Empowering, Insightful, Engaging
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المشاركة، الثاقبة، التمكين
Middle East
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CONTENT 04
NEWS
MIDDLE EAST NEWS
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IN CONVERSATION
ENG. NOUR MOUSA Managing Director,Business, Desert Technologies Head of On-Grid SirajPower
PUBLISHING
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IN CONVERSATION
JEREMY CRANE Firstview Media Ventures Pvt. Ltd.
EDITING Ashwini Chikkodi Nikita Salkar editorial@firstviewgroup.com
CONTENT Sadhana Raju Shenvekar Anand Kumar Sanjana Kamble publishing@firstviewgroup.com
DESIGNING Neha Barangali design@firstviewgroup.com
ADVERTISING Smriti Charan Andrew Ferreira advertise@firstviewgroup.com
CIRCULATION Sadhana Raju Shenvekar
SUBCRIPTION
CEO & Founder, Yellow Door Energy
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IN CONVERSATION
DANIEL CALDERON Co-Founder & Managing Partner, Alcazar Energy
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IN CONVERSATION
LAURENT LONGUET CEO and co-founder, SirajPower
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IN CONVERSATION
SHARIF AL-HAJ Regional Manager, North Africa - MESIA And Global Business Development Director for (EXIM Investment LTD) & (iQ Power Inc.)
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IN CONVERSATION
CORNELIUS MATTHES
Head Head of of On-Grid On-Grid Business, Business, SirajPower SirajPower CEO, Dii Energy Head of Desert On-Grid Business, SirajPower
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INSIGHTS
WHICH NEW TECHNOLOGIES WILL C&I SEGMENT WITNESS IN 2022 IN THE MIDDLE EAST? HOW THIS WILL IMPACT THE LCOE?
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Head of On-Grid Business, SirajPower
INSIGHTS
ROOFTOP SOLAR + STORAGE: HOW FEASIBLE IS THE COMBINATION FOR PROPELLING ROOFTOP GROWTH TRAJECTORY IN THE MIDDLE EAST?
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INSIGHTS
WHAT IS THE MARKET OUTLOOK FOR THE COMMERCIAL AND INDUSTRIAL (C&I) SEGMENT OF THE MIDDLE EAST FOR 2022?
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OPINION
OPPORTUNITIES AND CHALLENGES FACING THE INTEGRATION OF MORE SOLAR PV ON GRID
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PERSPECTIVE
WHAT IS THE SOLAR MARKET OUTLOOK FOR 2022?
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PRODUCT FEATURE
LONGi subscribe@firstviewgroup.com
Head of On-Grid Business, SirajPower
ADVERTISE WITH US Contact: Smriti Charan e: smriti@firstviewgroup.com
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PRODUCT FEATURE
Sungrow Head of On-Grid Business, SirajPower
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COMPANY FEATURE
Sungrow
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Head of On-Grid Business, SirajPower
LONGi
COMPANY FEATURE
Middle East
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MIDDLE EAST NEWS DETAIL >
BUZZ >
JORDAN AND EGYPT TO EXPAND POWER CAPACITY TO 2000 MW FROM 500 MW
SABIC SIGNS MOU FOR RENEWABLE ENERGY PROJECTS S audi Energy Ministry and Saudi Basic Industries
Corporation (SABIC) sign MoU to develop renewable energy projects in the kingdom. The CEO of SABIC Yousef Al-Benyan said that this will enable the company to achieve net-zero emissions of the company by 2060. The company plans to expand its manufacturing by investing in renewable energy and reducing greenhouse gases. These all initiatives are a part of the Saudi Green Initiative of the company. Under Circular Carbon Economy, reducing carbon emissions is focused while pursuing economic strategies.
J ordan and Egypt to expand the
current electric capacity to 2000 MW from 500 MW. Governments of both countries have signed a deal to enhance the relationship between both countries. The Egyptian Minister of Electricity and Renewable Energy, Mohamed Shaker said that Egypt has managed to grow its power capacity to a level where it can now export. Egypt plans to raise its renewable energy to 42% by 2035.
INDUSTRY >
ETG AWARDS SOLAR LEASE TO YELLOW DOOR ENERGY Yellow Door Energy, a UAE-based
sustainable energy provider for businesses, has been awarded a solar project with ETG, a diversified global conglomerate, for its agricultural processing and food storage facility in Dubai World Central Free Zone, Dubai, UAE. The 383 kilowatt-peak rooftop solar plant is expected to generate 620,000 kilowatt-hours of clean energy in its first year of operation, equivalent to reducing 6,000 tonnes of carbon emissions over the system lifetime. Over 700 solar panels will be installed to cover 3,100 square meters of roof space, meeting 85% of the facility’s energy consumption needs.
Middle East
LATEST>
MASDAR TO DEVELOP LARGEST SOLAR POWER PLANT IN ARMENIA Masdar has signed an agreement with
the Government of the Republic of Armenia to develop a 200-megawatt (MW) solar photovoltaic (PV) plant. The Ayg-1 project will be Armenia’s largest utility-scale solar plant. The Ayg-1 project will be developed on a design, finance, build, own, and operate basis and the project company will be 85 percent owned by Masdar, with the Armenian National Interests Fund (ANIF), a government-owned investment vehicle, holding 15 percent. In July, the Armenian Government announced that Masdar was the winning bidder for the project, having submitted a tariff of US$0.0290 per kilowatt-hour (kWh) in a competitive process. The Ayg-1 plant will be located between the Talin and Dashtadem communities of Armenia, in an area where solar radiation is high and land is unusable for agricultural purposes. The plant will span over 500 hectares and will create numerous direct and indirect jobs.
Nov-Dec Issue 2021 | Pg 04
INDUSTRY >
OMAN LNG TO INSTALL SOLAR PANELS AT 32 OWA CENTRES Oman LNG with the Ministry of
Social Development signs 5 agreements to finance initiatives and community projects. The first agreement is to install solar panels at Omani Women’s Association (OWA). Few small and medium enterprises (SMEs) will install these solar panels. In the second agreement, Oman LNG will assist a training programmer for OWA in leadership and management. These programs will give 195 women opportunities in financial management, innovation, leadership, and media and technology fields. The third agreement includes financing of the “We are with you” campaign. The fourth one is to fund modern equipment for the Al Noor Association for the Blind in Al Dakhiliyah Governorate. The fifth one is to support livestock breeders in the South Sharqiyah Governorate through the Omani Agricultural Association.
Middle East
DETAIL >
ACCIONA TO BUILD THE JUBAIL 3B DESALINATION PLANT IN SAUDI ARABIA ACCIONA will undertake the construction of the Jubail 3B desalination plant together with its partner SEPCOIII. Its capacity of 570,000 m3/day will supply 2 million people in the cities of Riyadh and Qassim. The project will include storage tanks for daily production, as well as a solar energy plant to reduce the consumption of power from the grid. To do this, ACCIONA will also build a photovoltaic solar plant. The EPC contract will also include the construction of 58 kilometers of power lines, an electricity substation, and the associated marine works.
INSIGHT >
UAE, JORDAN, AND ISRAEL COLLABORATE FOR RENEWABLE ENERGY PROJECTS The governments of Jordan, Israel, and the United Arab
Emirates (UAE) signs a landmark declaration of intent to build renewable electricity and water desalination capacity and address the threat posed by climate change on energy and water security in the region. Feasibility studies for the project are due to start in 2022. Israel is targeting 30 percent of its energy coming from renewable sources by 2030, up from a previous target of 17 percent, as it looks to achieve net-zero carbon emissions in the energy sector by 2050. Jordan is the second most waterscarce country in the world, with annual renewable water resources of just 80 cubic meters per person, significantly below the threshold of 500 cubic meters per person which defines severe water scarcity. This declaration has been made possible by the signing of the Abraham Accords in August 2020, which opened up a new era of cooperation between the UAE and Israel.
Nov-Dec Issue 2021 | Pg 05
LATEST>
BUZZ>
SAUDI ARABIA TO ESTABLISH WORLD’S LARGEST FLOATING INDUSTRIAL COMPLEX WITH 100% RE
SYRIA AND UAE FIRMS SIGNS A DEAL FOR 300 MW SOLAR PARK S yria signs a Memorandum of Understanding (MoU)
with a few UAE firms (names not yet disclosed) for building a 300 MW solar park in the Widyan al-Rabie, Damascus. This comes after the UAE delegation visited Syria. The solar park will be built in 2 years. The solar park facility will generate 500 million kWh every year and will be divided into 6 sections of 50 MW each. This will help in saving up to 350,000 tonnes of carbon emissions.
His Royal Highness Mohammed
bin Salman, Crown Prince and Chairman of the NEOM Company Board of Directors announced the establishment of OXAGON, forming the next phase of NEOM’s master plan and representing a radical new model for future manufacturing centers, based on NEOM’s strategies of redefining the way humanity lives and works in the future. OXAGON will be the catalyst for economic growth and diversity in NEOM and the Kingdom, further meeting the ambitions under Vision 2030. OXAGON will contribute to redefining the world’s approach to industrial development in the future, protecting the environment while creating jobs and growth for NEOM. It will contribute to Saudi Arabia’s regional trade and commerce, and support creating a new focal point for global trade flows.
Middle East
INSIGHT >
SOLAR PANELS PRODUCTION FACTORY OPENS UP IN TABUK INDUSTRIAL CITY S audi Arabia opens up the largest
solar panels production factory worth SR700 million ($186.6 million) in Tabuk Industrial City. The project will serve NEOM and The Red Sea Development Company (TRSDC). The total area of the factory is approximately 27,000 square meters with a 1.2 GW production capacity. Automated machines are used here with the latest technologies.
Nov-Dec Issue 2021 | Pg 06
INDUSTRY >
TOTALENERGIE TO OPERATE 1000 MW SOLAR PLANT IN IRAQ TotalEnergie to own and operate 1000 MW solar PV in Iraq for the period of 25 years. This will be constructed in the Southern Port of Basra, near Baghdad to cut back its reliance on Iran for energy imports. 1000 MW solar PV project will be completed in 36 months and on a BOOT (Build-Own-Operate-Transfer) basis, the contract was awarded to TotalEnergie.
INSIGHT >
LATEST>
SOLAR WADI, MADAYN AND MUBADRAH TO BUILD 100 MW SOLAR FARM IN SOHAR INDUSTRIAL CITY A marenco is an anchor shareholder of Solar Wadi – one of the first independent Omani power companies that invest in, build and operate renewable energy power plants. Solar Wadi, Madayn, and Mubadrah signed an agreement to build a 100MW solar PV farm in Sohar Industrial City (SIC) to be implemented by next year. The company plans to develop a combined capacity of circa 1 GW of solar PV energy plants across Oman, according to Yazan Faouri, CEO of Solar Wadi.
ADNOC AND TAQA FORMS JOINT VENTURE FOR 30 GW RENEWABLE ENERGY BY 2030 A DNOC and Abu Dhabi National Energy Company PJSC (TAQA) launches a new
global renewable energy and green hydrogen venture in the presence of His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Executive Office, and Chairman of the Executive Committee of the Board of Directors of Abu Dhabi National Oil Company (ADNOC). Abu Dhabi’s two energy giants will create a clean energy powerhouse, with a total generating capacity of at least 30 Gigawatts (GW) of renewable energy by 2030, that will position Abu Dhabi and the United Arab Emirates (UAE) at the forefront of the energy transition and further advance its global leadership role in green hydrogen.
BUZZ>
GE & UK EXPORT FINANCE TO SUPPORT 1.35 GW TURKISH SOLAR PROJECT G E and UK Export Finance (UKEF), UK’s export credit agency, signed an agreement
to finance Kalyon Enerji’s 1.35 GW Karapinar solar project located in Konya Karapinar province. The solar power plant is Turkey’s largest solar facility, approximately 11km long and 3km wide, equivalent to over 4,600 football pitches. GE Energy Financial Services worked with UKEF, who are set to guarantee a US$291 million [£217 million] Buyer Credit Facility, subject to financial close. This will enable GE to deploy its first FLEXINVERTER solar technology outside the U.S., supporting Turkey’s clean energy goals and facilitating trade for UK suppliers. Financing for the project will be structured on a project finance basis and raised through J.P. Morgan as acting lead arranger and lender supported by the UKEF guarantee.
