SolarQuarter Middle East Sept-Oct Issue 2020

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Empowering, Insightful, Engaging

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FIND OUT

Current And Expected Future Solar PV Trends In M IDDLE EAST REGION The

S T H G I S N I

HOW WETEX AND DUBAI SOLAR SHOW WILL HELP DUBAI TO ACHIEVE ITS SOLAR TARGET

HE SAEED MOHAMMED AL TAYER MD & CEO of Dubai Electricity and Water Authority (DEWA)

P E R S P E C T I V E

WHICH FACTORS ARE LEADING TO THE RISE OF ROOFTOP SOLAR IN THE MENA REGION?

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CONTENT NEWS

PERSPECTIVE

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What Are The Current And Expected Future Solar PV Trends In The Middle East Region?

Which Factors are Leading to the Rise of Rooftop Solar in the MENA Region?

IN CONVERSATION

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INSIGHTS

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JEREMY CRANE

KARIM MEGHERBI

CEO,

Executive Director,

Yellow Door Energy

EPDA

PUBLISHING

How WETEX and Dubai Solar Show will help Dubai to achieve its solar target

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EMOBILITY + | JAN FEB ISSUE 2020

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PG 37


SOLAR ENERGY

MIDDLE EAST NEWS UNDER THE SPOTLIGHT

EDF SUBMITS PROPOSAL FOR 146 MW HYBRIDSOLAR PROJECTS IN OMAN

CHOITHRAMS SELECTS SIRAJ POWER AS ITS PARTNER FOR IMPLEMENTING SOLAR PROJECTS IN UAE SirajPower, UAE’s leading distributed solar energy provider, continues its rapid and consistent expansion in the UAE with a new significant partnership. The company recently signed a deal with Choithrams, a leading grocery retailer and food distributor in the Middle East, to help them shift from conventional power to 100% renewable energy. On this occasion, a signing ceremony was recently held at Choithrams’ Head office in Dubai in the presence of Rajiv Warrier, Choithrams’ CEO, Laurent Longuet, CEO of SirajPower and Merzi Sodawaterwala, Founder & Chairman of World Sustainable Business Forum (WSBF). Choithrams’ solar rooftop project includes three warehouses located at Al Quoz in Dubai with a 2.7 MWp system capacity that will generate 4.5 GWh of annual energy production. The solar rooftop installation will help displace approximately over 3,000 metric tons of carbon dioxide emissions (Co2) per annum, corresponding to more than 12 million smartphones being charged.

Only France’s EDF submitted a bid for the aggregated hybrid programme, which is being overseen by Oman’s Rural Areas Electricity Company (Tanweer). The tender was issued in March, with bids due in June later the bid deadline was extended to mid-October to allow prospective bidders more time to work on proposals for the project, worth $175m. The 11 sites are expected to have a solar component of 48MW with 70MW diesel component. Tanweer is planning for the plants to have a storage capacity of 28MW, which will provide up to 14MWh (MW hours) of storage. The initial power purchase agreements (PPAs) are expected to be for 15 years and the project is planned to be developed under a build, own, operate transfer framework. PV solar capacity and battery energy storage (BESS) will be installed at all of the sites, which include Al-Mazyunah, Hasik, Farshat Qatbeet and AlHallaniyat islands, all in the southern Dhofar governorate, Al-Khuwaimah and Masirah island whereas two diesel power plants will be developed at Madha, and Mittan.

UAE’S 20BY2020 INITIATIVE LIGHTS UP REMOTE COMMUNITY IN EGYPT The Zayed Sustainability Prize has announced that solar-powered lighting solutions developed by one of its previous winners have been installed in the Egyptian village of Habisha, in the Asyut Governorate – as the latest deployment from the UAE-driven humanitarian initiative, 20by2020. With an aim to improve standards of living and create a host of new prospects for residents of the community, more than 50 high-performance energy-efficient LED lights have been fixed on the main street of the village— which are expected to benefit over 3,500 people daily. | MIDDLE EAST | SEPT-OCT ISSUE 2020

PG 4


MIDDLE EAST NEWS

AL MASAOOD POWER INTRODUCES SMART MICROGRID SOLUTIONS DURING FIRST EVER VIRTUAL EDITION OF WETEX Al Masaood Power Division, the official distributor of MTU a RollsRoyce Power Solutions Company in the UAE and Bahrain, one of the leading suppliers of decentralized energy systems, throws the spotlight on smart microgrid solutions during their participation at the first ever 3D Virtual edition of the Water, Energy, Technology and Environment Exhibition (WETEX), the ideal gateway of solar business in the region, on October 26 -28, 2020. Microgrids support a flexible and efficient electric grid, by enabling the integration of growing deployments of distributed energy sources such as renewables like solar. Microgrids are decentralized energy systems that are composed of renewable power generation, power storage and conventional power generation used to meet a given demand. The utilization of Microgrid technologies is part of the UAE Energy Strategy 2050, which is the country’s first unified energy strategy that is based on supply and demand, and aimed at increasing the contribution of clean energy in the total energy mix. A combination of renewable, nuclear and clean energy sources–all brought together to help meet the country’s economic requirements and environmental goals.

ADDED ANNOUNCES ISSUANCE OF FDI LICENSE IN ABU DHABI; AIMS AT ACHIEVING SUSTAINABLE ECONOMIC DEVELOPMENT The Abu Dhabi Department of Economic Development (ADDED) announces the implementation of the Foreign Direct Investment Law within the Emirate of Abu Dhabi by issuing the “Foreign Direct Investment License” which will enable them to hold 100 percent ownership of their businesses in Abu Dhabi. The license covers 122 different economic activities related to the agricultural, industrial and services sectors, and targets businesses with total capital ranging between AED 2 million to 100 million or higher. H.E. Mohammed Ali Al Shorafa, Chairman of ADDED, said: “The issuance of the ‘Foreign Direct Investment’ license is line with of the provisions of the Federal Law No. (19) of 2018 regarding Foreign Direct Investment (FDI), and as part of the Department’s efforts to further promote positive investment climate and thereby achieve sustainable economic development in Abu Dhabi.” H.E. Al Shorafa noted that ADDED is committed to enhancing the local investment environment and strengthening the Abu Dhabi economy’s competitiveness through policies that provide more investment opportunities in various nonoil sectors. It also seeks to improve the emirate’s legislative environment, ensuring the most ideal way to protect the rights of foreign investors, in accordance with the directives of the Abu Dhabi Government in attracting foreign direct investments to the emirate.

