POWER AND WATER NOVEMBER 2013
Dubai’s solar agenda
The successful completion of Phase 1 of the Mohammed bin Rashid Solar Park adds momentum to Dubai’s clean energy programme. INTERVIEW: Dr Aisha Mufti Al-Qurashi, Surface Water Expert, Ministry of Regional Municipalities and Water Resources, Sultanate of Oman
INTERVIEW: Adrian Wood, CEO, Siemens EES
IDA World Congress, Tianjin, China
Saudi Aramco awards solar field extension
POWER & WATER MIDDLE EAST / NOVEMBER publication2013 licensed by impz
POWER AND WATER MIDDLE EAST
CONTENTS NOVEMBER 2013 COVER STORY
4/ editor’s note
12/ RounD up
8/ THINK TANK
14/ In the region
10/ mosaic
20/ At large
SPOTLIGHT
6 / NyNAS 16 /JUBAILI BROS 40/ ELECRAMA 2014
64 / FLIPSIDE 3d experience
52 / 10 projects that matter 62 / EVENTS
30/ Dubai’s solar agenda The successful completion of Phase 1 of the Mohammed bin Rashid Solar Park adds momentum to Dubai’s clean energy programme.
28 /on the record Kuwait Report Adrian K Wood, CEO of Siemens EES on Kuwait’s power scenario and Siemens’ prospects outside the utility sector.
61 /Sector report Qatar’s LNG dominance under threat Business Monitor has just released its latest findings on Qatar’s expanding oil and gas sector
Special reports 34/ WORLD ENERGY CONGRESS 2013 36/ IDA WORLD CONGRESS 2013 42/ POWER + WATER LEADERS FORUM 2013
46 /Water Re-use Reliable re-use
Rami Abu Amirah, Regional Commercial Manager, Dow Water & Process Solutions (DW&PS)Middle East & North Africa on how DW&PS’ re-use technologies are opening up new opportunities for treated wastewater in industrial applications.
26 /Harness Open door for ESCOs Adam Weber of Clean Energy Business Council on bringing energy efficiency to Dubai
48 /surface water Keeping the balance
Dr Aisha Mufti Al-Qurashi, Surface Water Expert, Ministry of Regional Municipalities and Water Resources, Sultanate of Oman outlines key elements of the country’s national water resources master plan.
50 /Test & Measurement Take the lead in design Test leads are a key component of any precision instrument
59 /Market Place • Fluke • Itron
• Megger • Grundfos
POWER & WATER MIDDLE EAST / NOVEMBER 2013
3
Editor’s note
A few truths
W
ith the subject of this month’s cover story releasing electrons galore, Dubai residents can now proudly claim that they are partially consuming green electricity in their homes. You can read more about that inside, but October was certainly an ‘energetic’ month of sorts where the traditional sectors, blamed for the environmental ills facing the world, stole back some of the thunder from their new age cousins at the World Energy Congress. Is peak oil a myth? When the chief of the world’s biggest energy company alludes to that in an indirect way, you have to listen. In his key note speech at the Congress, Saudi Aramco’s chief pointed out the global oil industry has produced about 1.3 trillion barrels, yet proven reserves have never come down. Instead, current proven reserves of 1.6 trillion barrels, which equate to a half-century of global oil production at current rates, are at their highest level ever. And these numbers will continue to rise with increased exploration and improved recovery. With Saudi Arabia taking steps to tap its unconventional gas resources, we can expect reserves to hold steady or even increase. But there is no denying the fact that irrespective of the outcome, the era of cheap energy of the 80s and early 90s is over. At a recent panel discussion, when the moderator asked for a show of hands on whether international oil prices will fall below the USD 100 a barrel range in the short-to-medium term, only two hands shot up. The region’s agriculture sector too has come under fire in recent times for its high water consumption given the depletion of ground water reserves at a faster rate than they are being replenished and the overwhelming dependence on desalination to meet water needs. However, most countries in the region also see the agricultural sector as a basic guarantor of food security. In a panel discussion during the Congress, UAE’s Director of Energy and Climate Affairs, Dr Thani Al Zeyoudi, said that the country is taking steps to educate farmers about alternatives to using energy-and water-intensive irrigation systems and crops and the use of treated water for irrigation. The UAE is according top priority towards addressing the interconnected energy, water and food challenges by increasing energy and water efficiency and productivity, diversifying energy mix and adopting appropriate policy and regulatory frameworks. Al Zeyoudi pointed out UAE has recently launched the region’s first renewable desalination pilot project aimed at dramatically reducing the amount of power consumed to produce potable water. Clearly, there is a momentum towards optimisation and balanced management of resources rather simply piling on capacities to meet demand. This is also reflected in Oman’s water resources management master plan covered in an interview inside. Let us hope this momentum never wanes.
Publisher Dominic De Sousa Chief Operations Officer Nadeem Hood nadeem.hood@cpimediagroup.com Editor Anoop K Menon anoop.menon@cpimediagroup.com Reporter Lorraine Bangera lorraine.bangera@cpimediagroup.com Advertising Director Harry Norman harry.norman@cpimediagroup.com Tel: +971 4 440 9131 Marketing Manager Jasmine Kyriakou jasmine.kyriakou@cpimediagroup.com Tel: +971 4 440 9100 Senior Designer Marlou Delaben marlou.delaben@cpimediagroup.com Designer Cris Malapitan cris.malapitan@cpimediagroup.com Web development Digital Services Manager, IT Department Troy Maagma troy.maagma@cpimediagroup.com Web Developer Waseem Shahzad waseem.shahzad@cpimediagroup.com Production James P. Tharian Rajeesh M Circulation Rochelle Almeida rochelle.almeida@cpimediagroup.com USA and Canada Kanika Saxena Director - North America 25 Kingsbridge Garden Cir. Suite 919 Mississauga, ON. Canada L5R 4B1 kanika@cpi-industry.com tel/fax: + 1 905 890 5031
Published by:
AKMenon Anoop K Menon anoop@cpimediagroup.com
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POWER & WATER MIDDLE EAST / NOVEMBER 2013
Head Office PO Box 13700 ,Tecom, Grosvenor Business Tower Office 804, Dubai, United Arab Emirates Tel: +971 4 440 9100 / Fax: +971 4 447 2409 www.powerandwater-me.com Printed by: Printwell Printing Press LLC © Copyright 2013 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
POWER AND WATER
spotlight / Nynas
Insulating oil analysis and its role in transformer condition monitoring
Bruce Pahlavanpour, Nynas AB
O
il and paper have been used as insulating materials in oilfilled electrical equipment for nearly a century. Despite the apparent mechanical weakness of oil and paper they are effective insulators, especially in combination. This is exemplified in the observed synergism of paper impregnated with oil: the dielectric strength of paper and oil on their own is 40 and 12kV per mm respectively, however their dielectric strength in combination is 64kV per mm, which is significant improvement.
Even in ideal conditions, oil and paper will degrade, or ‘age’, as their useful service lives is finite. The actual processes involved depend on the operating conditions of the equipment, but the rate of ageing is normally a function of temperature and moisture. Both oil and paper will age rapidly at high temperatures and moisture acts as a catalyst for the ageing of oil. There are also other catalysts present in a transformer which are responsible for oil ageing; these include copper, paint, varnish
At Nynas, we’re passionate about everything to do with power.
and oxygen. The principal mechanism of oil ageing is oxidation, which results in acids and other polar compounds being formed. These oxidation products will have a deleterious effect on the paper degradation processes. Transformer condition Monitoring Early in the history of oil filled electrical equipment, it was realised that an explosion in a transformer was caused by the rapid evolution of gases formed by deterioration of the insulation, but it was not until the early twenties when Buchholz
spotlight / Nynas
developed his gas and oil actuated relay. Since then it was accepted that the action of electrical or thermal stress in oil would cause sufficient deterioration to evolve gases which would then dissolved in the oil. Analyzing gases dissolved in oil is widely used as a diagnosis method for oil filled transformers. This diagnosis method is effective for preventing accident and transformer failure. Condition assessment and monitoring techniques have received a technological boost in the last
few years but at the heart of it is a technique dating back several decades. Dissolved gas analysis (DGA) is still the best technique for detecting abnormalities in transformers. The sampling of oil and subsequent analysis for dissolved gases is well defined in IEC60567. The interpretation of the results is less straightforward as there are recognised standards and several other publications, which may be used for interpretation of DGA results. Whilst they may have
similar approaches they may not always lead to the same conclusion. Gas concentration ratio is the most commonly used method. Analysis of dissolved gases in oil is widely used as a diagnosis method for oil filled transformers. It is relatively simple and cheap to use. This diagnosis method is effective for preventing accident of transformer. Although DGA is an extremely valuable tool with many applications but as in any single test procedure, it does not furnish a total picture of the condition of transformer.
Need to talk to a transformer oil supplier who understands your business? One who’s local enough to be near you, yet global enough to have the expertise you need. Get in touch. www.nynas.com
POWER AND WATER
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POWER & WATER MIDDLE EAST / NOVEMBER 2013
POWER AND WATER
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mosaic
10.5 BILLION
People that the world’s oceans are capable of sustaining at a European standard of living for hundreds of centuries to come, according to Lawrence Cathles, Professor of Earth and Atmospheric Science at Cornell University. Source: Geological Society of London
USD 200 BILLION Why UAE is a strong contender for 2019 World Energy Congress (WEC) • Third largest next exporter of oil in the world in 2012; seventh-largest in the world in terms of proved reserves of crude oil and gas. Current oil production is around 2.9 million barrels/day and will reach 3.5 million barrels/day by 2017. • The UAE is rapidly diversifying its energy portfolio, with 2,500 MW of renewable energy and 5.4 GW of peaceful nuclear power under development, in addition to large-scale investments in energy efficiency and carbon mitigation. Nuclear energy expected to meet nearly 25% of national electricity demand by 2020. • First regional mover within the renewable energy space, forging ahead with pioneering investments in solar and wind power. • Redefining how the region’s urban environments consume energy through sustainable urban developments (Masdar City). • Exporting clean energy expertise to nations that have identified a need to accelerate their renewable energy portfolios. Development assistance in 2013 saw allocation of over USD 400 million of concessional finance for developing countries. • Successful bid would bring WEC to OPEC member country for the first time in event’s 90 year history.
Investment to be pumped into the Middle East & North Africa (MENA) power sector by 2020 to meet the region’s rapidly growing demand for electricity. Source: MENA Power 2013
USD 1.87 BILLION Cost of cyber-attacks against oil and gas infrastructure by 2018 Source: ABI Research
USD 19 BILLION Size of the global power transformer market by 2020. It currently stands at USD10.3 billion. Source: GlobalData
Membrane V/S Thermal Desalination: And the winner is…
#1 UAE’s rank in the Middle East and North Africa (and fourth internationally) for ease of access to electricity. SOURCE: World Bank Report 2014: Doing Business 10
POWER & WATER MIDDLE EAST / NOVEMBER 2013
Source: Water Desalination Report by IDA/GWI DesalData.Com
POWER AND WATER
ads
Roundup
BWA Water Additives launches new optimisation programme BWA Water Additives has launched its new Belgard Optimax programme at the International Desalination Association (IDA) World Congress in Tianjin, China last month. The new programme, which is primarily aimed at volume users of antiscalant, combines high performance Belgard chemistries with dose optimisation and plant performance monitoring to ensure that distiller units are neither under or overdosed. “Our new service is the first of its kind in the desalination industry and will help large users benefit from precise dosing of high performance Belgard antiscalant to ensure the optimal balance of water production, energy savings, and plant protection,” says James Argyle, Group VP for BWA’s Middle East region. “Belgard Optimax is a complete system, which really makes it better than the best desalination chemistry.”
The wind farm is now supplying around 500,000 UK homes with electricity each year.
London Array project achieves financial close Masdar Energy UK, a wholly owned subsidiary of Masdar, completed a 12 year limited-recourse project financing of up to GBP 266 million for its stake in phase one of London Array. The landmark financing is the first time that a limited-recourse structure has been completed for an unincorporated joint venture within the renewable energy industry. The 630 MW London Array, the world’s largest offshore wind farm, is a EUR 2.2 billion unincorporated joint venture between shareholders DONG Energy (50%), E.ON (30%) and Masdar Energy UK (20%). The project financing includes five international lenders: The Bank of Tokyo-Mitsubishi UFJ, KFW-IPEX Bank, Siemens Bank, Sumitomo Mitsui Banking Corporation and the UK Green Investment Bank.
AUMA has supplied 105 electrical actuators for the water supply system of Doha
AUMA supports Qatar water supply system upgrade AUMA has supplied 105 electrical actuators for the water supply system of Doha as part of a major Ashghal Public Works Authority upgrade programme. The modular actuation technology provided by AUMA has been used to replace all existing manual valves with remotely operated electrical valves managed via a SCADA control system. A comprehensive survey of all locations, spread across the whole city, was conducted by AUMA to identify valve sizes and evaluate actuator requirements. In addition, AUMA revisited all sites to design actuator adaptors, which have been locally fabricated to meet the precise needs of each installation. AUMA worked in close collaboration with Hyder Consulting from the early front end engineering and design (FEED) stage. AUMA’s Middle East office was responsible for the supply of locally sourced valve adaptors and full supervision of installation and commissioning activities. 12
POWER & WATER MIDDLE EAST / NOVEMBER 2013
Agostino Renna, President & CEO of GE Lighting Europe, Middle East and Africa, signed the agreement with Gundeep Singh, Founder & CEO of The Change Initiative at Light Middle East.
