE STATE OF ENERGY REPORT 2017 Contribution of Dubai Metro in reducing Carbon Emission (Kg CO2e/passenger) as a result of shifting to Dubai Metro 0.8 0.71 0.65

0.58

0.42

0.71KG CO2 per passenger

0.4

0.2

2010

2011

2012

2013

2014

2015

2016

-0.19

-0.19KG CO2 per passenger

-0.21

RTA plans to launch three more metro lines by 2030, as well as an extension of the Red Line to the Expo 2020 site, the project is known as Route 2020. The Dubai Tram, launched in November 2014, lays claim to several world firsts. It is the first turnkey tramway or light rail system in the Middle East, the world’s first with full-line thirdrail ground based Aesthetic Power Supply, the first designed for such extreme weather conditions, and the first with platform screen doors and automatically synchronised station stops. Its ground-based power supply system employs leading-edge technology, which energises the current rail beneath the tram as it passes. This is considered safer than conventional overhead catenarytype systems.

“

The number of daily average passengers has jumped from 60,000 at its launch in September 2009 to about 500,000 in 2015.

“

0.6

Current route length is 10.6 km, with further extensions planned. Dubai Tram is integrated with Dubai Metro, buses and taxi services to enhance city connectivity. The Tram lifted 5.4 million riders in 2016 compared to 4.07 million in 2015. It removed more than 3,741 tonnes of CO2, in 2016, and average of 10.2 tonnes per day. The graph below shows the monthly carbon reduction from November 2014 to December 2016 as a result of modal shifting from using private vehicles to use the Tram. The average daily ridership of public transport (Dubai Metro, Dubai Tram, Dubai Bus, marine transit modes and taxis) clocked at 1.5 million riders. The first half of last year registered about 257.71 million riders, which is around a 3.65% increase. RTA strives to push the share of public transport means in the mobility of people to as high as 30% by 2030. The share of public transport in people’s mobility has more than doubled from 6% in 2006 to 16% in 2016. Estimated monthly carbon emissions removed from Dubai roads (tCO2) as a result of shifting to use Dubai Tram

157

6. ENERGY & TRANSPORTATION

ABOUT

AbdulMohsin Ibrahim Younes Chief Executive Officer, Rail Agency Roads and Transport Authority

“

RTA plans to launch three more metro lines by 2030, as well as an extension of the Red Line to the Expo 2020 site, the project is known as Route 2020.

Other green initiatives that RTA has launched include installing water flow controllers at WC ablution hoses across the whole Metro project. This is expected to save 17,031,820 Imp gallons of water that is over 590 tonnes of CO2 or AED 794,347 in 2017. Another green project is optimising operation of public area serving HVAC equipment at all stations on Red and Green metro lines during low ambient conditions. This is expected to save 3,043,348 KWh of electricity, 1,308 tonnes of CO2 and AED 1,308,640 in 2017. The LED Lighting Programme replaces Link Bridge CFL lights fixtures at Dubai Metro Stations with low consumption type (LED) and longer life fixtures. The project is expected to save 956,126 kWh of electricity, 411.13 tonnes of CO2 and AED 517,334 in 2017. In 2016, RTA’s green initiatives saved more than 13,000,000.00 KWh of electricity, 12,200,000.00 Imperial gallons of water, and 21,000.00 tonnes of carbon dioxide.

AbdulMohsin Ibrahim Younes has 25 years of senior and leading positions in the public sector. He is currently the CEO of the Rail Agency at the RTA. Previously he was the Chief Executive Oﬃcer of the Strategy and Corporate Governance Sector (SCG) for the same authority. Being fully committed to RTA’s vision, “Safe and smooth transport for all”, and being in a leading role at RTA allowed him to define and direct RTA’s strategic direction towards a totally-integrated transportation solution in support of Dubai’s long-term Strategic Development Plan.

UAE STATE OF ENERGY REPORT 2017

DUBAI GREEN MOBILITY INITIATIVE

ARTICLES

ARTICLE BY Taher Diab, Dubai Supreme Council of Energy

Dubai is one of the fastest growing cities in the world, positioned as the regional hub for tourism, logistics and finance. To fuel its economic growth and maintain its regional and global prominent position, Dubai initiated a smart strategy to manage demand, diversify fuel sources, secure supply and foster green growth. Dubai’s energy model stems from the Dubai Integrated Energy Strategy (DIES) 2030, launched in 2011 by the Dubai Supreme Council of Energy (DSCE), which details a roadmap to achieve various targets by 2030 and 2050, based on building a world-class regulatory framework to accelerate the diversification of the energy mix, ensure security of supply and facilitate eﬀective demand-side management. The DIES is aligned with the national sustainable development goals making it an eﬀective supporting tool for achievement of the goals outlined in the UAE Vision 2021 and Dubai Plan 2021.

“

The Green Mobility Initiative aims to accelerate the uptake of hybrid and electric vehicles (EVs).

“

DEVELOPING THE MARKET FOR HYBRID AND ELECTRIC VEHICLES

There are numerous innovative programmes and initiatives in place to aid the Emirate in its progression towards becoming one of the most sustainable, smart cities in the world. This includes a strategy adopted by the Dubai Supreme Council of Energy to achieve sustainable development to create a low-carbon economy and promote the use of hybrid cars and electric vehicles. At a fundamental level, the Green Mobility Initiative aims to accelerate the uptake of hybrid and electric vehicles (EVs). Electric vehicles operate on electricity as an alternative for fuel and contribute towards the preservation of the environment, sustainability, and energy conservation. This initiative complements the spirit of the UAE Vision 2021 and Dubai Plan 2021, by providing alternative modes of transportation that can save fuel and reduce carbon emissions.

159

6. ENERGY & TRANSPORTATION

Road transportation is the third largest source of greenhouse gas (GHG) emissions in Dubai, making this initiative an important contributor to the Dubai Carbon Abatement Strategy 2021, which aims to reduce carbon emissions by 16% by 2021 compared to the business as usual (BAU) scenario. The Green Mobility Initiative sits alongside other transport initiatives as an enabler to achieving this goal. In order to create the market for hybrid cars and electric vehicles, the Dubai Supreme Council of Energy (DSCE) and its entities, in cooperation with other government bodies in Dubai, is following a comprehensive approach founded on the principle of “leading by example” by government entities. An initial detailed analysis of market potential and size led to the establishment of a penetration target of 10% of hybrid and EVs in the government fleet by 2021. To support the successful implementation of this target, the DSCE and its entities have implemented a number of specific initiatives designed to maximise uptake of these vehicles. As a starting point, the DSCE coordinated with the Emirates Authority for Standardization and Metrology (ESMA) to devise suitable standards and specifications for EVs and developed the required electrical charging stations in conjunction with Dubai Electricity and Water Authority (DEWA). DEWA opened the first electric charging station in February 2015, installing 12 stations at DEWA offices, capable of charging 24 vehicles simultaneously. DEWA went on to successfully install 100 electric charging stations in Q4 of 2015 in different areas in Dubai, including shopping malls, airports, commercial offices, residential complexes, gas stations, government offices, and residential establishments, with further units planned for completion based on customer intake, usage, and driving patterns. In addition, DSCE continues to coordinate with various stakeholders to design a mix of incentives to accelerate the use of hybrid and EVs. As well as creating a market for hybrids and EVs, leading by example enables the government to build the learning curve necessary to expand the deployment of these vehicles in the arid climate of Dubai. Hybrid vehicles have already proven to function successfully, as demonstrated by the Road and Transportation Authority (RTA) of Dubai in 2015, with the use of over 140 hybrid taxis. This trial reported about 30% fuel savings and no performance challenges. The RTA now plans to convert 50% of its fleet to hybrid taxis by 2021. Developing the market for hybrid and electric vehicles thus promotes the use of sustainable transport and encourages the use of environmentally friendly vehicles by citizens and residents in Dubai, with the potential to have a significant impact in reducing greenhouse gas and carbon emissions within the transport sector. Expanding the market for hybrid and electric vehicles will attract more electric and hybrid car manufacturers, and encourage awareness and increased use of environmentally friendly vehicles. The Green Mobility Initiative demonstrates a collaborative approach to create the market through a staged roll-out plan to achieve realistic targets, pioneered by the government of Dubai leading by example, in a first-of-its-kind initiative in the region.

ABOUT Taher Diab Senior Director Strategy & Planning, Dubai Supreme Council of Energy

He is the Senior director of Strategy & Planning, Dubai Supreme Council of Energy. His career includes over 27 years of diversified experience in business planning, strategy development, corporate governance, sustainability and HSE and quality-management systems. He is actively involved in the strategic development of diversified energy sources, demand and supply management in Dubai and devising work plans for achieving Dubai’s Integrated Energy Strategy 2030.

UAE STATE OF ENERGY REPORT 2017

DUBAI CREATES HAPPINESS SMARTLY THE SMART CITY PROJECTS IMPROVING THE QUALITY OF LIFE FOR RESIDENTS OF THE CITY

This vision is complemented by the Smart City project, particularly the Smart Life initiative aimed at improving the quality of life for residents of the city. To manage mobility and transport network more eﬃciently, the RTA has endorsed the establishment of the Enterprise Command & Control Center (EC3) to act as a center of excellence and a hub for all cadres deployed in Operation Sections of various transit means. The idea is to bring together all personnel and systems to act under a comprehensive methodology and a single central management that figures out solutions for all current and future challenges faced by the transport network.

“

The RTA is currently working on a comprehensive vision for a multi-modal transit system that oﬀers highclass services to residents of Dubai.

“

Happiness in Dubai is limitless. It is not restricted to a specific field either. Everyone is driven by passion, loyalty and a sense of belonging to achieve that goal. The Roads and Transport Authority (RTA) in Dubai has endless ambitions to serve the infrastructure of Dubai, especially transit systems, as it anticipates a phenomenal growth over the next two decades. The RTA is currently working on a comprehensive vision for a multi-modal transit system that oﬀers high-class services to residents of Dubai.

ARTICLES

ARTICLE BY Abdulla Al Madani, RTA

The EC3 is a key tributary to the Smart City initiative launched by the Dubai Government in the lead up to Expo 2020. It has an ambition to play a leading global role in managing multi-modal transit means. The EC3 will act as the backbone of transit systems in Dubai. It shall provide vital information to decision makers that will assist them in taking appropriate decisions during challenging times. Thus, it enables them restore the state of affairs back to normal in a quick and efficient manner. The concerned parties have identified eight key roles for the EC3 namely: transport systems management, events planning and management, media affairs management, crises management centre, capturing of data and compiling of strategic reports, information security centre, excellence centre, and supporting and monitoring operations control centres. The approved statistics and studies regarding accelerating growth of roads network in Dubai reveal that half a billion riders have so far used rail transport up to now, 292 million riders will be using taxicabs by 2020, about 25 million visitors will be entering the Emirate by 2020 and roads network in Dubai have increased by 354% since 1991.

161

6. ENERGY & TRANSPORTATION

Among other features of the Centre, it enables operation staff handling various transit means to work under one roof, thus offering more potential for coordinated efforts towards developing solutions that support the comprehensive transit network. The Centre will also act as a key pillar in the smart transport systems strategy aimed at providing the highest standards of mobility for visitors of Expo 2020. The EC3 has a central database, video recordings captured by RTA-installed surveillance cameras, and other information systems. It enables the monitoring and management of the traffic system as a single integrated network as well as taking real-time decisions based on instantly relayed information. The Centre will communicate accurate transport information to other government bodies and the public in order to ensure the smooth traffic flow all over the city.

“

The EC3 has an ambition to play a leading global role in managing multi-modal transit means

“

In view of these figures, the EC3 will be a vital component of transport infrastructure of the Emirate. The Centre will combine human expertise, technology and operations management with a view to support the traﬃc, transit systems, development plans, models analysis systems and crises management.

ABOUT

Abdulla Al Madani CEO, Corporate Technology Support Services Sector (CTSS)

The RTA has uploaded the Green Points service on the Public Transport app and Drivers & Vehicles app. The service monitors the Green Points accumulated by the client while using these two apps. These points are earned to encourage the use of public transport means besides sensitizing riders about their roles in curbing carbon footprint and environmental pollution.

The RTA has endorsed the establishing of the Enterprise Command & Control Center (EC3).

“

Several updates were made to RTA Dubai app enabling the user to book and track the taxicab all the way to the customer, and browse the user’s prepaid fare operations. The app also includes 700 Questions relating to drivers Knowledge Test allows conversation with customer service staff to file a complaint or suggest improvement, and surfing the happiness indicator to communicate satisfaction rating to the RTA. The app also includes RTA guider leading the user to the intended destination, which offers the motorist alternative route among other improvements that enhance the experience of customers and make us happier for serving their needs so smoothly. The app is accessible in four different languages. Finally, as Dubai is progressing confidently towards excellence in the context of its standing as an east-west cross point, its transit means must address the needs and expectations of all visitors, residents, investors, and employees among others. Dubai has shaped into one of the key cosmopolitan cities and an attractive hub for business leaders in the heart of mega economies besides posing as a destination of happiness for residents.

Abdulla Ali Al Madani is the CEO of Corporate Technology Support Services Sector (CTSS) that is in charge of providing eﬀective support for all RTA’s agencies and sectors to ensure adequate working environment through utilization of state-ofthe-art technologies, which involve reducing operational costs, augmenting work eﬃciency, planning and implementing information technology systems.

UAE STATE OF ENERGY REPORT 2017

THE FUTURE OF DRIVING HOW ELECTRIC VEHICLES (EV) CAN MAKE A GREAT CONTRIBUTION TO THE UAE’S SUSTAINABLE FUTURE VISION

ARTICLE BY Fatma Abulhoul AlFalasi, UAE Ministry of Energy

The UAE has a head start in promoting electric vehicles as it began with the infrastructure for these electric vehicles in terms of designated parking spaces and charging stations and shedding light on this topic by linking it with governmental accelerators.

From the time the United Arab Emirates gained its independence in 1971, it started developing and growing rapidly to work on providing a better life to its citizens. This rapid growth of the country would not have been possible without the wise leadership and the discovery of oil. Although petroleum has been used as a fuel source for many years, providing the UAE with a higher level of lifestyle, it remains a limited source. With the increasing demand of the modern world on energy, the petroleum found in the country could be depleted, as it’s a non-renewable form of energy. To secure the availability of energy for the upcoming generation, the UAE has been urging its people to get involved in scientific research and innovation to come up with innovative ways to move to a cleaner and sustainable future.

“

ARTICLES

163

6. ENERGY & TRANSPORTATION

“

The population of the UAE is increasing, which contributes to rising demand in the transport sector.

“

ABOUT

The population of the UAE is increasing, which contributes to rising demand in the transport sector. Electric vehicles (EV) can make a great contribution to the UAE’s sustainable future vision. These vehicles depend on electricity, rather than CO2 emission-generating fuel. Even better, electric vehicles will have a greater environmental impact once electricity is generated from renewable sources of energy. A battery electric vehicle, on average, produces less than half the global warming emissions compared to a gasoline-powered vehicle. On the other hand, the EV industry may become more eﬃcient in reducing manufacturing emissions by recycling or reusing lithium-ion batteries, using advanced batteries, and using renewables to power or aid in the manufacturing processes. Incentives for EVs have produced a positive impact on this sector world-wide: one of the perks of owning an EV in Norway is that it can be driven in the bus lane; three out of every four vehicles have been using the bus lane during rush hour. Other incentives include having designated parking spaces for electrical vehicles, exemption of paid parking fees, road toll exemptions, and facilitating bank loans for purchasing an electrical vehicle. The same kind of incentives used worldwide could be applied in the UAE, even if for a limited time, to aid in the penetration of electrical vehicles in the market. The UAE has a head start in promoting electric vehicles as it began with the infrastructure for these electric vehicles in terms of designated parking spaces and charging stations and shedding light on this topic by linking it with governmental accelerators. The UAE is a nation that consistently strives for greatness, so it could be sooner than you think that the car next to you at the signal will be a fully electrical vehicle.

Fatma Abulhoul AlFalasi, Sustainability Engineer

Fatma Abulhoul AlFalasi is a Sustainability Engineer at the Ministry of Energy. Graduated with a Bachelor’s Degree in Sustainable and Renewable Energy Engineering from the University of Sharjah.