| MIDDLE EAST | SEPT-OCT ISSUE 2020

EGYPT’S MINISTER OF ELECTRICITY AND RENEWABLE ENERGY INAUGURATES NATIONAL SMART METER INFRASTRUCTURE PROJECT Following the completion of the first stage of the National Smart Meter Infrastructure project, Egypt’s Minister of Electricity and Renewable Energy, Dr. Mohamed Shaker, recently inaugurated the project. The inauguration started with a presentation held by Giza Systems at the Ministry headquarters, followed by an inspection visit made by the Minister to the main project site: the main data center in Nasr City. Giza Systems gave a one-hour live demo of the deployed central smart metering system. The deployment will enable the control and monitoring of electricity consumption through the application of smart billing techniques. The project will also provide long-term benefits, such as optimal application management, renewable energy integration, improved retail offerings, and multi-purpose billing services.

PG 5


MIDDLE EAST NEWS

MASDAR AND MIRAL SIGN LANDMARK AGREEMENT TO DEVELOP ABU DHABI’S LARGEST ROOFTOP SOLAR PROJECT Masdar, one of the world’s leading renewable energy companies, has signed an agreement with Miral, Abu Dhabi’s leading curator of experiences, to develop Abu Dhabi’s largest rooftop solar photovoltaic (PV) project to date at Warner Bros. World™ Abu Dhabi on Yas Island. The agreement aims to provide an estimated 16,000 solar modules across the theme park’s roof area of 36,000 square meters and will produce nearly 40 per cent of its annual energy demand. Under the agreement, Masdar will provide a full turnkey solution for the 7-megawatt peak (MWp) project, including the design, procurement, and construction, as well as operation and maintenance of the plant. The project is scheduled to be operational in Q4 2021, and once complete, Warner Bros. World™ Abu Dhabi will become the largest solar powered theme park in the GCC.

APICORP PROVIDES FINANCING FOR DEVELOPMENT OF PHASE 5 OF MOHAMMED BIN RASHID AL MAKTOUM SOLAR PARK The Arab Petroleum Investments Corporation (APICORP), multilateral development financial institution, has signed an agreement with Shuaa Energy 3 P.S.C sponsored by Dubai Electricity and Water Authority (“DEWA”), ACWA Power and Gulf Investment Corporation, to provide USD70.5 mn in financing for the fifth phase of development of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, UAE. Part of a larger project finance facility amounting to USD420.2 mn provided by a number of local, regional and international banks, the funds will be used in the development, construction, ownership, operation and maintenance of a USD564 mn 900MW state-of-the-art solar photovoltaic (PV) plant. Utilizing bifacial panels with tracking technology, the plant will produce the lowest levelized cost of electricity in the world at just under USD0.017 (1.7 cents) per kWh. The project is aligned with Dubai’s Integrated Energy Strategy 2030 as well as Clean Energy Strategy 2050, aimed at securing a sustainable supply of energy and diversifying energy supply sources.

TADWEER OPENS PHASE TWO SOLAR SOWER PLANT AT AL DHAFRA C&D WASTE RECYCLING FACILITY The Abu Dhabi Waste Management Center (Tadweer) announced the opening of the second phase of the solar power plant project at the Construction and Demolition Waste Recycling Facility in Al Dhafra region of Abu Dhabi. Aimed at lowering the facility’s carbon footprint, Al Dhafra C&D Waste Recycling Facility, the first of its kind in the world to be 90% solar-powered, is aligned with the country’s ambitious plans to mitigate climate change including the UAE Green Agenda Programs (2015-2030) and the National Climate Change Plan of the UAE (2017–2050). With completion of the second phase, Tadweer, in close coordination with the investor of Al Dhafra C&D Waste Recycling Facility, has significantly enhanced the facility’s solar energy utilization by increasing its capacity to 600 kilowatts per hour, up by 350 kilowatts per hour. | MIDDLE EAST | SEPT-OCT ISSUE 2020

ADFD FUNDED RE PROJECT IN MALDIVES RECEIVES GLOBAL RECOGNITION FOR INNOVATION In Maldives A renewable-energy project which is financed by Abu Dhabi Fund for Development has received a certification from Global Innovation Institute (GINI) an international professional certification, accreditation and membership association in the field of innovation. The first of its kind initiative, for which ADFD provided a concessional loan of AED22 million ($6 million) in 2015, aims to address the country’s waste-management and energy challenges through the construction of facilities that will use waste in an eco friendly manner to generate about 4MW of energy. The project will eventually cover three Islands of Vandhoo, Addu and Kulhudhuffushi. “The initiative thus helps the Maldivian government to achieve SDG 7, which seeks to ensure everyone has access to affordable, reliable and modern energy services by 2030; as well as SDG 15, which aims to conserve the environment,” Al Suwaidi said.

SEC SIGNS SR9 BILLION FINANCING AGREEMENT WITH 7 BANKS Saudi Electricity Company (SEC), the largest utility company in the Middle East and North Africa region, signed a syndicated financing agreement worth SR9 billion with seven major local banks. The financing is a 7-year medium-term facility and is unsecured syndicated borrowing. It is funded by the National Commercial Bank, Bank Albilad, Al-Rajhi Bank, Riyad Bank, Samba Financial Group, Banque Saudi Fransi and the Saudi British Bank. “SEC is a national utility, delivering electric services to a growing customer base of almost 9.8 million subscribers in Saudi Arabia. PG 6


MIDDLE EAST NEWS

UAE’S SEWGA COMPLETES 157 NEW 11 KILOVOLTS DISTRIBUTION STATIONS

MASE JOINS JORDAN STRATEGY FORUM

Sharjah Electricity, Water and Gas Authority, SEWGA, announced the completion of its work plan for 2020. The plan sought to raise the efficiency of the power grid and improve its performance to ensure the stability and continuity of the power supply, in accordance with quality standards; reduce power failures and respond to the continuous increase in power consumption and expected loads. Officials announced that SEWGA completed 157 new 11 kilovolts distribution stations and replaced equipment and spare parts in 111 stations, upgraded 26 stations, expanded seven areas in Sharjah, and completed projects to modify and upgrade old grids in 23 areas.