JV targets UAE homes with ‘green’ lighting GE Lighting and Dubai-based The Change Initiative have announced a joint venture initiative to promote energy-efficient lighting across residences and commercial establishments in the UAE. The two entities will work to promote energy efficient lighting with a special focus on LED retrofits at homes and offices, which can contribute to up to 70% savings in energy in existing buildings. GE and The Change Initiative also plan to reach nearly 70% homes by end-2014 to generate awareness on the need to use sustainable lighting solutions. The joint initiative aims to service at least 7,000 households with efficient lighting systems through the ‘direct to home’ service.
Roundup
Hendrik Mueller-Holst Head of Business Development, memsys
memsys steps up commercialisation efforts
The mobile facility is dedicated to customers in the Near and Middle East as well as nearby regions.
Alstom mobile transformer facility bags USD1-mn PDO deal Alstom’s newly inaugurated mobile transformer facility in Dubai has bagged its first field service order in Oman. PDO, Petroleum Development Oman, the foremost hydrocarbon exploration and production company in Oman, accounting for more than 90% of the country’s crude-oil production, signed for a USD1 million contract to rewind a rectifier transformer at site. Hamed Heyhat, Alstom’s Regional Managing Director for Grid Service said: “Proximity is essential for ensuring optimal performance of our customers’ assets. Bringing the best of Alstom’s technical competence on site, for a key asset like transformers, will deliver a quick and satisfactory response to customer needs in the region.” Large power transformers and special transformers of all type and origin, up to 400 kV, can now benefit on site from Alstom’s service expertise.
memsys has announced the formation of a Business Development Unit with the hiring of Hendrik Müller-Holst, Edmund Wong and Wilson Tan. Götz Lange, memsys’ Chief Executive Officer, said the development signals a clear step towards commercialisation of the company’s membrane distillation technology following successful field tests that concentrated produced water from the hydraulic fracturing process. The unit comprises of Hendrik Müller-Holst as Head of Business Development with responsibility for leading the company’s new market activities and establishing new customer groups, Edmund Wong as General Manager of the Sales Team and Wilson Tan as Regional Sales Director – Asia Pacific.
Nick Parton, General Manager for the Middle East & Africa welcomed the participants along with his team.
CG’s Ultra High Voltage (UHV) Research Centre at Nashik, India
CG invests in Ultra High Voltage (UHV) research centre Avantha Group Company CG has invested USD 6.5 million in a 1600kV Ultra High Voltage (UHV) Research Centre at its Switchgear Complex in Nashik. Having achieved leadership position in the manufacture of power products up to 765 kV, this is a significant move towards fulfilling CG’s strategic objective of positioning itself as a sizeable player in the UHV arena in the world. Prime markets for these products are large countries like India, South America and Africa, where such very high voltage transmission networks are present. The Research Centre facilitates new product development for the global UHV/EHV (Extra High Voltage) markets, spanning 800kV EHV to 1200 kV UHV power transmission systems.
Megger organises distributor conference in Dubai Megger, one of the world’s leading manufacturers and providers of test and measurement equipment to the electrical industry, held a three-day distributor conference in Dubai for the distributors of Megger and SebaKMT products to introduce new products and upcoming products. Participants from Asia, Australia, US and Europe had the opportunity to meet technical experts from the US, Sweden and Europe who had come down to deliver presentations. There were presentations on insulation testing and handheld products, the Programma range of products, Relay Testing products including the SMRT range, SebaKMT’s cable fault location and diagnostics as well as water products. The participants were welcomed by General Manager for the Middle East & Africa Nick Parton. The event was also attended by Andrew Boughtwood, Head of Global Sales of Megger. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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IN the region
The Shuweihat S2 plant will contribute to the continued economic diversification and community development in Al Gharbia region.
Sheikh Hamdan inaugurates Shuweihat S2 Shuweihat S2 adds 1,510 MW to Abu Dhabi’s power generation capacity
Canadian Solar to supply modules to Saudi Aramco’s KAPSARC solar power project
H
C
is Highness Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Western Region, inaugurated Shuweihat S2, the latest addition to Abu Dhabi’s power and water infrastructure network. The plant is located in the Al Gharbia (Western Region), 260 kilometres southwest of the city of Abu Dhabi. Shuweihat S2 adds 1,510 MW to the Emirate’s generation capacity, enough to power more than 300,000 homes. The plant also produces up to 100 MIGD of desalinated water, representing 15% of Abu Dhabi’s water desalination capacity. Shuweihat 2 is owned by Ruwais Power Company, a joint venture of TAQA (54%), Abu Dhabi Water and Electricity Authority (ADWEA) (6%), GDF SUEZ (20%), Marubeni (10%) and Osaka Gas (10%). The Ruwais Power Company partners have invested USD2.7 billion in the construction of Shuweihat S2 with a view to meeting the challenge of providing reliable energy and water to a population in Abu Dhabi predicted to rise to five million by 2030. His Excellency Abdulla Saif Al-Nuaimi, Director-General of ADWEA and Vice Chairman of TAQA, said: “The Late Sheikh Zayed bin Sultan Al Nahyan told us that we must not rely on oil alone as the main source of our national income, advising that we must diversify the sources of our revenue and construct economic projects that will ensure a free, stable and dignified life for the people. The Shuweihat S2 plant site is proof of our commitment to following this guidance, with its
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Saudi Aramco awards solar field extension
POWER & WATER MIDDLE EAST / NOVEMBER 2013
good performance in large part due to the contribution of our key equipment suppliers; Siemens, Samsung, C&T and Doosan. In addition to thanking these suppliers and our partners, I would also like to thank the 100 people employed at the plant for helping ensure successful operations over the period of these past 24 months.” Carl Sheldon, Chief Executive Officer of TAQA, said: “We are pleased to be part of this partnership to create greater prosperity for the communities of Al Gharbia through the development of infrastructure and economic growth.” Dirk Beeuwsaert, Chairman of International Power and Advisor to the President and CEO of GDF SUEZ, said: “We are proud to be here today to mark the successful completion of Shuweihat S2, a power plant which signifies GDF SUEZ’s ongoing commitment to the United Arab Emirates and indeed the broader GCC region. The successful completion of Shuweihat S2 is testament to the flexibility and efficiency of our project partners.” Electricity and water supply from Shuweihat S2 is transferred to Abu Dhabi Water and Electricity Company (ADWEC) under a 25-year purchase agreement. The plant employs approximately 100 people. Shuweihat S2 is implemented as part of the privatisation of the water and electricity sector pursued by ADWEA in line with Abu Dhabi government directives. Under the aegis of Abu Dhabi’s ‘2030 Economic Vision,’ the plant will contribute to the continued economic diversification and community development in Al Gharbia.
anadian Solar has been awarded a contract to supply 1.78MW to Saudi Aramco for the extension of its KAPSARC (King Abdullah Petroleum Studies and Research Centre) solar power project in Riyadh. The initial 3.5 MW installation, built over an area of 55,000 square meters, was inaugurated in December 2012. The project, after the extension, will continue to retain the tag of the biggest ground-mounted solar installation connected to the electricity grid in the Kingdom. Canadian Solar is supplying its CS6X series solar panels to the project. Dr Shawn Qu, Chairman and CEO of Canadian Solar said: “We believe that this flagship project will also be a determining factor to select and qualify technology partners with bankable solar power solutions and proven track record to ensure the successful execution of Saudi Arabia’s ambitious 16GW solar PV energy development programme.” Canadian Solar claimed that its solar panels have undergone rigorous formal inspections and testing, and have received prominent international quality certificates, including ‘Desert Proof certificate-Blowing Sand Test.’ The 3.5 MW supplied earlier by Suntech comprised of 12,684 fixed-angle Polycrystalline PV panels with 14.4% efficiency and maximum power of 280 W at standard test conditions. They feed in KAPSARC’s loads and also the electricity grid with about 5,800 MWH of electricity and offsets carbon (CO2) emissions by about 4,900 tonnes annually.
IN the region
H.E. Saeed Mohammed Al Tayer
Eric Rondolat, Chief Executive Officer, Philips Lighting and Eng. Hussain Nasser Lootah, Director General of Dubai Municipality sign the MoU.
DEWA propels UAE to the top in World Bank report
Dubai Municipality, Philips sign MoU for LED transformation
The report ranked the UAE first in the Middle East and North Africa (MENA) and fourth internationally for ease of access to electricity.
LED lighting will help DM save 10.5 GWh of energy and 6,200 tonnes of CO2 emissions per year
D
I
n presence of His Excellency Dr Rashid Ahmed Mohammed Bin Fahad, Minister of Environment and Water, Dubai Municipality has signed a Memorandum of Understanding (MoU) with Royal Philips to support the transformation of the Municipality’s buildings from conventional lighting infrastructure to energy efficient LED based solutions. The agreement was signed by Eng. Hussain Nasser Lootah, Director General of Dubai Municipality and Eric Rondolat, Chief Executive Officer, Philips Lighting. “The Dubai Municipality has pledged to reduce its energy consumption by 20% over the next three years, and we can do so by adopting innovative solutions, such as LED lighting,” said Eng. Lootah. “We are pleased to take this next step with Philips as they share our vision and have provided a solution that meets the needs of the growing city.” “Philips is proud to partner with the Dubai Municipality, as together we will shape a healthier and more sustainable future for residents in the city,” said Rondolat. “As a leader in light, Philips will continue to shape the future with ground-breaking lighting innovation, such as LED that will enable Dubai Municipality to meet its ambitions.” As part of Dubai Municipality’s long-term vision to build ‘an excellent city that provides the essence of success and comfort of sustainable living’ the LED transformation project will help the municipality to reduce its energy consumption from lighting by more than 50%, leading to lower energy costs and a reduction in its carbon footprint. Dubai Municipality can potentially save up to 10.5GWh year on its energy consumption and 6,200 tonnes of C02 emissions per year, across its 262 buildings when it converts from inefficient conventional lighting to LED Eng. Lootah reconfirmed the Municipality’s eagerness to keep abreast of global developments in various areas of city administration in line with its sustainability policy in the Emirate of Dubai in the fields of green buildings, the development of the municipality’s strategic vision; and to ensure smooth integration with the strategic plan of Dubai; and comes as part of Dubai Municipality’s long-term vision to build ‘an excellent city that provides the essence of success and comfort of sustainable living.’
ubai Electricity and Water Authority (DEWA) has made a significant contribution to the UAE’s global standing in a World Bank study which assesses regulations affecting domestic firms in 189 economies including the UAE. The ’Doing Business 2014′ report looks at the ease of doing business in the largest business city in each economy (in the UAE’s case, Dubai) across 11 areas, one of them being getting electricity. The report ranked the UAE first in the Middle East and North Africa (MENA) and fourth internationally for ease of access to electricity achieved by eliminating the requirement for site inspections and reducing the time required for new connections. “DEWA has an integrated system that includes effective initiatives and new developmental projects to achieve the highest levels of efficiency and reliability. DEWA has exerted considerable efforts to optimise its operations and services significantly; further enhancing its efficiency and services and reducing costs,” said HE Saeed Mohammed Al Tayer, MD and CEO of DEWA. Al Tayer claimed that DEWA has achieved very competitive results that surpass the private sector, even leading European and American companies, in efficiency and reliability. He continued: “This is demonstrated by our reducing losses in electricity transmission and distribution networks to just 3.5%, compared to 6-7% in Europe and the US. Network line losses in the water sector decreased to 10.8% compared to 15% in North America, setting another international benchmark. For customer minutes lost per year, DEWA’s figures reached 5.78 minutes, significantly better than 16.4 minutes recorded by counterparts in the European Union.” POWER & WATER MIDDLE EAST / NOVEMBER 2013
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SPOTLIGHT
Jubaili Bros
Jubaili Bros Office
Strengthens presence across Middle East & Africa New Head Office in Jebel Ali Free Zone, UAE In line with its growth and development strategy, Jubaili Bros takes another major step forward by establishing a newly expanded Head Office in Jebel Ali Free Zone. The new state-of-the-art building provides an advanced infrastructure to match the company’s ultimate purpose and mission of always providing customers with superior products and services. With growing power demands in the region and the world, Jubaili Bros assures its customers that their needs will be met; timely, proficiently and to the best of their expectations. The new facility opens the way to even more advanced managerial and operational practices and performance that take Jubaili Bros to yet higher levels of professionalism and proficiency. As a leading supplier of premium integrated Electric Power Generating sets and services, in addition to complete range of spare parts, Jubaili Bros further strengthens its presence and role in the UAE to further service its customers throughout the whole GCC region, Africa, and Asia.