UAE STATE OF ENERGY REPORT 2017

LED STREET LIGHTING

The Roads and Transport Authority (RTA) in Dubai places great importance on optimising power consumption to reduce the carbon emissions associated with energy production. Environmental sustainability is enshrined in the strategic goals of RTA, which has launched and implemented a host of projects, programmes and initiatives for saving energy consumption and protecting the environment. Over the past three years, RTA completed 45 projects and initiatives related to energy and the green economy. One of the key projects RTA is working on is converting all conventional street lights into environmentally friendly power saving units including Light Emitting Diodes (LED) technology by 2030. This will reduce the carbon footprint by more than 3,000 tonnes each year. Using LED technology for street lighting has many advantages including using very little energy and having a higher rate of durability, which provides a significantly longer lifespan. RTA has already started to upgrade the eﬃciency of street lights by introducing power-saving lights using LED lighting technology in a bid to reduce electric power consumption, and accordingly reduce carbon emissions. This supports the Dubai Integrated Energy Strategy (DIES) launched by the Dubai Supreme Council of Energy (DSCE) to reduce energy consumption by 30% by 2030.

ARTICLES

ARTICLE BY Eng. Maitha Bin Adai, RTA

“ The Roads and Transport Authority (RTA) in Dubai attaches great attention to optimising power consumption to reduce the carbon emissions associated with energy production.

“

USING VERY LITTLE ENERGY AND HAVING A HIGHER RATE OF DURABILITY

165

6. ENERGY & TRANSPORTATION

“

Following the testing of the efficiency of the state-of-the-art LED lighting system, it was evident that it has the ability to provide lighting for longer periods with the least maintenance requirements, besides minimising power consumption to the barest minimum. Traffic & Roads Agency (TRA) adopts the latest technologies and international best practices to achieve energy efficiency and utilise green procurement for street lighting systems. The Agency is implementing a number of green initiatives and projects to contribute to power-saving efforts and support the sustainable development of Dubai, and therefore the Agency’s strategic plans for optimising the use of existing resources in implementing projects. The Traffic & Roads Agency has made huge progress in increasing the efficiency of street lighting with the launch of LED lighting projects aimed at increasing energyefficient measures. These include fitting street lights in some neighbourhoods and residential areas including Al Barsha South, Mizher 2, Jumeirah 1, Twar 1, 2 &3, Nad Al Shiba, Dubai Water Canal bridges (SZR, Al Wasel & Jumeirah bridges) which achieved up to 50% of electrical energy saving, in line with Demand Side Management (DSM) programs allocated by Dubai Supreme Council of Energy (DSCE). Another initiative is the partial switching off of some lights of internal roads within the residential neighbourhoods of Dubai after 10 pm. By 2017, this project is expected to save 3,800,000 KWh of electricity and 1,634 tonnes of carbon dioxide annually.

“

Using LED technology for street lighting has many advantages

“

Over the past three years, RTA completed 45 projects and initiatives related to energy and the green economy

UAE STATE OF ENERGY REPORT 2017

The system provides lighting for longer periods with less maintenance requirements, and minimises power consumption to the minimum, not only saving money and energy consumption but also changing the way the light will look when directing traﬃc or pedestrians on the road. The system also enables symmetrical light distribution at the target spots, and the technology has an autodimming feature according to the degree of external lighting. These lights can be clearly visible during daytime without being impacted by sunray reflections on the lenses.

“

RTA developed the 14 kilometre-long Jumeirah Jogging Track with a host of environment friendly features

“

Work is also up-and-running to replace the lights of the existing traﬃc signals gradually by a state-of-the-art LED lighting system, which will save about one million kilowatts per annum, and reducing carbon dioxide emissions by 430 tonnes per annum following the full completion of the project. About 50% of the project works has been completed and the entire project is set for full completion by 2018.

ABOUT

Eng. Maitha Bin Adai CEO, Traffic & Roads Agency

RTA was honoured by the Belgian Government for implementing sustainable solutions into the Jumeirah Jogging Track project in Dubai. RTA developed the 14 kilometre-long Jumeirah Jogging Track with a host of environment friendly features. The lighting system installed along the track project consumes 50 per cent less power than conventional lamps. The system also ensures less carbon dioxide emissions, reduced operational cost and no use of high pressure sodium and CMH lamps.

“

Work is also up-and-running in replacing the lights of the existing traﬃc signals.

Engineer Maitha joined Dubai Municipality in 1993 as a Highway Design Engineer, in 2002; she took on the position of the Head of “Traffic & Technologies Section”. In 2005, she accepted the position of “Director of Roads Department” in Roads & Transport authority. Since 2006, Eng. Maitha has assumed the position of the CEO for Traffic & Roads Agency where she is responsible for projects with a yearly budget of around 4 Billion Dirhams and Managing 6 Departments (Traffic, Roads, Parking, Maintenance, ITS and Right of way).

167

“

6. ENERGY & TRANSPORTATION

UAE STATE OF ENERGY REPORT 2017

RTA’S ENERGY ANALYSIS

ARTICLES

ARTICLE BY Nasser Hamad Abu Shehab, RTA

IMPLEMENTING THE ENERGY MANAGEMENT SYSTEM

“

Saving Energy is one of the simplest Green actions: the first step is to raise awareness to people on energy use and its implications.

Implementing the Energy Management System in conformity with the International Standards Organization (ISO), has also contributed to improving management practices by fulfilling more operation requirements of energy-eﬃcient management system. RTA is now capable of monitoring and managing the use of energy eﬃciently, and ensuring transport sustainability.

“

Based on its mission that provides for developing integrated and sustainable roads and transport systems, RTA has designed the Energy Management System, which enables it to adopt a systematic approach to induce continuous improvement in solutions for energy performance. It includes energy efficiency, alternative energy, energy-efficient purchases and sustainable, innovative and diversified energyefficient solutions to meet the demand, cut energy costs and curb the carbon emissions.

It is worth noting that RTA has obtained more than 10 certifications conforming to international standards such as ISO 50001, ISO 14001, OHSAS 18001, ISO 9001, ISO 27001, ISO 20000, PAS 55, SA 8000, ISO PAS 22399, ISO 31000 and ISO 22301.

RTA – an Energy Eﬃcient Organization RTA through its Strategic Plan and Goal No. 5, “Safety and Environmental Sustainability,” stipulates objectives to improve Energy Performance with a key vision of making RTA an “Energy Eﬃcient Organization.” Obtaining Energy Management System Certification in compliance with the ISO 50001:2011 International Standard means that a holistic framework is implemented across the entire organization, which enables RTA to achieve this vision.

This systematic approach in achieving continual improvement of energy performance, through the commitments stated in RTA Safety and Environmental Sustainability Policy, enables the organization to make use of the most advanced energy technologies to reduce energy use and consumption, while boosting their overall energy efficiency including reduced energy costs and carbon emissions. “Saving Energy is one of the simplest Green actions.” The first step is to raise awareness among people on energy use and its implications. RTA has developed an Energy Culture through different awareness programs, which demonstrates the Management’s commitment towards being Energy Efficient. RTA believes that stakeholder engagement and open communication, in line with RTA’s Strategies and Policies, is very significant for RTA to become an “Energy Efficient Organization”. We engage with our stakeholders in identifying challenges and opportunities for new efficient technologies and encourage collaborative efforts to continually improve the Energy Performance.

169

6. ENERGY & TRANSPORTATION

RTA is committed to continuing excellent sustainability approach that serves the public and brings happiness to them by an eﬀective contribution to shaping the future of ‘Green Dubai’ by developing an “Energy Eﬃcient Public Transportation in Dubai.”

The First Government Entity to Achieve Certification on ISO

Jan 2013 Action Plan based on ReportProject Team, System Development

Mar / May 2013 Internal Audit, Document Review, System Implementation

Feb 2013 Auditor Training and Initiate System Implmentation, Awareness

September 2013 Stage 2 Audit and Report, Corrective Actions if any

CERTIFICATION of REnMS against ISO 50001 : 20011 Standard

Jun / Jul 2013 Stage 1 Audit & Report, Corrective Actions if any

PLAN PLAN Facilitate Energy management improvements ACT

Provide a framework Energy Eﬃciency

Transparency and facilitate communication

ACT

RSEMS

CHECK CHECK

Identify causes and Improve Energy Performance Implementation of new energy and Green technologies

“

RTA believes that stakeholders’ engagement and open communication (…) is very significant for RTA to become an “Energy Eﬃcient Organization.”

“

Better use of Energy consumption

UAE STATE OF ENERGY REPORT 2017

RTA’s Energy Eﬃciency Analysis Despite the fact, that RTA’s emissions are going to increase due to the yearly expansion of the Public Transportation fleet and the roads infrastructure, RTA has been taking the leadership role in implementing mitigation measures to reduce CO2 emission from Public Transportation by implementing a comprehensive Energy Management System and setting up challenging energy eﬃciency targets.

This resulted in developing various environmental friendly and energy eﬃcient mega projects such as Dubai metro, Dubai tram, Public buses and water transport means and achieved a noticeable reduction in overall energy consumption per passenger (gigajoules / passenger) and was reflected in the tremendous reduction in the overall carbon footprint per passenger (kg CO2e/ passenger) as presented in the graphs.

171

6. ENERGY & TRANSPORTATION PUBLIC TRANSPORTATION SHARE OVER THE YEARS 18

2014

2015

16%

14.4%

14.1%

6 4

9.9%

11.6%

13.1%

7.9%

PERCENTAGE (%)

16 14

2010

2011

2012

2013

2016

ABOUT

The integrated array of mass transit means in Dubai has become a key component of people’s mobility in various parts of the Emirate. The share of public transport in the people movement has soared from 6% in 2006 to as much as 14.4% in 2015, and the RTA is seeking to push up this share to 20% by 2020. As a result, the increase in the Public Transportation penetration leads to a positive impact on the traﬃc congestion, fuel consumption reduction by reducing the use of private vehicles and eventually reduction in carbon emissions of the Emirate.

RTA’s Energy and Green Economy Performance Monitoring: RTA’s Energy and Green Economy Systems are reviewed and assessed periodically to assure continuing suitability, adequacy, eﬀectiveness and improvement to achieve the RTA’s Corporate Safety & Environment Policy, objectives and targets, and RTA’s Strategic Goals & Directions. The periodic performance monitoring for the Energy & Green Economy performance in RTA is conducted via several channels, such as: •

Yearly planned External third Party Audits and Inspections.

•

Semi Annual planned Internal Audits Inspections.

•

Multi Unplanned Internal Audits Inspections

•

Quarterly reviews at Corporate and Agency/Sector level

•

Yearly reviews at Corporate and Agency/Sector level

•

Yearly Top Management review.

Nasser Hamad Abu Shehab CEO, Strategy & Corporate Governance Sector

Nasser Hamad Abu Shehab has an MSc in Urban Planning / Specialization in Transportation Planning, from the American University of Sharjah as well as a BSc in Architectural Engineering, from the UAE University. He is also Member of several committees at Emirate level: Health & Safety Committee, Energy & Green Community Committee, Special Needs Committee, Infrastructure & Environment Committee, Member of UAE Engineers Society, Member of International Association of Public Transport “UITP”.

UAE STATE OF ENERGY REPORT 2017

DUBAI POLICE SMART SERVICES

ARTICLES

ARTICLE BY HE The Late Khamis Mattar Al Muzainah, Dubai Police

IMPLEMENTING DUBAI SMART GOVERNMENT INITIATIVES

Tribute to our Late Commander-in-Chief When he was appointed Commander-in-Chief of Dubai Police in 2013, the late Lieutenant General Khamis Mattar Al Muzainah took it as a badge of honour. He dedicated his career to maintaining the safety and security of Dubai and achieved many outstanding accomplishments in the field of police and security work, solving numerous high-profile cases. Beyond this, his influence impacted on every area of police work, extending to Dubai Police’s pursuit of sustainable development. “Since the launch of the initiative of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, to develop a Smart Government Award aimed at motivating and honouring government entities, and to achieve remarkable and sustainable improvement in public services and service centres, Dubai Police has carried out new smart projects that serve both police work and all society segments. Dubai Police has also continued to achieve technical distinction in its smart government aspirations,” said The Late Lieutenant General Khamis Mattar Al Muzainah. This article is dedicated to his memory.

Dubai Police was one of the first government departments to launch a website and smart application. The website was launched in 1998 and the application in 2010 for iOS and for Android in 2013. The site contains more than 75 e-services, broken down by categories of users; individuals, institutions, visitors, and staﬀ. Dubai Police has included services for people with disabilities and the site provides reading texts in Arabic and English and a live chat service, with access to the call centre around the clock. Dubai Police is working on issuing new versions of the site and the application on an annual basis.

173

6. ENERGY & TRANSPORTATION

Dubai Police was among the first government departments to start the transformation to smart systems; the entity believes in the importance of keeping pace with technical development to contribute to the Dubai Smart City initiative, and implement best practices to provide distinctive services that make customers happy, in addition to providing services in a creative and interactive manner. Dubai Police has consistently strived to achieve the highest levels of satisfaction according to global competitiveness indicators. Major achievements include promoting smart e-services, reducing the number of customers at service centres, encouraging engagement and the use of information websites, providing high-quality customer service, and simplifying procedures with government entities. Dubai Police continues to be committed to implementing Dubai Smart Government initiatives to provide services that meet users’ needs and support strategic objectives in crime detection and prevention.

The Dubai Police Smart Application contains interactive services that include four major bundles – traﬃc, criminal, smart police centre, and general – in six diﬀerent languages, with a total of 125 smart services and features. The secure website and applications can be used to complete transactions confidentially, safely, and easily, according to the standards of the Dubai Smart Government. The Dubai Police application for smartphones has exceeded one million downloads, and the new design has been highly praised by users, as it aligns with the smart directives of the government of Dubai in facilitating the provision of services to the public.

UAE STATE OF ENERGY REPORT 2017

ABOUT

His Excellency The Late Lieutenant General Khamis Mattar Al Muzainah (May His Soul Rest in Peace)

Commander-in-Chief Dubai Police

Services provided through the website and smart applications are of high quality according to opinion polls, reaching 89.9% for smart applications and 84.4% for the website in 2015, and 88% in the third evaluation of the quality of service achieved. Dubai Police achieved 92% in the periodic evaluation of the website conducted by the Smart Government in the last three evaluations. On the environmental front, the estimated total carbon emissions avoided by reducing the number of customer’s trips to service centres and shifting to smart services and electronic services is 119,849 tonnes of CO2 emissions in 2014 and 2015 collectively. The website and Dubai Police application won first place among government departments in the Hamdan bin Mohammad Award, for three consecutive years. Additional technical developments by Dubai Police include a smart keyboard that enables users to complete some procedures without having to log in to the application. It has facilities for texting to report traﬃc violations, using smart audio and video features. Dubai Police has also developed an automated operator service, FB Messenger Bot, based on smart conversation and mechanisms to enable users to search for the most important services and make enquiries. The private sector has benefited from smart applications such as Business File, which facilitates transactions easily and conveniently, and in cooperation with Arabian Automobiles Company, Nissan, Dubai Police developed a distress call system, SOS. This system can be installed in Nissan Patrol and Nissan Maxima vehicles in the first phase, with other models to be included. In case of an accident, the system sends an automatic distress signal to the Command and Control Centre, without human intervention. Through the “Virtual Assistant” developed by Dubai Police, users can communicate with the police, pay for traﬃc fines, and send suggestions, through the SIRI system. Dubai Police is one of the first institutions to develop such smart services with features that depend on artificial intelligence. Dubai Police also focuses on smart innovative ways for virtual intelligence outreach, through technologies, such as “HTV Vive” virtual glasses, related to crime scenes. It is the first government entity to use this technique, where a virtual crime scene is developed to simulate reality and used in training to give trainees the opportunity for first-hand experience in the detection of crime.

He served as the distinguished Commander-in-Chief of Dubai Police since his appointment in 2013 by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President, Prime Minister and Ruler of Dubai. His career with the police spanned over 30 years, where he established various new departments and empowered their heads to be a force for good. He passed away on 24th of November 2016 leaving a legacy of safety and security to the Emirate of Dubai.