MASE, the leading regional solar operations and maintenance firm, has joined the Jordan Strategy Forum as its newest clean energyfocused member. MASE will leverage its award-wining track record and knowledge base in developing and operating utilityscale solar PV plants across the region to provide the Forum with actionable insights in the field of clean energy. “The opportunity to be part of Jordan’s leading economic development think tank is something that we are very excited about. At MASE, we’ve developed a deep understanding of how clean energy power generation assets can positively impact Jordan’s energy infrastructure and we look forward to sharing those insights to advance Jordan’s energy ambitions and advocate for energy diversity across Jordan’s grid”, said Tareq Khalifeh, MASE’s Managing Director.

SPARK SUSTAINABILITY SHINES THROUGH SILVER LEVEL LEED CERTIFICATION King Salman Energy Park (SPARK) has become the first industrial city in the world to receive Silver Level accreditation for Leadership in Energy and Environmental Design (LEED). The LEED program is an internationally recognized green building certification system, which verifies that buildings are designed to improve performance across key sustainability metrics such as energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, stewardship of resources and sensitivity to their impact. The LEED certification strengthens SPARK’s ability to support future tenants and investors on their own journey towards LEED certification of their own facilities, as part of a fully-integrated energy community. It also affirms the city’s integrated sustainability practices, which are at the heart of the community’s planning.

SIRAJ POWER EXTENDS ITS SOLAR OPERATIONS AND MAINTENANCE IN THE MIDDLE EAST SirajPower, UAE’s leading distributed solar energy provider, announced that it has started to provide operation and maintenance (O&M) services to all solar plant owners in the region beyond its owned portfolio. Through its O&M services, SirajPower will handle the operation, cleaning, and maintenance of solar systems allowing clients and plant owners to focus on their core business. The move also comes as SirajPower continues to champion the commercial, industrial and residential sectors (solar rooftop and carports) thanks to the strong and extensive solar experience built for nearly half a decade.

KENT COLLEGE DUBAI GOES SOLAR WITH SIRAJPOWER AND CONTRIBUTES TO EDUCATE THE NEXT GENERATION ON SUSTAINABILITY UAE’s leading distributed solar energy provider, SirajPower, announced it has signed a partnership with Kent College Dubai to install a solar rooftop plant and solar carport of 1.3 MWp system capacity, generating 2.3 GWh of annual energy production and displacing approximately 1,600 metric tons of CO2 per annum which also corresponds to 200 million smartphones being charged. The school is SirajPower’s first project in the education sector and currently the largest in Dubai. | MIDDLE EAST | SEPT-OCT ISSUE 2020

ACWA POWER SELLS ITS STAKE IN BULGARIA’S 60 MW PHOTOVOLTAIC POWER PLANT ACF Renewable Energy Limited, a subsidiary of ACWA Power has completed a sale of its 100% stake in ACWA Power CF Karad PV Park EAD (“ACWA Power Karad”), owner of the 60.4 MWp Karadzhalovo photovoltaic (PV) power plant in Bulgaria to Enery Development GmbH, an Austrian investor and project developer in the renewable energy sector for an undisclosed consideration. Furthermore, ACWA Power’s subsidiary NOMAC Limited, has also completed the sale of its 100% stake in NOMAC Bulgaria, a company providing Operations & Maintenance (O&M) services to the ACWA Power Karad plant, to Enery Development GmbH for an undisclosed consideration.

PG 7


MIDDLE EAST NEWS

UAE’S SEWGA COMPLETES 157 NEW 11 KILOVOLTS DISTRIBUTION STATIONS

MASE JOINS JORDAN STRATEGY FORUM

Sharjah Electricity, Water and Gas Authority, SEWGA, announced the completion of its work plan for 2020. The plan sought to raise the efficiency of the power grid and improve its performance to ensure the stability and continuity of the power supply, in accordance with quality standards; reduce power failures and respond to the continuous increase in power consumption and expected loads. Officials announced that SEWGA completed 157 new 11 kilovolts distribution stations and replaced equipment and spare parts in 111 stations, upgraded 26 stations, expanded seven areas in Sharjah, and completed projects to modify and upgrade old grids in 23 areas.

MASE, the leading regional solar operations and maintenance firm, has joined the Jordan Strategy Forum as its newest clean energyfocused member. MASE will leverage its award-wining track record and knowledge base in developing and operating utilityscale solar PV plants across the region to provide the Forum with actionable insights in the field of clean energy. “The opportunity to be part of Jordan’s leading economic development think tank is something that we are very excited about. At MASE, we’ve developed a deep understanding of how clean energy power generation assets can positively impact Jordan’s energy infrastructure and we look forward to sharing those insights to advance Jordan’s energy ambitions and advocate for energy diversity across Jordan’s grid”, said Tareq Khalifeh, MASE’s Managing Director. JSF has been an instrumental platform in bridging together Jordan’s private and public institutions. The Forum’s member base includes an array of Jordan’s most reputable firms operating across diverse business sectors and the Forum has become renowned for its high-profile events.

SPARK SUSTAINABILITY SHINES THROUGH SILVER LEVEL LEED CERTIFICATION King Salman Energy Park (SPARK) has become the first industrial city in the world to receive Silver Level accreditation for Leadership in Energy and Environmental Design (LEED). The LEED program is an internationally recognized green building certification system, which verifies that buildings are designed to improve performance across key sustainability metrics such as energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, stewardship of resources and sensitivity to their impact. The LEED certification strengthens SPARK’s ability to support future tenants and investors on their own journey towards LEED certification of their own facilities, as part of a fully-integrated energy community. It also affirms the city’s integrated sustainability practices, which are at the heart of the community’s planning.