Middle East
Nov-Dec Issue 2021 | Pg 07
BUZZ>
INSIGHT >
AL MULLA ENGINEERING AND GRASSHOPPER ENERGY SIGNS A DEAL FOR CLEAN ENERGY
Al Mulla Engineering signs an agreement with Grasshopper Energy for clean energy. Through this partnership with Grasshopper, a global clean energy leader in sustainable energy infrastructure, Al Mulla Engineering will diversify its product and service offerings, delivering a broad variety of clean energy solutions to various segments of the Kuwaiti market. Kuwait is a significant market for clean energy, with substantial solar energy potential.
LATEST>
THE ISLAMIC DEVELOPMENT BANK (IDB) TO FINANCE $3 BILLION FOR RE PROJECTS The Islamic Development Bank (IDB) will provide finance of around $3 billion for renewable energy projects. It has already financed approximately $5 billion of sustainable Sukuk in the past 4 years for green projects. With an order volume of $4.5 billion, the Bank issued Sukuk worth $1.5 billion with a total profit of $1.7 billion.
Middle East
SOLAR-POWERED IRRIGATION SYSTEM FOR TWO TOWNS IN LANAO DELSUR T he
first-ever solar-powered irrigation system (SPIS) for two towns in Lanao del Sur Province has been launched recently. The province located in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), Philippines is facing a prolonged water shortage problem for irrigation. The solar irrigation system seeks to address the farmer’s water shortage problem and help them in boosting their rice production. The project is expected to be a model for uplifting the livelihood of farmer communities in Lanao Del Sur, as well as in the whole Bangsamoro Region. In July this year, Mindanao Development Authority led the opening of the water pipes from solar-powered irrigation units capable of irrigating between 600 to 1,000 hectares of farmlands in Taraka municipality of Lanao Del Sur.
INDUSTRY
ISSF INVESTS IN NEXT RENEWABLE ENERGY COMPANY The Innovative Startups and
SMEs Fund (ISSF) has completed a direct investment of USD 150,000 in NEXT Renewable Energy Company. NEXT extends solardependent designs, fuelsaving solutions, desalination systems, and heavy fuel oil (HFO) tank heating for both commercial and industrial clients across the hotel, hospital, textile, and food industries.
Nov-Dec Issue 2021 | Pg 08
INSIGHT >
LATEST>
UAE WITH IRENA LAUNCHES USD 1 BILLION GLOBAL FINANCE PLATFORM FOR ENERGY TRANSITION
The United Arab Emirates (UAE) and the International Renewable Energy Agency (IRENA) announce the Energy Transition Accelerator Financing (ETAF) Platform, a new global climate finance facility to accelerate the transition to renewable energy in developing countries. The UAE committed USD 400 million in funding provided by the Abu Dhabi Fund for Development (ADFD) toward the platform’s goal of securing a minimum of USD 1 billion in total funding. The new UAE-IRENA partnership to establish the ETAF platform builds on the long-term collaboration between IRENA and ADFD, which includes seven cycles of the USD 350 million IRENA-ADFD Project Facility. Between 2013 and 2020, the facility financed 26 projects in Asia, Africa, and the Americas, notably including Small Island Developing States.
Middle East
ACWA POWER SIGNS A DEAL WITH TRSDC FOR RENEWABLE ENERGY PROJECT T RSDC, a sustainable tourism development company of Saudi Arabia has finalized a deal
for a renewable energy project with ACWA Power for 25 years period. The consortium has secured the financing for designing, building, and operating the project with local and international investors including Standard Chartered Bank of UK and China’s Silk Road Fund. The facility will also include the world’s largest battery storage facility of 1000 MWh, which will generate power day and night. The project will save nearly half a million tons of CO2 every year which is equivalent to emissions from around 99,000 cars or 78,000 homes.
BUZZ>
MANAH 1 AND 2 PROJECTS OF OMAN LIKELY TO START THE OPERATIONS IN 2024 The two new solar projects of 1000MW
capacity combined at Wilayat of Manah are likely to start their operation in the fourth quarter of 2024. The projects will help in reducing emissions of greenhouse gases up to 680,000 tonnes. As per Oman Vision 2040 Implementation Follow-Up Unit, Manah 1 and 2 Solar Independent Power Projects (IPPs) support the kingdom’s shift towards renewable energy to meet its energy demands. The 500MW capacity Ibri II solar project is the kingdom’s first utilityscale renewable energy project which started operations in August is aiming to supply electricity to over 33,000 houses. It will help Oman reduce 340,000 tonnes of CO2 emissions every year.
Nov-Dec Issue 2021 | Pg 09
INSIGHT >
INDUSTRY
AL BAYADER INTERNATIONAL INAUGURATES FIRST SOLAR ROOFTOP WITH TOTALENERGIES IN DUBAI Al Bayader International and TotalEnergies inaugurate the country’s first and largest solar rooftop within the food packaging sector at its state-ofthe-art manufacturing plant in Jebel Ali Free Zone (JAFZA). Al Bayader International’s solar rooftop is part of the Shams Dubai program and will offset approx. 700 tonnes of carbon dioxide emissions annually, equivalent to planting over 17 thousand trees. Every unit of electricity generated by the rooftop will be audited and accounted for by TotalEnergies, with an advanced monitoring system to measure the amount of energy generated and financial benefits thereof, calculated in real-time. Through this solar project, TotalEnergies is actively participating to the development of solar energy in the UAE under the Shams Dubai Initiative.
ACWA POWER ANNOUNCES FINANCIAL CLOSURE OF $12 BILLION PROJECT A CWA Power, a leading developer, investor, and
operator of power generation, desalinated water, and green hydrogen plants, announced the financial close and completion of the acquisition of the first group of assets for the Jazan integrated gasification combined cycle (IGCC) project. The JV will complete the commissioning and testing and commence operating, and maintaining the plant to supply power, steam, hydrogen, and other utilities for Aramco’s Jazan refinery, under a 25-year contract with Aramco. The joint venture serves Saudi Aramco’s Jazan Refinery, which processes 400,000 barrels per day of crude oil to produce ultra-light sulfur diesel, gasoline, and other products.
LATEST>
IDS GOES 100% SOLAR WITH SIRAJPOWER I nternational Diplomatic Supplies (IDS), the
number 1 Diplomatic Duty-Free supplier in the world with head office in Jebel Ali, has just signed a multi-year agreement with SirajPower for a 200 kWp solar rooftop system for their Dubai office and warehouse as the company pledges to become carbon neutral in 2022. Once completed, SirajPower’s solar rooftop installation is projected to power IDS’ Jafza warehouse with 100% renewable energy.
BUZZ>
IDS GOES 100% SOLAR WITH SIRAJPOWER N ational Agriculture Development Company (NADEC) said that it has now completed the construction of the second and the last phase of its 30-megawatt solar plant in Haradh. The previous estimates showed that there can be a cut in fuel consumption by 16,000 liters with the 30 MW solar plant facility. This will also bring down the energy costs of the company’s energy by 4% and save $1 million.
Middle East
Nov-Dec Issue 2021 | Pg 10
INSIGHT >
LATEST>
ALMUNAJEM FOODS INSTALLS 3,528 SOLAR PANELS AT ITS RIYADH WAREHOUSE
SAUDI ARABIA TO SPEND $293 BILLION BY 2030 ON RE According to the energy minister of Saudi Arabia, the
spending on power and renewable energy projects is likely to hit SR1.1 trillion ($293 billion) by 2030. The highest spending will be on power transmission projects with SR430 billion. Prince Abdulaziz said that Saudi Arabia plans to invest SR380 billion in RE projects and SR142 billion in energy distribution by 2030.
BUZZ>
HSBC BAHRAIN INVESTS IN ITS SECOND SOLAR CARPORT H SBC Bahrain inaugurates its second solar carport in
Bahrain at the Adliya branch. This will help in saving around 20 Kw/h of energy consumption of the bank alongside the already existing Seef Head Office solar carport. The solar power system has a capacity of 175.5 KW that includes a rooftop solar system and 50+ unshaded car parking spaces covered by the solar carport. This will reduce 67% of the energy consumption of the branch. HSBC has a goal to switch to renewable energy at all its branches and transition to net-zero by 2030.
Almunajem
Foods has installed 3,528 solar rooftop panels on its Riyadh-based cold store warehouse. With this, the warehouse will generate 0.24 megawatt-hours of clean energy annually. This is a temperature-controlled cold store warehouse in Riyadh. The installed solar panel are equivalent to reducing 38,756 tons of carbon emissions per year and to 30% of onsite energy requirements. The warehouse has a storage capacity of 15,000 metric tons and is one of the cold stores of the company out of 12 cold stores spread across the country.
Middle East
INDUSTRY
KUWAIT RECEIVES AN OFFER FOR 5000 MW SOLAR PLANT Kuwait has got an offer to construct a solar plant
worth $3.5 billion from private investors. The capacity of the project is 5000 MW and it is situated in North Kuwait. Currently, the solar plant proposal is being studied by the Kuwait Authority for Partnership Projects (KAPP) and the proposal was received by the Electricity, Water, and Renewable Energy Ministry, the paper said. The country is hoping to attract outside investors to fund several power projects under a public-private partnership (PPP) program that will cover more than half of its future electricity needs over the next two decades.
Nov-Dec Issue 2021 | Pg | Pg 1211
INDUSTRY
LATEST>
DUBAI REDUCES 33% OF CARBON EMISSIONS IN 2020 HE Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy, announced that Dubai reduced its carbon emissions by 33% in 2020, exceeding the target of the Dubai Carbon Abatement Strategy 2021 by more than double. The strategy aims to reduce carbon emissions by 16% by 2021. This new achievement emphasizes that Dubai is moving steadily towards becoming a carbonneutral economy by 2050.
ACWA POWER AND NATIXIS CIB SIGNS MOU TO FINANCE NEW PROJECTS A CWA Power, a leading developer, investor, and operator of power
generation, desalinated water, and green hydrogen plants worldwide, and Natixis Corporate & Investment Banking (Natixis CIB), a subsidiary of Groupe BPCE, the second-largest banking group in France, signs a Memorandum of Understanding (MoU) stating their intention to collaborate on the advancement of ACWA Power’s projects in the region. It paves the way for the two parties to explore opportunities to develop new projects in the region, including in renewable and clean energy, with an objective for Natixis CIB to finance up to approximately USD 2 billion over two years for ACWA Power’s future project pipeline.
INSIGHT >
DESERT TECHNOLOGIES SIGNS MOU WITH ESSENTRA TO EXPORT SAUDI SOLAR PANELS T he leading Saudi solar panel manufacturer, Desert Technologies, signed a trade agreement with the American company “Essentra” to export Saudi-made solar panels to their projects in the United States. The company mentioned that their Jeddah-stationed factory began its activities in 2011, and its production line is currently up to date with the latest technologies used internationally in the manufacture of Solar Panels.
BUZZ>
BAHRAIN ISSUES 7.5 MW CAPACITY SOLAR POWER PLANT TENDERS Two tenders were issued by Bahrain’s Sustainable Energy Authority (SEA) for the solar power plant of 7.5 MW capacity. The plant will be installed at the Ministry of Labour & Social Development and the Ministry of Education. For the first tender, a 20-year power purchase agreement (PPA) will be awarded by SEA for a solar power plant of 5 MW capacity located on car park areas and building rooftops of the Ministry of Education. For the second tender, 2.5 MW capacity of the solar power plant will be installed at the Ministry of Labour & Social Development, and 20 years of PPA will be awarded by SEA.
Middle East
Nov-Dec Issue 2021 | Pg 12
INDUSTRY >
LATEST>
ADQ AND TAQA ENTER A STRATEGIC AGREEMENT WITH SAMRUK-KAZYNA FOR 2 GW SOLAR PV PLANT
A DQ, one of the region’s
largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy, and Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utility companies in the region, announced that they have signed a long-term strategic agreement with Samruk-Kazyna, the sovereign wealth fund of the Republic of Kazakhstan, to explore opportunities in the energy sector in the central Asian country. As part of the agreement, ADQ and its portfolio companies may invest up to US$6 billion into energy projects in Kazakhstan and the entities will partner to create a holding company that will oversee and effectively manages any acquired assets.
Middle East
SAUDI ELECTRICITY TRANSFERS THE OWNERSHIP OF ITS SUBSIDIARY TO THE GOVERNMENT Saudi
Electricity Company has transferred its ownership of Saudi Power Procurement Co. (SPPC) to the government for restructuring of the electricity sector. The intentions of this plan are to reinforce transparent commercial relations among the electricity system players as well as activate operating the sector on economic fundamentals. These will contribute to achieving the Kingdom’s electricity sector objectives including lower usage of liquid fuels for electricity production, increased environmental protection, increasing the reliability of electricity transmission and distribution grid to facilitate the production of electricity from renewable energy sources in order to achieve the optimal energy mix for electricity production and improving and automating the distribution networks. These will ultimately contribute in achieving aspired objectives to enhance the quality of the electric service to consumers in line with the ambitions of Vision 2030.