The strategy of Dubai Police’s General Department of Smart Services has been updated to contain five main objectives. These are customers’ happiness; promoting confidence and participation by the public; smart transformation of policing operations; integration and linkage of smart services; and providing an intelligent environment for employees. Strategic indicators and targets are measured quarterly to examine achievements, and see how each department has rated on the scale of a smart transformation in policing. Dubai Police achieved 70% in 2015, and aims to reach 100% by the end of 2018. The Commander-in-Chief ensured Dubai Police worked hand-in-hand with all government departments and their strategic partners to develop and improve public services, thus achieving the leadership’s political goals to make people happy in the UAE. “We aim to be closer to people and prevent crime in the Emirate,” he said.

175

6. ENERGY & TRANSPORTATION

SMART CUSTOMER SERVICES INCREASE PEOPLE’S HAPPINESS

ARTICLES

THE TRANSFORMATION OF RTA’S SMART DEVICES The smart city is a city that puts the happiness, comfort and luxury of its residents and visitors as its top priority. Technology-driven highly eﬃcient services, such as smart transportation is one of the key pillars of smart cities. The Smart Dubai initiative launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, aims to make Dubai the smartest and happiest city in the world. Dubai’s Roads and Transport Authority (RTA) is a key contributor in achieving this vision. It has included People’s Happiness as one of its strategic goals, and introduced the Happiness Metres in all its service delivery channels including websites, smart apps and self-service kiosks (Nafethati) as part of a comprehensive plan to promote people’s happiness. The Happiness Metre is one of Dubai’s first strategic ‘smart city’ initiatives. As the world’s first, city-wide, live sentiment capture engine, the metre is a measurement gauge for the happiness goal. The transformation of RTA’s services into smart ones supports its eﬀorts to achieve people’s happiness. In the smart transformation process, RTA made sure that its applications are innovative, creative and easy to use to achieve happiness of the app users. RTA engaged 80 male and female students from five universities to re-design and test 36 smart services.

RTA has also launched the Smart Customers Service Centre at Al Barsha. The Centre, which is the first of its kind in Dubai, enables visitors to process transactions by themselves without assistance from staff. The Smart Centre is part of RTA’s efforts to deliver best-in-class smart customer services that contributes to their happiness. The Smart Centre features interactive screens displaying information about RTA and its website, and tablets with smart apps that enable customers to complete their transactions. A service corner gives individual or corporate customers access to personal accounts for processing transactions or reviewing financial reports and receipts. The Centre is also fitted with self-service kiosks enabling customers to process transactions themselves around the clock. Customers can use the devices to carry out transactions including renewal of driving licenses, renewal and replacement of vehicle ownership cards, vehicle ownership certificates, non-ownership of a vehicle certificate, query and payment of traffic fines, billpayment, and seasonal parking card services.

ARTICLE BY Yousef Ahmed Al Reda, RTA

UAE STATE OF ENERGY REPORT 2017

Recently, RTA signed a cooperation agreement with Careem Networks Company, whereby Careem will provide passenger transport services via its smart app. The service will run using 9,841 taxis and 4,700 limousines. The agreement supports the integrated mobility platform project that RTA is currently working on. The platform provides customers an easy access to all means of transport in Dubai through the smart app. In this transit hub, RTA’s multi-modal transit systems including the metro, tram, buses, marine transport, and taxis, will be integrated with transit systems of other entities in Dubai such as limo service providers, Palm Monorail, and Dubai Trolley. RTA intends to enhance the partnership with the private sector and invites all online booking companies to join this drive aimed at realising the objective of delivering smart services to customers and achieving their happiness.

ABOUT

Yousef Ahmed Al Reda CEO, Corporate Administration Support Services

RTA has completed the first phase of the Smart Parking project, which enables motorists to identify vacant parking slots on Sheikh Zayed Road, and Al-Rigga area, followed by other areas subject to the paid parking zones system. The project saves motorists the hassle of searching for vacant parking slots. It enables the search of a specific area to identify the number of vacant parking slots, and identifies the distance between the vehicle’s location and the nearest vacant parking slot.

Other smart services that the RTA has introduced include Smart Car Rental, smart parking, and the Raqeeb system. The Raqeeb is a smart device fitted in front of the bus driver to detect any signs of fatigue, exhaustion or illness the driver may undergo while sitting behind the wheels. The system transmits signs detected to the RTA’s Control Panel where the case is instantly dealt with. The system helps avoid accidents that could possibly undermine the safety of riders or have a direct impact on the operational eﬃciency of buses.

He is the current Chief Executive oﬃcer of the Corporate Administrative Support Services at RTA. Previously he has been appointed Director of the Development and Corporate Performance Dept. Yousef Ahmed Al Reda has also been Director of Human resources and Development Department then Director of Administrative Services. In his past experience, he has been Head of the Administrative Section on the Transportation Dept. in Dubai Municipality.

RTA constructed 100 air-conditioned smart shelters for public bus riders in Dubai. User satisfaction rose to 91% since the inauguration of the project in February 2016. The smart shelters provide an array of services for public bus users such as the Free WiFi, selling & recharging of NOL cards, mobile phone top-ups, payment of government bills, recharging mobile phones, passenger information service, selfservice kiosks, interactive media screens, monitors displaying information about RTA services, and selling refreshments and snacks. All the smart initiatives, projects and services launched by RTA, support its strategic goals of bringing happiness to its customers, encouraging the use of mass transit, and improving the infrastructure of public transport. This contributes to achieving the Smart Dubai initiative and the Dubai Plan 2021 to make Dubai a smart, integrated and connected city whose environmental elements are clean, healthy and sustainable.

177

RENEWABLE, CLEAN AND ALTERNATIVE ENERGY HIS EXCELLENCY SHEIKH ABDULLA BIN MOHAMED BIN BUTTI AL HAMED CHAIRMAN OF ABU DHABI ENERGY AUTHORITY CHAIRMAN OF REGULATION AND SUPERVISION BUREAU, ABU DHABI

Promoting sustainability, clean technology and renewable energy is one of UAE’s main focus. Our country is actively progressing in the renewable sector, through energy diversification: the key challenge we have, is how to de-carbonise our economy rapidly, because the world’s temperatures have risen and the growing demand for energy has become a task to be faced globally. The UAE is responding positively to this challenge, leading the imperative shift towards sustainability. In order to do so, governments and businesses committed to work hand in hand on improving energy sources and processes.

Another key factor to progress in the oﬀering of clean and alternative energy is by nurturing our students, and help them invest in their future to become active participants in the economy. A change in the use of conventional and unconventional energies will also lead our country to create more job opportunities for our new Emirati generation. As we look forward to 2017, it becomes clearer how imperative a low-carbon future is: it requires all countries to submit nationally determined contributions containing existing and planned climate action every five years from 2020, reflecting diﬀerent national circumstances, as well as take stock of progress every five years starting 2023.

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

ENGAGING GENERATION Z FOR A MORE SUSTAINABLE FUTURE ABOUT OUR PARTICIPATION AND THE COMMITMENTS FROM OUR SIDE The clean energy industry is at the heart of responding to the combined challenge of meeting the world’s growing energy demands, while also delivering on its shared responsibility to mitigate climate change. The United Arab Emirates has shown strong leadership on this issue, and through Masdar, Abu Dhabi’s clean energy company, has been driving the adoption of renewables and sustainable development across the world for more than a decade. This has corresponded with the emergence of clean energy as one of the world’s most exciting and dynamic growth sectors; today, clean energy is recognised as a commercially viable, mainstream industry. To maintain this level of growth into the next 10 years and beyond, however, it is vital the sector engages closely with the global demographic we refer to as Generation Z. In the Arab world alone, around a third of the population is between the ages of 15 and 29.

These young people are the policymakers, industry leaders, technical experts and consumers of tomorrow. It is therefore fundamentally important that they understand, support and are part of our drive to accelerate the long-term adoption of renewable energy and clean technologies. It was with this in mind that in 2016, coinciding with its 10-year anniversary, Masdar commissioned a unique global survey of post-Millennials. The Masdar Global Gen Z Sustainability Survey investigated the attitudes of young people aged 18-25 towards climate change, sustainable development and renewable energy. This landmark study consulted nearly 5,000 post-Millennials in 20 countries across five regions: the Middle East and North Africa, Europe, the Americas, Asia and Sub-Saharan Africa.

ARTICLES

ARTICLE BY Mohamed Jameel Al Ramahi, Masdar

UAE STATE OF ENERGY REPORT 2017

While there were important national and regional diﬀerences in the findings, they also made it overwhelmingly clear that global youth are consistent in their expectations for a greener future, as well as more investment in renewables from both private and public sector. The survey found young people across the world believe climate change and environmental threats are one of the world’s biggest challenges today – and its biggest challenge over the next decade. They think that the public and private sectors have equal responsibility to ensure the wider adoption of renewable energy and clean technologies – and they want to have a stronger say on sustainability issues.

“

Today, clean energy is recognised as a commercially viable, mainstream industry.

A large majority of post-Millennials want to study or pursue a career in sustainability-related fields, for example, and are prepared to pay more for sustainable goods and services. They also believe that young people have the most responsibility to find solutions for the world’s sustainability problems.

“

The results of the Masdar Gen Z Survey are a valuable indicator for today’s decision-makers across the world. They illustrate just how strongly young people feel about the world’s sustainability challenges, but also the potential opportunities for progressive companies and organisations willing to act.

Interestingly, youth in the Middle East and North Africa, a region more readily associated with dependence on oil and gas, are as eager to take the lead as their counterparts around the world. This is very much the case in the UAE, where 68% of young people said they do more than most people they know to be “green”, compared to 46% globally. Furthermore, 75% of those questioned in the UAE said they are interested in working in a field related to sustainability, compared to 59% overall. The Masdar Institute of Science and Technology, at the heart of Masdar City in Abu Dhabi, is the first graduate-level university in the world dedicated to sustainability and alternative energies. By educating and training the UAE’s future energy leaders in new specialised skills, and pushing the boundaries of technological innovation and R&D in sustainability, the institute’s work is supporting the development of a knowledge-based economy. This is just one case of how the UAE is setting an example in its empowerment and engagement of young people, so that together, we can realise a more sustainable future.

Because of such initiatives, it is perhaps no coincidence that young people in the UAE are among the most engaged in the world when it comes to taking action for a sustainable future – 40% of those questioned believed their generation has the biggest responsibility for finding sustainable solutions, compared to 35% globally. As we look towards the next decade, the findings of the Masdar Gen Z survey shed light on additional practical steps required by the public and private sectors across the world to fully engage young people, in order to support the long-term diversification of the global energy mix. Importantly, we also hope the survey will inspire others to join the conversation on sustainability, climate change and clean energy.

“

The Masdar Global Gen Z Sustainability Survey investigated the attitudes of young people aged 18-25 towards climate change, sustainable development and renewable energy

“

Another is the Global High Schools (GHS) category of the Zayed Future Energy Prize: in 2012 GHS was established as a commitment to the SE4All Initiative. The category calls on schools across the globe to submit project proposals for the chance to be one of five winners each year to win a grant to implement their sustainable plan.

181

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

THE MASDAR GLOBAL

YOUTH SURVEY

A M U B A DA L A CO M PA N Y

TOP 10 FINDINGS CONDUCTED

20 5

4,704 ASIA

EUROPE

AFRICA

AMERICAS

Results by region and also by categories of development EMERGING

Brazil, China, Egypt, India, Mexico, Morocco, Russia, Saudi Arabia, South Korea, South Africa, UAE

FRONTIER

Jordan, Kenya, Nigeria

Of Gen Z agree that governments need to listen more to young people on sustainability

Which generation is believed to have the biggest responsibility?

18-25

35%

26-35

38%

35+

15%

36% 29%

33% 32%

POVERTY / INEQUALITY

THREAT OF TERRORISM

78%

29% 34%

EUROPE

AFRICA

AMERICAS

54% 37%

ASIA

POLITICAL LEADERS

BUSINESSES / COMPANIES

15%

20%

CURRENLTY DOING

39%

SHOULD BE DOING

CURRENLTY DOING

41%

Most people do more than I do

How they are behaving in a sustainable manner

58%

RECYCLE PRODUCTS

51%

CUT ENERGY CONSUMPTION

42%

USE LOW-ENERGY PRODUCTS

10% 3%

SHOULD BE DOING

81%SAY BUSINESS AND GOVERNMENT

share equal responsibility for developing clean technology and renewable energy

Youth are prepared to boycott companies that harm the environment Yes

Half of global youth believe they do more than most people they know to be green I do more than most people

MENA

Who is/should be driving sustainable energy consumption and production?

FRONTIER COUNTRIES

4 Youth are doing more to be ‘green’

46% 41%

ECONOMY

REGULATION

59% 53% 52%

66%

31% 29%

NEWS COVERAGE

Yes

EMERGING COUNTRIES

32% 40%

CLIMATE CHANGE/ UNEMPLOYMENT THE ENVIRONMENT

3 want corporations to take equal responsibility

Young people are interested in a sustainability-related career, particularly those from frontier countries

43%

Next 10 years

Government regulations are necessary but youth

Young people are keen to take on more

2 responsibility to find solutions

DEVELOPED COUNTRIES

Right now

Top reasons for increased environmental awareness

DEVELOPED Germany, France, Spain, UK, US, Japan

83%

TOP 5 IMPORTANT CHALLENGES

COUNTRIES

GEOGRAPHIES

ONLINE INTERVIEWS

MENA

Gen Z say climate change will be the biggest

1 threat to the world within a decade

Same Don't know

How they are spreading messages about environmental issues

54%

46%

green products

are Think just as good as regular alternatives

31%

boycotted

Have non-sustainable companies

DISCUSS WITH FRIENDS/FAMILY

32%

POST / SHARE ONLINE

22%

HAVE SIGNED A PUBLIC PETITION

49%

32%

sustainable company

are as good as the regular alternatives

Spent more to buy from more

MENA youth think green products

UAE STATE OF ENERGY REPORT 2017

Behavioural change is needed to help

6 renewable energy investment

Gen Z believe these are the main barriers to investment in renewable energy and clean technology

50%

Mohamed Jameel Al Ramahi

LACK OF POLITICAL WILL / LEADERSHIP

COST OF NEW OR IMPROVED TECHNOLOGY

45%

ABOUT

Who does Gen Z trust to behave in a sustainable way?

48%

GETTING INDIVIDUALS TO CHANGE THEIR BEHAVIOUR

CONVINCING PEOPLE OF THE VALUE OF SUSTAINABILITY

Education is seen as vital in making the

7 world more sustainable

Chief Executive Officer

NEED FOR GLOBAL COOPERATION

GETTING BUSINESSES TO % CHANGE THEIR BEHAVIOUR THEIR FAMILY

82%

AND 74% SCHOOLS EDUCATIONAL INSTITUTIONS

CHARITIES OR THIRD SECTOR ORGANISATIONS

70%

LOCAL BUSINESSES 61% SMALL,

Top 4 forces for fostering green technology

that values the environment 48% Aoversociety wealth and financial gain

good education system, including world 42% Aclass universities change directly 38% Climate affecting our way of life

37% Public demand for change

8 Germany, Canada, the US and the UK are perceived as clean tech leaders How the global youth rate their country in terms of "greenness"

49% GETTING GREENER

28% SAME AS A YEAR AGO 18% GETTING LESS GREEN 5% DON’T KNOW

Top 3 most confident in their country's "greenness"

81%

CHINA

72%

UAE

67% JORDAN

The majority of Gen Z believe that solar and

9 wind energy is a priority for the future Solar energy

The countries that the youth believe are leading in renewable energy and clean technology

Wind energy

67%

58%

GERMANY CANADA

63%

57% US

55%

JAPAN

54%

38%

FRANCE CHINA

37%

SPAIN

35%

RUSSIA

33%

SOUTH KOREA

Youth in Frontier countries are more

10 committed to creating a sustainable future How concerned are youth about the environment? VERY CONCERNED

think solar energy should be the priority energy source for the future of their country

57%

45%

44% SOMEWHAT CONCERNED

49% want their country focus on wind energy. Wind is the preferred future energy source in Germany and the UK

NOT VERY CONCERNED

9% 1% DON’T KNOW

Hydroelectricity

37%

put their hopes in hydroelectricity

NOT AT ALL CONCERNED

66%

48%

34%

FRONTIER COUNTRIES

EMERGING COUNTRIES

DEVELOPED COUNTRIES

73% of youth believe all countries have equal responsibility to explore and use renewable energy and clean technology, no matter how wealthy they are

Mohamed Jameel Al Ramahi was appointed Chief Executive Oﬃcer (CEO) of Masdar in February 2016. As the CEO, Mohamed Al Ramahi spearheads the company’s development and strategic direction as it plays a prominent role in the renewable energy and clean technology sector. Mr. Al Ramahi joined Masdar in 2008 as Head of Internal Audit and Compliance, where he was responsible for ensuring that the company complied with all regulatory guidelines. He set up the corporate enterprise risk management function, which protects Masdar’s investments.