SIRAJ POWER EXTENDS ITS SOLAR OPERATIONS AND MAINTENANCE IN THE MIDDLE EAST SirajPower, UAE’s leading distributed solar energy provider, announced that it has started to provide operation and maintenance (O&M) services to all solar plant owners in the region beyond its owned portfolio. Through its O&M services, SirajPower will handle the operation, cleaning, and maintenance of solar systems allowing clients and plant owners to focus on their core business. The move also comes as SirajPower continues to champion the commercial, industrial and residential sectors (solar rooftop and carports) thanks to the strong and extensive solar experience built for nearly half a decade. Due to the rapidly maturing regional solar sector, O&M has evolved from a service offered mainly by Engineering, Procurement and Construction (EPC) companies to a dedicated segment of the market where solar providers are able to offer it as an independent service. As with any infrastructure asset, continuous operations and maintenance is a critical component to long-term project success and asset recovery. Optimal operations of a solar plant must strike a balance between maximizing production and minimizing cost. Therefore, it is vital to engage a solar plant operator that can perform a comprehensive and full range of operation and maintenance activities to maximize the energy generation and ultimately provide savings to its plant owners and/or end-users. SirajPower’s initiative is a response to this gap. Proper maintenance is essential to maximize both energy yield and the plant’s useful life.

| MIDDLE EAST | SEPT-OCT ISSUE 2020

PG 8


MIDDLE EAST NEWS

TAQA GROUP ANNOUNCES ONE OF MOROCCO’S LARGEST PRIVATE BOND PLACEMENTS Abu Dhabi National Energy Company PJSC “TAQA”, announced one of Morocco’s largest private bond placements in 2020, reinforcing the Company’s position in the Moroccan energy market, where its subsidiary, TAQA Morocco, generates electricity to meet more than 40% of the country’s electricity demand. The landmark transaction was delivered through TAQA Morocco’s finalization of a bond issuance by a private placement for AED 1.08 billion (USD 293.8 million), which diversifies TAQA Morocco’s funding base. The bond placement was substantially oversubscribed for by qualified investors, providing the company an opportunity to further optimize its capital structure and create value for its shareholders.

DUBAI WILL INCREASE SHARE OF RE ENERGY TO 25% BY 2030 Dubai is on track in implementing its vision to drive economic growth through reliable, clean, efficient and secure energy supply and usage, officials said to one media outlet. Wam news agency report said that “The vision’s implementation was discussed by the Dubai Supreme Council of Energy and Etihad Energy Services Company (Etihad ESCO) during an online webinar on energy sustainability in the emirate. “The Dubai Clean Energy Strategy 2050 will decisively decarbonise the energy mix, reduce the use of fossil fuels in the energy sector by more than 30 per cent compared to the business as usual, BAU, scenario.

ADFD FUNDS $15 MILLION; 10 MW SOLAR PLANT GETS CAPACITY BOOST TO 15 MW DEWA LAUNCHES AWARENESS CAMPAIGN TO SUPPORT UN SUSTAINABLE DEVELOPMENT GOALS Dubai Electricity and Water Authority (DEWA) has launched an online campaign to raise awareness on the effects of the coronavirus on achieving the 17 UN Sustainable Development Goals 2030. This is part of its efforts to engage all stakeholders in Dubai in achieving sustainable development. The campaign also includes an internal competition and a series of online awareness sessions to enhance the effective role of DEWA’s staff in supporting and implementing the strategies of Dubai and DEWA on social, economic, and environmental sustainability. The campaign urges DEWA’s employees to post videos in Arabic and English on DEWA’s internal and website, and smart App to highlight the effects of the Covid-19 outbreak on the UN Sustainable Development Goals (SDGs).

YELLOW DOOR ENERGY LAUNCHES MASSIVE SOLAR CARPORT AND ROOFTOP SOLAR PLANT FOR AL NABOODA AUTOMOBILES IN DUBAI Yellow Door Energy, a UAE-based sustainable energy provider for businesses, has successfully commissioned a 3.1 megawatt-peak (MWp) solar carport and rooftop solar plant for Al Nabooda Automobiles L.L.C. Located in Dubai Industrial City, the solar carport and rooftop solar plant are expected to generate 4,620 megawatthours (MWh) of clean energy in the first year of operation, equivalent to reducing 2,000 tonnes of carbon emissions per year. | MIDDLE EAST | SEPT-OCT ISSUE 2020

The 10-megawatt solar photovoltaic plant, which was inaugurated in Cuba last year, has recently received a capacity boost to 15 MW. The gridconnected project, financed by Abu Dhabi Fund for Development (ADFD), one of Abu Dhabi’s leading financial institutions, currently supplies enough electricity for an estimated 10,000 homes. The funding is part of ADFD’s commitment of US$350 million to support renewable energy uptake in developing countries through seven annual selection and funding cycles, starting in 2013. The Fund has allocated $20 million towards this project under the seventh cycle of the IRENA/ADFD Facility.The Fund’s keenness to promote renewable energy stems from its policy to support international efforts to help developing countries achieve energy priorities, as well as from its commitment to advancing the United Nations’ Sustainable Development Goals though infrastructure projects in diverse sectors.

PG 9


INCONVERSATION

JEREMY CRANE CEO, YELLOW DOOR ENERGY

Please let us know the purpose of launching Yellow Door Energy in 2015. What was the aim and vision behind the same? Yellow Door Energy was founded in 2015 to provide businesses with reliable, efficient and sustainable energy through solar agreements, also known as solar power purchase agreements. A solar agreement is a long-term contract which enables businesses to go solar and save money without any upfront investment. As the solar developer, Yellow Door Energy finances, designs, builds, commissions, operates and maintains the solar plant for the business.Today, we have over 110 megawatts of solar projects in the UAE, Jordan, Saudi Arabia and Pakistan, making us the leading solar developer in this region. Our vision remains steadfast, which is to power emerging economies reliably, efficiently and sustainably. We want to become the leading sustainable energy partner for businesses, serving commercial and industrial customers in the Middle East and South Asia.