Nov-Dec Issue 2021 | Pg 13
IN CONVERSATION
ENG. NOUR MOUSA MANAGING DIRECTOR, DESERT TECHNOLOGIES
KSA and dt can gain leadership if it changes the current paradigm; “reduce the cost of modules” to “reduce the cost of energy”.” In an exclusive conversation with SolarQuarter Middle East, Nour Mousa - Managing Director, Desert Technologies introduced us to his company and its major projects. He also spoke about the challenges faced by the company, the impact of covid on the region, and the industry along with their future expansion plans.
Please give a brief introduction about yourself and your Company, desert technologies. desert technologies (dt) is an independent fully integrated solar PV energy platform with a proven track record as a PV developer, investor, EPC and O&M contractor and solar PV panel manufacturer & energy storage systems integrator. dt is the first Saudi Arabian company active across the entire value chain of solar energy (development + EPC + manufacturing). Headquartered in the Kingdom of Saudi Arabia, operating across Africa, the Middle East and Emerging Asia, desert technologies originated in 2012 bringing together a team of experts with extensive experience in originating, developing and managing power projects and PV manufacturing operations. Key customers include globally recognized brands such as Aramco, SABIC, NEOM, Porsche, UNDP, Saudi Electric Company and many others. desert technologies is bankable as a developer and EPC provider by lenders such as the IFC, Finnfund, FMO, EuropeArabBank, OFID, AIIB and CDC.
Please give our readers brief insight about the recent major projects done by your company in the Middle East Region. In the Saudi EPC sector, dt holds one of the largest track records in solar projects, having installed so far more than 200 MWdc between Egypt, Jordan, and the GCC countries. Our historical competency is in ground-mounted utility-scale plants. Back in 2015, we were among the pioneers in the Jordanian solar market (round-1), being awarded two projects: Shamsuna (10 MWdc) and Falcon Ma’an (23 MWdc). EPC was just an aspect of a broader strategy that saw dt acting both as a contractor and a developer, starting with the Falcon Ma’an plant. The same business model was successfully replicated a few years later in Egypt, with ARC (65 MWdc), Arinna (25 MWdc), and Winnergy (25 MWdc) being part of the world's largest solar development, in Benban. Following these initiatives, dt has entered the GCC market starting from Saudi Arabia. In its home Country, dt has been focusing on medium-sized plants, mainly tackling the C&I sector. Recently we have completed the installation of a 4 MWdc solar plant near Makkah, one of the largest diesel hybrid installations, based on ground-mounted and roof-top solar systems synchronized with diesel generators to power an off-grid manufacturing site. In the last months, we have also delivered a 1 MWdc solar plant at the Saudi Aramco facility in Tabuk and previously we have collaborated with the Saudi Electrical Company and NCB bank installing roof-top and solar car-ports in Jeddah and Riyadh. Most of our projects in the GCC region were delivered in collaboration with our solar PV manufacturing division. One of the best examples is for sure the Expo 2020 Saudi Pavilion, in Dubai, powered by a limited edition of dt’s panels. In subSaharan Africa, dt has also installed 2.5 MWdc solar-diesel hybrid solutions synchronized with to grid in Mozambique utilizing dt panels and finalizing the installation of 10,000 solar street lights in Togo.
Middle East
Nov-Dec Issue 2021 | Pg 14
Headquartered in the Kingdom of Saudi Arabia, operating across Africa, the Middle East and Emerging Asia, desert technologies originated in 2012 bringing together a team of experts with extensive experience in originating, developing and managing power projects and PV manufacturing operations.
As an EPC Contractor, what are the major challenges you face in project execution? Without any doubt, currently, supply chain crises are the biggest challenge for our category. Since the Covid pandemic, moving goods has become increasingly difficult and disruptions at every level: from the shortage of products to the unpredictability of transportation time and shipping tariffs. The same has also happened with the mobility of people. However, our Company has proved to be very resilient, because of the network of partners already established in our reference markets. We benefitted from our manufacturing plant, which granted a regular supply of PV modules at a time of global shortage.
With your presence currently in KSA, Jordan, and Egypt, what are your plans for expanding your services in the region? dt is committed to maintaining a strong focus of its EPC activity on its historical markets (Saudi Arabia, Jordan, and Egypt) expanding its presence in the whole GCC region as well and beyond. Building on its track record, dt aims to install over 1.9 GW of solar by 2027, across utility-scale, C&I, EV charging infrastructure, and microgrids. dt’s EPC division is not an isolated branch, but part of a broader vertically integrated part of dt span across the solar industry supply chain. As our unique expertise enables us to constantly learn and adapt strategies across the value chain to lower the LCOE of our projects and address market gaps.
How do you think the Renewable Energy sector is going to be/perform in the next 5 years in the Middle East? The Middle East benefits from extremely favorable solar conditions, witnessing record low solar tariffs in the last years. Today incorporating solar energy into your energy mix translates to savings and competitiveness across industries as well as part of a broader strategy for diversifying the economy and national energy security. Undoubtedly in KSA, a significant share of the new projects will be covered by utility-scale power plants and by deployments in the new mega-developments, such as NEOM. In addition, we see an increasing interest in solar and smart infrastructure powered by the sun among C&I, residential customers, and EV charging infrastructure. At Desert Technologies, we are excited to meet this bright future... and to help shape it.
How has covid impacted the Solar industry in the Middle East and how has the region tackled this crisis? We are very positive about the industry. The future is bright, the future is solar. Despite the supply chain crisis especially for solar panels, we have seen disruptive technological innovations which can dramatically contribute to the competitiveness of the solar sector by significantly lowering the Levelized cost of electricity (LCOE) of future power plants. KSA and dt can gain leadership if it changes the current paradigm; “reduce the cost of modules” to “reduce the cost of energy”. dt is driving the PV technology roadmap: Setting standards for the next generation Heterojunction technology solar panels for extreme high-temperature environments.
Middle East
Today incorporating solar energy into your energy mix translates to savings and competitiveness across industries as well as part of a broader strategy for diversifying the economy and national energy security.
Nov-Dec Issue 2021 | Pg 15
IN CONVERSATION
JEREMY CRANE
CEO & FOUNDER, YELLOW DOOR ENERGY
Our company experienced an increase in inquiries during the pandemic and in 2021 has secured over $100 million of new energy projects. This shows the business community’s interest in reducing costs to remain competitive and resilient in a post-pandemic world." In an interesting interview with SolarQuarter Middle East, Jeremy Crane - CEO & Founder, Yellow Door Energy talked about the company and its presence in the UAE. He gave us insights into Utilities 3.0 and also about solar+storage. He spoke about Covid’s impacts on the solar sector as well and gave us his views on how the sector is going to perform in the near future.
Can you give me a bit of background about yourself and the company? My name is Jeremy Crane and I’m the CEO & Founder of Yellow Door Energy. We are the leading sustainable energy partner for top-tier businesses in the Middle East and Pakistan, with over 200 megawatts of awarded solar projects to-date. With our sustainable energy solutions, businesses energy costs, improve power reliability and lower emissions. This is in line with net zero targets set at supported by governments, financial institutions and organizations worldwide.
reduce carbon COP26, leading
I am a mechanical engineer by training and have been working in the global energy transition for the past two decades. My journey in energy started with wind farms and power plants in the United States and Central America. I then started a business that developed $40 million worth of rooftop solar projects in Canada. Expanding internationally, I developed $250 million worth of utility scale solar projects in Europe and Asia. In 2015, I founded Yellow Door Energy in Dubai, UAE to bring distributed solar to businesses. In 2016, we signed our first solar lease with Unilever to bring clean electricity to their personal care factory in Dubai. Fast forward to today, we are proud to have among our customers names such as Nestlé, Majid Al Futtaim and more.
What is the current situation with regard to the solar sector in UAE and the solar market throughout the wider region? The UAE is a leader in solar both in terms of strategic initiatives and actions on the ground. In October 2021, the UAE announced its commitment to become Net Zero by 2050, and solar, a clean source of electricity, plays an integral part in this target. Her Excellency Mariam bint Mohammed Almheiri, UAE Minister of Climate Change and the Environment, shared that over $160 billion will be invested in clean and renewable energy projects by 2050. This initiative complements the UAE Clean Energy Strategy that was launched in 2017, which aims for the country’s clean energy mix to increase to 50% by 2050. Within the emirate of Dubai, the local utility DEWA’s net metering program, aptly named Shams Dubai, enjoys significant success. To-date, 6,880 buildings are connected to rooftop solar with a total capacity of 365 MWp. Shams Dubai enables commercial and residential buildings to install rooftop solar and enjoy cost savings. Utility scale solar, both PV and concentrated, will also play a critical role in the UAE, with the inauguration of the Mohammed Bin Rashid Al Maktoum Solar Park that will eventually have a capacity of 5000 MWp by 2030. In Abu Dhabi, the massive 1.2 GWp Noor Solar Park continues its second year of operation that generates “enough power to meet the needs of 90,000 people”. Across the region, countries continue to set ambitious renewable energy targets. Saudi Arabia and Bahrain have both pledged to be net-zero by 2060. In Jordan, 20% of the Kingdom’s electricity generation already comes from renewable energy, a significant increase from just 1% in 2014. Its solar wheeling and other renewable energy programs were so successful that the renewable energy target has been increased to 31% or 3,200 MW by 2030. Overall, I’m optimistic that solar power, specifically distributed solar, will continue to gain traction across the Middle East, helping businesses meet net-zero targets, reduce energy costs and become more competitive and resilient.
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Nov-Dec Issue 2021 | Pg 16
What is Utilities 3.0 and how does it help businesses achieve net-zero? The utilities industry is transitioning from Utility 2.0 to Utility 3.0. Utility 1.0 is the traditional and centralized utility that was primarily government-funded, first established a hundred years ago. Utility 2.0 started around 20-30 years ago and involved the unbundling of distribution and transmission networks, regionalizing the generation and transmission of power. Today, we are building a new model of delivering power through distributed generation, known as Utility 3.0. This means we can generate electricity at the point of demand, where it is needed, when it is needed, such as from a rooftop or carpark. This model is particularly suited for emerging markets where grid infrastructure is insufficient, and demand is growing. Due to its decentralized nature, distributed solar can enhance resilience and security. Coupled with a business model such as a solar power purchase agreement (PPA), also known as a solar lease, businesses can enjoy energy savings and become more competitive. A solar PPA/lease is a long-term contract with a performance guarantee on the solar plant. The PPA / lease provider, such as Yellow Door Energy, is responsible for financing, designing, building, commissioning, operating, and maintaining the solar plant for the duration of the lease. In the UAE, businesses can enjoy between 20-50% savings on their electricity bills through a solar lease.
What is your take on the solar + storage system? How viable is it? Do you have any infrastructure for providing energy storage? Solar and storage are very viable, in particular for markets with unreliable electricity grids or for off-grid applications. We are actively pursuing opportunities to bring solar and storage solutions to businesses, and you’ll hear more about this very soon.
Overall, I’m optimistic that solar power, specifically distributed solar, will continue to gain traction across the Middle East, helping businesses meet net-zero targets, reduce energy costs and become more competitive and resilient.
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What impacts has Covid-19 had on the generation and development of renewable energy in the region? The pandemic has accelerated the adoption of distributed solar, specifically in solar PPAs/leases as businesses look for ways to reduce electricity costs without any upfront investment. Our company experienced an increase in inquiries during the pandemic and in 2021 has secured over $100 million of new energy projects. This shows the business community’s interest in reducing costs to remain competitive and resilient in a post-pandemic world.
How do you see things developing over the next five years or so? In the next 5 years, I believe that most rooftops in the Middle East will be equipped with solar panels. Firstly, the price for solar has fallen significantly, specifically 82% in the last decade, making solar cheaper than new coal. We are experiencing some pricing pains due to the pandemic but I believe they are short-lived. At Yellow Door Energy, we are working closely with our suppliers to minimize the impacts on our projects and continue to bring clean energy to leading businesses in the region. Secondly, there have been calls for tariff reforms, as electricity subsidies cost GCC countries more than $120 billion in the past 20 years. With potential increases in electricity prices from the grid, businesses will look to cheaper solutions such as solar. Thirdly, technological advancements will continue to make solar more efficient and cost-competitive. There are exciting developments in the green and blue hydrogen space, energy storage, EV, big data/analytics, artificial intelligence, etc. At Yellow Door Energy, we are always analyzing these new technologies to assess their suitability in our suite of services, with the end objectives of maximizing the energy savings for our customers and helping them achieve net-zero emissions. Lastly, countries in the region recognize the importance of sustainability and preserving the environment for future generations. The Net Zero commitments are just the beginning. Deploying renewable energy is integral to every country’s sustainability strategy, thus more favorable policies will be in place to encourage the adoption of renewable energy.