183

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

THE IMPORTANCE OF ENERGY DIVERSIFICATION UAE ACHIEVEMENTS AND AMBITIOUS PROJECTS

The United Arab Emirates is a responsible producer and critical partner in global energy markets. As a mainstay to the economy, oil exports now account for about 25% of the UAE’s gross domestic product, (Ref: http://www.uae-embassy.org/about-uae/energy/uae-and-globaloil-supply) but the UAE has a vision for a clean energy future, with strategies such as UAE Vision 2021 declaring the nation’s ambitious clean energy goal as part of the commitment to a sustainable environment and infrastructure. As part of the UAE Strategy for the Future, the Ministry of Energy and the Ministry of Cabinet Aﬀairs and the Future have collaboratively launched the UAE Energy Strategy 2050. The new strategy focuses on an increased contribution from clean energy in the total energy mix to 50%, 12% for clean coal, and 40% reduction in Demand resulting in a saving of AED 700 billion by 2050.

ARTICLES

ARTICLE BY HE Dr Matar Hamed Al Neyadi, Undersecretary, Ministry of Energy, UAE

The UAE has a high rate of per capita energy consumption and coupled with rapid economic and demographic growth, with most electricity production and water desalination being generated by thermal plants, this has resulted in the UAE becoming a net importer of natural gas since 2008. Current estimates indicate the domestic demand for power will more than double by 2020. With limitations on how much and how fast conventional energy resources, like natural gas, can be brought to market, as well as in an eﬀort to address climate change, the UAE government has launched various initiatives aimed at identifying alternative means for producing the power needed to fuel its economy. The diversification of energy sources is recognised as vital for the UAE’s energy security and economic outlook. Diversification of energy sources has been on the government agenda for some time. Back in 2010, Masdar launched a 10MW solar plant, presenting a new opportunity not only

UAE STATE OF ENERGY REPORT 2017

for diversification in energy resources, but also in diversification of investment. The utility-scale PV plant enabled insight into how diﬀerent PV technologies respond to the region’s climatic conditions and became a valuable reference point for other utility-scale PV projects, both nationally and in the region. This signalled the successful beginning of a journey of diversification, including the Shams Solar Power Station near Abu Dhabi, one of the world’s largest concentrating solar power plants, which became operational in 2013.

ABOUT

HE Dr Matar Hamed Al Neyadi, Undersecretary

Renewable resources are becoming increasingly competitive in terms of price, and are making significant inroads within the UAE energy portfolio. Projects are increasingly being funded through public-private partnerships and by 2030, there will be two additional large-scale solar projects in operation; the Sweihan solar project in the western region of Abu Dhabi, and the Mohammed bin Rashid Al Maktoum Solar Park, south of Dubai. The UAE has set an ambitious goal of producing 27% of its energy from clean energy by 2021, showing the determination of the government to diversify energy through solar, in addition to safe, clean and efficient nuclear power. The Barakah nuclear power plant is the UAE’s first nuclear power station, with four nuclear reactors planned to start operation successively between 2017 and 2020. This project, as with solar, presents new opportunities for energy diversity, as well as investments in clean energy. Diversification of energy resources, with gas, solar, nuclear and other smaller projects like biomass and wind contributing to the energy portfolio, is not the only area of diversification. Within gas, there is also diversification in three aspects: enhancing recovery techniques to increase the yield; building new terminals to import energy and increasing the capacity of existing terminals, such as Abu Dhabi National Oil Company’s (ADNOC) launch of a new liquefied natural gas floating import terminal; and increasing the capacity and quantity of gas imported from Qatar. Naturally, diversification of energy resources is not only about adding different resources and increasing supply; it is also managing demand. Demand-side management is an important pillar in the UAE energy portfolio. Initiatives taken to reduce demand include reviewing tariffs. In addition, to increase awareness within the next generation and encourage the dissemination of information about conservation by today’s youth, the Ministry of Energy launched Eco Runner, an eco-action game that highlights how we can be more conservative in our consumption of energy resources. Diversification of the energy portfolio also includes enhancing interconnectivity with neighbouring countries. In 2011, the UAE became a member of the GCC Interconnection Authority to enable member countries to exchange power and trade power projects in the region, while also preventing any blackout incidences. The UAE is currently chairing the board. The Ministry of Energy has launched the UAE Energy Strategy, which outlines how much each resource will contribute to the energy portfolio. In addition, in 2016, the Cabinet moved the water sector to the Ministry of Energy, under the understanding that there is an important link between water, energy and food. These three elements affect each other and the right balance needs to be maintained between the three. To maintain that balance, the water policy is being drafted in conjunction with the energy policy, with both focusing on diversification to ensure a sustainable future.

Diversification of the energy portfolio also includes enhancing interconnectivity with neighbouring countries.

“

His Excellency holds a Ph.D. in International Law from the University of Edinburgh (1997). He has professional experience in leadership, international cooperation, international maritime law, management of international negotiations, climate change, rationalization of energy and water consumption, impact of the prices of unconventional sources on oil and gas prices, the State’s sovereignty on its natural sources and drafting legislations. He has authored a number of legal books which notably include ‘Maritime Zones of the UAE’, the ‘Rules of International Treaties in Public International Law’ and ‘Documents in Public International Law’.

185

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

ALTERNATIVE FUEL – COMPRESSED NATURAL GAS (CNG) ABOUT OUR PARTICIPATION AND THE COMMITMENTS FROM OUR SIDE Dubai’s long term strategic plan to save and diversify its energy mix to provide 75% of the emirate’s energy through clean sources by 2050, oﬀers ample opportunity to drive the use of Compressed Natural Gas (CNG).

ARTICLES

ARTICLE BY Emirates Gas (EMGAS), a subsidary of Emirates National Oil Company (ENOC)

“

CNG for vehicles has proven its commercial viability and is considered one of the cleanest and safest fuel types with the lowest carbon emissions.

CNG for vehicles has proven its commercial viability and is considered one of the cleanest and safest fuel types with the lowest carbon emissions. Since natural gas is the cleanest burning fuel, there is a considerable reduction in the exhaust gas emissions when using CNG rather than petroleum based products, due to its lower carbon content. CNG produces 20-30% fewer greenhouse gas emissions and 95% fewer tailpipe emissions than petroleum products. Also, because CNG fuel systems are completely sealed, CNG vehicles produce no evaporative emissions, contributing significantly to reducing carbon emissions and promoting sustainable development.

“

Emirates Gas (EMGAS), a subsidiary of ENOC, has continuously worked towards promoting the use of compressed natural gas (CNG) as an alternative “green” and “clean” fuel for the transportation sector. Through the expansion of its CNG network, by setting up three daughter stations, at Al Ahli Driving Centre, Emirates Driving Institute and Emirates Transport, in addition to its main station, EMGAS is able to meet the current demand for compressed natural gas. The stations now serve an estimate of 500 vehicles daily with the aim of having seven more CNG Daughter stations at fleet customer premises; including government organizations, driving institutes and vehicle rental companies. ENOC expects to increase the number of vehicles running on CNG to 1,000-1,500 by end of 2016 and up to 5,000 in the next five years, with support from authorities in the UAE. EMGAS has also been supplying CNG in Dubai since 2007, by first collaborating with the Roads and Transport Authority (RTA) to provide CNG for Dubai’s water taxi services (Abra) during the pilot stage of the project.

Emirates National Oil Company Group (ENOC) is a leading integrated global oil and gas player operating across the energy sector value chain. A wholly owned company of the Government of Dubai, ENOC Group oﬀers a diverse portfolio of assets operating across five business segments: Supply, Trading and Processing, Terminals, Marketing, Retail and Exploration and Production. Servicing thousands of customers across 60 markets, the Group employs a workforce of over 9,000 employees.

“

CNG produces 20-30% fewer greenhouse gas emissions

“

FACTBOX

UAE STATE OF ENERGY REPORT 2017

SURPLUS SOLAR SCENARIO SOLAR, THE IDEAL OPTION FOR DIVERSIFICATION OF THE UAE POWER SECTOR IN A SUSTAINABLE MANNER

ARTICLES

ARTICLE BY Eng. Bilal Hassan, UAE Ministry of Energy

Global energy consumption has been increasing consistently since the Industrial Revolution and it is expected to continue to increase. In order to meet energy demand while balancing environmental considerations, renewable energy must play an important role, solar energy being one of the most promising sources. It is no surprise then, to recognise that the world’s desert regions present a substantial amount of energysupplying potential. Given the increasing demand of global energy, and taking into consideration the global environmental issues, the potential for harnessing this energy is increasingly important.

Recently, Abu Dhabi Water and Electricity Authority’s procurement arm received six bids for its upcoming solar plant at Sweihan. Among the top contenders, Marubeni and Jinko Solar bid at USD. 0242 per kilowatt hour (kWh), followed by Abu Dhabi’s Masdar, EDF and PAL at USD .0254 per kWh. This closely follows a rapid reduction in the cost of power generation from solar PV in the UAE, with numerous world record prices established. Solar is the ideal option for diversification of the UAE power sector in a sustainable manner. The flexible gas power generation fleet, which has been accommodating the high seasonal variation between summers and winters, could theoretically handle the intermittent solargenerated power, even in vast amounts.

“

It is no surprise then, to recognise that the world’s desert regions present a substantial amount of energysupplying potential.

“

Solar today has become the cheapest source of power generation in the UAE, representing a considerable opportunity. The desert sun, which has often been thought of as so unbearable during the sweltering summer, has created exciting new possibilities for developing our future power systems. According to the International Energy Agency’s (IEA) future energy scenarios, solar energy alone could satisfy up to a third of global power demand from 2060 onwards.

As per the National Agenda Vision 2021 targets, the UAE is already on track to achieve 27% of clean energy within the generation mix by 2021. However, the UAE’s rulers envision a much greater transition towards solar energy. These ambitions have been reflected in the recently launched National Energy Strategy 2050, which aims to acheive 50% clean energy within the UAE power generation capacity fleet by 2050. This includes deployment of 44GW of both centralised and decentralised solar power. With the aforementioned vision of deploying tremendous amounts of solar in the UAE, it is crucial to analyse the flipside of the coin primarily, whether our power system would operate reliably throughout every hour of the year if we installed such solar capacities as per our set targets. It is also important to question whether solar will impose any issues or abnormalities for the power system of the future. While we have certainly started riding the solar power wave, is there something that could halt it? Ministry of Energy performed hourly demand/supply analysis to evaluate these concerns. The analysis shows that the impact of solar power variability on the reliability of UAE power sector shall be limited on daily level due to the availability of many dispatchable natural gas fueled power plants, which shall be even more dispatchable in the future with water and power sector decoupling. However, on a seasonal level, the UAE power demand in the winter months is substantially lower than in the summer months. The conventional natural gas fueled plants can be operated at lower output to meet the winter demand but solar power generation cannot be changed as it is dependent on solar resources. This excess solar power either has to be exported, stored, converted into another fuel or wasted/curtailed (the worst case scenario). This excess solar power generated in winter is likely to be sizable, and therefore, the Ministry of Energy is developing a strategy for handling the excess solar power scenario we would face in the future.

187

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

Handling the Excess Solar Scenario

Power Grid Friendly Solar Power Generation

Grid Friendly Solar: More predictable, controllable and dispatch able solar power capacity enforced by improved interconnection standards

Improved Solar Power Characteristics: Solar plants with possibility of voltage control and regulation, fault ride-through, active power control, ramping and curtailment, primary frequency regulation , inertial response and short circuit current control

Centralized control of an RE plant cluster: Given UAE is a small country, centralized control of solar plants can result in operational efficiencies

Improved flexibility in conventional generation

Transmission Expansion and Utilization

Operational Enhancements in Utility Operations

Gas-fired power plants, including natural gas combined cycle (NGCC) and simple cycle gas turbine (SCGT) plants, are also flexible generation resources with good ramping rates which enable them to complement variable power sources.

Transmission Expansion: shall not only open up possibilities for trading renewable power but grid expansion and reinforcement can support interconnection between balancing areas and allow sharing of flexible resources.

Operational Enhancements : Key operational enhancements include incorporation of advanced forecasting mechanisms, improved cyber security and other improvement in operation practices.

Measuring Generation Flexibility: Development of tailored metrics, methods and tools to measure the flexibility and related cost of provision of flexibility to power systems. Possibility for collaboration between grid operators and research community.

Higher voltage level AC transmission: Such lines can improve transmission capacity and distance, reduce power loss, reduce land use and save cost. Interconnections with Europe, North Africa and South Asia using such lines could allow for trade of power and grid balancing.

Forecast Improvement: Key forecast improvements include better weather prediction models, high resolution plant level forecasts, ramp event forecasts, human and probabilistic forecasts.

A new paradigm of generation planning: Planning for additional power generation capacities considering the flexibilities required at the system level.

Demand Response

Load Shifting: Various demand response measures can be employed to transfer a part of the load to off-peak periods to absorb excess solar power generation during peak hours. Such demand response measures should be fast acting so they can balance generation and load in real time.

Smart Meters: The starting point is smart metering as it permits detailed, two way, communication flow between the customer and the utility.

Higher voltage level DC transmission: Compared to AC transmission, DC transmission offers additional advantages such as lower loss, lower line cost, narrower corridor and rapid power control capabilities.

Behind the Meter Technologies: Enable the control of consumer energy use based on price signals more effectively.

Storage (Based on Need)

Load Leveling: Possible solutions to generation cycles which do not match the load cycles. Possible technologies include NaS batteries, compressed air energy storage, thermal (molten salt storage).

Seasonal Shifting: Allow use of excess solar power generated in winters in UAE to be used throughout the year, especially in high humidity months when the consumption of electricity is very high. Possible technologies include conversion of solar to hydrogen and conversion of solar to synthetic natural gas, desalination and cooling water storage in areas where district cooling is used.

Load Following/Ramping: Possibly mitigate the partial unpredictability in solar output during critical load times. Possible technologies include batteries, compressed air storage, cooling water storage, desalinated water storage.

Frequency Regulation: Handle uncontrollable moment to moment variability in solar power output, maintain power quality and smoothen output. Possible technologies include high power super capacitors, lithium ion batteries, fly wheels, sodium Sulphur batteries,

Spinning Reserves: A fast response to a solar power generator failure. Possible storage technologies are batteries, flywheels, etc

â&#x20AC;&#x153;

Solar energy alone could satisfy up to a third of global power demand from 2060 onwards

â&#x20AC;&#x153;

Plant Modeling: Modeling static, dynamic and short-circuit performance of plants, clusters and their impacts on power systems.

ABOUT

Eng. Bilal Hassan, Project Manager Upon graduation from Masdar Institute of Science and Technology, Bilal joined the International Renewable Energy Agency (IRENA), where he instrumented many initiatives in relation to technology cooperation and capacity building. He joined the Ministry of Energy in 2015, developing more projects such as national energy strategy modeling, transport modeling, triple helix research partnerships, load and generation modeling, regional trainings and coordinating with international organizations.

Supplemental Reserves: provide firm power in the event of a long lasting drop in solar power output. Possible technologies include natural gas peaking units.

UAE STATE OF ENERGY REPORT 2017

IS IT THE TIME TO SAY ‘NO’ TO FOOD WASTAGE? THE ENERGY GAIN FROM FOOD WASTE The UAE is one of the few places in the world to have a clean energy vision to support the implementation of a comprehensive waste-to-energy solution. In November 2015, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the Dubai Clean Energy Strategy 2050, which aims to provide 75% of the Emirate’s energy through clean energy sources by 2050.