How has the journey been so far? How has the Covid situation affected the journey? Like the weather in Dubai, the journey has been mostly full of sunshine, with the occasional sandstorms. I am fortunate to work with a team of highly talented energy experts to weather the storms and bring sustainable

"OUR VISION REMAINS STEADFAST, WHICH IS TO POWER EMERGING ECONOMIES RELIABLY, EFFICIENTLY AND SUSTAINABLY." energy to leading companies such as NestlĂŠ, Unilever, Carrefour/Majid Al Futtaim, Landmark Group, and Hira Industries, to name a few. My personal journey with solar started in 2009 where I founded a solar company and developed $40 million in rooftop solar projects in North America and Europe. In 2012, I relocated to Dubai to work on utilityscale solar, where I deployed $250 million in solar projects globally. With Yellow Door Energy, we currently have $100 million invested in rooftop PV, ground-mount PV and solar carports. We continue to grow in new markets and expand our suite of services. The COVID situation has accelerated the adoption of distributed solar, and in particular solar agreements / PPAs as businesses look for ways to reduce electricity costs, increase their power independence and still maintain sustainability leadership. We have experienced an increase in inquiries during COVID. Since July this year, we have signed 8 solar agreements, 4 in Jordan and 4 in the UAE. The signings of these solar agreements signal the urgency for businesses to reduce costs to remain competitive in their respective industries.

| MIDDLE EAST | SEPT-OCT ISSUE 2020

With presence currently in KSA, Jordan and Pakistan, are there any plans of expansion in other countries in the Middle East? We are assessing opportunities in Bahrain and look forward to helping businesses in the Kingdom switch to clean energy and reduce electricity costs. Saudi Arabia is a vast market, and we hope to make more inroads once the net billing law is implemented.Our Pakistan operations are growing quickly, so we look forward to supporting businesses outside of Lahore and surrounding regions. We remain committed to our core markets in Jordan and the UAE as there are still many businesses that can benefit from solar energy.

As the solar developer, Yellow Door Energy finances, designs, builds, commissions, operates and maintains the solar plant for the business."

PG 10


What have been some of the key achievements by your company in the past? What is the next milestone you are aiming at? There have been many memorable moments in our company’s 5-year timeline. In early 2016, we signed our first customer, Unilever Middle East. The 1-megawatt ground-mount solar PV project in Dubai with a global brand opened doors to many other leading businesses. In 2018, Nestlé Middle East awarded three solar agreements to us, and we commissioned the first build-operate-own-transfer (BOOT) solar wheeling project in Jordan for Specialty Hospital and Istiklal Mall.

How do you think the Renewable Energy sector is going to be/perform in the next 5 years in the Middle East? In the next 5 years, I believe most rooftops in the Middle East will be adorned with solar panels. Firstly, the price for solar has fallen significantly, specifically 82% in the last decade, making solar cheaper than new coal. 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. Lastly, countries in the region recognize the importance of sustainability and preserving the environment for future generations. Deploying renewable energy is integral to every country’s sustainability strategy, thus more favourable policies will be in place to encourage the adoption of renewable energy.

In early 2019, we raised $65 million and added to our shareholder list institutional investors such as the International Finance Corporation (IFC), APICORP, Mitsui and Equinor. We secured 70 megawatts of solar projects and opened an office in Pakistan. This year, in spite of the COVID pandemic, we still signed solar agreements and commissioned many projects. Our headcount has also grown exponentially. We now have over 60 colleagues from 20 different countries, all working together to build a better planet for current and future generations.

| MIDDLE EAST | SEPT-OCT ISSUE 2020

PG 11


INCONVERSATION

KARIM MEGHERBI EXECUTIVE DIRECTOR, EPDA

Please tell our readers about how did you start your journey in the Solar industry and how has the journey been so far? My journey started 15 years ago. I was working in 2005 as a junior in the project finance department of a European bank, Dexia, focusing on oil & gas projects globally and PFI transactions in Europe. One day, the Global Head of Energy came into my office and asked me to assist him in launching an offer targeting solar projects, as he believed that this technology would boom in the coming years. 2006 was the beginning of the Feed-InTariff systems in Europe, the size of most projects was rather small, and sponsors were all SMEs. Within a year, after visiting laboratories, industry associations, equipment manufacturers, Silicon Wafer manufacturers, industrials, and developers around the world, we obtained an internal approval for an initial envelope of EUR 300m, which quickly reached EUR 1Bn. Since then, I never left the industry. I have worked as a financial advisor, a developer, and an IPP, either with companies I founded or with existing teams, and have been involved with regional and international institutions such as the IEA, IRENA or more recently MESIA, to contribute to research programs and advocate for government actions and renewable energy policies. I have worked in more than 40 countries and on several gigawatts of transactions, with some flagship projects: largest solar project in Kazakhstan and

"WE ARE CERTAINLY ABOUT TO REACH A TIPPING POINT AND WE WILL SEE THE ENERGY MASTER PLANS IN THE REGION EVOLVING SOON." Central Asia in 2018, first ever solar project awarded in Mali, largest solar PPA signed in Nigeria, largest rooftop transaction closed in France in 2011… and more are on the way. I feel extremely grateful towards all the persons I have met so far, many of whom I still work with. I learn so much every day from everyone in this industry!

Please tell us more about your company EPDA. EPDA is a project origination platform in renewable energy, which I founded last year, providing origination services to IPPs and investors providing origination services to IPPs and investors. We are intending to close 150MW this year, which is a good achievement for our first year of operation, and we’re targeting 500MW for the next year. I feel that there is still a lot to be done in our sector regarding the origination processes. As our sector is booming internationally, with fragmented markets each

| MIDDLE EAST | SEPT-OCT ISSUE 2020

having their own dynamic, investors and IPPs cannot be everywhere, nor always be at the right time in the right place, and are often requested to take quick decisions, without having enough time to collect the necessary information – leading numerous deals to be abandoned or lost, and time and resources to be wasted. EPDA is solving these issues by offering to IPPs and investors prescreened high-quality transactions, generally in the 50100MW range, in solar, wind and hydro, together with the appropriate negotiation framework to get the deals done - a framework that we are now in the process of digitalizing.

