PR O J ECT PA R T N ER S
Driving energy efficiency within the UAE and beyond
Driving energy efficiency within the UAE and beyond Written by Catherine Rowell Produced by Heykel Ouni 3
With a vision to serve GCC countries, the GCCIA aims to extend its operations within an efficient power market, providing excellence in power systems integration
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orking in collaboration with six different member states, the GCCIA has diversified its operations within the energy and electricity sector, with a desire to expand into further markets overseas. With an increased focus on the development of the grid, the authority is continually looking for opportunities to provide savings and drive market growth whilst ensuring increased energy efficiency. CEO Ahmed Ali Al-Ebrahim has been behind the company’s growth since its inception, stating: “The vision of GCC countries is that more renewables are being planned. The UAE has announced their 20/20 Expo vision, part of that task is to achieve 44 percent of renewables by 2026.” By looking to export to other countries such as Jordan, India, Pakistan, Turkey and towards Europe, the GCCIA is also aiming to drive business towards Africa and is considering the potential of hydropower. Al-Ebrahim continues: “The Minister of Energy has recently announced plans that within the next six years, Saudi Arabia will be
undertaking $40-50 billion of renewable investments”, the key question being how the GCC will be able to integrate large volumes of renewables into its current and future strategic framework. Since its inception, the volume of trading within the GCCIA in 2016 exceeded 1.5 million megawatts of power in 2016 alone, placing an increased emphasis of the importance of the grid and its focus on reliability for member states. By continuing to open channels of collaboration with global leaders, the GCCIA has become members of GO15, one of the largest power grid operators in the world, of which the GCCIA is the only member from the Middle East. By also signing an MOU with the Réseau de transport d’électricité, the national operator for the grid in France, Al-Ebrahim explains “we are always working with other companies in a bid to bring value and facilitate our role in order to reach our goals”. Furthermore, the company has become a member of the Edison Electric Institute, which Al Ebrahim says “brings a wealth of experience and utilities which can be used as a platform to share knowledge,
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common interests and ideas”. of trading, the largest ever volume of Through collaboration with member trading the company has ever seen. states, Al-Ebrahim explains that in Al-Ebrahim adds: “The GCCIA has 2016, the main thing the company saw a key role in providing these kinds was “the desire of CEOs in the GCC of economic utilities for the GCC to utilise the GCCIA as the connection and achieve the level of savings for a power trade platform, not only for that we have currently achieved.” electricity but for commercial deals Through expansion, the company that make them save money aims to not start from or make money”. As a scratch, but partner result, the GCCIA with large names has encouraged within the region member states to and finalise utilise the GCCIA the model interconnector for 2018. for the GCC Al-Ebrahim Power Trading explains: Number of employees at project, which “Now we GCC Interconnection implemented are achieving Authority two schemes around $400 of trading, carbon million, but the trading and cash trading. potential could reach Al-Ebrahim commented, more than $1 billion, “With carbon trading, users pay back which we can take advantage of.” the energy they consumed through Undertaking joint collaborations will the use of energy, whilst cash trading see the creation of an entity or power enables users to pay for consumed exchange platform, of which several energy through traditional payment.” discussions to achieve this goal have This method has enabled the company been undertaken. Al-Ebrahim adds: to achieve 1.3 million megawatts hours “The platform will be primarily a power
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grid platform, set on a commercial basis that allows members to easily bid and pitch for deals for power trade and exchanges. Power exchange is something we want to achieve this year, because all the leads we had last year were based on bilateral discussions and bilateral deals that the GCCIA may or may not have had involvement in. We want our exchange platform that is based on international practices like other areas.” Partner power The company continues to utilise an informed client model, outsourcing maintenance operations, which Al-Ebrahim believes is best to deliver the highest possible quality of service whilst allowing a reduction in cost. He explains: “Every year we try to optimise the model by reviewing
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the scopes and required work, as well as looking for other alternative suppliers.” Every year the company has worked to consistently reduce costs, ensure quality control, whilst continually building knowledge through the collaboration with key experts, engineers and service providers. He continues: “The GCCIA is in a very good standing in terms of maintenance and service operations. With all our work, we ensure it does not compromise reliability – reliability is our number one.” However, achieving sustainability is vital towards the company’s global outlook in order to connect with other regions and provide economic value. To this end, the GCCIA has recently reviewed its financial and commercial model, enabling it to gain a larger portfolio of investments to reinforce
“The vision of GCC countries is that more renewables are being planned. The UAE has announced their 20/20 Expo visiown, part of that task is to achieve 44 percent of renewables by 2026” –A hmed Ali Al-Ebrahim CEO
its position and financial situation. Al-Ebrahim says: “We are open to new channels of business so that we achieve sustainability in the long-term and so that we can rely on our own income.” It is believed the company has saved around $400 million in 2016 alone, at which Al-Ebrahim adds that the company will see every year a delivery in savings, which is “a very encouraging sign that the GCCIA is moving in the right direction”. This year the company has had a change in Chairmanship, which rotates every three years to promote fairness and transparency. In April, chairmanship will move from the UAE to Bahrain, who will then chair the current board for three years. With the
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GCCIA’s long-term goal to expand and diversify, the company is awaiting results from a current study which will highlight the highest economic visibility and provide the best practices in operation and maintenance, not only to optimise the role of the GCCIA but to enable the company to take advantage of events which are occurring in the UAE and GCC countries. In order for this to come into fruition, the GCCIA is also partnering with Nord Pool, who will provide key software and upgrade previous technologies which are now outdated and unfit for purpose, in
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• Assembly of power boilers at field sites as per ASME “A” stamp and fabrication & assembly of power cycle piping at field sites as per ASME “PP” stamp. • Repair & alteration works of Boiler & Pressure vessel as per NCB “R” stamp. • Construction of Tanks as per API Spec Q1 & API 650 Monogram. Telephone Fax Email Website
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order to provide a world-class energy saving alternative to current methods. The GCCIA will continue its role to coordinate all operations and planning with regards to setting energy efficiency targets for all GCC member states to hit. Al-Ebrahim concludes: “By doing this kind of planning in a collective way we are saving each member state a big percentage of their investment requirement, which was one of the main elements of the emirates feasibility of this project – it means we are reducing the investment requirement of each member state.”
$100 bn
The annual revenue for GCC Interconnection Authority w w w. g c c i a . c o m . s a
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P.O. Box 3894 Dammam 31481Â Kingdom of Saudi Arabia