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The newly improved premises comprise of three floors, fully equipped with modern facilities. An outstanding new feature is dedicated customer meeting rooms with capacities of up to 32 people. This 1,500 sq.m. new building is built over a total available land area of 10,000 sq.m. and is fully devoted to office space that encompasses all business support departments and operations under one roof enabling Jubaili Bros staff to continue to fully serve its customers and put their needs first. Commitment to the customers along with furthering presence in the region, JB continues to provide superior products and services. With one of the largest stocks of Diesel Generating sets in the United Arab Emirates with branches in Dubai, Abu Dhabi, and the new head office in Jebel Ali Free Zone, Jubaili Bros offers complete power solutions including High Voltage, Turnkey Projects and Power Plants. These Power Plant solutions can be categorised as of standalone application or in parallel with the utility companies to serve residential and commercial sectors.
SPOTLIGHT
New Branch in Kampala, Uganda
Participating at The Big 5 Show, Dubai
Moreover, to further expand its operations in Africa and to provide after sales services to clients, Jubaili Bros has opened a new branch in Kampala, Uganda to serve the East African market. One of the main sectors that Jubaili Bros has served over many years and in different markets is the Telecom sector.
The Company constantly aims at improving its communication, presence and interaction with customers by exhibiting in various events worldwide and year round. Jubaili Bros is participating at The Big 5 Exhibition taking place from 25-28th Nov 2013, (11:00AM – 7:00PM), at Dubai International Exhibition Centre.
Jubaili Bros’ Power Solutions are offered throughout its branches in Lebanon, United Arab Emirates, Nigeria, Afghanistan, Kuwait, Ghana, Qatar and Uganda, covering Middle East, Africa & Asia.
We are pleased to invite you, dear customers and public to visit our Stand No. OS31, displaying JET & Marapco brand Diesel Generators & Allmand brand Mobile Light Tower. Our dedicated customer service team will be more than happy to welcome your queries and provide you with any needed information.
POWER & WATER MIDDLE EAST / NOVEMBER 2013
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IN the region
HH Sheikh Ahmed bin Saeed Al Maktoum, accompanied by HE Saeed Mohammed Al Tayer gave away the awards
HH Sheikh Ahmed bin Saeed Al Maktoum honours Emirates Energy Award winners Distributed every two years, EEA aims at rewarding best practices and leading initiatives in the areas of energy efficiency, alternative energy, sustainability, and environmental protection
T
he 2012-2013 winners of Emirates Energy Award (EEA) were honoured at a ceremony organised by the Dubai Supreme Council of Energy at Grand Hyatt hotel in Dubai. The ceremony was attended by H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy and Honorary President of Emirates Energy Award (EEA), HE Saeed Mohammed Al Tayer, Vice Chairman of the Supreme Council of Energy, Managing Director and CEO of Dubai Electricity and Water Authority (DEWA), and President of EEA and HE Ahmed Butti Al Muhairbi, Secretary General of the Supreme Council of Energy. Distributed every two years, EEA aims at rewarding best practices and leading initiatives in the areas of energy efficiency, alternative energy, sustainability, and environmental protection. This year, the prizes totalled one million dollars. The awards ceremony was held under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The winners of the different categories are as follows: • Large Energy Project: The Gold Award was presented to the Morocco-based
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NAREVA Holding; the Shams Power Company (United Arab Emirates) was honoured with the Silver Award, while the Bronze award was given to the Roads & Transport Authority (RTA) • Small Energy Project: The Gold Award was given to the Emirates Integrated Telecommunications Company ‘du’ (United Arab Emirates); the Dubai Chamber of Commerce & Industry was honoured with the Silver Award, while the Bronze award was given to Empower Company (United Arab Emirates). • Energy Efficiency for Public Sector: The Gold Award was given to Masdar (United Arab Emirates); RTA was honoured with the Silver Award (United Arab Emirates), while the Bronze award was given to RasGas (State of Qatar). • Energy Efficiency for Private Sector: The Gold Award was given to AlFuttaim Group Real Estate (United Arab Emirates); the Arab Contractors Company was honoured with the Silver Award (Egypt), while the Bronze award was given to ABB/ Al-Khaleej Sugar Company (United Arab Emirates) • Education Energy Award: The Gold Award was given to the Friends of Environment Society (Jordan); Dr Hanan Talib was honoured with the Silver
Award (UAE), while the Bronze award was given to HSBC Bank (UAE). • Research & Development Award: The Gold Award was given to Ayman Adnan Almaitah (Jordan); the University of Bahrain was honoured with the Silver Award (Kingdom of Bahrain), while the Bronze award was given to the Nitrate Production System (Hashemite Kingdom of Jordan). • Young Professional Energy Award: The Gold Award was given to Abdul Aziz Al Obaidli (United Arab Emirates); Mahmoud Shatel (Hashemite Kingdom of Jordan) was honoured with the Silver Award, while the Bronze award was given to Aisha Ali, Aya Abu Hani and Noora Rashed Al Kaizi (United Arab Emirates). • A Special Recognition Award was awarded to the organisations that succeeded in reducing energy consumption, including: Saudi Aramco (Kingdom of Saudi Arabia); Hamdan Bin Mohammed Bin Rashid Sports Complex; Dubai Investment Park (United Arab Emirates); Sheikh Zayed Housing Programme; Emirates Transport, for the use of clean transportation fuels; Dubai Silicon Oasis; and Drydocks World (United Arab Emirates).
IN the region
Ahmad bin Shafar, CEO of Empower
Empower wins accolade for saving water Empower wins Emirates Energy Award for using Treated Sewage Effluent (TSE) in its district cooling plants
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mpower, the leading district cooling provider in the Middle East, has won the bronze Emirates Energy Award for its innovative approach to saving water in its district cooling plant in Dubai Healthcare City. On behalf of Dubai’s Supreme Council of Energy HH Sheikh Ahmed bin Saeed Al Maktoum in his capacity as Chairman of the Supreme Council of Energy presented the award to Ahmad bin Shafar, CEO of Empower in a glittering ceremony held at the Grand Hyatt Hotel in Dubai. The awards ceremony was held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The judging panel selected the project based on Empower’s innovative use of Treated Sewage Effluent (TSE) in its Healthcare City district cooling plant. The TSE is polished with reverse osmosis (RO) process which optimises the efficiency of large district chilled water plants and minimises the use of potable water. “Winning the Emirates Energy Award is a true honour for all of us at Empower and is a major milestone of our growth. We are all delighted to be recognised for our efforts to bring sustainable innovations to the industry. This sort of technology will help meet the demands of a rapidly-growing population in a sustainable way and will also help preserve our fragile environment,” said bin Shafar. In June this year, Empower won the first Annual Innovation Award from the International District Energy Association (IDEA) for the same project.
Gary Witt, President of Pentair Flow Technologies, and Ramesh Nuggihalli, VP and Managing Director of Pentair Middle East, cutting the ribbon at the new pump manufacturing facility
Pentair to make pumps in the UAE The company recently inaugurated a new pump and booster manufacturing facility in Sharjah
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entair has announced the opening of a new pump and booster system manufacturing facility within its integrated manufacturing campus in Sharjah, United Arab Emirates, to serve the commercial and residential sectors in the region. The new pump manufacturing facility joins the company’s existing valve manufacturing facility and metal casting foundry, providing a wellestablished foundation from which to introduce new products and services into the local market. “As one of the world’s leading manufacturers of commercial, residential and infrastructure pumps, we are focused on the Middle East,” said Gary Witt, President of Pentair Flow Technologies. “Pentair has consistently grown its pump business in the region for many years and we are excited about this next phase of development. The ability to manufacture locally will enable us to provide our customers a broader array of value-added solutions while also enhancing our ability to serve them effectively.” “This investment reaffirms Pentair’s commitment to the Middle East region,” added Ramesh Nuggihalli, Vice President and Managing Director, Pentair Middle East. “By combining our regional strengths in engineering, manufacturing, sales and distribution with Pentair’s global product design expertise, we can significantly reduce the business development cycle and improve our value proposition for our local customers.” POWER & WATER MIDDLE EAST / NOVEMBER 2013
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Threat perception Booz Allen lists top cyber-security risks for the oil & gas industry in 2014 A more open network and increased reliance on the technology supply chain increases the exposure of oil & gas companies to cyber threats.
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oday’s oil and gas industry executives – including control room operators monitoring use data, chief information security officers analysing the potential cyber security risks of a new IT system, and oil rig managers discussing drilling sites with geologists – are making business decisions in an interconnected landscape of risks and rewards. Success demands balancing the dizzying array of new regulations, cutting edge technology, and emerging threats and opportunities that are ever present in this industry. “Partnering with our oil and gas clients, we examine the near and long-term trends for this industry, and it is striking to see how regulation, the cyber threat environment and internal challenges are converging to shape the path forward,” said Emile Trombetti, senior vice president, Booz Allen. “It is critical that industry leaders consider how these trends provide challenges and opportunities for their organizations that can ultimately help them better prioritize and meet their strategic and business goals.” Booz Allen Hamilton has identified the
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six key trends that are poised to greatly impact the oil and gas sector of tomorrow, and that what every oil and gas executive needs to know today. Top six trends for 2014 1. The technology supply chain will increase the need for cyber risk management Oil and gas companies recognise that embracing networked infrastructures allows them to more efficiently operate their business, and in doing so, they increasingly rely upon vendor materials, products and services. However, the industry is only now coming to terms with the cyber risk management challenges created by a more open network and increased reliance on the technology supply chain. Oil and gas leaders must address the weighty task of assessing the security of third-party vendors and protecting critical business assets from those who should not have access or who wish to disrupt the business. 2. Cyber risk management will become more customised. Every oil and gas company stands to be hacked, and only so
much can be done to thwart this threat. Companies must create unique approaches to minimize the impact of an attempted attack, and protect critical assets. In particular, oil and gas companies need to focus on developing comprehensive security risk management plans tailored to the circumstances when entering highrisk environments, such as ventures into new geographic locations, markets and products. 3. Future competitive advantages depend on technological innovation. Until recently, oil and gas companies did not innovate beyond what was required to pull resources out of the ground with a reasonable amount of success. However, there has been a noticeable shift as companies begin to view technology as a new frontier for competitive advantage. Oil and gas companies are using the latest ideas, such as mobility, cloud computing, and knowledge management, and wrapping them around their current processes to make everything work better. However, as innovation takes off, companies must turn their attention to protecting the R&D
AT large that went into creating this intellectual property, which creates another layer of security that must then be implemented. 4. Striking the right balance between strong cyber risk management and regulation will become more challenging. Regulations help companies secure themselves from cyber threats. However, regulations apply a one-size-fits-all method to security that does not take into account each company’s “attack surface,” the unique vulnerabilities that come with its specific business processes. Often there are competing priorities between addressing what is required by regulation and what is genuinely needed at the time to effectively protect the company’s systems from cyber intrusions. Also, firms must always stay abreast of the constantly changing regulatory environment. Just as energy companies achieve compliance under current regulations, new regulations are developed. Oil and gas companies must balance a host of issues, such as compliance with environmental regulations, while balancing geopolitical issues that can have material impact on the bottom line. 5. An aging workforce is creating unique risk management, infrastructure, and HR challenges. The oil and gas industry is facing a shrinking talent pool for those with specialised expertise. Most individuals who have the institutional and technological “know how” about their organisation’s specific cyber risks and operations are looking toward retirement. This creates a knowledge gap that younger employees cannot meet on their own, and requires oil and gas leaders to work across their business to capture, retain, and integrate human capital intelligence. According to Ernst & Young, nearly 90% of senior human resources executives at 22 top international oil and gas companies believe their industry faces a talent shortage and call the problem one of the top five business issues facing their companies. 6. Data will continue to create differentiators. Oil and gas companies are facing an explosion in the amount and types of data that their assets generate, yet they risk being less competitive if they do not make this data work for them. Organisations must also understand that while
their data presents business opportunities, it also raises certain challenges. For example, industry leaders must determine how to analyse and present their data in a way that allows the firm to create action, both in terms of driving business strategies and in understanding anomalies associated with their critical assets. A recent ABI Research study predicted that cyber-attacks against oil and gas infrastructure will cost companies USD1.87 billion by 2018: “Cyber Risk Management is now a Board level risk that every company involved in Oil and Gas production must address. Wherever there is an intelligent device, whether it be a complex set of devices controlling an oil platform, or even a simple device that controls the opening and closing of a valve on the pipeline, they could be at risk of being controlled by an unauthorised entity. Oil and Gas executives are becoming more resigned to the fact that much more must be done in executing an effective cyber risk management programme.”