ARTICLES

ARTICLE BY Mohamed Karam, Emerson

ABOUT

Mohamed Karam, Senior Business Development Manager

According to the Emirates Environmental Group, an eye-popping USD 4 billion worth of leftover food is disposed of from UAE homes and commercial outlets, making its way to our landfills every year. These mountains of food waste dumped in shrinking landfills break down to produce methane gas, which is 21 times more potent than carbon dioxide as a greenhouse gas and adversely contributes to global warming. This raises the question, is it time to say ‘no’ to food wastage? Michael Keleman is an Environmental Engineer and R&D Manager at InSinkErator®, a business unit of Emerson (NYSE: EMR), the inventor and world’s largest manufacturer of food waste disposers for home and commercial use. Michael explains how much power we can get from a pound of food waste using some information mentioned in 2008 final report of U.S. ENVIRONMENTAL PROTECTION AGENCY REGION 9 about “Anaerobic Digestion of Food Waste” and standard energy conversions. Assuming that food waste is 25% total solids and reciprocating engine is 35% eﬃcient, he reached the following conclusion: a pound of food waste will power a 10 watt LED lightbulbfor 17 hours.

Determine how much methane will come from 1 pound of food:

STEP 1

1 lb wet food x 1 ton/2,000 lb x 0.25 lb dry food/1 lb (1) wet food x 376 m3 CH4/1-ton dry food (2) = 0.047 m3 CH4 Determine how much energy will come from the methane:

STEP 2

0.047 m CH4 x 35.3 ft3/m3 x 1,000 Btu/ft3 CH4(3) x 0.35(4) x 1 kW-hr/3410 Btu = 0.1703 kW-hr

STEP 3

A 10 watt LED lightbulb could be powered for 17 hours by 1 lb of food. (0.1703 kW-hr x 1,000 W-hr/kW-hr) / 10W = 17 hours

Determine what type of lightbulb will the energy from the food power and for how long:

(1) Assumption that food waste is 25% total solids. (2) m3 of methane 376 is from Table ES-8 of the following link where 13,300 ft3/35.3 ft3/m3 = 376 m3 (https://archive.epa.gov/region9/organics/web/pdf/ ebmudfinalreport.pdf\) (3 Standard energy conversion. Assumption that a reciprocating engine is 35% eﬃcient.

He is the Senior Business Development Manager for the Middle East and Africa (MEA). He has over 19 years of experience working as an expert and proficient brand-builder across key industry verticals. His exposure to various international market segments has allowed him to be more aware of various cultures - an advantage in communicating more eﬀectively with stakeholders, partners and consumers. As Business Development Manager, he has been responsible for driving in more business for the company, especially in Middle East and African markets.”

The conclusion is putting food waste directly into a digester or using disposers to divert food waste from landfills to advanced wastewater treatment plants is not only environmentally responsible, where the biogas is captured for energy and the biosolids are beneficially reused, disposers are, indirectly, a fiscally responsible tool for municipalities.

189

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

DISTRICT COOLING HOW TO MAKE DISTRICT COOLING THE MOST COST COMPETITIVE COOLING OPTION FOR UAE RESIDENTS? In the UAE, we live in an extreme environment, but we are not alone. While the UAE faces extreme heat, Scandinavian countries have long faced extremities of cold. Naturally, the heating and cooling sectors are a key priority for both governments, and both governments have focused on making cooling and heating as eﬃcient as possible, and avoiding the use of high-value energy sources, such as electricity, instead utilising low-costs energy sources, such as waste heat and biomass. The infrastructure deployed is similar and is often termed “district cooling” or “district heating”. Both concepts employ the improved eﬃciency and economies of scale in cooling technologies and networks to substantially reduce the energy requirement and cost for both consumers and operators. District cooling is the recommended cooling mechanism for our country, and the first district cooling utility company was established in Abu Dhabi in 1998, deploying a 4,000-tonne gas engine-driven centrifugal chiller plant for serving military maintenance facilities. By the end of 2006, more than 500,000 tonnes of district cooling plants were operational, with investments exceeding USD 1.1 billion. By 2015, almost 15% of all cooling in the UAE was district cooling.

District cooling offered exciting possibilities for everybody. For developers, district cooling reduced construction costs; it reduced power infrastructure costs by almost 30%; freed up space for commercialisation; and provided opportunities for improved development aesthetics. For the government or utility, district cooling represented a major cut in electric power consumption for cooling a built space. Additionally, the environment benefitted, with less CO2 and refrigerant emissions. The district cooling companies received a 12-15% rate of return on their investment and soon major companies flocked into the district cooling market. Most importantly, for consumers, district cooling meant air conditioning could be easily controlled; it offered improved humidity control; lowered noise levels; and required minimal maintenance procedures. Additionally, district cooling was presumed to be the most cost-effective cooling option for UAE residents. However, in many localities, residents repeatedly highlighted high district cooling tariffs. In particular, the fixed or demand charge for cooling is substantially higher than the consumption cost, which is based on the units of cooling water consumed.

ARTICLES

ARTICLE BY Eng. Bilal Hassan, Ministry of Energy

UAE STATE OF ENERGY REPORT 2017

At the UAE Ministry of Energy, cooling is a key priority and analysis performed on optimising the sector showed interesting results. One of the findings was that the installed district cooling capacity is above planned capacity and consequently, has always been under-used. The optimal usage of district cooling plants requires a paradigm shift: a district cooling thermal grid. Existing cooling grids need to be interconnected to form a single grid for entire cities, such as Dubai and Abu Dhabi. While this concept is viewed as an unlikely scenario, it has already been implemented in the region. The entire West Bay in Qatar has one thermal grid.

“

The interconnected thermal grid enables existing plants to be run at full capacity and supply cooling to more customers at a fair and regulated rate. The potential for economies of scale is multiplied. This system makes district cooling a viable cooling system for consumers, developers and operators, purely on a cost or tariﬀ basis.

“

The proposed framework for a single district cooling grid is a revolutionary and disruptive business model. The current district cooling companies fear a reduction in cooling demand and customers or operating jurisdictions. However, for the UAE to remain a strong and resilient economy in the future, a free, competitive and eﬃcient cooling market and interconnected grid are necessary.

The interconnected thermal grid enables existing plants to be run at full capacity and supply cooling to more customers at a fair and regulated rate.”

“

This system makes district cooling a viable cooling system for consumers, developers and operators, purely on a cost or tariﬀ basis.

Many business models have been proposed for operating the single district cooling grid. The single buyer model, which has been used in the power sector, calls for the creation of a single neutral entity that owns the common district cooling thermal grid and procures cooling capacity from providers at a fair, regulated rate. Alternatively, a reverse auctioning system could be employed to procure additional capacity as required. This would motivate bidders to invest in more eﬃcient district cooling plants. Additionally, the common buyer could solicit bids for alternative cooling technologies, such as converting waste heat to cooling, or utilising solar energy. The entity could also work with research institutions to optimise eﬀective usage of the cooling capacity. This would aid all customers, whether residential, commercial or industrial, by providing a one-stop shop for district cooling at nominal rates.

“ 191

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

ABOUT

Eng. Bilal Hassan, Project Manager

A single buyer model could also cultivate interest in more innovative cooling, heating and power generation technologies, such as trigeneration, the simultaneous generation of electricity, while recovering heat from the exhaust of a gas turbine, jacket of a generator, or even a fuel cell, to use for heating or hot water, or for conversion into cooling energy via adsorption chillers. Trigeneration typically utilises natural gas as fuel, but can also use diesel, bio diesel, bio methane or ethanol. Its main purpose is to utilise waste heat and increase eďŹ&#x192;ciencies from around 40% to over 80%, reducing primary energy use, which results in cost savings and environmental benefits. Trigeneration work best when it is located close to medium- or high-density developments requiring both cooling and heating. Trigeneration technologies will be a pathway to de-link electricity use in the UAE from low-value applications, such as heating and cooling. It is possible to replace expensive, highly subsidised electricity with waste thermal energy in a cost-eďŹ&#x20AC;ective manner. There are many easily recoverable, cost-competitive and renewable waste-heat streams in the UAE, emanating from thermal power generation plants, upcoming waste-to-energy incineration facilities and energy-intensive industrial processes, among others. To provide cooling, waste heat can be employed in thermally powered chiller technologies, replacing or reducing reliance on traditional electric-powered chillers. With these chiller technologies and incorporation of existing or new district energy systems, a significant portion of the electricity requirements for cooling can be replaced with waste heat. The overall benefits of this transformation would be a reduction in electricity usage and CO2 emissions, overall energy-eďŹ&#x192;ciency gains, and cost savings. A city-wide thermal grid for cooling in our major cities in the UAE is the right way forward, and the sooner we convert, the better.

UAE STATE OF ENERGY REPORT 2017

POWERING THE FUTURE GROWTH AND PROSPERITY OF THE UAE A SAFE, SUSTAINABLE AND PEACEFUL NUCLEAR ENERGY PROGRAM

ARTICLES

ARTICLE BY Mohamed Al Hammadi, ENEC

As the United Arab Emirates grows rapidly, we require an increasingly reliable and efficient energy supply to power this growth. In parallel, we need to tackle the challenges of climate change which are becoming increasingly more urgent, indicating the need for cleaner sources of energy to be utilised. The UAE is emerging as a sustainable energy leader as we work to diversify our nation’s energy sources and to reduce its carbon footprint. In doing so, nuclear energy, a cornerstone of our nation’s clean energy portfolio, is proving immensely important in achieving these goals. At the Emirates Nuclear Energy Corporation (ENEC), we are working to power the future growth and prosperity of the UAE through a safe, sustainable and peaceful nuclear energy program. In delivering this vision, we are also helping to solidify our nation’s commitment to a sustainable future and to transform our economy by stimulating new industries. We are the pioneers of this among the countries that make up the Gulf Cooperation Council (GCC) and we strive to be a model for all countries looking to develop a peaceful nuclear energy program. Rising from what was once a single, simple stake in the sand, the Barakah Nuclear Energy Plant has grown into a monumental facility which serves as a symbol of pride among all Emiratis. Once the four nuclear energy reactors are fully operational in 2020, Barakah will generate nearly a quarter of our nation’s electricity with almost zero greenhouse gas emissions. In fact, with the UAE Peaceful Nuclear Energy Program well underway, and accompanied by renewable energy sources, our nation is in a prime position to meet the goals of the UAE Vision 2021 in both establishing a knowledge-based economy and ensuring sustainable development while preserving the environment. The Barakah project will also help the UAE fulfill international obligations, such as those put forward in the Paris Agreement on Climate Change, which aims to strengthen global efforts to combat climate change. The UAE signed this agreement in April 2016 and it officially came into effect in November 2016.

As of the end of October 2016, the Barakah project stands at 74 per cent completion and is driving significant economic change across the country. Diversifying and growing the UAE’s economy has long been a focus for our government and the nation’s pursuit of a peaceful nuclear energy program is an important part of achieving that vision. Hundreds of Emirati students are studying and obtaining advanced degrees in the science, technology, engineering and math disciplines necessary to support a nuclear energy program. Our nation’s nuclear energy program is supporting UAE businesses, contributing to the development of the local economy and stimulating the growth of our nation’s nuclear industry supply chain. As of August 2016, ENEC has awarded more than US $3 billion in contracts to over 1,400 local businesses involved with the Barakah Nuclear Energy Plant project.

193

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

Companies across the nation are also growing their technical capability and working to qualify their products and services to support the nuclear energy industry – both in the UAE and around the world. One example is Emirates Steel, which is the only steelmaker in the Middle East and North Africa region to achieve Q-class – or nuclear quality – certification. It is also one of only a few companies in the world to be qualified by the American Society of Mechanical Engineers to produce nuclear-qualified reinforced rebar.

ABOUT

Mohamed Al Hammadi Chief Executive Officer

The electricity generated at Barakah will also play a vital role in sustainable initiatives underway across the nation. The UAE’s transportation sector will grow over the coming years to include a tram system and a 131-kilometre metro system, designed to relieve traffic congestion and provide connections throughout Abu Dhabi Island, its suburbs and surrounding communities. A multitude of other projects aimed at sustainable development need the reliable and efficient supply of electricity which Barakah will deliver. At ENEC, our dedicated teams are working to complete construction and to prepare the plant for operation so that it can provide the electricity needed to power our nation and further progress our goals for sustainable economic growth. Over the last year, we achieved numerous important milestones, including the completion of several tests that are part of the process to ensure that the Barakah Nuclear Energy Plant operates safely and reliably. In October 2016, we launched a Joint Venture with the Korea Electric Power Corporation (KEPCO), the Prime Contractor for the construction of the plant. This Joint Venture agreement is vital for the long- term partnership, cooperation and success of our nation’s nuclear energy program and means that the UAE will benefit from KEPCO’s 40-plus years of experience in nuclear energy. As part of this Joint Venture, we also established Barakah One Company, an independent subsidiary owned by both companies that will represent the commercial and financial interests of the Barakah project. Also in 2016, we established Nawah Energy Company, a company dedicated to the safe and efficient operation and maintenance of the four reactors at Barakah. Having Nawah as the operating subsidiary company to handle the day-to-day operations of the Barakah plant allows ENEC to focus on larger strategic issues in developing the UAE Peaceful Nuclear Energy Program. Establishing Nawah is a key milestone on our journey toward commercial operation. Looking ahead, our nation is well on its way to bringing to fruition our first nuclear energy plant. With Unit 1 preparing for operation, Barakah is getting ready to evolve from a construction project to an operating facility. Importantly, we are proceeding with this work with sustained public support. As our nation continues to grow, our demand for electricity is expected to grow along with it. We are proud to be a leader in meeting that demand with clean and near emission-free energy, and to serve as an example for other nations to follow in exploring and implementing a peaceful nuclear energy program. Dubai Cable Company (Ducab) is also benefiting from our nation’s nuclear energy program. The company is supplying nuclear-grade cable for the Barakah Nuclear Energy Plant and signed its first international export contract in early 2016. Notably, Ducab was the first cable manufacturer in the Middle East to introduce and qualify 60-year, sustainable, halogen-free cables that meet the most rigorous testing standards. Work at the Barakah Nuclear Energy Plant is also contributing to the development of the entire Western Region’s infrastructure, including expanded roads and development of the transmission lines and electrical distribution grid. Once home to a single facility for the Abu Dhabi National Oil Company, the town of Ruwais is now home to a growing population of workers employed by ENEC and Nawah Energy Company for the development and eventual operation of the Barakah Nuclear Energy Plant.

Mohamed Al Hammadi’s management responsibilities include leading the organization towards the safe and eﬃcient deployment of the UAE’s first nuclear energy plant, as well as developing the UAE Peaceful Nuclear Energy Program. Prior to joining ENEC, Mr. Al Hammadi was General Manager of the Federal Electricity and Water Authority (FEWA). Mr. Al Hammadi gained his Bachelor of Science degree in Electrical Engineering, and his Masters of Science degree in Engineering Management, both from the Florida Institute of Technology.

UAE STATE OF ENERGY REPORT 2017

UAE AND MISSION INNOVATION ABOUT OUR PARTICIPATION AND THE COMMITMENTS FROM OUR SIDE

ARTICLES

ARTICLE BY Reshma Francy & Meshayel Al Ali, Ministry of Energy

The global community has made remarkable progress in recent times in driving down the costs and increasing the use of key clean energy options, including solar and wind, as seen with the recent solar PV bids in the UAE. These impressive gains, however, are not yet sufficient to meet global, long-term climate goals, while providing affordable, reliable, and secure energy supplies for the future. This is a worldwide concern, belonging to no single nation, and it is vital that nations work together to combat climate change and address energy concerns. In 2015, the world leaders came together to pledge their support to fight against climate change. This resulted in the historic Paris Agreement being adopted at the 21st Conference of the Parties (COP21) in Paris. Following on from this, as part of the initiatives to fight climate change, Mission Innovation was launched on 30 November 2015, with the aim of reinvigorating and accelerating global clean energy innovation and the ultimate objective of making clean energy widely affordable.