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IN CONVERSATION
DANIEL CALDERON CO-FOUNDER & MANAGING PARTNER, ALCAZAR ENERGY
Alcazar Energy is now in the process of launching a new fund, AEP-II. Similar to AEP-I, the new fund will invest in renewable energy projects however across a wider region to include the Middle East and North Africa, Eastern Europe, and Central Asia." In an interesting interview with SolarQuarter Middle East, Daniel Calderon - Co-Founder & Managing Partner, Alcazar Energy gave us his views on the solar sector and investments in the MENA region. He spoke about the pandemic effect on the company’s business and its major projects. He also gave us the company’s growth plans for 2022.
What is your view on the solar sector of the MENA region at the moment? The Mena solar sector continues to experience strong growth driven by the energy demand growth and the economic and industrial development in the MENA region. It has been repeatedly demonstrated throughout the region the ability of solar power to provide very cost-efficient, indigenous energy to power countries’ economies whether as a means to substitute or complement energy imports or as a means for oil and gas-rich countries to diversify their economies. This continues to fuel the strong regional interest and growth of the sector. Additionally, the various governments’ commitments to renewable energy targets represent an additional driver to solar energy in the MENA region. The aforementioned factors propel the sector growth in both hydrocarbon-rich and nonhydrocarbon-rich countries in the region. We expect the same trend to continue and the solar sector to continue to grow strongly throughout the MENA region supported by the region’s favorable solar power conditions particularly the availability of project land, an abundance of resources, the developed construction industry throughout the region, availability of liquidity and project finance, and the now abundant reference track record of bankable frameworks in the region.
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How is the current scenario of the investment sector in the region? How has it evolved over the years? The renewable energy investment sector is expected, in line with a historic performance, to maintain a growth scenario. Despite the temporary impact of the Covid pandemic, the same has created a backlog of infrastructure projects in general, including energy projects, which need to be built. As a result, the scenario of the investment sector in the region is of a very positive outlook. Additionally, governments in the MENA region, and particularly in the GCC regions, have enacted several regulations and incentives to support and attract investment at multiple levels further promoting the outlook of investment in the region.
What has been the effect of the Covid pandemic on Alcazar Energy's business? Alcazar Energy was fast to roll out safety and health measures at various levels including by local operational teams across the asset base in response to COVID-19. A Projects Preparedness and Response Plan were implemented to minimize the impact of COVID-19 on operations, which included installing on-site thermal cameras, performing tasks remotely, postponing preventive maintenance tasks until curfews were lifted, having local teams working in shifts, etc. This allowed for seamless operations in spite of the COVID-19 outbreak. The minimal impact of COVID-19 on the operational and financial performance of Alcazar Energy’s project portfolio at the time demonstrated its resilience through economic downturns and robustness of the underlying contractual structures put in place for the projects. Additionally, wind and solar projects were considered essential infrastructure during COVID-19 by the host countries and were therefore allowed to operate with limited personnel even at the height of the crisis, which supported the continuity of seamless operations.
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What have been some of the prominent projects Alcazar Energy implemented in 2021? We are proud of what we have achieved at Alcazar Energy Partners (AEP-I) with the support of our investors, lenders, and local governments over the past seven years. In this short period of time, we have built the MENA region’s leading independent developer and producer of renewable energy. Our power plants have helped develop the renewable energy industry in Jordan and Egypt powering 275,000 households and saving over 15.6m tons of CO2 whilst also making a strong contribution to economic growth and employment, particularly within the local communities. We also drove ca. USD 750m of foreign direct investment to our countries of development supporting local economies and local communities creating in the process over 4,220 jobs (of which 80% were in-country), saving local government over USD 1.3bn in energy costs, and allocating over USD 15m to social investment in host communities.
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What is Alcazar Energy's growth plan for 2022? In September 2021, Alcazar Energy completed the successful exit of AEP-I through a highly competitive auction which attracted wide interest and was won by a consortium led by China Three Gorges. Alcazar Energy is now in the process of launching a new fund, AEP-II. Similar to AEP-I, the new fund will invest in renewable energy projects however across a wider region to include the Middle East and North Africa, Eastern Europe, and Central Asia. We are very excited at the wide growth prospects and the opportunity to leverage our proven platform to build a substantial portfolio of high-quality renewable energy projects which would support the availability of clean and affordable electricity in our host countries while fostering economic growth, FDI inflow, and social development.
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IN CONVERSATION
LAURENT LONGUET CEO AND CO-FOUNDER, SIRAJPOWER
Last year (2021) was really great for SirajPower, and also aligned with the industry growth both regionally and internationally." SolarQuarter Middle East interviewed Laurent Longuet, CEO and co-founder, SirajPower, and learned about the company, its services, and its innovative projects. He also spoke about the region’s transition towards Renewable Energy and his outlook on how the sector is going to progress in the region in the near future.
With most of the middle east countries being the major oil-producing nations, how do you see the transition towards renewable energy in the region? What are the barriers ahead for such a transition?
Please tell the readers about SirajPower and the kind of services you provide in solar energy space for the Middle east region.
In terms of what we witnessed for the industry, we have seen an increase in investments towards the solar rooftop market in the MENA region, as policies or visions are being put into place. Today, the main countries that have embraced investments in distributed solar include the UAE, Jordan, Egypt. However, we are seeing growth in Saudi Arabia, Bahrain, Oman, and other countries that have launched initiatives that promote this sector.
SirajPower is a UAE-based company established by a respected local family with a strong heritage. SirajPower offers innovative solar solutions to businesses, government agencies, commercial, industrial and educational institutions of all sizes within the UAE with plans to expand further regionally. SirajPower provides comprehensive turnkey solutions combining development, financing, construction, and operation of solar rooftops and carports. The company’s advanced, record-breaking solar technology allows customers to maximize savings, gain energy independence, and meet sustainability goals. SirajPower is the only locally-owned company in Dubai licensed and certified to offer under the same umbrella both Engineering, Procurement, Construction (EPC), O&M, and financing solutions. The company provides solar leasing system solutions that substantially reduce energy expenditure while fulfilling a sustainable future in line with the emirate long-term green vision. To date, SirajPower holds the largest distributed solar energy portfolio in the UAE with 100 MWp secured and is rapidly expanding to become the regional Green Champion.
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In the MENA region, Dubai is taking the lead in the growth of solar rooftop investments, with over 300 MW of cumulative distributed solar connected to the grid since the initiative’s inception. Besides being a locally established company, SirajPower decided to initially focus purely on the Dubai market due to the well-established solar regulations, relatively high utility tariffs, creditworthy customers, and openness for the private sector to enable the distributed solar market through unique financing solutions.
Utility companies would embrace solar rooftop systems without compromising their revenue stream, thanks to the adaption of electric vehicles.
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Tell us about some innovative and exciting projects executed by your company recently. Last year (2021) was really great for SirajPower, and also aligned with the industry growth both regionally and internationally. We have experienced a great number of achievements, which included signing a long-term solar lease collaboration with Lulu Group to design, build, fully finance, operate and maintain a 1 MWp solar carport installation and 4 electric vehicle charging stations for the brand-new Dubai Silicon Central Hypermarket. As a fully comprehensive solar energy provider for the C&I market, SirajPower handled the entire scope of the solar service for the Lulu Group. Apart from Lulu Group project, some of our other major new projects were Al Shirawi Group (7 MWp), Ajmal Perfumes (1.5 MWp), and UAE-base logistics provider, Airlink (1.3 MWp). We have also signed with Emerson (2.6 MWp) and The Sevens Stadium (2 MWp) solar projects. Other notable solar projects include DP World, RSA Logistics, Landmark Group, Apparel Group, Lifco, and Bond Interiors.
What are some key challenges being faced by the Solar industry in the region which you would want to be addressed immediately? The main challenge we see in the distributed solar space in many parts of the region is either restrictive regulations or the lack of regulations entirely for on-grid systems, which is the primary driver for kickstarting a solar market. We have seen that regulations in some countries make it very restrictive with stringent criteria that shrink the market size. The final challenge is for regulators to be open for the private developers to enable this market through financed solar solutions. Today, many customers understand the benefit of outsourcing solar to a private developer, where interests are aligned, rather than self-investing in a system outside their core business. The above-mentioned regulatory and restrictive challenges are perceived risks for private sector investments, limiting market growth potential. We have seen that net metering regulations have been widely successful in every market that has adopted this scheme. In the UAE, Dubai is the only Emirate with a solid regulatory framework, with the main restriction being a cap on maximum solar capacity per plot, which limits the market size to some extent. Although there is a solar regulation in the Emirates of Abu Dhabi, the main challenges are that there is no net metering in place (i.e., any export of solar electricity is lost) and the low electricity tariffs. For the other Emirates including the Northern Emirates, there is an absence of on-grid solar regulations, although electricity tariffs are quite high.
In Oman, a significant challenge that the solar energy provider encounters are the lack of clarity in regulations and the role of stakeholders, making it a complicated and lengthy process to obtain connection permits and provide financed solar solutions. Although initial distributed solar projects may have been signed, they have yet to be successfully implemented. In Saudi Arabia, although there is a strong regulation that has been put into place recently, the regulations have several technical restrictions on solar capacity, and the scheme is netbilling rather than net-metering, which incentivizes selfconsumption, thereby further limiting the solar potential.
How do you see your company contributing to the clean energy sector in the region in the next couple of years? What are your plans for expanding your services in the region? As for us at SirajPower, we expect to continue complimenting the growth of the solar power industry in the UAE market and building on the same success which we have seen for our company in 2021 by continuing to leverage our successful collaborations and partnerships, which have assisted us in better servicing our loyal customer base as we look forward to being part of and complimenting this strong regional growth.
Lastly, how do you see the solar sector progressing in the middle east market in the next 5 years? Falling solar energy costs combined with the evolving regulations should unlock premature rooftop markets where we would see rapid growth. Adaption of electric vehicles would commercially incentivize both the utility companies and the end-users to install solar rooftop systems combined with energy storage. Utility companies would embrace solar rooftop systems without compromising their revenue stream, thanks to the adaption of electric vehicles. Locally, UAE recently announced that it wants to be net-zero for carbon emissions by 2050. Having the net-zero concept embraced by countries worldwide and all the stakeholders incentivized, we expect exponential growth in solar rooftop investment in the next 5 – 10 years.
Bahrain has a solid net-metering regulatory framework and is expected to grow but will have limited capacity dictated by the country’s size. However, we expect to see the market grow.
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IN CONVERSATION
SHARIF AL-HAJ REGIONAL MANAGER, NORTH AFRICA - MESIA AND GLOBAL BUSINESS DEVELOPMENT DIRECTOR FOR (EXIM INVESTMENT LTD) & (IQ POWER INC.)
We will certainly have an effective role during the next climate conference (COP27), no less than our effective role in the Abu Dhabi (WFES)" SolarQuarter Middle East magazine had an exclusive conversation with Mr. Sharif AL-Haj - Regional Manager, North Africa - MESIA And Global Business Development Director for (EXIM Investment LTD) & (iQ Power Inc.). He is a skilled multifaceted professional with exceptional 15+ years of performance record classified by steady advancement through increasingly responsible account management & business development positions. With a great history of building relationships between Africa – GCC & Europe markets, presence from creating, executing Businesses development.