The big disconnect Research by GlobalData finds that cost barrier dampens cellular prospects in smart meters
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he high operating costs that must be paid by the utilities to mobile carriers present a major challenge to the use of cellular wireless communications for smart meters. According to a new report from research and consulting firm GlobalData, an increase in smart meter deployments will see the global market for wireless communication modules approximately double in value over the coming
years. Cellular and Radio Frequency communication modules are the two key technologies used in smart meters for two-way data transmission. However a potential growth inhibitor for cellular technology could be the high costs levied by cellular service operators. Ginni Hima Bindu, GlobalData’s Analyst covering Smart Grid, says: “For example, in the UK, Baringa Partners estimated a USD7.4 charge per household for a once-a-day, off-peak meter reading each year– a charge that increased even more during peak times. While the cost of the cellular service in North America has been lowered to USD5, this is still relatively high when compared with RF mesh technology, for which the operating cost is nil.” RF modules account for an 85% share of the North American market, thanks to their low cost, high bandwidth and efficient performance in industrial areas. Another issue is coverage. “The problem of coverage is one of the major restraints of the market for cellular communication modules,” says Bindu. “For an indoor electric meter, GPRS technology provides just 80–85% coverage, if the electric meter, or other grid device, is not moved accordingly.” According to GlobalData, the global market for wireless communication modules is expected to grow at a Compound Annual Growth Rate (CAGR) of 12%, from USD532-million in 2012 to USD1.3 billion in 2020. The report also states that North America, currently the dominant player in the global wireless communication modules market for smart meters, will be a key driver behind the leap, with its own market revenue expected to climb steadily from USD379million in 2012 to USD433.7million in 2020. Europe will also continue to account for a considerable share of the global market, thanks to a significant number of pilot-scale projects getting underway across the region. The uptake of wireless communication modules in the UK, Denmark and Ireland in particular looks promising, according to GlobalData, and these countries are predicted to occupy an even larger share of Europe’s wireless smart meter communication market by the end of 2020. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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POWER AND WATER
Germany regularly ‘dumps’ excess green power in neighbouring countries practically for ‘free’
Too much of a good thing?
Excess green power could disturb the grid, as Germany is learning
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an there be something like too much of ‘green’ electricity? Unfortunately, it seems to be the case where Germany is concerned. Looming blackouts, shutting down of wind generators or dumping of (almost) free green electricity in neighbouring countries to avoid overloading the networks are some of the issues that the European giant, a poster child for the global renewable energy industry, is grappling with, according to doctoral research of Stefan Nykamp at the University of Twente, Netherlands. The thesis investigates the integration of renewables in distribution grids. Nykamp notes that the problems in Germany, which generates a quarter of its energy from renewable sources, are numerous. First, there is the threat that Germany’s power grid could become overloaded if there is too much solar energy and if the winds are too strong. In fact, Germany regularly ‘dumps’ excess green power in neighbouring countries such as Netherlands, far below the market rate or even for ‘free’, a market disruptive phenomenon. This window is bound to close as the neighbouring countries themselves begin to generate more green power. In addition, energy is regularly wasted due to the shutting down of
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wind generators to prevent the grid from overloading. As the country generates more electricity from sun and wind, there is an increased risk of ‘blackouts’ from the grid fluctuations: residential districts and industrial areas without power, with disastrous (financial) consequences. According to the thesis, Germany had a number of ‘near-blackouts’ this year. As the country targets 80% share for renewable energy by 2050, these problems need to be addressed sooner than later. Nykamp, who works at the largest German network operator Westnetz (RWE), argues that Netherlands should learn from Germany’s experience and invest heavily in a stable network for a future where ‘green’ electricity will account for 16% of national energy consumption by 2020. Nykamp’s detailed case studies in Germany show that local storage of green electricity in batteries is the best solution. On windy and sunny days, the energy surplus can be stored temporarily in batteries near the wind generators and solar cells. The energy can then be consumed during the nights or following days (or be supplied to the main network) when it is cloudy and the wind has died down. The alternative would be an updated infrastructure with many thousands of extra kilometres of (thick) cables to the highest voltage level in order to prevent overloading. Nykamp projects some 380,000 kilometres of new cable networks (the distance from the Earth to the Moon) in Germany alone, at a cost of EUR 27 billion, to enable it to export surplus green electricity to major centres or the neighbouring countries. In the Netherlands too, a multi-billion euro investment in cables would be much more expensive than the construction of additional energy storage in smart grids. In the ‘infrastructure with new cables only’ alternative, existing generation capacity (gas and coal) would have to be kept in reserve which also involves high costs. “I am convinced that storage in smart grids is the best solution for Germany and the Netherlands. But if we don’t invest in good time, we will be in real trouble,” says Nykamp.
Life extension project Upgrading turbine equipment and modernising control systems extends the operational lifetime of Colombian Power Plant
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urbine Technology Services Corporation (TTS), a full-service gas turbine engineering services firm based in Orlando, Florida is finishing a project involving the replacement of multiple gas turbines, along with the modernisation of balance-of-plant (BOP) control systems at the Termoyopal power plant, north of Bogota, Colombia. TTS’ project in the South American nation required the modernisation of three existing and two replacement gas turbine power generation assets to enhance Termoyopal’s capabilities. Upon completion of the modernization project, Termoyopal’s turbines were successfully upgraded to improve the reliability to a critical energy generation resource, which serves the needs of the city of Yopal and surrounding communities in a region where power generation is a catalyst for progress and stability. In addition to the plant’s turbine equipment upgrades, TTS was challenged with the complexity of Termoyopal’s existing control systems, which incorporated multiple legacy GE MKIIs, MKIV and 3rd Modicon-based programmable logic controller (PLC) control systems. The maintenance personnel were burdened with having to use multiple programming languages and hardware platforms, as well as stocking spare parts for each of the different systems—making the management and maintenance of their turbine systems an even more complex effort. TTS provided a solution that not only
At large simplified the operation and consolidated the mix under a single platform—it also modernised the entire plant control, increasing available system data while offering an interface tailored to the operators’ and maintenance engineers’ specifications for plant operations. Since plant staff was already familiar with the existing systems, TTS’ installation of replacement turbines and modernised controls gave Termoyopal the opportunity to resolve challenges in the OEM equipment, while rationalizing the control and operation of the entire plant. “Power plants throughout Latin America face similar upgrade and modernization needs that could benefit from our retrofit services,” said Frank Hoegler, VP of Sales for the Americas at TTS. “Proactive equipment upgrades can extend the operational lifetime of their power generation equipment for years to come and help improve reliability in facilities that may have been inactive or with limited operation.” TTS implemented Rockwell Automation’s PlantPax system, thus providing Termoyopal with a core system upgrade that led to a scalable architecture—adding much needed flexibility and the ease of adding hardware and software components. Additional enhancements included adding cybersecurity protection, Rockwell’s RSLogix5000 programming software, which follows the industrial programming standard IEC 61131-3 and features programming languages Ladder Logic, Structured Text, Sequential Function Chart, and Function Block. In the end, TTS successfully coupled these programming tools with an intuitive operator interface (HMI) platform that gave the Termoyopal power plant and staff the tools needed to operate their power plant with much greater flexibility than ever before. By replacing its obsolete and outdated equipment at Termoyopal, as well as the unsupported software platforms, TTS contributed to a significant reduction of costs related to personnel training, spare part inventory, individual component cots, and overall system reliability and availability—all leading to reduced ownership costs.
Hiding in plain sight IEA’s new report builds case for treating energy efficiency as the world’s first fuel
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he scale of global investment in energy efficiency and its contribution to energy demand are as significant as those of other developed supply-side resources, says the International Energy Agency (IEA) which has launched a new report that for the first time describes the wide range of energy efficiency activities worldwide in market terms. The inaugural Energy Efficiency Market Report joins the IEA market reports for oil, gas, coal and renewable energy, highlighting the place of energy efficiency as a major fuel. The report notes that energy efficiency markets around the world drew investment of up to USD 300 billion in 2011, a level on par with global investments in renewable energy or fossilfuel power generation. “Energy efficiency has been called a ‘hidden fuel’, yet it is hiding in plain sight,” said IEA Executive Director Maria van der Hoeven said as she presented the report at the World Energy Congress in Korea last month. “Indeed, the degree of global investment in energy efficiency and the resulting energy savings are so massive that they beg the following question: Is energy efficiency not just a hidden fuel but rather the world’s first fuel?” The cumulative impact of energy efficiency is enormous. Consider the following facts: • From 2005 to 2010, efficiency measures saved the energy equivalent of USD 420 billion worth of oil in a group of 11 IEA member countries. • Had it not been for energy efficiency measures implemented in past years, consumers in those 11 IEA member countries would now be consuming - and thus paying for - about two-thirds more energy than they currently use.
• In 2010 in those countries, the energy savings from efficiency measures exceeded the output from any other single fuel source. That year, the 11 IEA economies avoided burning 1.5 billion tonnes of oil equivalent thanks to efficiency improvements developed since 1974. By comparison, in 2010 those same economies consumed about one billion tonnes of oil equivalent from assets developed over the same period. The report notes that two key factors have driven the recent growth of the energy efficiency market: effective policies and the high price of energy. Energy standards, labelling, access to assessments and financing, and obligations on suppliers have proved crucial. And high oil prices in particular have encouraged savings. However, the absence of dynamic pricing in energy markets together with subsidies, high transaction costs, information failures and a lack of institutional capacity can sometimes impede efficiency improvements. The report focuses in on a specific technology sector in which there is significant energy efficiency market activity: appliances and information communication technology (ICT) equipment. Here, while traditional appliance markets seem static, energy efficient products and ICT equipment are growth areas for energy efficiency, the report says. Finally, the report presents a selection of country case studies that illustrate current energy efficiency markets in specific sectors and highlight the relationship among investments, the energy prices and policies that enable them, and, importantly, the types of return on investments achieved by consumers, businesses and governments. Prospects for key markets are outlined, but it is clear that targeted energy efficiency policies will continue to play a key role in developing and enabling markets for energy efficiency services and products. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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A view of the inside of the GIL tubes during the extensive cleaning process, which takes place inside a prefabrication tent to eliminate dust.
China claims GIL record Siemens completes the world’s longest and highest-capacity GIL connection in China
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iemens has completed the construction of a high-voltage gas-insulated transmission line (GIL) for China Three Gorges Project Corporation at the country’s second largest hydropower plant Xiluodu, located in the southwest of China on the Jinsha Jiang River at the Xiluodu dam. The project consisted of the installation of a total of seven three-pole systems, each with a length of 620 metres. The single-tube tube length is 12.5 kilometres, making this the world’s longest GIL. This system features a second world record – designed for a power capacity of 3,900 megavolt ampere (MVA) at a voltage of 550 Kilovolt (kV) and a rated current of 4,500 ampere (A), this is the world’s highest-capacity connection using GIL. In order to transport electricity from the dam to the population centres in the eastern part of the country, power must first travel from the turbines in the power plant cavern to the overhead transmission lines, a distance of about 460 metres. Seven three-pole GIL systems, which are inserted vertically in four shafts to the right and left of the dam, each transmit 3,900 MVA of power safely and efficiently
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to the overhead power lines. Using a GIL instead of a high-voltage cable has the added advantage of its special design that eliminates any risk of fire. GIL tubes are not flammable. In the event of a malfunction, they do not represent a fire load and thus pose no hazard to operating personnel. The tunnel of the insulated high-voltage lines can also be used as ventilation and service shafts for personnel. Optimal values for electromagnetic compatibility, increased earthquake resistance, a leak-proof design due to welding style, and the fact that GIL’s do not age, round out the system’s broad benefits. Additionally, the GIL tubes are welded over their entire length. This not only increases operational reliability but also gives the GIL tube flexibility, so it can adapt to any changes in the tunnel wall that occur over time. The welding of the GIL’s aluminium tubes is an innovative high-tech process that requires clean-room conditions. The latest welding and ultrasound methods ensured the required quality was achieved, and allowed rapid installation of the gas-insulated lines. The individual GIL modules, each of
which is about 11.5 meters longv, were welded directly to each other in a vertical position inside the installation shafts, and then pushed upward, section by section, in the tunnel. Various branch-offs and horizontal sections extend the overall length of the individual three-phase systems to 620 meters. “In the Xiluodu project, we completed the world’s longest vertical GIL installation,” says project manager Mathias Schreiber, Siemens Energy. “This is also the first time technical figures such as 550 kilovolts of operating voltage and 3,900 MVA transmission power per system have been involved. We’re proud that we completed this massive project in such a short time under complex installation conditions at the job site.” After the first of the seven GIL systems passed high-voltage testing in March 2013, three more systems were commissioned in July. As a result, the China Three Gorges Corporation, both a utility company and the power plant operator, was able for the first time to send hydro-generated electricity to a distant consumer location and sell it there. The final two GIL systems were completed in September 2013.