MISSION INNOVATION Mission Innovation (MI) is a global initiative of 22 countries and the European Union to dramatically accelerate global clean energy innovation. Mission Innovation recognises that the power of innovation, driven by sustained public investment in research and development coupled with business leadership, can push down energy costs further and bring fledgling ideas into the mainstream more quickly. Further reducing the cost of tomorrow’s clean energy technologies, along with adoption of current clean energy solutions, underpins global strategies to enhance global energy security, drive economic growth, bring life-changing energy services to the poor, and increase ambition in combating climate change. As part of this initiative, participating countries have committed to double their governments’ clean energy research and development (R&D) investments over five years, while encouraging greater levels of private-sector investment in transformative clean energy technologies. These additional resources will significantly enhance the availability of the advanced technologies that will define a future global energy mix that is clean, aﬀordable, and reliable. The UAE was among the first countries to join this initiative and the Ministry of Energy has been closely following the ensuing developments.

195

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

The UAE had a head start, with the leadership launching the UAE Vision 2021 strategy in 2010, which aims to make the UAE among the best countries in the world by the Golden Jubilee of the Union in 2021. In order to translate the Vision into reality, its pillars have been mapped into six national priorities, which represent the key focus sectors of government action in the coming years. This includes a competitive knowledge economy and sustainable environment and infrastructure. Reflecting the UAE Vision 2021, clean energy is core to the UAE’s publicly outlined intended nationally determined contributions (INDC), with a national target set to increase clean energy to 24% of the total electricity generation mix by 2021, from less than 1% today. Advancing innovation and technological breakthroughs is critical to addressing climate change and also aligns with the UAE’s long-term commitment to diversify the economy and energy mix. This also supports Mission Innovation’s aims to accelerate public and private global clean energy innovation to make clean energy widely aﬀordable. In 2014, the UAE launched a National Innovation Strategy (NIS), with the aim of making the UAE one of the most innovative nations in the world within seven years. With the belief that innovation is the future of human investment, the NIS aims to take innovation in the UAE to new heights, embedding a culture of innovation amongst individuals, companies and governments. The strategy aims to establish an innovation friendly ecosystem, including an enhanced regulatory framework, technology infrastructure, supporting services, investments and incentives; create a culture of innovation among individuals, firms, and the public sector; and focus on the seven main sectors to lead innovation on the national level. Naturally, renewable and clean energy is one of the seven main sectors identified by the government.

ABOUT

Meshayel Omran Lehssoni, Director

ABOUT

Reshma Francy, Project Manager

She is the Project Manager Energy Strategy at the Ministry OF Energy. She has been in the field of sustainability and climate change over the last four years, leading her to the current position and involvement in the National Energy Strategy. She is also an alumna of the Masdar Institute.

Following the launch of the National Innovation Strategy, the Science Technology and Innovation Policy was prepared, coinciding with the announcement of 2015 as the Year of Innovation in the UAE. This policy identified 24 focus areas, including solar and alternative energy technology systems and smart city applications and solutions. Under the guidance of these national strategies, the UAE is moving towards innovation in clean energy and energy eﬃciency to address economic growth and energy security. In addition, in line with the vision of Mission Innovation, the UAE has pledged to double clean energy research and development by 2021, based on the baseline set in 2015. This support highlights the UAE’s belief in research and development as a strong mechanism for resolving the challenges that hinder the implementation of clean energy and energy eﬃciency programmes in the UAE.

She is responsible for the Department of Future Energy and Security of Supply Activities, including the preparation of the GreenhouseGas Inventory of the United Arab Emirates Country and the Fourth National Communication Report. Previously she held the position of Head of Climate Change and Director of Clean Energy and Climate Change in the Ministry. She was responsible for Clean Energy and Climate Change Activities. She is a member of the international Clean Energy Education & Empowerment (C3E) Ambassador and focal point of Clean Energy Ministerial and Mission Innovation from UAE.

UAE STATE OF ENERGY REPORT 2017

INNOVATION IN THE ENERGY INDUSTRY THE MOMENTUM BEHIND THE ENERGY TRANSITION

It is impossible not to notice the deep and meaningful change in the energy industry over the last few years. As leaders of the sustainable, smart-energy world and advisors to decisionmakers globally and throughout the Middle East, it has been innogy’s role to create awareness of something that started to happen a few decades ago and has been picking up momentum since. But pointing out the rate of change is not the question any more. As in many other industries, in hindsight, disruptive change seems logical. Looking at history, however, the industry leaders of the current curve rarely manage to be leaders of the curve ahead. This can be seen in fields as diverse as transportation, digital photography and personal computing. Most of the disruptive innovation leaders were “mice”, compared to the industry “elephants”. For years, especially in Europe, the old voices were strong: the energy industry cannot be moved by small players, such as renewable energy sources and smart technology. What role can a battery play in an energy system, if it isn’t economic to store more than an hour’s worth of a household electricity demand? How can solar PV cells replace gigawatt-blocks, if they only produce

ARTICLES

ARTICLE BY Pierre Samaties, Dr. Artus Ph. Rosenbusch, Innogy International ME

during the day time? Consumers will always need a central electricity provider to keep the lights on. It is remarkable that today the momentum behind the energy transition is clear. Our clients feel the pace of this every day, and Dubai is taking a global leadership role in this movement. Now, when the world record for clean power IPPs is set, to be exceeded a few short months later, nobody is surprised. It is only the price tag and small print that receives analyst’s attention. We now know that even the smallest industry players can active change and the equilibrium can swing in diﬀerent ways. But what do we make of it? The answer depends on who asks the question. As with every change in the world, we all have the power to choose the role we play, at both an individual and organisational level, but there are three basic strategies being embraced by most industry leaders today.

197

7. RENEWABLE, CLEAN AND ALTERNATIVE ENERGY

1.Embrace uncertainty and think in scenarios The master plan and base case are no longer adequate tools to inform long-term decision-making. With the pace of change and the rate of uncertainty multiplying quickly, leaders must be specific about what they know and don’t know. It is also increasingly apparent that there are no reasonable assumptions for the probabilistic behaviour of innovation. Stephen Hawking said “Not only does God play dice, but... he sometimes throws them where they cannot be seen.” Applying this to our industry acknowledges that political events or technological breakthroughs might happen, but not only do we not know whether they will happen, we also we can’t say whether they are likely or unlikely, whether the chance is 10% or 80%. This is a diﬃcult concession to make. Leaders, like all people, like to make the right decisions. Ideally, a right decision is one that is correct in most cases, with a positive expected value and minimal volatility. These are words from statistics, but statistical methods are decreasingly applicable when talking about the future. The answer is strategic corporate scenario planning. By defining the main scenarios as concurrences of factors that “just might happen” in such a way that they form the most severe stress-test for corporate strategy, leadership can have a common language about the known unknown and take risks in a calculated way.

By letting strategic scenario thinking guide leadership on what action to take today, which eventualities to prepare for, and which indicators to monitor closely, organisations can turn risks into opportunities. Our experience shows that whenever we help clients implement strategic scenario planning as a corporate strategy tool, it immediately uplifts strategic thinking and creativity.

2.Go out and meet the players One source of uncertainty we face in the industry is the nature and development of current and future innovators. Which business models and technologies will cause the next disruption? Which innovators have the power to change the industry? Who will become the UBER of energy? The good news is that the developers of the future don’t hide. They are all part of the eco-system, and are often vocal about their current and future capabilities in a bid to attract investors. Large corporations understand this and invest heavily in innovation and R&D. Traditional energy companies build hubs in the world’s most prominent innovation ecosystems, like Silicon Valley, Berlin and Dubai. Corporate venture investors scout for the incubators, trying to attract the most promising new businesses and technologies. This can be seen in the visionary “Free Electrons Program”. For this, eight utilities from across the world, including Dubai Electricity and Water Authority (DEWA), have created an exclusive accelerator programme to attract and develop the best energy-related startups.

UAE STATE OF ENERGY REPORT 2017

ABOUT

Pierre Samaties Managing Partner and CEO

ABOUT

3. The best way to predict the future is to invent it Utility companies were at the forefront of innovation a hundred years ago; bringing electric lights to every house-hold was a monumental and visionary endeavour. Since that time, many technological breakthroughs have happened within the industry, from upstream and generation, to grids, and interaction with the customer.

Dr. Artus Ph. Rosenbusch

Vice President, Strategy Consulting

At the same time, utility companies and national governments follow the imperative of “Security of Supply” as a fundamental principle, so anything that indicates radical change is traditionally greeted with some hesitation. Belonging to a Late Majority or Early Majority of adopters have been strategically sound plays for utilities and regulators alike. He is the Managing Partner and CEO of innogy International Middle East – innogy’s Consulting and Venture Management company in the Middle East. He holds an MBA in General Management from the International School of Management in Dortmund (Germany) and University of Stellenbosch (South Africa) as well as a Bachelor of Science in Information Technology from the University of Dortmund (Germany). He holds several executive certificates from London Business School, INSEAD and MIT Sloan. He has over 15 years of international consulting and venture management experience.

Against this background it is remarkable to see the push for innovation coming from utilities today. RWE (now innogy) was the first to build an outpost in Silicon Valley and there is now a thriving global innovation eco-system in the sector. Not everyone will embrace change at that scale. Being an Early Adopter may be a valid strategy for many, but considering infrastructure investments intended to be utilised for more than 30 years, being at least ahead of the curve is becoming a must-have capability. The Early Majority can, in today’s world, suﬀer the fate reserved for Laggards in the past.

He is the Vice President Strategy Consulting of innogy International Middle East – innogy’s Consulting and Venture Management company in the Middle East. Artus holds a Doctoral degree (PhD) in Game Theory and a Diploma in Mathematics from Darmstadt University of Technology, Germany. He has global consulting experience in the energy industry spanning nearly 10 years with d-fine, Booz & Company and RWE Consulting (now innogy Consulting) for clients in the USA, Asia, the UAE and across Europe. Some of his focus topics are: Scenario Based Strategy Development, Future Technologies, Integrated Energy Strategies, and Market Modelling.

199

ENERGY & WATER DECOUPLING HER EXCELLENCY ENG. FATIMA ALFOORA AL SHAMSI ASSISTANT UNDERSECRETARY FOR ELECTRICITY AND FUTURE ENERGY AFFAIRS, MINISTRY OF ENERGY, UAE

Global water demand is forecast to increase by 55% by 2050, contributing to increased water stress. The UAE is one of the top 10 most water-scarce countries in the world and it is vital for the nation to seek solutions for water scarcity. The key to the global water crisis resides in managing demand, while balancing the water-food-energy nexus. The UAE Vision 2021 was developed to diversify the economy, with a focus on the renewable energy and water sectors. Consequently, the UAE Energy Strategy 2050 was developed, highlighting the country’s commitment to achieve this vision. The Ministry of Energy is currently finalising the 2036 Water Security Strategy, which works hand-in-hand with the UAE Energy Strategy 2050, being focused on various aspects, including the interconnection of the water network, water storage, additional desalination capacity and recycled water. With more than 90% of the UAE’s water provided through

desalination, the UAE is committed to advancing industrialscale, sustainable desalination technologies, continuing to invest in research and development in desalination technology to meet the future demand for fresh and clean water. As a founding signatory of the Global Clean Water Desalination Alliance – H2O minus CO2, Masdar, Abu Dhabi’s renewable energy company, reflects the UAE’s dedication to transforming the climate-change narrative through innovation. This is also seen in the Mohammed bin Rashid Al Maktoum Global Water Award announced by Suqia, a competition to find sustainable answers to water scarcity problems.

8. ENERGY AND WATER DECOUPLING

THE WATER COMMITMENT FROM THE UAE TO THE WORLD SUQIA PLAYS A KEY ROLE IN REINFORCING THE UAE’S LEADING POSITION IN PURSUING HUMANITARIAN INITIATIVES `

ARTICLE

ARTICLE BY Mohammed Abdulkareem Al Shamsi, UAE Water Aid Foundation (Suqia)

The UAE has established a leading global position through actively finding solutions to the challenges facing poor communities around the world. Suqia, the UAE Water Aid Foundation, embraces the declaration of the UAE President HH Sheikh Khalifa bin Zayed Al Nahyan, of 2017 being the ‘Year of Giving’. Suqia aims to foster the UAE’s pioneering, global position in pursuing humanitarian initiatives and carry forward the philanthropic legacy of the late Sheikh Zayed bin Sultan Al Nahyan, Founder of the UAE. This reinforces Suqia’s commitment to reach out and aid underprivileged communities that suﬀer from drought and limited access to clean water.

Water is a fundamental human need, but more than 40% of the global population is affected by water scarcity and this number is projected to rise. Access to safe and reliable water is the foundation of any developing community, yet 663 million people worldwide lack access to safe water, according to the World Health Organization (WHO). With clean water sources often miles from villages, millions of people suffer. Communities in rural and poor urban areas cannot develop and prosper if residents are forced to spend hours each day finding and transporting clean water. International communities around the world have joined forces to find solutions to address the issue of water scarcity, from establishing humanitarian aid and awareness campaigns, to setting sustainable worldwide goals to reduce the impacts of water scarcity. The UAE has established a leading global position through actively finding solutions to the challenges facing poor communities around the world. Moreover, the UAE plays a major role in supporting and bolstering international efforts to ensure access to safe water and finding sustainable solutions for the issue of water scarcity.

UAE STATE OF ENERGY REPORT 2017

ABOUT

Mohammed Abdulkareem Al Shamsi Acting Executive Director In an effort to find sustainable solutions to global water shortages, HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued a law establishing the UAE Water Aid Foundation, Suqia, as a non-profit organisation focused on finding sustainable solutions to water scarcity and promoting happiness within poor and disaster-stricken communities. Suqia is an entity operating under the umbrella of Mohammed bin Rashid Al Maktoum Global Initiatives (MBRGI). Suqia is taking the lead in researching solutions for water shortages, to combat poverty and disease in the region. Suqia strives to further the UAE’s status as a leading provider of humanitarian aid and establish the UAE as a key contributor to sustainable international development. Since its establishment, Suqia has become a highly regarded organisation for its work in providing aid to the needy and distressed around the world. It has contributed to the UAE’s ever-growing global reputation for philanthropy, in addition to supporting sustainable development. Suqia influenced the lives of over 3.5 million people in 20 countries during 2015 and continues to seek and restore hope in communities that suffer from scarcity and contamination of drinking water. Suqia’s goals are not confined to the provision of potable water to the needy. The organisation also contributes to finding innovative and sustainable solutions to the problem through research and development into sustainable technologies that aim to provide clean water using solar energy. Suqia was awarded the UAE Innovation Award for Humanitarian Aid during the Dubai International Humanitarian Aid & Development Conference and Exhibition, DIHAD 2016. The foundation will continue developing its international humanitarian mission to strengthen local, regional, and international cooperation. In the quest to find innovative water shortage solutions, Suqia hosts the Mohammed bin Rashid Al Maktoum Global Award, a USD 1 million award for research and development of new technologies and methodologies to produce clean drinking water using solar power. The award promotes the UAE’s global position in actively seeking solutions to the challenges facing poor communities around the world. HH Sheikh Mohammed bin Rashid Al Maktoum’s launch of Suqia underlines the commitment by the UAE leadership to support international humanitarian efforts. Suqia continuously seek to foster the UAE’s leading position in integrating and coordinating humanitarian initiatives to meet the growing challenges faced by our world today. As we embark on 2017, the Year of Giving, Suqia is keen to reach out and serve humanity around the world, continuing to provide assistance to communities that suffer from drought and access to clean water.

He contributed to launching the first cycle of the Mohammed bin Rashid Al Maktoum Global Water Award and participated in various philanthropic campaigns, events and sessions worldwide. Furthermore, he contributed to Dubai Electricity and Water Authority’s (DEWA) corporate sustainability programme, which resulted in updating DEWA’s sustainability strategy map and formulating climatechange strategies through the carbon emission reduction programme. Prior to joining DEWA, Al Shamsi worked in a number of leading financial institutions in the UAE.

203

8. ENERGY AND WATER DECOUPLING

EVOLUTION OF ELECTRICITY-DRIVEN DESALINATION RESEARCH AND DEVELOPMENT ACTIVITIES AT MASDAR INSTITUTE

Although the MENA region contains more than 60% of the world’s proven crude oil reserves, it has only about 1.4% of the world’s fresh water supply. All MENA countries, with the exception of Iran and Iraq, are subjected to water scarcity, which is a condition where renewable water resources are less than 1,000 m3/ year/capita. Although the dominant use of water in the MENA region is for agriculture, potable and industrial use, water consumption is the driver for the high reliance on seawater desalination across the region. The Gulf Cooperation Council (GCC) countries are particularly prominent in desalination, having 26 million m3/day of seawater desalination capacity, which accounts for approximately 36% of total worldwide capacity.