How has Covid impacted the Solar industry in the Middle East and how has the region tackled this crisis? As everywhere, it has been more difficult to implement projects, although financial close happened as planned on the large projects already awarded. Regarding PG 12


Commercial & Industrial (C&I) projects, the business has slowed down in the first months, but now you can see it back on track. As the electricity demand decreased, some countries took drastic measures. Jordan started to curtail solar generation, which led to financial difficulties for sponsors. Egypt slowed down its interconnection program with Saudi. Companies have accelerated the digitization of the O&M and business processes. Health and security rules have evolved, but generally the industry has been able to react quickly. We can see the same trend within the administrations: acceleration of the digitalization and new work organization.

Any piece of advice that you would like to give to the governments across the Middle East who are looking to grow their country’s renewable energy capabilities? I would maybe give 3 main pieces of advice: 1. Decreasing the power demand in the residential segment, using new technologies for A/C and demand-side management systems, is a low hanging fruit. This represents more than 50% of the power consumption, and savings up to 30-40% are possible. 2. It’s possible to set a minimum target of 50% of solar in the energy mix for 2035. The Middle East has 2 advantages: the highest solar radiation, and the lowest volatility. This means that the region will be able to achieve the lowest LCOE, while benefiting from the lowest system costs to manage intermittency. What’s more, solar PV costs will continue to decrease, and batteries will soon be commercially attractive on a large scale. 3. Think about how to monetize this high radiation with low volatility, to diversify the economy. The sun is the new Oil, and its quantity is unlimited.

| MIDDLE EAST | SEPT-OCT ISSUE 2020

What are some key challenges being faced by the Solar industry in the region which you would want to be addressed immediately? Governments are still prudent about increasing too quickly the share of intermittent energy in their grids, but at the same time they are far from being dogmatic and know how to adapt to changes. C&I volumes are still too low, as too few countries have developed an appropriate framework. The UAE is clearly leading the way, Oman seems to be next, but Saudi and Kuwait are yet to start a proper program. C&I actors are ready to expand, provide competitive, well-structured offers, with well-designed O&M services. What they need is an appropriate regulatory framework, and the utilities to accept this development, as well as grid connection norms to evolve. It could also be interesting to allow small and medium, decentralized projects of few tens of megawatts to develop. There is today no regulatory framework for such developments, whereas it could play a role in the future in managing the intermittency, being closer to consumers. The region is regularly assessing the industrial opportunities, but maybe it could be interesting to have a broader view on the sector as a contributor of local economies, beyond providing cheap electricity. For example, there are some module manufacturers in the region, it could be interesting to support their growth, and have more integrated projects, including batteries and other infrastructure.

What is your outlook for the Solar sector in the Middle East for the next 5 years? The perspective of a lower oil & gas demand is a serious threat to these economies, which are currently developing massive petrochemical programs to compensate for this potential loss. In the meantime, solar prices will continue to decrease, as well as the costs of batteries. Solar prices have already reached a level below the marginal cost of gas, in a region where this marginal cost is already very low, we will see drastic changes in the coming years. The UAE is importing gas, and this can change in the future. There is no reason why these countries would willingly lose money, and countries which are still behind in their solar program may catch up soon, while interconnection projects within and inter-countries, may accelerate to strengthen the economies and create new industrial clusters. Altogether this creates the appropriate conditions for these countries to start to test new strategies with solar and see which are the most profitable ones. We are certainly about to reach a tipping point and we will see the Energy Master Plans in the region evolving soon.

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PERSPECTIVE

WHICH FACTORS ARE LEADING TO THE RISE OF ROOFTOP SOLAR IN THE MENA REGION?

Flying into Dubai International Airport, visitors are treated to views of glittering skyscrapers and spectacular sandy beaches. Eagle-eyed visitors may also spot something shiny atop unassuming warehouses in the emirate’s many industrial zones. Like sapphire gemstones sparkling under the sun, solar panels are adorning more and more rooftops in Dubai and beyond. FAVORABLE REGULATIONS AND AMBITIOUS ENERGY TARGETS The emirate’s net metering scheme, Shams Dubai, was launched in 2015 by Dubai Electricity and Water Authority (DEWA) to encourage the adoption of solar among commercial and residential building owners. Within five short years, over 5,500 sites were connected to DEWA’s grid, reaching a total capacity of 164 megawatts. The program continues to grow and contribute to the UAE Energy Strategy 2050, which aims to increase the contribution of clean energy in the total energy mix to 50% by 2050. The UAE is not alone in its sustainable energy aspirations. In neighboring Oman, the Authority for Electricity Regulation (AER) launched its renewable energy initiative Sahim in 2017 to bring rooftop solar to businesses and residents. The Sultanate targets 10% renewable energy contribution by 2025. In fact, many MENA countries have announced ambitious renewable energy targets, followed by favorable renewable energy policies on net metering, net billing, and solar wheeling, accelerating solar adoption in their respective countries. | MIDDLE EAST | SEPT-OCT ISSUE 2020

FALLING PRICES OF SOLAR AND GAINS IN SOLAR CELL EFFICIENCY In the last decade, the price of solar PV has fallen by 82%, making solar cheaper than new coal. Driven by economies of scale from Chinese manufacturing prowess and significant gains in solar cell efficiency, solar PV has been proclaimed as “the new king of electricity” in the International Energy Agency’s latest World Energy Outlook Report. Today, the most efficient solar panel has an efficiency of 22.8%, as opposed to 17.8% in 2012. The levelized cost of electricity (LCOE) of solar PV can now comfortably compete with those of coal and natural gas. Business leaders should consider solar as an indispensable part of their companies’ energy mix to reduce electricity costs, improve power reliability, and lower carbon emissions. EXPERIENCED SOLAR PARTNERS WITH PROVEN SUCCESS STORIES Global solar PV capacity has increased by 27 times in the past decade, from 22.6 gigawatts in 2009 to 617.9 gigawatts in 2019. As a technology, solar PV has been proven many times over. Today, there are many solar developers and contractors clamoring for a share of the fast-growing rooftop solar market. Business leaders should look for solar partners with reliable customer references and successfully operating solar plants, to ensure that the solar developers can deliver on their promises. PG 14