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Open door for ESCOs
Adam Weber of Clean Energy Business Council on bringing energy efficiency to Dubai
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n Dubai, where energy demand is exploding along with the city’s economic and infrastructural growth – electricity consumption spiked 64% between 2006 and 2012 – achieving greater energy efficiency is imperative to long-term sustainability. The importance of energy efficiency is reflected in Dubai Integrated Energy Strategy 2030, which stipulates that energy demand must be reduced by 30% by 2030. There are numerous ways to achieving this goal but very effective one could be the establishment of a robust network of Energy Service Companies (ESCOs) specialising in building energy efficiency services. Through energy audits and retrofits, these companies upgrade any or all of a building’s systems that consume energy, such as lighting, water heating, and air conditioning. The upfront costs of these improvements are lightened by capitalising the life cycle savings in order to pay for the installation through agreements called Energy Performance Contracts (EPCs). The ESCO model allows building owners and operators to reduce energy-related expenses in a cost-effective manner. Since their emergence during the energy crises of the 1970s, ESCO markets have come to flourish in various parts of the world, including the US, Europe, and China. The general ESCO model is fairly universal, though the specifics may vary from project to project. First, an ESCO will conduct a comprehensive evaluation – an energy audit – of a building in order to quantify and characterise its energy consumption. Based on data from the
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audit, the ESCO will then devise a menu of Energy Conservation Measures (ECMs) that will improve the building’s efficiency, from which the client can choose to implement what is feasible. The ESCO will then install and maintain the chosen ECMs. Finally, the ESCO or a third party will assume responsibility for monitoring the installed ECMs to ensure they are performing as predicted through a process called Measurement and Verification (M&V). ESCOs present a viable means for Dubai to curb its escalating energy consumption. However, the ESCO model is not entirely novel to the city. According to the recently released State of Energy Report 2014, the first to arrive was Energy Management Services in 1991. Since then, Pacific Controls, Veolia Azaliya, Zamil Industrial, Schneider Electric, Trane, Dalkia, Tata Solutions, and GDF Suez. Nevertheless, there is scope for greater market penetration. Recognising their value to achieving the goals outlined in the DIES 2030, Dubai has begun to pave the way for ESCOs to open up shop. In particular, the Dubai Supreme Council of Energy (SCE) has set up a ‘super ESCO’ named Etihad Energy Services to lay the groundwork. Etihad, which began operations in June 2013, is a fully owned subsidiary of the Dubai Electricity and Water Authority (DEWA). It will help catalyse the ESCO market and overcome barriers to entry through several key initiatives, described by CEO Stephane le Gentil at a recent energy efficiency focus day hosted by the Emirates Green Building Council (EGBC).
First, Etihad will handle the project management for an initial batch of projects, subcontracting with ESCOs to perform energy audits and retrofits. Efforts will first target government buildings, which will then be followed by increased focus on private sector buildings. Etihad expects its first projects to launch in the beginning of 2014. Second, Etihad, along with Dubai’s RSB, will address Dubai’s current lack of uniform standards for the provision of ESCO-related services. Etihad and RSB will help design a coherent methodology for drafting EPCs, implementing retrofits, and executing M&V procedures. Finally, Etihad will help open the flow of financing for ESCO projects. Presently, local lending institutions lack sufficient understanding of how to finance energy-related cost savings, and are thus ill prepared to fuel the growth of ESCO businesses in the city. Etihad will fill the gap by acting as a financing intermediary, funnelling funds directly from banks to projects in development. As in markets, Dubai ESCOs will have to work out how to conduct M&V on completed projects to ensure predicted savings are achieved. Shifting energy consumption baselines and projects that retrofit whole buildings can make M&V an unwieldy task. Dubai will also have to determine how to resolve conflicts that arise from perceived breaches in EPC agreements. Finally, there exists a need for a means of accrediting ESCOs to perform energy audits and retrofits in the city. Despite the challenges, the potential for ESCOs to flourish in Dubai is enormous. The SCE estimates the market value of retrofitting 30,000 buildings to be AED3 billion by 2030. Rough estimates for completion of the first 1,000 projects given by panellists at EGBC’s focus day ranged between 1.5 to five years. This alluring market potential, if realised, could put Dubai firmly on the path of achieving its ambitious 2030 energy efficiency targets over the next 16 years.
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Kuwait Report
Adrian K Wood is the CEO of Siemens EES KSCC, in Kuwait, since October 2012. Prior to his current role, Wood was the head of the Renewable Energy Division at Siemens in the Middle East, after presiding over Siemens’ operations in the Philippines. During his tenure at Siemens, Wood also served as General Manager of Siemens UAE, based in Abu Dhabi, held a number of senior and managerial positions within the parent company in Germany and was CEO of Siemens Bahrain. He spoke to Anoop K Menon on Kuwait’s power sector scenario, and prospects for Siemens outside the country’s utility sector.
How would you describe the power scenario in Kuwait? In my opinion, Kuwait’s power sector is facing three key challenges – the first one is demand versus capacity. Last year the nameplate capacity was over 14 GW; while available capacity is estimated at closer to 13.6 GW and demand was closer to 12 GW, which doesn’t leave the country with much of a buffer. Kuwait has also been experiencing a population growth. However, the Government has announced development plans for the future, backed by big budgets. They have estimated 21-22 GW of demand and hopefully 25 GW of capacity by the end of this decade. Ensuring that the generation capacity keeps up or stays ahead of demand requires good, on-time planning. The second challenge is efficiency, and there are two parts to that – generation and usage. You can quite easily generate power using open cycle, but you must also get the maximum out of your existing fuel allocation, so that you can either produce more power with the same fuel or use less fuel in generation and export more. You can get 28
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the maximum out of your fuel through more-efficient turbines, opting for combined cycle technology, looking at modernisation and not just refurbishment or implementing advanced control systems. If we look at usage, it is no secret that buildings represent 40% of the energy consumption. The efficiency of this usage affects demand and capacity. So better efficiency from a usage point of view is a major challenge for Kuwait. The third challenge is the energy mix, which in Kuwait’s case, is dominated by oil & gas. Renewables are being considered, and while they may not be cost effective compared to the existing pricing structure, when you start to factor in the oil you can save by using renewables as well as global oil prices, the situation changes. You can also do peak shaving with renewables but you have to consider whether that disturbs the network frequency or induces fluctuations. I believe Kuwait needs to plan how much renewables it needs to bring into its electricity network and how.
on the record The dominance of oil & gas in Kuwait’s energy mix isn’t going away soon, but like Saudi Arabia, they will have to assess the opportunity cost of diverting more and more of their oil & gas production for domestic power generation at the cost of lucrative exports. In the case of Saudi Arabia, it is estimated that by 2030, between 20-25% of the oil produced would have to be used for internal power generation, which if left unaddressed, will affect their export revenues. From a demand side management standpoint, what can Siemens offer Kuwait? One of the areas that I would address on the demand side is: am I using my power smartly and efficiently? Here smart grid and smart meters play an important role, and Siemens have both. Smart solutions enable you to monitor what you are using, where and how best to use it. I would also look at efficiency of energy usage in big buildings. If the building is equipped with good Building Management System (BMS) and technologies that manage the use of power at peak and non-peak times and thus, minimise usage, everybody benefits. Again, Siemens has this technology. Within industries, pumps and motors are huge energy users. You can save energy by using smarter or more efficient motors from Siemens. We look at the energy base line and the most efficient technology to get the most power out of the fuel. Looking at the current summer demand, I expect the baseline to effectively double in the next 10 years. In fact, today, the difference between winter and summer demand in the Gulf States including Kuwait is almost double, which is not the best way to run an efficient network. We can look at peak shaving or better balancing by having power stations with quicker start-up/shut down – this needs modern technology; another option would be energy storage. Siemens is researching an electrolysis-based storage process, which can be used for peak shaving. If you have excess energy, you put use it for hydrolysis, produce and store hydrogen for use later. The pilot project in Germany is 300 kW. This solution is flexible and can be used in combination with the network if you have excess power. Such a technology has great potential in the GCC countries as they tend have the biggest peaks and troughs in demand due to the high ambient temperatures. The recent deal with Kuwait National Petroleum Co (KNPC) for substations is essentially an oil & gas sector deal. Should this be taken to mean that you are expecting more deals from the sector? KNPC is running two large projects – the Clean Fuels Project (CFP) and the new refinery. We are hoping to get more business, especially in the oil & gas sector; from these two mega projects that aim to create clean fuels for Kuwait and also to increase oil production. Kuwait’s oil production is currently close to 3.1 million barrels per day, but the authorities are looking to increase it to 3.5 million by 2015 and four
million by 2020. Siemens have the technology to support this expansion so we are keen to address these requirements. While we are heavily into energy, the other sectors we see potential include Industry, and Infrastructure and Cities. We are very interested in the Kuwait Metro as we can cater to areas like signalling, low /medium voltage requirements and even supply the metro carriages. We are also interested in the airport expansion, both the temporary terminal as well as the main terminal. We have a large control business, so we are following these projects very closely. The chief of Saudi Electricity Company (SEC) recently announced that the Kingdom will go for combined cycle technology for all its power projects. Does it make sense for Kuwait to tread this path as well? From an efficiency point of view, combined cycle is the way to move forward. We have shown that over 60% efficiency can be achieved in combined cycle compared to the low 30s of open cycle. Kuwait has both – sometimes they start off with an open cycle and then convert it to a closed cycle. If the turbine is capable of handling that, one could take that path though it might be more cost effective to do that in one step. In the utility side, where do you see growth coming from – power generation or T&D? You can’t stop development or population growth, so demand will always be there. At the same time, you can’t have demand outstripping capability. Going forward, Kuwait’s power requirement will only increase so we will continue to focus on the utility market. On the other hand, Kuwait will continue to drive its oil & gas sector which is the major revenue generator for the country. On top of that, it is also becoming apparent that they need to look at more efficient ways of using their power. For Kuwait, I also feel that they should look at total life cycle cost not just capex. If you consider a power station, for example, you have to take into account the opex, the maintenance cycle, the downtime necessary and how long can you run it? Also, in certain cases, instead of refurbishing, you are better off with modernisation because Return on Investment (ROI) is normally far quicker. Moreover, the lifespan of the equipment or component is extended and you enjoy both efficiency and technology gains. It might cost you more in capex initially but the lifecycle cost is far less. The key issue here is overcoming the mind-set. Do you see a lot of scope for the Public Private Partnership (PPP) model in Kuwait? Kuwait is trying to bring in the PPP model for its projects through the Partnerships Technical Bureau (PTB). There are teething problems because it is a relatively new concept for the country. The question being asked is - Kuwait has the money so does it really need external partners or investment? I would say when you bring in an external partner, you are minimising your risks. I think the PPP model has a future in Kuwait. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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COVER STORY
Dubai’s
solar agenda
The successful completion of Phase 1 of the Mohammed Bin Rashid Solar Park adds momentum to Dubai’s clean energy programme. By Anoop K Menon
E
xactly 21 months and 16 days after he launched what was then billed as one of the largest renewable energy projects in the region, the Vice President and Prime Minister of UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, inaugurated the Phase 1 of the AED 12 billion Solar Park named after him. The inauguration, which took place last month at the plant’s Seih Al Dahal site on the Al Ain-Dubai Road, was also attended by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of
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POWER & WATER MIDDLE EAST / NOVEMBER 2013
Dubai, and H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai. The 13 MWDC solar power plant is the largest solar PV plant operating in the region. During the inauguration of Phase 1, His Highness Sheikh Mohammed also launched Phase 2 of the Solar Park, a 100 MW solar PV plant. The Solar Park has been initiated by Dubai’s Supreme Council of Energy (SCE) with Dubai Electricity and Water Authority (DEWA) given the responsibility to manage and operate the project. SCE also financed
Phase 1 at a cost of AED 120 million. The engineering, procurement and construction (EPC) services contract for Phase 1 was awarded to First Solar, which also supplied its advanced thin-film PV modules for the project. The planning, project management, construction monitoring and project start supervision were carried out by ILF Consulting Engineers. “This plant represents an important step in the implementation of the Dubai Integrated Energy Strategy 2030 to diversify the emirate’s energy mix. For the first time, we are harnessing the sun to power growth
COVER STORY
• The largest operating solar photovoltaic plant in the Middle East & North Africa • Generation capacity of 13 MW of clean electricity • Generates 24 million kilowatt hours of electricity per year • Covers an area of 280,000 square metres • Consumed 1.4 million man-hours all of which were accident free; at its peak, the project had a workforce of 1,280 • The project will reduce 15,000 metric tonnes of CO2 per year • Claims a performance ratio of over 83%. Performance ratio describes the relationship between the actual and theoretical energy outputs of the PV plant. The closer the ratio is to 100%, the more efficient the PV plant.
and prosperity in the emirate, which is a significant achievement,” said HE Saeed Mohammed Al Tayer, the Vice Chairman of Dubai Supreme Council of Energy. He added that the Mohammad bin Rashid Al Maktoum Solar Park is the first of its kind in the region and is one of the most important ambitious development aimed at delivering the UAE Vision 2021, enhancing Dubai’s leading position as a world financial, trade and tourist centre and promoting Sheikh Mohammed’s initiative “green economy for sustainable development.”