Could you please tell us how the solar sector dynamics have changed over the last few years in the Middle East? Climate change has become a major concern for this century and there are real and serious efforts in this regard at the level of the Middle East, North Africa and the world, especially after the last climate conference in Glasgow, which began completing the points of the Paris conference after a period of freezing pace during the past four years. The Paris Agreement sets out a mechanism to limit global temperature rise to "well below 2°C", and ideally to 1.5°C, compared to pre-industrial levels. A profound transformation of the global energy landscape is essential to achieving the goals of the climate agreement. Such a transformation is possible through the rapid deployment of low-carbon technologies rather than the generation and uses of traditional fossil fuels. Statistics point to a revolution in the field of renewable energy, as renewable energy sources in the MENA region have doubled to 40 gigawatts in the past decade. Between 2008 and 2018, investment in the Middle East in solar energy increased. The GCC, which has plans to create nearly 7 gigawatts of new renewable energy generation capacity, and we expect investment in the MENA region to reach $1 trillion in the next few years. (according to World Bank estimates) MENA governments are beginning to appreciate the fact that their region is blessed with other resources and powers, besides oil,
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which is an inexhaustible source of renewable energy. Many Middle Eastern countries have noticed. For example, but not limited:
The United Arab Emirates: Taking the lead in the development of solar energy, it constitutes 58% of the market share of solar projects in the MENA region. * 1,177 megawatts at the Sweihan solar photovoltaic (PV) project and * the Mohammed bin Rashid Al Maktoum 5 gigawatt solar park, * a 2 gigawatt solar power project in Al Dhafra due to be completed in 2022. In addition to a wide range of private projects
Egypt: The Egyptian government has commissioned the Benban Solar Park, the world's largest solar park with a capacity* of 1.4 GW which eventually includes 32 private investment projects under the PPA. The government plans for renewable energy to make up 20% of the electricity mix by 2022 and 42% by 2035.
Kingdom Saudi Arabia: Saudi Arabia has established itself as an emerging competitor in the field of solar energy. And to prove it means business, launch a $28 billion Saudi Industrial Development Fund to support future renewable energy projects. In addition to the serious and advanced steps of the Kingdom of Morocco
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What are some of the renewable energy challenges being faced by the region? What support is MESIA extending to tackle these challenges? The MENA Challenges: In points: Grid capacity: MENA region would have to spend over $30 billion in the next five years (as per the World Bank estimations) to ensure that sufficient grid capacity is available to support their ambitious capacity expansion plans. Political uncertainty: political crises in a number of countries in the region have adversely impacted investor confidence and foreign direct investment Policy and regulatory framework: Despite the large-scale renewable energy initiatives that have been launched by some countries in the region, the requisite regulatory framework is often lacking. This regulatory inadequacy, which could range from the absence of an independent regulator to the lack of effective tariff or net metering mechanisms, continues to be a major deterrent for investment in renewable energy.
MESIA Role: The focus & the Scope of MESIA (One of the first networks in the Region) that includes all the major players in the RE industry, revolves around analyzing the market in a real analysis based on concrete facts and then gathering all the relevant Authorities, Investors, Manufacturers & Legal professionals on one discussion round table (via our Trade Missions) to discuss the obstacles and discuss possible ways to overcome these obstacles and challenges. In addition to conducting Solar industry-related workshops, lectures, and briefings| High-level and focused networking opportunities |Exposure to key stakeholders in both the public and private sector | White papers and research reports on topics related to solar technology policies |Marketing & Visibility.
Please give us a brief overview of the policy environment of Middle East solar market. The energy landscape of the Middle East and North Africa (MENA) region has undergone a significant transformation in recent years as a result of intersecting technological, economic, and political trends, both regional and international. The evolving dynamics of international energy markets, increased diversification of energy sources, global concerns for climate change, and regional conflict are among the leading factors impacting the evolution of MENA energy policy. Taking into consideration the context of the myriad factors impacting policy design and implementation, besides analysis of the social, political, and economic factors that are impacting
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regional energy policy is provided and followed by an analysis of regional energy policy with consideration of hydrocarbon exploration and production, regional energy trade, demand management, and clean energy production. And according to a deep market study, the findings show that the MENA region is in the midst of an energy transition that has uncertain outcomes but will undoubtedly have long-lasting impacts on the global energy system, and the evidence of that The 27th session of the Conference of the Parties (COP 27) to the UNFCCC will take place in Sharm El-Sheikh, Egypt.
What are some new initiatives being planned at MESIA for the year 2022? MESIA’s endeavors do not stop from the moment it was established, and its elected board of directors and working teams always bring new developments in anticipation of events, through realistic analysis of the market and its needs. We will certainly have an effective role during the next climate conference (COP27), no less than our effective role in the Abu Dhabi (WFES) With an increased focus on the leading countries such as KSA, the UAE, Qatar, Egypt, and Morocco, in addition to the countries seeking progress such as Kuwait, Algeria, the Sultanate of Oman, and in the near future Tunisia and Sudan. Not forgetting the countries seeking to rebuild and establish currently faltering energy systems, such as Yemen, Syria, Libya, Iraq, Lebanon, and Mauritania. With a sharp and prospective view of Somalia and Djibouti. Our real endeavor and our goal are to reach the Middle East that depends on renewable energies as a source of energy and a source for successful investment models.
The evolving dynamics of international energy markets, increased diversification of energy sources, global concerns for climate change, and regional conflict are among the leading factors impacting the evolution of MENA energy policy.
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What is your analysis of how the solar sector is going to perform in the Middle East region in the next 5 years? The solar energy market in the Middle East is expected to grow at a compound annual growth rate of more than 10.02% during the period from 2020-2025. Factors such as supportive government policies increased efforts to meet energy demand using renewable energy sources, and reduced dependence on fossils are expected to be major contributors to driving the market. (according to MESIA studies). However, factors such as delays in large-scale solar projects are expected to result in Scale and increased focus on alternative energy sources to impede the growth of the studied market. Solar photovoltaic (PV) projects will be to drive the market, and Saudi Arabia is expected to dominate the market. (according to MESIA studies).
From my personal point of view, to be more clear and transparent here, there are great high return opportunities for investment in the renewable energy sector, and my goal through my position in (EXIM Investment) and (iQ Power) is to bring in investment and financing through global funding channels and investors from the sector Private individuals who are looking for a high return on their investment. As a shared vision of our entrepreneurial entities, we aim to bring global industry players and climate change leaders together, piecing together the pieces of the puzzle to guide the development and deployment of technologies that help humanity. Bringing funds and technologies to develop emerging markets in the Middle East, North Africa, Africa, and Asia. Connecting investors, scientists, experts, and manufacturers to provide energy and energy for everyone in the world.
ENERGY STORAGE IS OFTEN CO-LOCATED WITH OR NEXT TO A SOLAR ENERGY SYSTEM, AND SOMETIMES “ “ THE STORAGE SYSTEM STANDS ALONE, BUT IN EITHER CASE, IT CAN HELP SOLAR INTEGRATE MORE EFFICIENTLY INTO THE ENERGY LANDSCAPE.
” ”
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IN CONVERSATION
CORNELIUS MATTHES CEO, DII DESERT ENERGY
This is the first gulf state to do so and for a major oil & gas producer, the challenges to reach this objective are of course considerable." In an interesting interview with SolarQuarter Middle East, Cornelius Matthes - CEO, Dii Desert Energy spoke about the company, its presence, and contribution to the Middle East region. He also gave us insights into ‘MENA Hydrogen Alliance’ and the company’s renewable energy mission.
Let’s begin with a glimpse of your company’s presence and offerings? Dii Desert Energy is an independent, international publicprivate sector network operating from Dubai. Our group has been pioneering the energy transition in the MENA region and beyond over the past twelve years. Dii GmbH was launched in 2009 as an industry initiative in Germany (formerly ‘Desertec Industrial Initiative’) for accelerating the energy transition in the MENA region. Once the domestic needs have been sufficiently satisfied with emission-free energy, MENA will become a ‘Powerhouse’ of emission-free energy, both green electrons and molecules, serving the world energy market. This has been established in the market as ‘Desertec 3.0’. Recognizing the huge potential of solar and wind in the deserts areas of the Middle East and North Africa (MENA), Dii Desert Energy aims at transforming the energy systems in MENA in a holistic way, benefitting from the knowledge and expertise from its professional staff and partners, including the top-level Advisory Board. The “Grand Dii team”, now counting more than 15 senior experts, located in the UAE, Italy, France, Germany and Spain, intends to further boost the content work to add some solid contributions to the discussions on how to help the MENA region in becoming a ‘Powerhouse for Emission-Free Technologies’. Dii Desert Energy is connecting the regional and international industry with authorities and institutions and focuses in particular on practical conditions along the emission-free energy value chains. Dii's platform of more than 58 companies and organizations from 25 countries is, mobilizing top executives, government decision makers, R&D institutions and academia supporting Dii's mission: No Emissions.
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What do you think about the solar sector in the Middle East? In your view, what is needed to strengthen the growth of the solar sector in the Middle East? We are looking back to an extremely exciting decade. Emission-free technologies in the MENA region have become competitive much quicker than even the greatest optimist would have expected only a few years ago. The cost of solar has come down by almost 90% from the last decade. Solar, wind and batteries, and a combination of all, is currently the cheapest form of energy in history. The question is now not if renewable energy, but how much and which speed. New market realities can only further accelerate the shift towards emission-free technologies. 2021 brought many unexpected events, laying a sound basis for a massive acceleration of the energy transition: from certain project announcements, at a scale nobody would have believed that this is possible last year, to bold moves like netzero 2050 announcements by many MENA countries. With the recent announcement to commit to net-zero by 2050 and as a host of COP28, the UAE once again shows leadership in the energy transition. This is the first gulf state to do so and for a major oil & gas producer, the challenges to reach this objective are of course considerable. The interesting next step to watch is how this translates into a roadmap to execute, particularly for this decade. It is important to note that solar is not just about utility-scale generation but we must look at other market segments. There is residential, industrial and commercial, and the off-grid sector, i.e. where diesel generators need to be replaced step by step. Developing these new market segments is important to create a certain breadth/stability and can offer very interesting business opportunities. We believe that the right partnerships can make wonders to accelerate the energy transition all along the value chain from renewable generation, grid integration, electrical interconnections, different forms of storage, up to energy efficiency, and flexible demand.
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How is your company contributing toward the renewable energy sector and what are your some recent achievements? The Dii spirit has always been to engage with our network, contribute to high-quality discussions in the frame of the various working groups, engage with policymakers and other public stakeholders at the highest level, and thus create business opportunities. Dii Desert Energy is proud to be part of this journey, with the team has worked tirelessly in advocating the benefits of renewable energy with many different stakeholders in the region, including job creation for the youth, enabling one or the other project. Looking back, it is good to see that “Desert Power 2050” has been well ahead of time, when it was published in 2012. With the new phase Desertec 3.0, there is for sure more to do. We are now not only talking about green electrons but also green molecules, as a second important pillar, to integrate renewable energy in local markets – and exchange between continents. The approach will be the same: the ability to engage at the highest level with trusted relationships, a crucial element that makes this multi-stakeholder network unique. Furthermore, we hosted the ‘Dii Partners’ meeting, which gathered 45 people from different countries, traveling to Dubai under difficult circumstances. This motivated the team to organize another in-person partner meeting, followed by the 11th Dii Desert Energy Leadership Summit, with over 200 guests from four continents, in November 2021. Also, elaborating studies and policy papers to guide stakeholders and the energy community is an important element of our activities, as these studies are published freely to increase know-how transfer and capacity building for a greater impact. Among our latest achievements, the joint study with Roland Berger ‘The Potential for Green Hydrogen in the GCC Region’ on localization and job creation is still widely quoted. It was published with a joint press release in Arabic and English in cooperation with Masdar. As a recent output of Dii’s working groups and activities, we also presented the reports ‘Battery Storage: Is the Middle East ready yet’ and the ‘A North Africa – Europe Hydrogen Manifesto’. In cooperation with Hydrogen Europe, the African Hydrogen Partnership, the Ukrainian Hydrogen Council, the ‘Green Hydrogen for a European Green Deal, A 2x40 GW Initiative’ highlights the vision 2030, and it was integrated into European Hydrogen Strategy. In a collaboration between Dii Desert Energy and the regional climate and energy project MENA at the Friedrich Ebert Stiftung, we published the paper ‘The risks and opportunities of green hydrogen production and export from the MENA region to Europe’, which includes a deep dive in Morocco, Jordan, and Oman’s green hydrogen strategies. The book: ‘Emission Free Energy from the Deserts’, written by Paul van Son & Thomas Isenburg has been translated into English, German and French, is among the achievements of which we are most proud.