ARTICLE

ARTICLE BY Steven Griﬃths, Masdar Institute of Science and Technology

UAE STATE OF ENERGY REPORT 2017

The impact on the GCC power and water sector from this considerable desalination need is substantial. An average of 12% of total sector fuel consumption across the GCC is spent on desalination, with the range being from 10% in Saudi Arabia to approximately 30% in Qatar. GCC countries are globally unique in their heavy reliance on thermal desalination technologies, which were historically necessary to desalinate water in the Arabian Gulf because of the Gulf’s high level of total dissolved solids. Thermal desalination technologies were also convenient for coupling with thermal-based powergeneration technologies, because waste heat from fossil energy combustion could be used for multi-stage flash (MSF) or multiple-eﬀect desalination (MED).

The GCC’s dependence on thermal desalination is apparent from the region’s installed desalination capacity, which in 2014, according to the International Renewable Energy Agency (IRENA), was 53% MSF, 11.3% MED, 34.5% reverse-osmosis (RO) and 1.2% other technologies. In contrast, only 30% of desalinated water is produced by thermal processes on a global level. Now, however, GCC countries are moving away from thermal desalination, in order to decouple power and water systems. Advancements in membrane-based technologies, such as RO, allow Arabian Gulf water to be desalinated at a lower cost than thermal approaches.

In response to the UAE’s water needs and the promise of new technologies, Masdar Institute has made water one of its key research areas, along with energy, advanced materials and smart systems.

While the new technologies and resulting energy and cost savings have been welcomed, further improvements on today’s best available technologies for water desalination are possible.

While the new technologies and resulting energy and cost savings have been welcomed, further improvements on today’s best available technologies for water desalination are possible. Advancements in materials science are leading to new classes of materials, such as graphene, which oﬀer great promise for water technology innovations tailored to the needs of the region. In response to the UAE’s water needs and the promise of new technologies, Masdar Institute has made water one of its key research areas, along with energy, advanced materials and smart systems. The Institute pursues interdisciplinary technological advances and innovations in desalination through three of its academic programs – chemical engineering, water and environmental engineering and materials science engineering.

205

8. ENERGY AND WATER DECOUPLING

One Masdar Institute water project that has demonstrated good outcomes and attracted international attention combines chemical engineering and materials science expertise for the development of desalination membranes made from carefully arranged layers of graphene, which is a one-atom thick layer of carbon atoms, to reduce the energy demand of seawater desalination. The team is working on an innovative synthesis technique that could help take graphene-based filters another step towards becoming cost competitive with their conventional polymer membrane counterparts, while providing improved performance. The technique uses a “bottom-up” approach, which involves layering many small graphene sheets together, in contrast to the more common “top-down” approach, which involves fabricating a single large graphene sheet and subsequently poking tiny holes in it to construct pores.

Graphene’s unique two-dimensional structure, chemical stability and superior strength make it particularly suitable as a desalination membrane. Its strength allows it to withstand the force of hydraulic pressure used in traditional desalination systems, while its twodimensional structure makes it easy to form a barrier or have good permeability if perforated, enabling water to pass through relatively easily, compared to conventional polymeric membranes. Perforation, however, alters graphene’s functional properties, and hence other methods that allow water to pass through, such as layering, are important to consider.

Conventional polymeric membranes may be well able to filter out salt ions, but they are susceptible to damage caused by high temperatures and the chemicals, such as chlorine and others, used to clean the membrane. These factors mean they require frequent replacement. Graphene, on the other hand, is significantly more resistant to the damaging eﬀects of chemicals, temperature, and high pressure, which makes it less vulnerable to damage and fouling, which is the build-up of filtered material on the membrane. The team uses an aﬀordable chemical approach to fabricate high-quality tiny graphene sheets, that, when layered together, form a large graphene sheet with fine gaps. Although this research is not yet at the commercialisation stage, it provides a glimpse into the future of electricity-driven membrane desalination using advanced materials. Masdar Institute has partnered with the University of Manchester, the university that is home to the Nobel-prize winning researchers credited with first isolating graphene, in a collaborative programme focused on «pre-competitive» research in graphene and related 2D materials for sensors, membranes and composites for the aerospace, defense and energy markets. Three collaborative graphene projects have been launched to support the development of valuable advanced materials innovations for the UAE’s nascent high-tech industries, and one is specifically focused on water. The project aims to incorporate graphene nanosheets with ion exchange membranes, which are used in water desalination and treatment technologies to produce fresh water. As the UAE and broader GCC strive to develop new technologies that support decoupling of the power and water systems, research and development activities, such as those being conducted at the Masdar Institute, will play a key role.

ABOUT

Dr Steven Griffiths Vice President, Research and Associate Provost

He is Vice President for Research and Associate Provost at the Masdar Institute of Science and Technology. He leads the Institute’s research activities, which include energy, water and environment, microsystems and sustainable engineering systems.

UAE STATE OF ENERGY REPORT 2017

MISMANAGING THE ENERGY-WATERFOOD NEXUS

ARTICLE

ARTICLE BY Jeroen Van Der Veer, World Energy Council

THE INTERDEPENDENCE OF RESOURCES

If we are to mitigate the impact of this water shortfall, it is crucial that the government and industry work together to innovate and explore how this precious commodity can be used more

The United Nations has projected a severe global water shortage by 2030, when the world will be faced with a 40% shortfall of water availability. This stark prediction becomes even more pertinent when you look at current models of power generation: 98% require water at some point in the process. Such is the state of aﬀairs that from 2014 to 2069, reductions in usable water capacity could impact two-thirds of analysed hydropower plants, and more than 80% of the assessed thermal electric power plants.

eﬃciently in energy production. Water is utilised

Energy is the second largest fresh-water user after agriculture. The interdependence of these resources and the way in which they compete for the same scarce resources, is known as the ‘energy-water-food nexus’.

power with renewables, such as wind, natural

right across the energy value chain – in both primary energy production (coal, oil, gas, and biofuels) and in power generation (hydro and spent-fuel cooling for nuclear waste). To moderate resource constraints, it is essential to further reduce the amount of water needed for energy production. Analysis by the International Energy Agency in 2012 indicated that the water footprint of the energy industry could be reduced by producing more heat and gas and photovoltaics, as comparably the water usage is much lower.

207

8. ENERGY AND WATER DECOUPLING

There is a fine balance to strike between championing the transition to a low-carbon future and reducing water stress. Pakistan’s Indus River Basin, accounting for more than 95% of the country’s irrigation and the majority of its food production, is facing increased water stress due to the impact of climate change on glacial flows. At the same time, the country is looking to boost its energy supply by tapping into the area’s hydroelectric potential, creating further water stress.

correct market failures, such as ‘green’ or infrastructure banks. Additionally, green bonds, well-designed public-private partnerships, and carefully applied subsidies, can yield significant returns.

Moving forward, energy production methods that incorporate water availability into their design must balance concerns regarding energy security, environmental sustainability and aﬀordability.

When managing the transition to a low-carbon economy and improving access to reliable energy sources, a fine line will inevitably be trodden with reducing water stress. Several of the most water-stressed regions in the world are positioning themselves at the forefront of the renewables revolution and are poised to see continued economic development and a population boom.

Some technologies, highlighted as part of the low-carbon transition, may actually increase water stress, such as biofuels, carbon capture and storage, which have almost double the water requirements. Technology also has an important role to play in reducing water stress. Advances such as ‘recirculating’ systems as opposed to ‘once-through’ systems, the adoption of dry cooling, improvements in desalination processes, and reusing water from oil extraction, have been progressively deployed to reduce the water footprint of the energy sector, however more must be done.

The Middle Eastern region, with its growing population and increasing energy and water demands, is becoming increasingly vulnerable to the challenges the energy-water-food nexus presents. The risks of the nexus are further exacerbated by climatechange impacts, such as declining freshwater availability, increased ocean temperatures and more extreme weather.

One of the key considerations that needs continued attention is how this technology and development is funded. A UNEP report produced earlier this year in conjunction with the Frankfurt School of Management and Finance, put global investment in renewable power capacity in 2015 at USD 285 billion – more than double that was allocated to new coal and gas generation. Geographically (excluding hydropower), the majority of this came from developed countries, with China, India and Brazil being the largest contributors from the developing world. The investment has come from a combination of venture capital, corporate R&D and government R&D. Solar energy, one of the least water-intensive forms of energy generation, garnered USD 161 billion in 2015 against small hydro projects, which attracted USD 3.9 billion. Equally, some of the burden falls to policy-makers to ensure market conditions are ripe to encourage investment in renewables. The latest Trilemma Report published by the World Energy Council, explored the use of market-based economic instruments, alongside carefully selected mechanisms to

The level of global water stress aggravates the need for collaborative working that will foster the necessary innovation to produce solutions: these solutions will reduce water usage in the production of energy, while balancing energy security, aﬀordability and access to energy. Firstly, a shift towards renewables such as wind, photovoltaics, or natural gas, would mitigate the environmental impact of ensuring energy security. Equally, the adoption of carbon capture and storage technology (especially after 2030) will be vital to managing this transition.

Analysis by the International Energy Agency in 2012 indicated that the water footprint of the energy industry could be reduced by producing more heat and power with renewables, such as wind, natural gas and photovoltaics, as comparably the water usage is much lower. ABOUT

Jeroen Van Der Veer Chairman

He is the former CEO of Royal Dutch Shell. He is currently chairman of ING Group, Chairman of the Supervisory Board of Philips, and has recently been elected Member of the Board of Statoil. He chairs the World Energy Council Knowledge Network on Financing Resilience.

UAE STATE OF ENERGY REPORT 2017

ENERGY - WATER NEXUS MODELLING APPROACH IN THE CONTEXT OF INTEGRATED POLICY MAKING IN THE UAE CREATING SUSTAINABLE POPULATION AND ECONOMIC GROWTH

ARTICLE

ARTICLE BY Saeed Kaddoura, Marouane Temimi, Sameh El Khatib, Masdar Institute

The relationships between water, energy, and food have been thoroughly studied and understood. Energy is needed to supply clean water. Also, water and energy are required for agriculture to provide food. We now also have a robust understanding of scientific fields that just a few years ago used to be considered novel, such as biofuels, which create a unique linkage between food and energy. However, these synergies are almost always associated with trade-oﬀs. Growing crops for biofuel can jeopardize food security and increase water demand. Similarly, constructing a hydropower plant in one country could significantly impact the agricultural yield of other countries downstream, leading to political conflict. These are just a few examples within a complex network of interactions between water, energy, and food. Understanding these relationships is paramount to a nation’s successful development and growth. The synergies and trade-oﬀs between water, energy and food are represented by what is commonly known as the Water-Energy-Food (WEF) Nexus, with possible other permutations of the three words, water, food, and energy. The term was originally coined by the World Economic Forum in 2011, identifying it as a global risk due to unsustainable resource pressures. Demand for water, energy, and food is expected to rise by 30-50% over the next two decades, due to economic and population growth, while an economic priority is placed on short-term responses in production and consumption as opposed to long-term sustainable options.

The Nexus Approach aims at providing decision-makers with better and more comprehensive information (...)

209

8. ENERGY AND WATER DECOUPLING

FIGURE 1: EXAMPLES OF WATER-ENERGY-FOOD NEXUS INTERACTIONS

ABOUT

Saeed Kaddoura Research Student ENERGY • Desalination • Energy generation • Water supply and transmission

WATER • Soil and Water quality • Irrigation and agriculmre • Water security and virtual water imports

FOOD • Biofuels

NEXUS

• Industrialized agriculture • Food imports and security

Over the next few years, the view of the Nexus evolved from it being perceived as a network of global risks, to reach the level of a decision-making philosophy that utilises systems thinking to optimise policies and regulation in a way that will allow for capitalising on the synergies between water, energy, and food, while reducing trade-offs. This approach to policy-making through optimisation of synergies is called the Nexus Approach. Conventional policy and decision-making encourages “silo thinking”, where decisions are made in one of the nexus areas of water, energy, or food without considering the implications on the other areas. This is likely attributed to the fact that there are rarely people who are experts in all the three nexus areas, which usually leads to inefficient regulatory decisions. The Nexus Approach aims to provide decision-makers with better or comprehensive information, as opposed to more information, in the three Nexus areas for more efficient policy- and decision-making in an effort to transition to a green economy that aims at resource efficiency and mutually reinforcing policies. An example of the necessity of applying the Nexus Approach is evident when investigating some countries in the Middle East with arid climates, such as the UAE, which possesses roughly 10% of the world’s crude oil reserves. This makes the UAE one of the highest energy consumers per capita in the world. On the other hand, the average annual rainfall across the country is around 100 mm, which is not sufficient to address the country’s water demand. This fostered the use of energy demanding non-conventional water resources, primarily water from thermal desalination. This trend is common to many of the GCC energy leaders with arid climates in the Middle East, such as Saudi Arabia and Qatar. It is not uncommon to observe synergistic inefficiencies in these countries, due to their energy consumption and water demand behaviours. Through the Nexus Approach, policies are currently being implemented to optimise synergies and eliminate inefficiencies, in order to facilitate sustainable growth in the region.

Through the Nexus Approach, policies are currently being implemented to optimise synergies and eliminate ineﬃciencies, in order to facilitate sustainable growth in the region.

He graduated in 2011 from the University of Toronto with a Bachelor’s degree in Chemical Engineering, specialising in Sustainable Energy. He went on to continue his education and graduated in 2012 with a Master’s degree in Mechanical Engineering, focusing on Environmental Engineering. After spending two years in consulting, Saeed is now a second-year Water and Environmental Engineering graduate research student at the Masdar Institute of Science and Technology. His combined background knowledge and experience create the foundation for his transdisciplinary approach to modelling the WaterEnergy-Food Nexus at the Masdar Institute.

UAE STATE OF ENERGY REPORT 2017

ABOUT

Dr Sameh El Khatib Assistant Professor, Engineering Systems & Management

He received his Bachelors and Masters in electrical engineering from McGill University, Canada, in 2002 and 2005, respectively. He received his Doctorate of Philosophy degree from McGill University in 2011, where his research interests included power system economics, electricity market restructuring and planning, and decision-making in the energy sector, specifically in the context of oligopolistic electricity markets. Currently, his research group focuses on analysis of integrated engineering systems, as well as power system economics to meet national energy sustainability targets.

Strengths in the current approach lie in the understanding of Nexus complexity, consideration of financial elements in the tools, recognition of the importance of multiple Nexus Approach directions, incorporation of different time scales, and enhanced tool accessibility. The widest gap in the Nexus Approach as it currently stands is the extensive data requirements. This is a corollary of the Nexus complexity. In an effort to incorporate complex Nexus elements and synergies into the tools, the data requirements for developing accurate models increase. The only tool without a significant data requirement, the Nexus Tool 2.0, avoids this problem due to a simplification of the synergies. However, as the tool has evolved, it is suspected it will run into the same dilemma. The complexity becomes further convoluted when dealing with unique economic structures with complex subsidy systems and single buyer economics. The Water Evaluation and Planning system (WEAP) is the only tool with an innovative approach to addressing strict data requirements. Users are able to adjust the data structure to achieve a balance between the accuracy of a model and the amount of data available for model building. The trend of extensive data requirements is common to most modelling tools and is a major constraint on the modelling direction of the Nexus Approach. There will always be a trade-off between complexity and comprehensiveness. Nexus tools addressing the specific Nexus areas of energy and water exist. However, these tools do not effectively capture synergies with other areas. While models can be developed exclusively for one Nexus area, synergies in their definition extend to multiple Nexus areas and therefore must be modelled in all areas to which they extend. For example, desalination represents a synergy between energy and water; water supply would be modelled in the water Nexus area and energy demand would be modelled in the energy Nexus area. In conclusion, the existing Nexus tools capture the essence of the WEF Nexus. While they do so in different ways, all of the tools work towards the WEF Nexus’ ultimate purpose of creating sustainable population and economic growth using integrated decision-making. Our research shows that further consensus amongst tool developers needs to be developed to progress the modelling direction of the Nexus Approach. Theoretically, the perfect modelling tool would allow for the creation of policies that maximise all synergistic efficiencies between the Nexus areas. However, just as synergies and trade-offs are coupled in the Nexus, strengths and weaknesses will always be coupled when developing a holistic Nexus Tool.