Powered by 152,880 First Solar FS Series 3 Black PV modules, the plant will generate 24,000 MWh of electricity per year. The power generated by the plant will displace 15,000 metric tonnes of CO2 annually, equivalent to removing about 2,000 cars from the road every year. While the low cost of solar PV vis-à-vis Concentrated Solar Power (CSP) was a deciding factor, another key reason DEWA selected PV for Phase 1 is that the technology requires very little water for operations. The article ‘Life Cycle Water Usage in CdTe Photovoltaics’ published in
the IEEE Journal of Photovoltaics by First Solar does mention that the company has developed a brush cleaning method for modules that uses no water specifically for the Middle East markets. Even from a life cycle standpoint, article notes that life cycle water withdrawal for cadmium telluride (CdTe) PV ranges from approximately 382-425 L/MWh, with only ~12% from direct on-site usage for manufacturing, construction, and recycling. First Solar is one of the biggest players in thin-film PV based on CdTe in the world. Jim Hughes, CEO of First Solar said Phase 1 of Sheikh Mohammed bin Rashid Solar Park sets new standards for designing and building solar power plants in the UAE and the region at large. The company’s first utility-scale project in the Middle East was completed on schedule and successfully linked to the electricity grid, 195 days after breaking ground in March 2013. “What you see today is a world-class power plant, built to new world-class standards,” said Hughes. “I am proud of the fact that our team delivered on our promises. The plant consumed over 1.4 million man-hours all of which were accident-free.” Phase 1 covers an area of 238,764 sq. metres, the equivalent of approximately 33 soccer pitches and is designed to operate for over 25 years. The Solar Park is expected to eventually cover 40 square POWER & WATER MIDDLE EAST / NOVEMBER 2013
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COVER STORY
kilometres and produce 1,000 MW of clean energy for the UAE using both PV and solar thermal technologies. “We are proud to have been part of this initiative to demonstrate that solar PV, with its price and operational efficiencies, is the right fit for the Middle East’s energy generation needs,” said Hughes. “In addition to showcasing the effectiveness of our advanced thin-film modules in hot climates, it has established a benchmark for the development of solar energy projects and define how solar power plants are engineered and built in the region.” The main advantages of thin-film solar cells (that define First Solar) are their light weight and resistance to heat. Unlike other technologies, thin-film solar panels do not decrease in output when temperatures rise. Consequently, the actual output is usually close to what the panels are rated for, making planning a solarpower system much easier. First Solar claims the world record for CdTe solar cell efficiency of 18.7%. In April, the company announced that it set a new world record for CdTe PV module conversion efficiency, achieving a record 16.1% total area module efficiency in tests confirmed by the US 32
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Department of Energy’s National Renewable Energy Laboratory (NREL). Such efficiencies translate into better diffused light performance, allowing for operations even in humid and dusty conditions found in the Gulf countries. Certified for hot weather, the panels – and consequently the plant – are designed to operate even in the hottest summer months. The FS Series 3 Black PV modules’ performance in a wide range of operating environments is validated by its IEC 60068-2-68 sand and dust test certification, which measures durability in harsh desert environments characterised by blowing abrasive sand. Where to next? The Dubai Integrated Energy Strategy (DIES) 2030 calls for cutting dependence on imported gas for electricity production, relying instead of clean coal, nuclear and renewables to mitigate the increases in electricity demand. DIES has defined targets for renewable energy to supply one per cent of the emirate’s energy mix by 2020 and five per cent by 2030.The absence of wind and hydro means Dubai has to rely primarily on solar to meet its renewable energy targets.
According to the ‘State of the Energy Report 2014,’ produced by SCE, in partnership with the United Nations Development Programme (UNDP) and the Dubai Carbon Centre of Excellence (DCCE), the overall development plan of the solar park has two options – recommended solar technologies will be reviewed every three to five years and the master plan will be amended, based on the economies of available technologies. “While Phase 1 was owned by the government and instituted by members of the SCE, Phase 2 will be developed and funded through the Public Private Partnership (PPP) mode,” said Ahmad Butti Al Muhairbi,
COVER STORY
Secretary-General of DSCE. DEWA has announced a tender for Independent Power Producer (IPP) Advisory Services for Phase 2 of the park, which will close in December this year. Waleed Salman, Executive Vice President of Strategy and Business Development, DEWA said the entire process from Expressions of Interest (EOI), Prequalification and Request for Proposals (RFP) to announcement of winning bid is expected to be completed by March/April 2014. He also pegged the cost of Phase 2 at approximately AED 700-800 million. “We are targeting to get Phase 2 at a lesser cost than Phase 1,” continued Waleed. “At AED 120 million and 13 MW, Phase 1 was close to being economically feasible. With Phase 2, with its 100 MW capacity, we expect economics to be better as the scale is bigger. Being a PPP project, we expect participation from local and international banks and export credit agencies.” In addition to utility-scale solar projects that will be based in the solar park, Dubai is also looking to encourage roof top solar plants. “The other direction we are going is roof top and distributed renewable connections to the grid,” said Waleed. “We are working on the final procedures and guidelines that we hope to release to the market in 2014.” State of the Energy Report 2014 notes that the SCE and the Regulatory & Supervisory Bureau (RSB) have developed the Feed-in-Tariffs and Technical Codes for Independent Solar Producers and is aiming to have them ratified by the government
of Dubai by the end of the year. In the same report, Vahid Fotuhi, President, Middle East Solar Industry Association (MESIA) points out that the five per cent target for renewable energy by 2030 will provide local companies with sustained business opportunities. In a separate interview with Power & Water Middle East in May this year, Matt Merfert, EPC Director at First Solar pointed out with solar PV power plants, the most complex elements are inverters and PV modules. Beyond that, nearly everything can be localised. In fact, First Solar achieved 50% localisation with Phase 1, sourcing components such as racks, transformers, cables and switchgears from local suppliers even though it was not a mandatory requirement in the contract. The company even went a step ahead by helping subcontractors and suppliers through their learning curve. The local procurement achieved by First Solar can serve as a benchmark for other utility-scale PV projects in the UAE and the region at large. “With Phase 1, our main objective was to kick start a solar power market in Dubai,” said Waleed. “We didn’t want to build a solar power plant and ensure the investment was profitable. Rather, we wanted to demonstrate that Dubai government is committed to developing a renewable industry in the emirate.” Apart from opportunities for local businesses, solar PV projects have a social impact as well. A study by Greenpeace and European Photovoltaic Industry Association (EPIA) notes that majority of the jobs
in solar PV are created during the installation, operation phases. The study further estimated an average of 33-jobs-per-MW during the installation phase, in terms of installers, service engineers and retailers thus giving a boost to local economies. It noted that by 2030, 10 million full time jobs would have been created with over half of those in the installation and marketing of solar PV systems. During the inauguration ceremony, the First Solar CEO announced that as many as eight Emirati engineers are joining a capacity building programme that will ensure they get first-hand knowledge in installing solar plants and harnessing solar power. This follows an MOU signed between First Solar and DEWA in June this year under which the latter would nominate its engineers for a training course organised by First Solar in collaboration with Arizona State University to achieve the Solar Energy Engineering and Commercialisation Certification (SEEC). After finishing the training course, three engineers from the course would be selected jointly by DEWA and First Solar to participate in an exchange programme to work in the First Solar offices in the US for six months. At the end of this programme, a solar plant will be designed for DEWA, taking into account all the environmental requirements in Dubai. The three trainees will develop the solar plant and obtain an accreditation certificate from First Solar. In addition to its being a centre for electricity production in Dubai, the Solar Park will also have a research and development centre and an academy to train the next generation. With the 13 MW Phase 1 of Mohammad Bin Rashid Al Maktoum Solar Park in Dubai, the 1,000 MW Shams 1 Concentrated Solar Power (CSP) plant in Abu Dhabi already in operation, the UAE stands heads and shoulders above other countries in the region when it comes to utility-scale renewable energy projects that are actually grid-connected and functioning. The launch of 100 MW Phase 2 of the Solar Park and 100 MW Noor 1 Project in Abu Dhabi, both based on solar PV technology, is expected to consolidate the UAE’s renewable energy leadership and prepare the ground for the development and growth of a strong and innovative solar power industry in the region. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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Special Report
Securing tomorrow’s energy
T
he World Energy Congress (WEC), which took place in Daegu, South Korea last month, served to highlight the key energy issues facing the world in the near future through a series of reports. One of the reports titled ‘World Energy Perspective: Energy Efficiency Policies’ produced in collaboration with France’s energy and environment agency, ADEME found that the momentum towards energy efficiency slowing down despite growing government involvement. Christoph Frei, Secretary General of the World Energy Council, said that the slowdown in energy efficiency improvements must be reversed if future progress was to be made on a stable, sustainable basis: “Energy demand continues to grow, albeit largely against a slowing trajectory. However, the rate of decline in energy intensity has reduced at a much sharper rate. While an uncertain investment outlook, created by the global economic crisis, explains a degree of this decline, more worrying is the growth in certain uses of energy such as household electricity and road transport. This problem is compounded by continually rising energy demand, driven by
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The triennial World Energy Congress, held in South Korea last month, questioned assumptions regarding energy efficiency, peak oil and levelised cost of electricity (LCOE) for renewables
non-OECD growth where energy intensity is higher than in most OECD countries.” On the plus side, the report shows that more and more countries are now involved in energy efficiency policies. François Moisan, Executive Director of ADEME and Chair of the report, said: “Our latest study shows the increased extent that most governments are concerned about energy efficiency. About 80% of the countries surveyed have quantitative efficiency targets, while six years ago only 40% had such targets. Labels and standards for energy efficiency appliances are implemented in all OECD countries and in 90% of Asian countries. Regulations on energy-consuming equipment and buildings remain the most common measures deployed. The progress in energy efficiency over the past 20 years equated to one-third of global primary energy consumption in 2011.” Most countries have significantly reduced total energy use per unit of GDP over the last three decades, the study finds. The improvements are largely attributable to more efficient key enduses, such as vehicles, appliances, space
heating and industrial processes. New standards, educational campaigns and regulatory requirements have helped to move efficiency development forward and have contributed to improved energy efficiency in OECD nations. Technology development, response to rising energy prices, and growing competition in industries, have also forced companies to cut energy costs. Western Europe currently boasts the lowest energy intensity, while the CIS has the highest of the large consumer regions, using more than three times more energy per unit of GDP than Europe. China, Africa and the Middle East all see intensity at two times the European average, while Latin America and OECD Asia Pacific are around 15% higher. India and other Asian countries see their intensity at around 50% higher than Europe, with North America at around 1.45 times the European average. High energy intensities can be attributable to a number of factors: industry structure, low energy prices, and share of energy intensive industries, for example. The WEC’s ‘World Energy Scenarios:
Special Report Composing energy futures to 2050’ report sees that global energy demand will grow by one-third between 2010 and 2035, with 90% stemming from outside the OECD community. China and India account for half of that growth, with China alone accounting for a third. However, China’s per capita energy consumption in 2035 will still be less than half that of the United States or Australia. Peak oil or bust? Against the background of growing energy demand, myth of peak oil could remain, well, a myth. The report ‘World Energy Resources 2013,’ released at the congress debunked the myth of peak oil explaining that increased assessment of reserves, along with improved energy production and conversion technologies, has enabled the energy industry to meet a growth in demand that is higher than was anticipated two decades ago. According to the report, global crude oil reserves today are almost 25% larger than in 1993 and production has gone up by 20%. Fossil fuels are still the dominant resource, providing 80% of energy, while new renewables (solar, wind, geothermal, marine) provide about 1.5% only. For electricity production, fossil fuels supply 66% (up by 2%), while new renewables supply around 5%. Over the last 10 years the share of coal has increased to around 28% (up by 4.5%), oil has decreased to 31% (down by 6%), while gas has increased to 23% (up by 2%). Christoph Frei, Secretary General of the World Energy Council, pointed out that renewables and Solar PV in particular will play an important role in the world’s future energy mix. He said: “There is huge unexploited hydropower potential especially in Africa, Asia and Latin America, but a number of large projects are facing local resistance. There is significant potential of biomass energy, particularly in Latin America, but concerns about the energywater-food nexus have to be carefully managed. Other technologies, such as marine energy, still require a lot of efforts in R&D.” The report also finds that the increase of renewables has not been enough to make up for the drop in nuclear energy, from a peak of 17% in the late 1980s to
13.5% in 2012. Alessandro Clerici, Executive Chair of World Energy Resources said that conventional thermal plants with the right flexibility for power-frequency regulation will actually support the growth of the renewables industry. Generation output from renewable technologies was 23% of global capacity in 2010 and a WEC/Bloomberg New Energy Finance (BNEF) study expects this portion to grow to 34% by 2030. Clean energy investment grew seven-fold between 2004 and 2011, with wind and solar continuing to dominate. Wind is expected to rise from 5% of installed capacity to 17% in 2030, and solar PV from 2% to 16% in 2030, with the relative contribution of fossil fuel falling from 67% in 2012 to 40-45% in 2030 (though capacity will grow in absolute terms). In order for renewables to claim a greater share of the global mix, however, levelised cost of electricity (LCOE), which are currently wide ranging around the world, must be controlled. BNEF’s existing analytical framework shows that the costs of more mature clean energy technologies, such as hydro and onshore wind, are roughly equal to those of traditional sources, when sited in good locations and within more established investment landscapes. Emerging technologies, such as marine, tidal and wave, are still at the early stages of cost recovery. However, the costs of producing electricity from a given technology tend to fall at a rate related to the level of usage. LCOEs for PV and onshore wind, for example, have fallen dramatically as governments have underpinned development through financial support. This support has encouraged rapid deployment, causing the cost of manufacturing to come down, while increasing the efficiency of production. Key to aligning costs of production from clean energy with those of more traditional sources will be the resolution of wide ranging cost variations across regions, in order to form a broader, more stable basis for global investment and development. A 10-point Action Plan The World Energy Council (WEC), the organisation behind the World Energy
Congress, issued a 10-point action plan for how governments, industry, and key decision-makers should refocus their efforts and resources to achieve real progress in resolving the energy trilemma. The plan constitutes part of a two-year WEC study, ‘World Energy Trilemma’ conducted with Oliver Wyman, the management consulting firm. Recommendations from the past two years of study were the result of interviews with over 100 energy leaders in 41 countries, including chief executives, ministers, and heads of development banks. The WEC’s 10-point Agenda for Change action plan includes: 1: Connect the energy trilemma to the broader national agenda 2: Provide leadership to build consensus – nationally and globally 3: Improve policymaker dialogue 4: Increase engagement with the financial community 5: Minimise policy and regulatory risk and ensure optimal risk allocation 6: Adopt market-based approaches to carbon pricing to drive investments 7: Design transparent, flexible and dynamic pricing frameworks 8: Drive (green) trade liberalisation 9: Meet the need for more research, development & demonstration (RD&D) 10: Encourage joint pre-commercial industry initiatives, including early largescale demonstration and deployment. According to the report, addressing strong demand growth, widening access to the 1.2 billion people currently not served by energy grids, and balancing the upgrade of ageing infrastructure with environmentally progressive systems requires investment and coordination on an unprecedented scale. However, the impact of shale gas discoveries in more than 40 countries, cost breakthroughs in certain renewable technologies, and increasing the efficiency of transport, construction and household energy use could enable communities to live and work within a widely more sustainable energy landscape. The report calls for better consultation and coordination between policymakers, industry, consumers and developers to create a sustainable energy framework that has the support of all stakeholders. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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Special report
The
Affordability In line with its theme, ‘Desalination: A Promise for the Future,’ the 2013 IDA World Congress in Tianjin, China put the spotlight on new market and growth drivers for the desalination industry in the years to come.