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Your company is focusing on the development of the Hydrogen economy, can you please tell our readers about it and what is the ‘MENA Hydrogen Alliance’? In early 2020, Dii launched the MENA Hydrogen Alliance, which brings together private and public sector actors as well as science and academia to kick-start green hydrogen economies. The Alliance provides a platform for members to meet and discuss pathways forward and formulates common studies. The alliance acts as an impartial advisor to promote pilot projects in the region, elaborates (potential) business cases and structure for large projects, propose the necessary policy and regulatory frameworks, and educates different stakeholders on all relevant aspects of the hydrogen value chain, from ‘source to sink’, including export of virtual and physical green energy. Founding partners of the Alliance are, among others, ACWA Power, NEOM, Masen, IRESEN, the Ministry of Energy, Mines and Energy Transition of Morocco, The UAE Energy Ministry, the EU-GCC Clean Energy Technology Network - which is funded by the European Commission - Hydrogen Europe, Global Alliance Powerfuels, the German Energy Agency, GIZ, and Clean Energy Business Club. In addition to producing policy papers and organizing arenas for focused discussions, our Chief Technology Officer, Fadi Maalouf, elaborated the Levelized Cost of Green Hydrogen (LCoH) and Levelized Cost of Green Ammonia (LCoA) Financial model which helps market players to capture all life cycle costs and assess project feasibility. It has been widely adopted as best in class model.
The book: ‘Emission Free Energy from the Deserts’, written by Paul van Son & Thomas Isenburg has been translated into English, German and French, is among the achievements of which we are most proud.
Nov-Dec Issue 2021 | Pg 26
What are your company’s plans to take the renewable energy mission forward in the region and what is the biggest challenge that you see going forward? 2020 has seen a tectonic shift in financial markets and according to the Financial Times by today more than half of global assets are managed according to stringent ESG criteria. In this context, CO2 and all kinds of other harmful emissions are fast becoming a major liability. This can also be seen from the significant increase in CO2 prices, which is pricing entire industries out of the market. We hope that other Gulf countries will follow UAE, Saudi Arabia, and Bahrain in this important trend and also commit to net zero. This will be crucial to diversify the economies, create many jobs, and make the region a global powerhouse for green electrons and green molecules. All really exciting news with hopefully more to come soon, including a clear roadmap for this decade. Overall, this decade is looking to be disruptive for the energy industry, but in a certain sense, we talk about a positive disruptive atmosphere, in which climate change has been recognized, and is attracting unprecedented interest from the financial community and commitment from governments to create an enabling environment with clear policy and strong and transparent legal framework for clean energy projects. We look forward to what looks like a tremendously exciting decade to accelerate the energy transition globally. We are absolutely ready for the next decade, continuing to connect people and continents, making also Desertec 3.0 become reality. Like Dii has pioneered green electrons in the MENA region for more than 12 years, it is a privilege to have been active in green molecules for over 5 years and see this movement now happening faster than ever.
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Nov-Dec Issue 2021 | Pg 27
INSIGHTS
WHICH NEW TECHNOLOGIES WILL C&I SEGMENT WITNESS IN 2022 IN THE MIDDLE EAST? HOW THIS WILL IMPACT THE LCOE?
T
he world is now shining in energy transition by constructing a strong and powerful path to renewable energy. In the race to renewables, the Middle East is not so far away. Every enterprise in the Middle East is continuing to develop its digital transformation initiatives to keep up with the fast-paced digital era that is now driving the world to the forefront of renewable energy. New levels of investments, deployment and adoption of digital technology are reshaping the commercial and industrial (C&I) segment. Solar is the one technological advancement that has had a great and immense impact in the Middle Eastern region.
Jordan, UAE, Egypt, Tunisia, Morocco, and Algeria are the clear frontrunners in terms of installed capacity in the MENA area, which comprises the UAE, Oman, KSA, Bahrain, Kuwait (GCC), Jordan, Lebanon, Egypt, Tunisia, Morocco, and Algeria. At a minimum, the addressable market for C&I projects in the UAE (Dubai), Jordan, and Saudi Arabia is more than 4 GW, yet installed capacity in these three countries has yet to surpass 1 GW.
SOLAR IS THE WAY FOR THE MIDDLE EAST For numerous reasons, solar seems to be a source of renewable energy that has great potential for the Middle Eastern regions. To top the list, the geography of the region allows for copious availability of sunshine in the region. One of the technologies that are gaining popularity is the rooftop or ground mounted solar systems. These systems are capable of converting solar into electrical energy for commercial, industrial and household usage. The utilisation of decentralised rooftop or ground mounted solar systems to supply this energy demand is quickly gaining favour due to various advantages over centralised power generation systems, including sustainability and electricity rates. The use of such systems is critical to a country's ability to meet its sustainability and decarbonization goals while also maintaining energy access and security for its citizens. With module and battery prices lowering, they can save a lot of money by upgrading to a rooftop solar or rooftop [solar + storage] system. These systems come bearing a promise to not just use solar but also store the energy for times when the sun is down. Rooftop solar + battery storage initiatives are also expected to gather up steam in the near future. Battery prices are expected to drop to US$ 100/kWh by 2023, propelling the market for integrated rooftop solar and battery storage systems forward from its current nascent stage.
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IMPACT OF THE COVID-19 PANDEMIC Not a single sector or segment on the Earth is untouched by the wrath of the Covid-19 pandemic. The C&I segment of the Middle East is hence no exception. Numerous corporations and organizations ran into losses due to the breakout of the lockdown. In the face of pandemic-related issues, cost optimization has become more of a necessity for the C&I sector. The absence of economic activity has led to businessmen focus on options and technologies that would help in reducing their costs. This can be accomplished by implementing a variety of fresh, cutting-edge technology solar solutions. Rooftop solar comes riding on the high-horse which not only helps in fulfilling the goals and responsibilities of not just residents but also businesses and organisations. The execution of solar can also assist businesses in achieving their other corporate social responsibility goals. Despite a challenging, pandemic-struck year in 2020, the region is likely to see an increase in C&I sector activity in the near future. The market will soon come into full swing and touch and feel economic maturity.
One of the technologies that are gaining popularity is the rooftop or ground mounted solar systems. These systems are capable of converting solar into electrical energy for commercial, industrial and household usage.
CONCLUSION The advantages of renewables cannot be emphasised enough. The Middle East, as an energy-driven region is gifted with abundant sunlight making solar the perfect solution for all its energy-related problems. With a little push and support from the government, the future of solar definitely seems as bright as the sun in the Middle East!
Nov-Dec Issue 2021 | Pg 29
INSIGHTS
Rooftop Solar + Storage: How Feasible Is The Combination For Propelling Rooftop Growth Trajectory in the Middle East?
A
round
the
world,
the
topic
of
sustainable
development is generating unprecedented levels of attention and relevance. Some of the world's top
WHAT ARE SOLAR ROOFTOP SYSTEMS? A rooftop solar power system, often known as a rooftop PV
oil exporters, as well as some of the world's largest carbon
system,
polluters, are found in the Middle East. As a result of the
generating solar panels erected on the roof of a home or
is
a
photovoltaic
(PV)
system
with
electricity-
region's
gas
industry. Photovoltaic modules, mounting systems, cables,
emissions, the countries in the region have set ambitious
solar inverters, and other electrical accessories are among the
goals to promote renewable energy and thereby reduce
different components of such a system. Rooftop mounted solar
carbon emissions. The region is expanding its power
photovoltaic power stations are modest in comparison to
generation
energy
particularly
solar
commitment
to
lowering
greenhouse
renewables,
utility-scale solar ground-mounted photovoltaic power plants
environmental
with capacities in the megawatt range, making them a type of
requirements and meet rising energy needs. The location
distributed generation. Grid-connected solar power systems
contains a lot of solar resources, so it has a lot of solar
account for the majority of rooftop PV installations.
mix
by
energy,
to
investing meet
its
in
energy potential.
INVESTMENT FACTORS As these areas lay directly beneath the sunny belt, the capabilities and opportunities in the Middle East are tremendous. In the Middle East, investments in renewable energy are expanding. The increase in total energy requirements is related to the region's growing population and economic development. Around 26% of Middle Eastern investors indicated they are presently investing in the energy transformation, making it the most popular sector for current renewables investment, while others say they are considering investing in such an industry with so much potential. In the Middle East, solar energy plays an essential role, and it is predicted to grow dramatically in the next few years. The majority of installed renewable energy in the Middle East comes from utility-scale solar plants. The total
SOLAR INTEGRATION: SOLAR + STORAGE Two is sometimes preferable to one. One example is the combination of solar energy and storage systems. The reason for this is that solar energy is not always produced when it is most required. Summer nights are those times when solar energy generation is at its lowest but also accounts to be the time of peak power demand. Temperatures are likely to be at their highest during these hours. Even when the sun is not shining, storage allows solar to contribute to the electricity supply. It can also help to smooth out fluctuations in the flow of solar energy on the grid. Changes in the amount of sunshine falling on photovoltaic (PV) panels or concentrating solarthermal power (CSP) systems cause these variances. Seasons, time of the day, clouds, dust, haze, and impediments such as shadows, rain, snow, and soil can all alter solar energy production. Energy storage is often co-located with or next to
installed solar capacity as of 2019 was 5583 MW.
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a solar energy system, and sometimes the storage system stands alone, but in either case, it can help solar integrate more efficiently into the energy landscape. Solar energy can be stored in various forms to be used later. And this practice of combining solar with storage can offer backup power. Without the practice of storing energy, energy would be produced and used at the very same time. They can
CONCLUSION Mixing solar with storage is the way to go when our energy production and usage times are different. In the case of rooftop installations, solar storage is definitely a win-win which makes the use of solar energy more efficient and effective. The Middle East would benefit greatly from the amalgamation of the two.
maintain key infrastructure running to ensure that essential services, such as communications, are available at all times. Microgrids and smaller-scale applications, such as mobile or portable power units, can also benefit from solar and storage. In the case of rooftop installations, the amalgamation of solar and storage would be most useful as even in times when the sun is not shining, the stored energy can be used for various purposes and activities which would otherwise be halted because of interrupted energy sources. With the combination of the two, the Middle Eastern countries can very well benefit from the usage of the renewable source, that is the Sun can be
Some of the world's top oil exporters, as well as some of the world's largest carbon polluters, are found in the Middle East.
done optimally.
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INSIGHTS
WHAT IS THE MARKET OUTLOOK FOR THE COMMERCIAL AND INDUSTRIAL (C&I) SEGMENT OF THE MIDDLE EAST FOR 2022?
C
ountries in the Middle East have set renewable energy objectives, such as solar energy targets to attain in the future years to keep carbon emissions from fossil fuels
under control. In addition, the region’s energy demands have risen over time. Many countries are focusing on solar energy because the region is endowed with sunshine for the majority of the year. The United Arab Emirates (UAE) has the most solar PV installations of any country in the Middle East region. Moreover, the region's solar PV industry has a number of projects in the works too. The following section of the article highlights the details of the Middle East market concerning solar energy.
MARKET OVERVIEW As the world swings away from fossil fuels and towards renewable energy sources, the Middle East has followed suit, with increased renewable energy demand and governments focusing on extracting as much energy as possible from these sources. Governments in the region are encouraging solar at the individual level and are implementing strategies to provide incentives and advantages to those who use fewer or no fossil fuels. Solar energy has been on the rise in the Middle East for more than a decade. Over the years, the UAE, South Africa, and Egypt have been at the forefront of increasing the solar power capacity. As a result, other governments in the region have announced plans to spend extensively on solar energy. In Algeria, for example, the government has set a target of producing 22 GW of renewable energy by the year 2030. More than 13 GW of the total 22 GW is estimated to be produced
indicating steady growth from 2019. The falling cost of solar PV and associated technologies is a primary driver of the global solar PV business. In comparison to 2010, solar PV module prices have dropped by about 73% in 2019. Improvements in material efficiency, production optimization, and economies of scale are all contributing to the drop. The Middle east solar PV market is divided into utility, residential, and non-residential segments based on application. Countries are striving to increase the number of renewables in their total power mix, which encourages the use of solar as a central resource and so links it to central utilities. Furthermore, because the majority of solar parks in the region are spread out across broad areas and require suitable transmission and distribution lines, which are already in place with central utilities, the utility segment will grow, The solar residential and non-residential segments will continue to grow at a strong rate. Solar parks and individual solar systems can provide the electricity needs of a large portion of the population and a single home, respectively. Solar panels bring down the cost of electricity per unit. The government’s incentives for solar power production are a crucial role in attracting individuals to install solar on a personal basis. This, together with the absence of carbon emissions, is one of the primary factors contributing to the market’s global expansion. Across the future years, this is projected to drive solar power installations in the Middle East.