ABOUT

Dr Marouane Temimi Associate Professor

He obtained his Ph.D. degree in Water resources/ Remote Sensing from the University of Quebec/ ETS, Montreal, Canada. Dr Temimi holds over 10 years of extensive experience in industry and academia. He served in leading international engineering firms and before joining Masdar Institute, Dr Temimi worked at the NOAACREST Institute at the City University of New York. He led/co-led several research projects, including those funded by The National Aeronautics and Space Administration (NASA) and the National Oceanic and Atmospheric Administration (NOAA).

211

8. ENERGY AND WATER DECOUPLING

ARTICLE

ARTICLE BY Eng. Somayyah Abdullah Alyammahi, UAE Ministry of Energy

NATIONAL CAMPAIGN OF WATER AND ENERGY EFFICIENCY DEFINING THE CURRENT SITUATION OF WATER AND ENERGY CONSUMPTION The National Campaign of Water and Energy Efficiency was launched during Innovation Week in 2015, and it aims to define the current situation of water and energy consumption. It highlights the importance of efficiency by promoting conservation awareness and deployment of best practices in efficiency. Moreover, the National Campaign of Water and Energy Efficiency supports national efforts in the conservation of energy resources, while educating both business sectors and the public on preferred energy sources. Each year, the campaign targets a different category of society.

TIMELINE Education - 2016 Family - 2017 Tourism Agriculture Business

UAE STATE OF ENERGY REPORT 2017

The National Campaign of Water and Energy Eﬃciency supports national eﬀorts in the conservation of energy resources (...)

National Campaign of Water and Energy Eﬃciency – Education Sector – 2016 In February 2016, the UAE Ministry of Energy held the Government Innovation Lab to develop national initiatives between the sectors of energy and education that contribute to the achievement of sustainable development. The Innovation Lab was created in partnership with Sheikh Mohammed bin Rashid Laboratory for Creativity, to shape a plan of action and encourage innovative activities designed to foster a change in consumer behavior. The Innovation Lab is divided into five categories. These are the areas to be targeted to reduce the habits amongst the highest consumption groups: 1. The role of the future generation in conservation behaviour 2. The role of university students in development and research to support the culture of conservation

ABOUT

Eng. Somayya Abdulla Alyammahi Head of Research and Policy Section of Energy

She joined the Ministry of Energy in 2013 as a green building architect in Energy Eﬃciency and Conservation Department. She is responsible to follow up the EE and EC initiatives by analysing data to create big data management and establish a benchmark in energy consumption. She is also responsible for coordinating the work of the Emirates Energy Conservation team, supporting the municipalities and informing them of the latest green building technologies to enhance their legislation and codes accordingly. She has a Bachelor of Architectural Engineering from the United Arab Emirates University.

3. The curriculum of the Ministry of Education and Ministry of Higher Education 4. Efficiency in education buildings 5. Measuring the impact of energy efficiency awareness The UAE National Campaign for Water and Energy Efficiency is aligned with the unified twoyear rationalization campaign launched by the Energy, Electricity and Water Ministers in the Cooperation Council for the Arab States of the Gulf (GCC). The campaign was launched at the end of the 28th meeting under the theme of “save it to last”.

213

AKNOWLEDGEMENTS

This report was created under the guidance of:

HE ENG. SUHAIL MOHAMMED FARAJ AL MAZROUEI

ACKNOWLEDGEMENTS

UAE Minister of Energy

HE DR. MATAR HAMED AL NEYADI Undersecretary, UAE Ministry of Energy

HE ENG. FATIMA AL FOORA AL SHAMSI Assistant Undersecretary of Electricity, Clean Energy and Desalinated Water Aï¬&#x20AC;airs, UAE Ministry of Energy

OUR EDITORIAL COMMITTEE HE Eng. Fatima Al Foora Al Shamsi, UAE Ministry of Energy HE Frode Mauring, United Nations Development Programme (UNDP) HE Waleed Salman, Dubai Carbon Ivano Iannelli, Dubai Carbon

UAE STATE OF ENERGY REPORT 2017

THE TEAM OF THE UAE MINISTRY OF ENERGY Marwa Ahmed Alawadhi Eng. Somayyah Abdullah Alyammahi Amna Ghaith Alzaabi

THE TEAM OF THE UNITED NATIONS DEVELOPMENT PROGRAMME

Disclaimer: United Nations Development Programme The analysis and policy recommendations o this Report do not necessarily reflect the views of the United Nations Development Programme, its Executive Board or its Member States. The Report is produced in cooperation with the United Nations Development Programme (UNDP) Country Oﬃce UAE.

UNDP Country Oﬃce: Frode Mauring, Manar Yazbeck

ACKNOWLEDGEMENTS

OUR EDITORS Editor: Allegra Salvadori Second Editor: Ameera Khalid Technical Editor: Eng. Thomas Bosse Peer Review and Quality Assurance: Rachel Bartz, Moamen Younis, Ivano Iannelli. Technical Sub-editors: Dr. Eng. Pablo Izquierdo, Eng. Amer Arafat, Alexandra Postrigan, Suraiya Tasnim, Eng. Mohamed Elimam, Mahdiah El Jed, Musad Afzal, Eng. Shahda Al Taie, Eng. Mariam Maani Proofreading: Giselle Whiteaker

OUR PRODUCTION Creative Director: Josiane Sadaka, The Brand District Design and Artwork: Hratch Derhagopian, Rahul Aswani The Brand District Since its establishment, The Brand District has always been a 360 degree forward thinking full-fledged creative niche studio specialized in branding, strategy and design. Through our innovative work, we create new ways enabling brands to connect with people and people to connect with brands. We tell your brand story. Get in touch: T +971 50 2800643 | info@thebranddisrtict.com | www.the branddistrict.com Asiatic Printing Press LLC Since its inception in 1993, Asiatic Printing press has become a fully integrated printing company in the Middle East. With man-power of more than 200, Asiatic is making its presence known in the global print market. Their emphasis has always been on eﬃciency in the execution and quality of printing. Get in touch: +971-6 -743 4221 | asiatic@eim.ae | www.asiaticpress.com

215

COMPANY PROFILES

WE THANK OUR TITLE SPONSOR AND ALL OTHER SPONSORS FOR THEIR CONTINUOUS SUPPORT

DUBAI ELECTRICITY AND WATER AUTHORITY (DEWA) OUR HISTORY Dubai Electricity and Water Authority (DEWA) was formed on 1 January, 1992, by a decree issued by the late Sheikh Maktoum bin Rashid Al Maktoum to merge Dubai Electricity Company and Dubai Water Department, which had been operating independently before then. Both organisations were established by the late Sheikh Rashid bin Saeed Al Maktoum in 1959. Dubai Government fully supported the Electricity Company and the Water Department to provide Dubai’s citizens and residents with a continuous and reliable supply of electricity and water. Since then, DEWA has made considerable achievements, to be ranked as one of the best utilities in the world. DEWA provides services today to more than 760,000 customers.

DEWA has achieved competitive results, surpassing leading European and American companies by reducing losses in power transmission and distribution networks to 3.3%, compared to 6-7% in Europe and the USA. Water network losses decreased to 8.2%, compared to 15% in North America, achieving global results in reducing water losses. DEWA’s results are among the best internationally for customer minutes lost per year. DEWA’s figures reached 3.87 minutes, compared to 15 minutes recorded by leading utilities in the European Union. The UAE, represented by DEWA, has been ranked first in the Middle East and North Africa and fourth globally for the fourth consecutive year for getting electricity as per the World Bank’s Doing Business 2017 report.

UAE STATE OF ENERGY REPORT 2017

EMIRATES NATIONAL OIL COMPANY (ENOC) Over the past 30 years, ENOC Group has evolved from a local oil and gas company to a global operator across various aspects of the energy sector value chain. Now servicing thousands of customers across 60 markets, we are deploying talent and technology to diversify our oﬀerings and achieve sustainable development.

ENOC’s growth is perpetuated by a dedicated and talented team of people, who provide the company with expertise in business, robust systems and processes and pioneering solutions that make us competitive. We’re committed to harnessing these talents in an environment that encourages creativity and employee-driven innovation.

Providing the energy behind Dubai’s phenomenal growth, ENOC is proud to be able to interact with almost every aspect of the Emirate’s development, from automotive and aviation to hospitality and social infrastructure. We’re pleased to be considered by the leadership as a responsible, reliable and innovative business, and a key contributor to Dubai’s progress.

With ENOC’s guiding principles rooted in world-class customer service, innovation in energy and resource management, and commitment to human capital development, we continue to work diligently to contribute to the UAE’s economic and social progress..

217

COMPANY PROFILES

THE ROADS AND TRANSPORT AUTHORITY (RTA) The Roads and Transport (RTA) came into existence in November 2005 post the decree No.48 issued by Late Sheikh Maktoum bin Rashid Al Maktoum which included the appointment of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, as the President of the newly formed Roads and Transport Authority. HE Mattar Al Tayer, is the Director General, and Chairman of the Board of Executive Directors of the RTA. HE Al Tayer heads the Board of directors of the authority that consists of five agencies namely; the Traffic & Roads Agency, Public Transport Agency, Licensing Agency, Rail Agency and Dubai Taxi Corporation in addition to three support sectors which are: Strategy & Corporate Governance, Corporate Administrative Support Services, and Corporate Technical Support Services. RTA’s Director General who runs all RTA affairs including the implementation of decisions & policies developed by the Board, supervising the business of the executive body, preparing annual budgets, proposing Organisation Charts as well as financial & administrative regulations, overseeing the business of RTA- affliated agencies, and exercising any other powers entrusted to him by the Board or pursuant to any enacted law.

The entity is responsible for planning and providing an integrated transport system in the Emirate of Dubai, and between Dubai and other Emirates of the UAE capable of achieving Dubai’s vision & serving the vital interests of the Emirate. Managing the strategies and needs of the transport sector in Dubai is an important task that the RTA has, and being an independent authority in terms of its administration and management, it is legally authorised to do everything which will help it achieve its vision of ‘Safe and Safe Transport for all’. Since its establishment in 2005, the entity has achieved numerous accolades by constructing and operating key turnkey road and transport projects. These include the 75 kms Dubai Metro which is the longest driverless Metro in the world, the Dubai Tram, increasing safety and reducing pedestrian fatalities, expanding the road networks by 45% with the construction of parallel roads and creek crossings, and procuring a modern fleet of public buses and revamping marine transit means.

UAE STATE OF ENERGY REPORT 2017

DOLPHIN ENERGY The Dolphin Gas Project of Dolphin Energy Limited is a major regional strategic energy initiative. Since July 2007, the company has been producing, processing and supplying substantial quantities of natural gas from oﬀshore Qatar to the United Arab Emirates via its dedicated sub-sea export pipeline. Production reached the maximum authorized throughput of 2 billion standard cubic feet of gas per day (scf/day) in February 2008 and delivery of natural gas to Oman started in October of the same year.

Dolphin Energy supports the development of substantial long term new industries throughout the region: creating sustainable wealth, economic growth and employment opportunities for citizens far into the future. Dolphin Energy Limited is owned 51 percent by Mubadala Development Company, on behalf of the Government of Abu Dhabi – and 24.5 percent each by Total of France and Occidental Petroleum of the USA. Detailed information about Dolphin Energy can be found on www.dolphinenergy.com

The overall investment in constructing the entire Dolphin Gas Project – wells, sea lines, processing plant, export pipeline, receiving facilities and the UAE Gas Network – has made it one of the largest energy-related ventures ever undertaken in the Middle East at a cost of US$5.8 billion.

INSINKERATOR

ABB

InSinkErator, a business unit of Emerson Electric Co. the inventor and world’s largest manufacturer of food waste disposers for home and commercial use.

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing more than a 125-year history of innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB operates in more than 100 countries with about 132,000 employees.

The company oﬀers diverse portfolio of products include basic disposer units, high performance line of disposers known as the ‹Evolution Series, instant hot water dispensers and food waste pulper systems-units that can be used both at home or on a more professional food service level, InSinkErator food waste disposers are eﬃcient, economical, environmentally friendly and hygienic way to dispose of food waste, all models are easy to install and operate. Over the last 78 years we don’t just develop and promote sustainable product solutions; we constantly innovate, educate, and encourage public engagement to realize a sustainable future for humanity.

In the UAE, ABB is associated with numerous landmark projects that are helping shape the country as a world leader in smart energy, urban mobility and sustainable growth. ABB has three oﬃces in the UAE with nearly 900 employees. ABB’s state-of-the art Learning Zone in Abu Dhabi provides a special environment in which customers and other key stakeholders from across the region can learn more about the company and its products and services. Importantly, the Learning Zone is also an education and training center for training engineers on the latest industrial applications

219

EDITOR’S NOTE

THE UAE STATE OF ENERGY REPORT Inside these pages, we discussed the most recent developments, policies, initiatives and goals we have put in place as we transition to a green economy and address the issue of climate change. We have engaged Government representatives, energy experts and thought leaders across the UAE in compiling this information and have received strong support from all quarters, under the leadership of the Ministry of Energy: federal and local governmental bodies, international organisations, and leading energy sector entities. This broad support echoes the commitment we all share to a clean, green future, not only for the UAE, but also on the regional and global stage. The UAE State of Energy Report is part of the UAE’s contribution towards international efforts focused on reducing the carbon footprint and CO2 emissions. It highlights the UAE’s efforts to diversify the energy mix and incorporate clean energy and efficient solutions, while balancing the water, food and energy nexus, which feeds into the achievement of the UAE Vision 2021 National Agenda. The data within makes an important contribution to developing and amending energy policies, identifying trends and specifying opportunities for developing the sector and achieving sustainability. Since the last report, we have seen significant action on the global climate change agenda. While the reality is that more needs to be done, and this will always be the case as the issues and the solutions continue to evolve, through documenting our experiences we can identify not only what we have achieved, but also the emerging trends in the field of sustainability, which helps us determine the best areas to direct our future efforts. This is particularly true in the realms of renewable energy and water security, where technology is advancing at a rapid rate and the related industry sectors and government bodies are making significant investments in research and development to bolster this advance. Together, the chapters focus on the important steps taken by the UAE to support the renewable energy transition and mitigate the effects of climate change. Amongst these chapters we showcase

innovation, as well as mechanisms to reward innovation, such as the Emirates Energy Award and the Zayed Future Energy Prize. These initiatives recognise innovative developments, encouraging further action and building awareness of both potential solutions and the problems they address. The UAE State of Energy Report would not have been possible without the UAE Ministry of Energy’s invaluable support and the contributions from stakeholders. Our goal with this report is to acknowledge what has been done, share lessons learned, and inspire future action. I sincerely hope you enjoyed the read.

ALLEGRA SALVADORI Editor, Dubai Carbon allegras@dcce.ae

UAE STATE OF ENERGY REPORT 2017

ARE YOU REVOLUTIONISING THE ENERGY SECTOR? â&#x20AC;¦THEN COME AND JOIN THE COMMUNITY OF ENERGY THOUGHT LEADERS IN THE NEXT EDITION OF THE UAE STATE OF ENERGY REPORT 2018.

Every year the UAE Ministry of Energy publishes this annual status report. Your stories might be the ones we are missing. Get in touch with the partnership team of the Ministry of Energy via stateofenergy@moenr.gov.ae or contact the editor via email on tellmeyourstory@dcce.ae. See you next year. You will find our media rates and more information online. http://www.moenr.gov.ae/ http://dcce.ae/publications/

The UAE has clearly shown its role as a regional leader when it comes to innovation. It has dared to implement new approaches to energy policy planning and new energy technologies. Our success stories can serve as inspiration to other countries. H.E.Eng.. Suhail Al Mazrouei UAE Minister of Energy

Find out more about the UAE Ministry of Energy and its team, the UAE State of Energy Report 2017, and much more on www.moenr.gov.ae

www.moenr.gov.ae www.dcce.ae/publications ISBN-10: 1542953324