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factor
W
hile sustainability has long been a central theme in the desalination industry, the IDA World Congress 2013 in Tianjin, China put the spotlight on a less prominent but equally important theme - affordable desalination. In his plenary address titled ‘The Promise of Water Reuse and Desalination: the Challenges and Opportunity’ before the assembled delegates at the Meijiang Convention and Exhibition Centre, Mohammed A Abunayyan, Chairman, ACWA Power International, Kingdom of Saudi Arabia noted that desalination and water reuse offer an avenue to the looming global problem of providing fresh water to a
third of the world’s population who, by 2050 “will simply not have adequate supplies to support their survival let alone economic prosperity.” Underlining affordability as key obstacle to desalination and water reuse going mainstream, he said, “(There is a need) to bring down the production cost of desalination by a factor of 10 within the next generation, which will require working together to find ways of optimising the water desalination value chain from finance and construction to storage and distribution with a conscious broadening away from our traditional focus on water treatment technology.” The other two aspects of affordability
Special report highlighted by Abunayyan were the ability of the provider to charge the real price of water “there is the strict duty and obligation of not squandering a valuable resource because it appears to be free” and flexibility for locations that need desalination seasonally and sporadically. Abunayyan also cited energy intensity and environmental impact as hurdles to desalination becoming more mainstream. Regarding energy, he said, “If desalination is to serve one third of the world’s future population, we cannot use such energy intensive processes based on non-renewable resources. We must reduce our energy intensity and our carbon footprint, and also develop desalination processes using more and more of renewable energy…Renewable energy is of particular relevance to the desalination because as the technology becomes progressively more cost competitive, it will deliver truly sustainable solutions to regions with ample sunlight and desalinate-able water.” Speaking about the environmental impact, Abunayyan noted that, “If desalination is to become a mainstream source of water, then we need to transform our environmental performance. Renewable water needs to be seen as an asset and pillar in the green economy just like renewable energy.” He continue, “As we go forth, we can rightly be proud of being the catalysts in serving the most peaceful role of human endeavour, that of bringing water for life; social and economic development, and for avoiding local, national and regional conflicts as we serve and strive to make water available and affordable to the global village and offer great hope for the future generations that we can all do it together.” Desalination trends The world’s population has exceeded seven billion people, and continues to rise. As more countries join the emerging economies group, demand for water continues to increase. As a result, desalination is fast emerging as a technology of choice for securing water supply beyond the traditional markets of the Middle East, which accounts for 1/3rd of all desalination capacity globally.
This trend is reflected in the joint study of International Desalination Association and GWI DesalData which found that new markets like South Africa, Jordan, Mexico, Libya, Chile, India and China will witness the fastest growth in desalination over the next five years, effectively doubling their existing desalination capacity. The amount of new desalination capacity expected to come on line during 2013 is 50% more than last year’s total. Desalination plants with a total capacity of six million cubic metres per day (m3/ day) are expected to come on line during 2013, compared with four million m3/ day in 2012. While this year’s growth is somewhat lower than 2010 when 6.5 million m3/day of new capacity was completed, an important trend is the growing share of the industrial sector. According to IDA/ GWI DesalData analysis, 2010 onwards, 45% of new desalination plants have been ordered by industrial users such as power stations and refineries; in the previous four years, 27% of new capacity was ordered by industrial water users. Industrial applications for desalination grew to 7.6 million m3/day for 2010-2013 compared with 5.9 million m3/day for 2006-2009. Of the 7.6 million m3/day, the power industry accounted for 16%; oil & gas, 12% (up from seven per cent from 2006-2009); mining & metals, 11%; refining & chemicals, 11%; electronics, 5%; and food & beverage, 3%. Other industrial applications accounted for the remaining 40%. Industrial water supply is shifting from an operations issue to a strategic issue. In some regions, regulations are driving industrial desalination demand while water scarcity is the major driver in other regions (China, India, Australia and Chile). Christopher Gasson, Publisher of GWI DesalData said: “You could see this as the water – energy nexus in action. The energy industry needs water, both in refining and power generation as well as upstream. The water industry also needs energy, and the two seem to be coming together in increased demand for desalination. Fortunately the desalination industry has been improving its energy efficiency all along. Over the past decade, we have seen a 30% improvement in the
energy efficiency of the best performing plants, and I think we will see a similar improvement over the next decade.” “Ongoing enhancements in energy efficiency continue to be a key focus for the desalination industry. While we have made significant improvements in the past couple of decades, we continue to seek additional ways to reduce energy requirements through development of new technologies, implementation of best practices and/or retrofits in existing plants, increased use of hybrid technologies, and efforts to harness the potential of renewable energy to power desalination plants,” said Patricia A Burke, IDA Secretary General. Seawater desalination continues to represents the largest percentage of online global capacity at 59%, followed by brackish water at 22%, river water at nine per cent, and wastewater and pure water at five per cent each. TOP 10 SEAWATER DESALINATION COUNTRIES (ONLINE CAPACITY) Country
Commissioned seawater desalination capacity m3/day
Saudi Arabia
9,170,391
UAE
8,381,299
Spain
3,781,314
Kuwait
2,586,761
Algeria
2,364,055
Australia
1,823,154
Qatar
1,780,708
Israel
1,532,723
China
1,494,198
Libya
1,048,424
The new capacity coming online in 2013 could produce the same amount of freshwater as 28 months of rainfall in London or 19 months of rain on New York City. It takes the total capacity of all 17,277 commissioned desalination plants in the world to 80.9 million m3/day, which is nearly 32 years of rain for London or just over 21 years of rain in New York.
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Special report Leading players in the global desalination industry used the platform presented by the Congress to launch their latest products and solutions during the Congress. Specialty chemicals industry player LANXESS presented their Lewabrane series of Reverse Osmosis (RO) membrane elements. These spiral wound polyamide composite membranes are specially designed for industrial water treatment and treatment of drinking water. The range currently includes products for the desalination of brackish and low-salinity waters. Main areas of application include the production of boiler feed water required in power stations, wastewater treatment and groundwater remediation and recharge. BASF announced their new T-Rack 3.0 (based on inge ultrafiltration (UF) membrane technology) for seawater desalination pre-treatment and the next generation of the Sokalan ROXpert software, which is designed to recommend the most suitable and efficient Sokalan RO antiscalant for a reverse osmosis system. BASF claims that the T-Rack’s plug and play installation lowers the amount of maintenance required and its modular design makes it is easy to add more modules to address changing capacity needs. The new generation Sokalan RO-Xpert software takes into consideration the feed water analysis as well as the plant process parameters and calculates the scaling and fouling potential as well as the required dose rate to control the process. GE announced the launch of new pressurised and submerged UF membranes designed for pre-treatment of feed water for SWRO systems. The new technology includes GE’s ZeeWeed 1000 and ZeeWeed 1500 hollow-fibre membranes. The company claims the new membranes provide a reduced plant footprint and lower installed cost versus previous generation ZeeWeed products and also offer a reduction in cost greater than 25% and a reduced footprint of 10% to 25%. Victaulic, a leading player in mechanical pipe-joining systems, exhibited its line of piping products for the desalination industry. These included balance-of-plant piping solutions, AGS couplings for large38
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diameter piping systems, and the Style 171 composite pipe coupling. The latter is an engineered composite coupling for use where corrosive conditions exist. Victaulic claims that its balance-of-plant piping solutions eliminate or reduce the need for welding and flanging, enable quick, easy field installation, and create a union at every joint for ease of access, maintenance and expansion of piping systems; while the patented Advanced Groove System (AGS) couplings enable faster and easier installation of largediameter piping systems. KSB presented its SALINO Pressure Centre with 4-in-1 technology, HGM-RO high-pressure pump with ring-section design and SalTec N System – an all-inone solution for SWRO applications. Siemens Water Technologies presented its MEMCOR CP II UF system for industrial and municipal water treatment applications at the Congress. The company claims that the new system reduces customer costs with a larger surface area module, shorter duration backwash and easy maintenance access compared to previous MEMCOR systems. IDA World Congress History
Presidential Awards are conferred upon individuals and organisations whose work on behalf of IDA and the desalination industry demonstrates outstanding achievement, leadership and vision. This year’s recipients are: KHOO Teng Chye in recognition of his outstanding performance as the Technical Program Co-Chairperson of the 2013 IDA World Congress. Prof. WANG Shi Chang in recognition of his dedication and outstanding achievement as the Technical Program Co-Chairperson of the 2013 IDA World Congress. Prof. WANG’s efforts were instrumental in the success of the Technical Programme, the largest and most comprehensive in IDA World Congress history. Guillaume Clairet for his work as CoChair of IDA’s Humanitarian Outreach Committee and his vision, dedication and outstanding efforts in organising IDA’s highly successful conference ‘Water Recycling and Desalination for the Oil & Gas Industry.’ Presented in Banff, Alberta, Canada in May 2013, this conference raised more than USD 250,000 to support water-related humanitarian projects.
• Perth, Western Australia (2011) • Dubai, United Arab Emirates (2009) • Maspalomas, Gran Canaria (2007) • Singapore (2005) • Paradise Island, Bahamas (2003) • Manama, Bahrain (2001) • San Diego, CA, USA (1999) • Madrid, Spain (1997) • Abu Dhabi, UAE (1995) • Yokohama, Japan (1993) • Washington, DC, USA (1991) • Kuwait City, Kuwait (1989) • Cannes, France (1987)
Key announcements IDA announced the recipients of seven Presidential Awards in Tianjin. In addition, IDA presented a special All Presidents Award to Patricia A. Burke, the Association’s Secretary General. The
Michel Canet in recognition of his longterm and outstanding dedication and commitment to IDA and for his clear, professional and proactive performance as IDA’s Treasurer for the 2011-2013 Term. Ghassan Ejjeh in recognition of his significant contribution to IDA’s development during his presidency and for his years of commitment to IDA’s goals and mission, particularly as an advocate of international cooperation while serving on the IDA Board of Directors. MASDAR for conceiving a milestone initiative on low energy footprint, renewable desalination and for its focus on bridging the gap between research and commercialization of new desalination technologies. This visionary initiative has established a framework to leverage a new generation of low energy footprint, more sustainable and environmentally friendly desalination.