CONCLUSION The
industry’s
competitive
landscape
displays
a
market
utilizing solar PV.
dominated by solar PV manufacturers, who have a stronghold
Solar photovoltaic (PV) installed capacity is predicted to grow at
established supply networks and consumer preferences have
on the global market. In the Middle East, too, firms with well-
a compound annual growth rate (CAGR) of more than 8.5%, reaching over 4.4 GW by 2026, up from 2.7 GW in 2019. In the first and second quarters of the year 2020, the COVID-19 pandemic had little influence on market growth and had a negative impact on the supply chain. Global solar PV capacity additions are expected to succeed in around 107 GW in 2020,
Middle East
dominated the industry. The firms with the most market share in the Middle East are Jetion Solar, Seraphim Solar, and Asumin Solar. Because the companies that are emerging in the region are new and are seeking to expand their reach, this market is projected to have a slew of new players in the next few years, benefiting the entire solar PV industry in the Middle East.
Nov-Dec Issue 2021 | Pg 32
OPINION
OPPORTUNITIES AND CHALLENGES FACING THE INTEGRATION OF MORE SOLAR PV ON GRID
units might have penalties that will be paid by the system operator. Therefore, these “Hidden Costs” of integrating more
AUTHOR:
renewable Solar PV on grid must be part of the economic studies during the next phase of integrating more Solar PV on
SAMER ZAWAYDEH INDEPENDENT ENGINEER
grid. While the grid operator is facing the immediate impacts of integrating more Solar PV on grid, the policy makers will be
The Solar PV sector exponentially grew since 2009 coupled with reduction in prices and increase in efficiency in the Solar PV modules. This led to more demand by consumers to integrate large utility scale projects and net metering projects. In addition, the Solar PV off grid market thrives in places like south east Asia and Africa where many countries suffer from low percentages of grid availability to the population. Oil importing countries started developing their regulatory frameworks in order to implement Solar PV projects and reduce their dependency on imported fossil fuel and the problems associated with the fluctuation of international oil prices on the local economies. In addition, oil producing countries started taking advantage of the low cost of Solar PV projects and Levelized Cost of Energy (LCOE) and integrating utility scale large Solar PV project on grid in order to reduce their cost of subsidized electricity to their citizens. With more Solar PV projects on Grid, the available electricity during the Sun Peak Hours between 10am to 2pm with continue to increase beyond the demand. This will drive the grid operator to reduce the energy from the conventional electricity generating units and even shut them down during the day and restarting them during the night in order to meet the peak demand during the night. These new operational requirements will put stresses on the conventional units and require more maintenance, which will be passed by the generator sector to the system operator. In addition, the reduced energy production by the conventional generating
Middle East
driven to adopt more policies that reduce the long-term impacts and promoting more electrification of heating and cooling, developing electrical transportation markets, and adopting time of use tariff. With the development of the storage technologies, nations around the globe like Germany are subsidizing the integration of Lithium ion battery storage at the consumer side, California are increasing the installed Solar PV storage capacity at the generation, transmission, distribution and demand side, and Massachusetts has developed a “Renewable Peak Demand Strategy” driving the integration of more lithium ion battery storage on grid to make more renewable energy available during the peak demand hours by using load shifting. Other advance grid operators in Australia have adopted the Virtual Power Plants (VPP) technologies for the integration of thousands of Solar PV system with storage across the grid that is accessible to the grid operator, which provides on demand energy instead of building new fossil fuel plants. Faced with the dangers of climate change, engineers have the opportunity to use Solar PV energy without GHG emissions, available locally in each country, at the lowest LCOE in the world to meet the demand for more energy, alleviate energy poverty, and improve the economic conditions. Continuous learning, training, awareness, and development of regulatory frameworks and design codes are necessary to face the rapid changes in technologies and the demand for safe and efficient integration of more Solar PV on the Grid.
Nov-Dec Issue 2021 | Pg 33
PERSPECTIVE
WHAT IS THE SOLAR MARKET OUTLOOK FOR 2022? Prelude Today, in the Middle East, solar and other renewable energy sources are paving the way toward electrification and decarbonization of end usages. Despite Covid, the past year has seen continued improvements in the competitiveness of solar; thanks to further decreases in the price of solar modules, increasing technological progress (eg modules batteries, inverters ), and use of smart digital tools, and improved risk mitigation methodologies. The industry has also demonstrated during the COVID-19 crisis its resilience and capacity to develop ingenious solutions to overcome the issues of supply, manpower, and access to sites and reach out to clients. In many ways, the crisis has positioned solar at the forefront, as a sustainable and reliable source of energy. In the year 2022, the Middle East solar market is estimated to observe good economic growth, with growth rates in different countries growing depending upon the level of natural resources prevailing in the country and the access to energy at affordable rates prevailing in such countries. The demand for power and energy has been growing in the region recently, with some countries generating high demand for power and energy, owing to the level of economic growth prevailing in their countries. The consumption of energy in the region is witnessing an increase over the past few years, owing to the growing population, higher economic growth in some nations, and better access to affordable energy in some parts of the region. The Middle East region, and the Gulf, in particular, has been home to record low solar tariffs in recent years. The region’s favorable solar conditions like the availability of cheap and sunny desert land, low labor costs, cheap project financing, supportive tax regimes, large projects benefitting from economies of scale, welldesigned tender structures, and decreasing PV component prices have been the contributing factors. Even though the industry experienced a slowdown during the global Covid-19 pandemic, solar energy is once again at the heart of economic recovery efforts and is expected to see a significant rise this year.
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path, our energy demand needs, globally, to decrease (by 7% by 2030 as per the IEA NZE scenario) mainly through energy efficiency, electrification, energy savings and behavioral change. And we’re doing the opposite. The second one, is that
KARIM MEGHERBI FOUNDING EXECUTIVE DIRECTOR, EPDA
to fuel economic growth, as our energy transition is still in its infancy, many countries relied on traditional fossil energy. Coal demand has therefore rebounded and even exceeded 2019 levels. This means we are not fast enough in changing our energy systems. The third and last one, is that our CO2
2021 saw mixed results in our energy transition. As economic growth resumed after the 2020 Covid crisis, our energy demand increased above 2019 level. Our CO2 emissions went close to 2019 level, a 0.8% decrease only compared to 2019,
emissions are not decreasing at the right path and the world is far from being on the right track to hold the line at 1.5°C. While we have troubles to manage growth and limit our use of fossil fuel, renewable energy is still growing steadily, despite
whereas we saw a 5.4% decrease in 2020.
major logistic issues faced by the industry due to the Covid
There are three reasons why these numbers are not good
material, leading to shortages of key components and soaring
news. The first one, is that to set our economies to a 1.5°C
crisis and a mismatch between demand and supply in raw prices. During 2021, most of the prices of the key components of solar panels and balance of system increased drastically. Aluminum,
silver,
steel
and
copper
prices went up by up to 50% for some of them. Encapsulation material costs grew by more than 10%. Silicon prices nearly doubled, which led by itself to a 20% increase
of
Meanwhile,
solar
the
price
panel of
prices.
containers
peaked at 10 times its 2019 average price. As a consequence, EPC prices have increased by up to 50% in some cases.
Hence
many
developers
are
trying to extend the deadlines of their contracts to limit their financial losses as PPA tariffs were not awarded based on such assumptions. Nevertheless, renewable capacities still increased in 2021 by 290GW compared to 260GW in 2019. Renewable energy represents now more than 90% of all new installed capacities in the power sector worldwide. In 2021, the world is producing more electricity from low carbon technology (nuclear and all renewable) than from coal, by 5 points. An estimated 160GW solar capacity was installed in 2021, a 18% increase compared to 2020. Major economies have pledged to reach net-zero between 2050 and 2060. Clearer policies are being implemented, and renewable energy remains a strategic component of our climate actions. While large investments in silicon are being made – as an example, Risen has pledged to invest more than 10 billion dollars between 2022 and 2035 in Malaysia in silicon production - and constraints on raw material have loosened up a bit, the situation is still not bright and forecasts in solar present some uncertainties due to this situation.
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What’s more, as penetration rates of renewables continue to
countries can now benefit from dedicated funds from the
grow, our electricity systems are evolving and our regulatory
European Commission to implement their renewable strategy.
frameworks, as well as our grid infrastructure, should be
France, which has obtained recently a 30.5 billion euros
regularly adapted – all components of the energy transition
support from the European Commission for its 30GW program
have to move in parallel if we want to meet the agenda and
by 2026, will increase its annual capacities tendered. Spain is
minimize the costs of the energy transition. However,
continuing its auctions. As the new government in Germany
regulatory frameworks are very different from one country to
wants to accelerate the phasing out of coal, it increased its
another, which constitutes an incredible wealth of experience
renewable energy targets. The Netherlands is also set to
but also another layer of complexity. The projections of
accelerate its energy transition. As for the US, they are
renewable energy capacities are therefore highly dependant
expected to continue to move forward on their renewable
on the successful implementation in each country of the
energy program designed by the Biden administration. The tax
different policies necessary to unlock their full potential.
credit mechanism is still in place, and the tandem “solar + batteries” has proved to be extremely competitive in recent
Numbers still look positive according to SolarPower Europe
tenders organized by operators to replace their thermal plants.
which forecasts more than 200GW to be installed in 2022, a
The battery market will continue in this context its rapid
25% growth compared to 2021. The figure below shows the
growth. Since solar kWh price has now reached such a low
projected top 12 solar markets with their respective additional
level (below 40USD/MWh in many markets) that it is cheaper
potential capacities for 2021-2025 (low/medium/high case). In
than most of the other alternatives – if not all in some markets –
2022, the leading markets are expected to be China and India.
new business models are being implemented. As an example,
China is currently implementing a 5-year solar program,
the corporate PPA market is strongly growing, as seen in
gigawatt projects are under development. In the wake of their
Europe or India, and this trend is expected to continue in 2022.
net-zero announcement, the country unveiled an incredible
2022 is a strategic year right after COP26 where countries
400GW solar and wind parc in the Gobi Desert to be
should accelerate their energy transition by developing
commissioned
under
massively renewable as a substitute for coal and gas, and start
construction. India set an ambitious target for 2018-2022: to
by
2025
and
100GW
is
already
to electrify most of our processes with an aggressive agenda.
reach a cumulated 175GW capacity by 2022, including 100GW
Although solar capacities are increasing, we are still far behind
from solar and 60GW from the wind. In 2021 only, the country
the numbers necessary to meet our climate targets. The
added 11GW of solar, reaching now the 100GW solar installed
industry responses to the persisting covid crisis and raw
capacity. A new target for 2030 of 450GW was set in August
material shortage are therefore to be monitored closely.
2021 and large tenders have resumed at an accelerated path,
Developing renewable only will also not be enough: as per the
although developers see delays in the signing of the awarded
IEA NZE scenario, oil demand should fall below 25% of 2019
PPA.
level by 2050, gas demand by 55%, and coal by 90%. Comprehensive strategies are necessary to change our energy
In Asia, Japan, Vietnam, and Korea will continue their growth.
system in such a short time. As we delay our actions, the path
Europe is also expected to host several dynamic markets
is getting narrower and narrower.
supported by the EU “fit-for-55” package, as European
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Nov-Dec Issue 2021 | Pg 36
Countries shall adopt new forms of electricity grids, where the sources of energy and the consumers of this energy can be aligned through controlling devices. This combination is called “smart grids”. It is essential to adapt those types of grids along with a smart
ENG. FARAH QAQISH DEPUTY GM – IZZAT MARJI GROUP (JORDAN)
controller, which uses artificial intelligence to increase the effectiveness and the efficiency of the whole cycle. Being said, smart grids cannot perform well without backup storage if the main purpose is to increase the renewable energy mix to the maximum.