At Yellow Door Energy, we guarantee the performance of our solar plants in clearly worded solar agreements: if the performance is not achieved, then we reimburse the difference to the customer. With over 110 megawatts of solar proj ects in the Middle East and South Asia, developed by 60 solar energy experts from 20 countries, our solar proj ects have always exceeded performance expectations. PANDEMIC RECOVERY AND LONG-TERM COST VISIBILITY

The coronavirus has cost countless lives and disrupted business activities on an unprecedented global scale. As the pandemic persisted, we received more inquiries from businesses interested in our solar agreements in order to save money and put solar on their roofs, all without any upfront investment. Since July this year, we have signed 8 solar agreements, 4 in Jordan and 4 in the UAE. The signings of these solar agreements signal businesses’ need to reduce electricity costs to remain competitive in their respective industries. Our solar agreement locks in the price of electricity for the duration of the agreement, usually between 15-20 years, thus business leaders have the added ability of forecasting their future energy costs. ROOFTOP SOLAR IS HERE TO STAY

The aforementioned factors have contributed to the rise of rooftop solar in the MENA region. The most obvious factor is, of course, the year-round sunshine. With high irradiation levels, many sun hours and low chance of rain, coupled with a growing population with increasing demand for energy, solar panels will continue to embellish rooftops in villages and cities for many years to come.

ANUP ISAAC Country Director, UAE, Yellow Door Energy

| MIDDLE EAST | SEPT-OCT ISSUE 2020

PG 15


PERSPECTIVE

WHAT ARE THE CURRENT AND EXPECTED FUTURE SOLAR PV TRENDS IN THE MIDDLE EAST REGION?

Solar Photovoltaic (PV) power is gradually establishing itself as a mainstream energy source following years of exponential growth across the world, and it continues to make inroads in the Middle East region. In the renewable energy mix, Solar PV has proven to be highly competitive, mature and fastest-growing in the Middle East. Continually declining prices of solar PV power, coupled with country-specific clean energy targets and strong regulatory support, are driving the growth of the solar PV power market. The utility-scale projects hold the majority share of the solar PV power market in the Middle East, while the commercial & industrial and residential markets register the highest growth rates. A recent study by Frost & Sullivan indicates Solar PV dominating the investment opportunities in the Middle East Renewables sector by 2025, attracting an investment of USD 170-180 billion. The pressure to lower greenhouse gas (GHG) emissions is compelling the Middle Eastern countries to embrace renewable energy. With a 57GW capacity addition— solar photovoltaic (PV), concentrated solar power (CSP), and wind—by 2025, the region is estimated to witness an 18-fold growth of the current capacities. The Kingdom of Saudi Arabia (KSA) is the leader in terms of planned capacity addition, followed by the UAE and Qatar. | MIDDLE EAST | SEPT-OCT ISSUE 2020

Drive towards generating clean energy and achieving energy efficiency, progressive policies and falling costs of solar power generation are driving the demand for renewable energy in the region. Abu Dhabi Power Corporation (ADPower) announced the lowest tariff for solar power in the world, earlier this year. Some of the recent large scale projects include 100 MW Amin power plant in Oman which went operational in June 2020 and Qatar’s 800 MW solar IPP plant that concluded in January 2020. At the same time, lack of awareness, skills, grid parity, lesser local players and domination by international suppliers are some of the key restraints of the sector. KEY TRENDS FUELLING THE GROWTH OF RENEWABLE ENERGY, PARTICULARLY THE SOLAR PV ARE: A: Localisation of Solar PV Value-Chain

Strategic geographic location, attractive tax and ownership structures and well-developed logistics facilities make countries in the region attractive for foreign investment and localisation for exports to different countries and upcoming markets in Africa. Local value addition has emerged as a key mandate for the government in the region, which participating companies need to fulfil to secure projects. For e.g., Saudi Arabia’s REPDO aims to achieve 40%-45% localisation levels by 2028. PG 16


Frost & Sullivan expects localisation to be focused around the development of system components such as inverters, charge controllers and infrastructure rather than manufacturing of solar cells and b a t t e r y p a c k s . T h e r e g i o n h a s c o n s i d e r a b l e p o t e n t i a l f o r a s s e m b l y , s y s t e m d e s i g n a n d o p e ra t io n & maintenance. B. Diverse Application –

Growth of building-integrated PV, solar-powered desalination, solar-powered cooling, and other a p p l i c a t i o n s a r e d r i v i n g t h e a d o p t i o n o f S o l a r P V . S o m e o f t h e r e c e n t p r o g r a m s l i k e K in g A b d u l l a h C it y f o r A t o m i c a n d R e n e w a b l e E n e r g y ( K . A . C A R E ) ’ s T e c h n o l o g y L o c a l i z a t i o n a n d C o m m e rc ia l iz a t io n I n i t i a t i v e s u p p o r t s d e v e l o p m e n t o f t h e r e n e w a b l e e n e r g y s e c t o r i n t h e K i n g d o m . O t h e rs in c l u d e M a s d a r ’ s S o l a r P V p r o j e c t s a n d i n s t a l l a t i o n s o f B I P V i n c l o s e t o 5 0 0 b u i l d i n g s w i t h a c a p a c it y o f o v e r 18 MW in Dubai. C. Increasing Adoption by Commercial, Residential and Industrial Sectors C o m m e r c i a l , i n d u s t r i a l a n d r e s i d e n t i a l p r o j e c t s a r e p i c k i n g u p r a p i d l y i n t h e M i d d l e E a s t re g io n in t a n d e m w i t h l a r g e s c a l e p r o j e c t s . P a s t f e w y e a r s h a s s e e n a p r i c e d r o p o f 5 0 % i n t h e r e s id e n t ia l r o o f t o p s p a c e a n d t h i s h a s s p u r r e d t h e d e m a n d s i n c e R O I s a r e g u a r a n t e e d a t t h e s e p ric e s . L e a s in g agreements and attractive PPAs offered by project developers are further enhancing the demand for r o o f t o p s o l a r P V a n d d i s t r i b u t e d g e n e r a t i o n p r o j e c t s i n t h e r e g i o n . W h i l e D u b a i h a s t a k e n t h e l e a d w it h i t s S h a m s i n i t i a t i v e , O m a n t h r o u g h i t s S a h i m P r o g r a m m e a n d t h e r e c e n t t e n d e r f o r s o la r- d ie s e l h y b rid s y s t e m s i s a l s o e x p e c t e d t o b e c o m e a k e y r e g i o n f o r d e v e l o p m e n t o f d i s t r i b u t e d r e n e w a b l e e n e rg y projects. D. Competition Fostering Innovation -

D e c l i n e i n L e v e l i z e d c o s t o f e n e r g y ( L C O E ) h a s f u e l l e d c o m p e t i t i o n l e a d i n g t o i n n o v a t io n . B if a c ia l m o d u l e s , h a l f - c u t c e l l s , h e t e r o - j u n c t i o n c e l l s a n d o r g a n i c t h i n f i l m a s w e l l a s i m p r o v e d ro b o t ic c l e a n i n g t o a d d v a l u e t o p r o d u c t s . T h e r e g i o n i s b e c o m i n g a g l o b a l h o t s p o t f o r i n n o v a t io n a t t ra c t in g global players. E. Digitalisation and IoT -

G r o w i n g r e n e w a b l e e n e r g y i n t e g r a t i o n t h r o u g h g r i d - s c a l e a n d d i s t r i b u t e d e n e r g y p r o j e c t s w il l re q u ire s t a b l e g r i d i n f r a s t r u c t u r e . I t i s g i v i n g r i s e t o t e c h n o l o g i e s a n d s o l u t i o n s t h a t c a n e n s u re g rid re l ia b il it y a n d p e r f o r m a n c e a t a l l t i m e s . P r e d i c t i v e m a i n t e n a n c e , d i g i t i s a t i o n o f t h e n e t w o r k t o c re a t e s m a rt g rid s are some of the technologies that will gain traction in this region in future.

Conclusion The solar industry is intensely competitive and evolving continuously. Consolidation within the market is likely to continue as companies seek to enhance their service offerings and expand their regional market presence. The Middle East is well poised to withstand the COVID-19 crisis and keep up with Renewable Energy goals despite short term disruptions in operations.

ARUN STANLY, Sr. Manager – Business Development, Industrial Practice, Frost & Sullivan

| MIDDLE EAST | SEPT-OCT ISSUE 2020

PG 21 PG 17


INSIGHTS

How WETEX and Dubai Solar Show will help Dubai to achieve its solar target

and do business. Many of the challenges today require more than just applying traditional thinking; original ideas and imagination to bring new ways of doing things into reality. One of the best ways to identify ideas and get inspiration is to see what the industry is doing. This is why DEWA constantly looks out for the latest solutions and innovations by major national and international companies.

Dubai Electricity and Water Authority (DEWA) is working to achieve the Dubai Clean Energy Strategy 2050 to produce 75% of Dubai’s total power capacity from clean energy sources by 2050. To achieve this goal, it is building major projects such as the Mohammed bin Rashid Al Maktoum Solar Park, which will eventually generate 5,000MW from a range of photovoltaic and concentrated solar power technologies. Sustainability is a core goal for modern society to live in a manner that does not waste or reduce Dubai’s natural resources and provides an assured means of future growth. Today, focusing on sustainability in industries around the world is creating more jobs and opportunities for development than ever before. The Emirate of Dubai has made sustainable development a key strategic objective, guided by the Dubai Plan 2021 to become a smart and sustainable city. The global energy industry is now seeing the rise of clean energy technologies such as solar power, wind turbines, hydroelectric and geothermal power to replace traditional fossil fuels sources such as coal, oil, and gas. Cities around the world are focusing on these technologies, while Dubai is pioneering a transformative approach, to achieve the goals set in the Dubai Clean Energy Strategy 2050. Innovative energy technologies are driving this change with improved efficiency, output and combining techniques to minimise the use of fossil fuels. The Information Age has become the Innovation Age with the move towards new ways of thinking, and the development of ideas and creativity in the way we live | MIDDLE EAST | SEPT-OCT ISSUE 2020

To achieve this, DEWA organises the Water, Energy, Technology and Environment Exhibition (WETEX) and Dubai Solar Show every year. This will take place virtually from 26 to 28 October 2020 and will be the first ever carbon neutral 3D virtual exhibition in the Middle East and North Africa. Using a virtual platform to host WETEX & Dubai Solar Show 2020 is a natural progression that advocates sustainable practices. WETEX and Dubai Solar Show is the perfect platform to display the latest technological advancements and discuss the latest trends related to energy The carbonneutral WETEX and Dubai Solar Show features four halls: Innovation, Sustainability, Energy, and Water; where exhibitors, officials, decision-makers, visitors, university students, investors and everyone interested in these areas can build partnerships and trade relations, hold meetings, make deals, and learn about market needs. It will also offer a wide range of specialised seminars. WETEX and Dubai Solar Show is an important forum for hosting experts and specialists from around the world on green economy, smart cities, innovation and sustainable development. By bringing together not only the technologies, but also the experts, and these meeting points, the exhibition provides DEWA with the means to achieve its goals to make clean energy the way forward. New opportunities mean new business partners, so innovation is key to making this happen. Some of DEWA’s pioneering projects and innovations will be on display at the virtual exhibition to inspire a brighter sustainable future for the citizens and residents of Dubai, to achieve DEWA’s motto: for generations to come.

HE SAEED MOHAMMED AL TAYER MD & CEO of Dubai Electricity and Water Authority (DEWA)

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