The global change and trends in adapting to new lifestyles are tremendous! One of the main issues, which were considered as a challenge, is on its way to being solved; energy security.
renewable
technology
at
that
time
was
technologies of either thermal or electrical types. I expect more countries in the Gulf region specifically to get more
The global energy mix back in 1995 was mostly non-renewable, the adapted
Therefore; the future outlook will rely mainly on storage
mainly
hydroelectricity. Since the beginning of the new century, and specifically in 2007, there was significant jumps in the global shares of adapting Solar PV systems and wind turbines, along with Concentrating Solar Power (CSP) projects. Nowadays, total renewable energy contributes to around 30% of the world's electricity production. Regionally in the MENA, the legislations started to be issued after 2010, and within the past 10 years, aggressive strategies were formed and put in force. The strategies vary in the targeted renewables share and the time frame. For example, UAE’s 2018 strategy was to reach 44% of renewable energy by 2050, while the strategy of the KSA was to reach 50% of the renewable energy mix by the year 2030. In Jordan, the target was set to be 30% by 2030. Most of the countries, who were optimistic about going green, have realized something important; apart from having geothermal and hydroelectric sources for electricity production, there is no way to reach 100% of electricity production from using other sources of renewable, mainly solar PV and wind energy, due to some technical obstacles. The main technical challenges are due to the intermittency of these types of energy sources. However; the straightforward solution can be summarized with one word: Storage. The near future for harnessing more renewable energy looks very optimistic. The technical improvement of the technologies and components exceeds the expectations. Moreover; the storage
involved in transforming into being green. Gulf countries, other than the UAE and the KSA, shall consider getting done with dedicated energy legislations and shall have their strategies with a huge focus on moving towards the exploitation of renewable fuels. These times are the most critical times because we know the fact that oil will no longer be exploitable nor feasible after 50 years. Even if oil and gas are currently available in some countries, it is much feasible to sell them and generate electricity from renewable sources. The financial effect is also positive as we are aware that the oil barrel current price is $80! Current electricity tariffs for some GCC countries are very low. This is the main drive to push people and corporates into adopting clean energy sources, along with governmental support such as incentives and subsidies. On the other hand, other countries in the region, which don’t have oil and gas reserves, have no immediate option, but to transform directly into greening their energy production. The best global practices of utilizing renewable resources, in a way the technical challenges are not a problem, are to use energy production systems combined with storages systems for the utility-scale sizes and to allow residential and small commercial systems to use distributed energy resources (DER) without the need of storage. This combination will allow the country to reach better percentages of renewable resources. Finally, the current chance of transforming our lives to a healthier and more efficient one will not come again. The overshoot day of 2021 took place on the 29th of July! We can still make it goes back to its normal situation, but we have to act now!
technology is not far away from being commercially realized and feasible.
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PRODUCT FEATURE
LONGi Hi-MO 5 shows excellent performance in dynamic load testing As a global leader in solar technology, LONGi adheres to innovation and reliability as the core pillars of the company’s ongoing development. In order to validate the performance of its 182mm Hi-MO 5 module under extreme weather conditions, LONGi carried out rigorous dynamic load testing (DML) on the bifacial Hi-MO 5 at the China General Certification (CGC) laboratory. The test sample was randomly selected from modules under mass production, with results showing that, under installation conditions of outer four hole bolt mounting (1400mm) with 1500Pa, Hi-MO 5 passed a 22,000 cycle test and was still in excellent condition, underlining the design and reliability of both module size and structure. Similar publicly released DML test results for oversized modules (2384mm×1303mm) showed them to have only survived 2,000 cycles, indicating that the fatigue limit of Hi-MO 5 is over 10 times that of a larger module.
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Nov-Dec Issue 2021 | Pg 38
Hi-MO 5 appearance is intact and power degradation only 0.05% after DML In order to verify the performance of Hi-MO 5 in extreme conditions, the standard IEC DML test level was raised by a factor of 1.5, equating to a pressure of 1500Pa. The test result showed that, after 22,000 cycles, the module’s appearance remained intact and power degradation was only 0.05%, indicating excellent reliability and resistance under a wind speed of 54m/s.
Module size and smart soldering lead to better reliability Following comprehensive structural analysis, Hi-MO 5 was designed with an area of approximately 2.6m2 to optimize the inner structure and linear density of its frame, making the module more stable and reliable under extreme weather conditions. Dynamic load testing is similar to fatigue testing, therefore fatigue property for different size modules is studied in this article. The following figure
illustrates
the
correlation
between fatigue life and applied stress of the 6005 T6 aluminum alloy (applied in almost all PV module frames). It is found that the higher the applied stress, the lower the fatigue life, meaning that obtaining the stress applied to the mounting hole of the frame is helpful in evaluating the fatigue behavior of different size modules.
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Nov-Dec Issue 2021 | Pg 39
Subjected to the same wind pressure, a larger module area means higher wind force applied to the mounting hole. The force applied to the mounting hole for different size modules is calculated in the following figure. It is found that the applied force of Hi-MO 5 (2.6m2) is approximately 1500N lower than that of a larger module (3.1 m2), which means the fatigue lifetime of the Hi-MO 5 is higher. The above DML test result is consistent with the theoretical analysis of fatigue behavior of different size modules. Hi-MO
5
adopts
crackless
smart
soldering technology, resulting in a soft connection between cells, which enables the module to experience little power degradation with no microcracks under high mechanical loading.
Middle East
After a year of mass production of Hi-MO 5, its high efficiency and reliability, convenient transportation and ease of manual handling has been fully endorsed by customers. LONGi will continue to adhere to its product design concept based on improved LCOE and focus on performance during the product’s full lifecycle.
Nov-Dec Issue 2021 | Pg 40
PRODUCT FEATURE
Central plus String Inverter, Sungrow’s Multi-Faceted Approach Lightens up the Middle East Market "The new PV installation capacity in the Middle East will exceed 50GW by 2030", estimated by IHS. The Middle East, a region full of resources, boasts vast and sunny desert land, large PV installation capacity benefiting from scale economy, supportive policies from governments and public sectors, friendly financing environment etc., which provide perfect conditions for PV plant building. This market now is becoming a coveted region for global renewable enterprises to snag a spot. Amid the fierce competition, Sungrow’s multi-faceted approach, namely the combination of central and string inverters, has proved successful in this promising market. Statistically, by the end of June 2021, the cumulative installation of Sungrow's inverter equipment in the Middle East and North Africa exceeded 3GW; thus, ranking first in market share.
Seizing Opportunity Despite Challenges Despite the policymakers’ support of solar plant construction in the Middle East, the environmental impacts are extremely challenging. Local desert environment experiences high temperatures, heavy amounts of dust, strong wind erosion, drought, and other complexities, resulting in high cost, difficult field construction, impaired power generation and taxing O&M. This region also has the world’s lowest PPA, making cost-reduction an even more demanding task. Moreover, this flourishing market also attracts a number of strong competitors from all over the world. Hence, struggling with the extreme geographical environment, ever-decreasing PPA and fierce competition, how is a company to stand out and take the lead? Sungrow’s approach has proven successful.
Middle East
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A Multi-Faceted Approach: A Combination of Central and String Inverters As the global leading inverter solution supplier for renewables, Sungrow has been committed to the development and production of PV inverter equipment since its establishment in 1997. With over 24 years of experience, Sungrow products boast incomparable advantages in performance, compatibility and flexibility. In addition, under the principle of “Design Meets Demands”, Sungrow advocates the best-fitting equipment selection on the basis of each plant with entral and string inverter solutions to meet customers’ actual needs. The inverters are equipped with intelligent forced air-cooling technology, IP66 and C5 high protection capability, which ensure stable and safe operation without derating in harsh environments. Sungrow has also set up a robust O&M platform to streamline the management procedure. As a result, Sungrow’s solution achieves lower LCOE and higher ROI for customers. Sungrow’s comprehensive and customized service is reputable among customers, too. It often deploys its service team in assisting customers with plant construction, troubleshooting, and operating. In order to shorten the operational time t of grid connection, Sungrow could also provide various additional services for customers, if they had such requests. With the triple warrants provided by most modular design plans, high-quality products, and comprehensive services, Sungrow’s central and string inverter solutions have been successfully applied in several significant solar projects in the Middle East. Well-known examples include a 900MW project with Sungrow’s 6.25MW central inverter solution in Dubai Solar Park, a 526MW project with Sungrow’s 1500V SG250HX string inverter, an 800MW project in Qatar, a 2.1 GW project in Abu Dhabi and so on.
Forecasted Growth Sungrow now owns over 20 branches, over 200 service outlets, and multiple important channel partners across the globe. Its products are being sold to more than 150 countries and regions worldwide. In the Middle East, Sungrow also set up its Dubai subsidiary in 2018, established the local sales network, warehousing system and after-sales service outlets in Saudi Arabia. Sungrow is 7x24 hour ready to serve customers. In the future, Sungrow looks forward to seeing its “Central plus String” combination bloom in more Middle Eastern regions, as an effort to promote its transition to clean energy.
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Nov-Dec Issue 2021 | Pg 42
COMPANY FEATURE
SUNGROW CONTRIBUTES TO A CLEANER WORLD THROUGH DEDICATED RESEARCH AND INNOVATION Sungrow Power Supply Co., Ltd. is the world’s most bankable inverter brand with over 182 GW installed in over 150 countries worldwide as of June 2021. Founded in 1997 by University Professor Cao Renxian, Sungrow is a leader in the research and development of solar inverters with the largest dedicated R&D team in the industry and a broad product portfolio offering PV inverter solutions and energy storage systems for utility-scale, commercial & industrial, and residential applications, as well as internationally recognized floating PV plant solutions. With a mission of “Clean Power for All” and a vision to be “the global leader of clean energy conversion technology”, Sungrow has been made a great contribution to a cleaner and more sustainable world for more than 24 years. Sungrow has proven dedicated to product innovation and development. Relying on its competitive power conversion technologies, increased investment in R&D and a dynamic technical R&D team taking up over 40% of the total, it has been providing even better solutions to its customers worldwide with cutting-edge technologies. In 2021, Sungrow launched the robust SG350HX, boasting a maximum power of 352kW; thus, opening the era of 300kW power for string inverters. In the Energy Storage Sector, this year, Sungrow also launched its unprecedented Liquid-Cooled Energy Storage System, a trend-setter featuring enhanced safety and efficiency. Sungrow continues innovating in the international C&I and residential ESS market. The ST129CP-50HV Series featuring simplicity, security, intelligence, and cost-efficiency is proof of this accomplishment. Aiming to become a globalized corporation, Sungrow has been seeking globalized manufacturing, operation and management and achieved stable progress. Sungrow now owns over 20 branches and over 200 service outlets around the world and it is establishing a global manufacturing and warehousing system. Sungrow has cultivated an international team and 98% of the international employees are recruited locally. Sungrow occupies about 30% of the global PV inverter market share; dominating top markets in Australia, South Korea, the Middle East, and many other regions. Further, in 2020, Sungrow shipped more than 800 MWh of energy storage systems worldwide; all of which reported zero security incidents. This year, Sungrow’s newly-launched Liquid-Cooled ESS also supplies the largest Solar plus ESS plant in Southeast Asia, initiating a globalized roadmap for the next decade Due to consistent product innovation, globalized manufacturing, warehousing, sales, and service systems, Sungrow has made considerable achievements and made constant contributions to the global transition to renewable energy. In fact, the total inverter shipments reached 182 GW -- a number equivalent to generating around 257,300 GWh of clean electricity per year and eliminating 205.8 million tons of carbon dioxide. In the future, Sungrow will continue to bring out the best of its core advantages of clean power conversion technologies, maintain a momentum of constant technological innovation, and realize the synergized growth of five key business; including, PV inverters, energy storage, wind power, renewable energy investment and development, and green hydrogen.
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COMPANY FEATURE
LONGI LISTED IN TOP 100 ESG A-SHARE COMPANIES BY CHINESE FINANCIAL NEWSPAPER The Chinese state-run financial newspaper Securities Times has included LONGi in its listing of top ESG A-share companies, based on its performance in the three key areas of environment, social and governance.
generation to achieve zero carbon emissions across the entire industry chain and combine clean energy with a substantial reduction in the cost of photovoltaic power generation and product manufacturing.
ESG is a strategy and practice integrating environmental, social and governance related considerations into investment decisions and active ownership and has become widely accepted by the domestic financial market, with stock-listed companies important players.
In 2020, LONGi successively joined RE100, EV100, EP100 and the Science-Based Target initiative (SBTi), becoming the only Chinese company to join all four international initiatives at the same time. Since the beginning of this year, LONGi has launched the “Green Supply Chain Carbon Reduction Initiative”, announced its first “Net-zero Plant” pledge at the UN biodiversity conference (COP15) in Yunnan, and released the company’s first white paper on Climate Action at the COP26 summit.
Securities Times adopts a hundred-point evaluation system in order to identify ESG levels across different regions of China. From the perspective of listed organisations, LONGi is the only solar technology company selected from China’s A-share market. As a world leading solar manufacturer, LONGi attaches great importance to its ESG-related work. The company advocates the sustainable development concept of manufacturing photovoltaic products driven by photovoltaic power
Looking forward, LONGi will continue to fulfill its social responsibility commitments, follow the path of green development, and contribute more to the ESG investment philosophy, while simultaneously promoting the development of the photovoltaic industry.
LONGi GLOBAL HEADQUARTER
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Nov-Dec Issue 2021 | Pg 44