Special report PUB, Singapore’s Public Utilities Board, for its longstanding commitment to the sustainability of water and desalination, and in recognition of the special relationship between PUB and IDA, reflected in ongoing collaboration on many important events and initiatives. These include organisation of the 2005 World Congress in Singapore; PUB’s leadership as the first host agency for IDA’s Fellowship Award; the successful launch of the IDA Desalination Academy; and continuing cooperation on Singapore International Water Week. Patricia A Burke became the first recipient of an All Presidents Award, presented on the occasion of IDA’s 40th Anniversary on behalf of IDA’s membership and all IDA Presidents, current and past, in recognition of her enduring commitment to the organisation. Ms. Burke has been dedicated to IDA since its inception, and the award acknowledges her many contributions, leadership, and passion towards the mission of IDA and its developments, achievements and success. The Lifetime Achievement Award was presented to Dr Jim Birkett, IDA’s de facto historian and the first elected President of IDA, in recognition of his extensive contributions in the fields of desalination and water reuse. One of the desalination industry’s most respected professionals, Dr Birkett has more than four decades of experience in the study of desalination, advanced water treatment, and membrane separation industries and technologies. From 2009-2013, he served as Chairman of the Editorial Boards for the IDA Journal of Desalination and Water Reuse. MIT doctoral candidate Ronan K McGovern received the Best Presentation Award of the Young Leaders Programme at the Congress. The paper in question, titled ‘Design and Optimisation of Hybrid ED-RO Systems for the Treatment of Highly Saline Brines,’ was authored by R K McGovern, S M Zubair, and J H Lienhard V. The work was jointly conducted with KFUPM, which sponsored it through the Centre for Clean Water and Clean Energy.
New IDA President Dr. Abdullah Al-Alshaikh, President of the International Desalination Association 2013-2015
Dr Abdullah Al-Alshaikh, Deputy Governor for Planning and Development of Saline Water Conversion Corporation (SWCC) in Saudi Arabia was named President of the International Desalination Association (IDA) for the 2013-2015 term. Dr. Al-Alshaikh’s first postgraduate position was working with ADA (Ar Riyadh Development Authority) as an engineer from 1988 – 1994. He began working with SWCC in 1994 as a Project Engineer in the Studies & Designs Department, where he was involved in reviewing of designs and technical proposals for the major Shoaiba Phase II Pipe Line Project, a 122-km long pipe line with pumping stations and storage tanks to supply water to Jeddah and the holy city of Makkah and Taif. In 1996 he was appointed as General Manager of Projects in SWCC’s head office. In 2002 he was promoted to Assistant
Deputy Governor of SWCC for Projects & Technical Affairs while continuing to work as General Manager of Projects and, in the absence of the Deputy Governor, conducting the duties of the Deputy Governor. In 2006, he was promoted to Deputy Governor of SWCC for Planning and Development, the same position he holds today. Dr AI-Alshaikh has been a member of the IDA Board of Directors since 2009 and has served as Chairman of the IDA R&D Committee since that time. He holds a BS in Civil Engineering from King Saud University, Saudi Arabia and a Master of Engineering Degree in Civil Engineering from The Pennsylvania State University, State College. In 2004, he was awarded a Ph.D. degree in Business Administration by Hull University, UK for his thesis, ‘A Contract Model for Private Sector Participation in Water Resources Management: The Case of Saudi Arabia.’ Emilio Gabbrielli, Vice President Business Development of Toray Membrane, was named first Vice President, and Miguel Angel Sanz, Director of Development and Innovation of Degrémont as second Vice President.
IDA Board of Directors 2013-2015 for the Middle East
• Zamzam Alrakaf – Ministry of Electricity & Water, State of Kuwait • Abdullah Al Al-Shaikh – Saline Water Conversion Corp • Mohamad Jaroudi – Future Pipe Industries • Fady Juez – Metito Overseas • Imad Makhzoumi – Future Pipe Industries • Shannon McCarthy – Middle East Desalination Research Centre • Johnny Obeid – Veolia Water Solutions & Technologies / Sidem
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SPOTLIGHT
ELECRAMA 2014: Powering the new world Given the flourishing bilateral trade between India and the Middle East, which stood at over USD 205 billion in 2012-13, ELECRAMA-2014 provides a fantastic opportunity to electrical equipment buyers and policy makers from the region to strengthen their engagement with Indian and overseas participants
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LECRAMA 2014, the world’s largest power transmission and distribution (T&D) confluence, will be held at India’s software capital city Bangalore between January 8-12, showcasing the global competitiveness of Indian electrical products and the capability of domestic manufacturers to develop world class engineering products at competitive costs. The 11th biennial event to be hosted by Indian Electrical & Electronics Manufacturers’ Association (IEEMA), the industry body representing the country’s power and electrical equipment industry, will serve to be the ideal platform for Indian industry to connect with the appropriate partners across the globe,
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including the Middle East countries. IEEMA’s flagship exposition is poised for a quantum leap in terms of event experience, ambience, context, commerce and is moving to the newest and worldclass exhibition location in the country Bangalore International Exhibition Centre (BIEC), Bangalore, which has 40,000 sqm of covered column-less air-conditioned exhibition space spread over 34 acres. Just like India, Middle East nations, too, are undergoing through rapid development in its power sector. The Middle-East region has been witnessing strong growth in the consumption of electricity over the past few years, and is further poised to grow at even faster pace in the next decade. Among a raft of
countries in the Middle-East region, the electricity consumption in countries like Qatar and Oman is projected to grow at a double-digit compounded annual growth rate (CAGR) during 2011-2014, on the back of an increasing demand from residential and industrial sector. Oman has been one of the fastest growing power sector country in the Middle-East, and the country’s electricity sector is expected to augment in the coming times, with the installed electricity capacity and consumption expected to grow at CAGR of around 16% and 12.5%, respectively during 2011-2014. Also, several other Middle-Eastern countries including the UAE, Saudi Arabia, Jordan also exhibit strong future growth
SPOTLIGHT
Through the ‘Go Global’ theme, India will be targeting a five percent share of global trade in electrical equipment in the next 10 years in order to help exports reach a level of USD 25 billion. ELECRAMA-2014 (from January 8-12, 2014) will showcase the global competitiveness of Indian products and the capability of domestic manufacturers to develop world class engineering products at competitive costs.
potentials in the electricity sector. With growing industrialisation and rapid urbanisation being witnessed by the Gulf States in the last five years, demand for transmission and distribution (T&D) networks, too, has increased sharply. As a result, the Power T&D sector in the Gulf Cooperation Council (GCC) countries - comprising of The Kingdom of Bahrain, Kuwait, the Sultanate of Oman, Qatar, Saudi Arabia and the UAE - is expected to witness rapid growth, with investments totaling USD 60 Billion in the next five years and add 18,000 circuit km of network. Given the flourishing bilateral trade between India and the Middle East nations, which stood at over USD 205 billion in 2012-13, the forthcoming event (ELECRAMA-2014) will provide an opportunity for business visitors from the Middle East countries to also take part in various concurrent events. Through the ‘Go Global’ theme, India will be targeting a 5% share of global trade in electrical equipment in the next ten years in order to help exports reach a level of USD 25 billion. To be held from January 8 to 12, 2014, ELECRAMA-2014 will serve to be the ideal platform for Indian industry to connect with the appropriate partners across the globe, including partners from developing nations of the Middle East, Central Asia, Africa, Latin America, etc. ELECRAMA-2014 will also feature other concurrent events such as TRAFOTECH 2014, which provides transformer designers, manufacturers, users and consultants a common platform to review the latest advances and futuristic
trends, share operational experiences and discuss the requirements of transformers for smart grid systems. ELECRAMA-2014 will also feature CEOs Summit, International T&D Conclave and the Engineer Infinite 2014. Presently, India’s electrical equipment industry size exceeds Rs 1.20 lakh crore or USD 25 billion and the country aims to reach an output of USD 100 billion by balancing both exports and imports in the coming years. It contributes 1.4% to the nation’s GDP and 10% to the manufacturing GDP. Keeping in tandem with its previous editions, Indian Electrical & Electronics Manufacturers’ Association (IEEMA), the industry body representing the country’s power and electrical equipment industry, will be hosting its 11th biennial event ELECRAMA-2014 in early January, to showcase the global competitiveness of Indian products and the capability of domestic manufacturers to develop world class engineering products at competitive costs. For the global electrical & electronics (E&E) manufacturers, a USD 300 billion development thrust into the Indian power sector is a massive opportunity. The Indian electrical equipment industry has a diversified, mature and strong manufacturing base, with robust supply chain. A rugged performance design of domestically manufactured electrical equipment has evolved over the years to meet the tough network demand in the country. The Indian industry is seeking partners to build capacities and calibrate their proposition to compete on a global scale. Global trade in electrical equipment is
close to USD 600 billion, with India’s share being less than one per cent The Indian electrical equipment industry has been exporting almost 15% to 20% of their product portfolios, amounting to USD 5 billion in 2012-13. India is targeting a gross domestic product (GDP) growth rate of 8-9% in the coming years, and to enable this growth, the country’s economy needs the support of its power sector and India’s electrical equipment industry is expected to play a critical role in improving its power infrastructure. The Indian power sector story has been encouraging with total installed generation capacity as on March 31, 2013 reaching 2,23,344 MW, including renewables at 27,541 MW and hydro at 39,491 MW. In the 12th Plan (2012-17), the generation capacity addition target has been fixed at 88,537 MW. Planned additions in the transmission sector include 1,10,340ckm of transmission lines, 2,70,000 MVA of AC transformation capacity, and 19,250 MW bi-pole link capacity of HVDC systems. The inter-regional power transfer capacity is projected to increase to 65,550 MW by 2017 as compared to 27,750 MW in 2012. The growth of the Indian power sector will entail exponential demand for electrical equipment in the coming years. Based on investment estimates and capacity addition targets, annual domestic demand for power generation equipment could be in the range of USD 25-30 billion by 2022; for the power transmission & distribution equipment, it may be in the range of USD 70–75 billion. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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Special report
The Burden of Success
A lively panel discussion at the Power + Water Leaders Forum 2013 in Abu Dhabi provides a peek into the challenges in store for the sector – mixed impact of cogeneration, distorted loads and behavioural change.
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hile the Gulf countries, by and large, have been successful in privatising their utility sectors, especially on the production side, the system bred by this success is proving to be unwieldy in terms of meeting future challenges. At the Power + Water Leaders Forum 2013 in Abu Dhabi in September, top industry executives from the region debated the main challenges to reducing the region’s record breaking power and water consumption patterns in a lively panel discussion. As the host city, it was natural that Abu Dhabi’s successful privatisation programme served as a launch point for the panel. The privatisation programme, regarded as a global success story, has provided
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Abu Dhabi’s electricity sector with one of the most modern and efficient fleets in the world – 100% gas-powered, combined cycle gas turbines with thermal efficiencies in the high 50%. But the programme has also created an imbalanced system where the winter peak is only 40% of the summer peak, resulting in a highly distorted load. “The load for power is much more seasonal than the load for water,” said panellist Carl Sheldon, who is the CEO of Abu Dhabi National Energy Company (TAQA).” In Abu Dhabi, all the power plants are combined cycle gas turbines with desalination attached. This configuration forces us to run our plants part load during the winter because you need the
water, but that’s also very inefficient.” Once the nuclear plants planned by Abu Dhabi come on line, 4,000 MW would run as base load. “The idea then will be to build near to the water load, and powered with electricity generated by the nuclear plants so that the inefficiency associated with gas-fired plants producing all the water is eliminated,” said Sheldon. On the other hand, in Saudi Arabia, the official policy favours cogeneration. Fellow panellist Ali Al-Barrack, President & CEO, Saudi Electricity Company (SEC) argued: “If you are using the fuel to produce only electricity, you are using it only once. By using the same fuel to produce electricity, water and steam, you improve the efficiency of fuel consumption. We are
Special report
also enjoying up to 70% thermal efficiency from around 45-50%.” In fact, in Saudi Arabia, cogeneration is being introduced in all industrial areas where there is a need for steam. Nick Carter, Director General, Regulation and Supervision Bureau pointed out that the ideal ratio is one megawatt to 15 gallons which means that the most efficient plant, in terms of thermal efficiency, is 1,500 MW of power and 100 Million Imperial Gallons a Day (MIGD) of water. But the problem that Abu Dhabi and most of the Gulf countries are facing is a fairly flat water demand with a very high electricity demand to boot. “Electricity-only plants are not as efficient,” said Carter. “Moreover, the nuclear power plants will introduce challenges to the sector that we didn’t have before.” Currently, Abu Dhabi’s desalination capacity stands at a substantial 950 MIGD. RSB’s is aiming to cap the amount of water which is being produced by encouraging the use of recycled water and ensuring it is used more efficiently. Using water twice has a strong impact on the amount of water produced at the beginning of the supply chain. Carter said: “Meshing the nuclear power plant with continued demand for water is a challenge. Whether it can be met by building reverse osmosis plants or by reducing the consumption of water is something that only time will tell. From our perspective, it is more about reducing consumption.” However, as the region’s history shows, thanks to plentiful supply of fossil fuel, desalinated water became available in huge volumes, with the end result that both water and power are seen as free goods. “Using modern technology around smart grid and smart metering and passing on more of the true costs to the consumer will lead inevitably to greater efficiency as seen in other markets,” said Sheldon. Al-Barrack said that biggest hurdle to changing consumer behaviour in the region is subsidised energy. He continued: “People are not compelled to conserve whether it is lighting, air-conditioning, appliances or even driving cars.
Continuing to provide these subsidies for a big country like Saudi Arabia with different levels of education and different cultures encourages people to consume more.” To address behavioural change, Saudi Arabia has created a Centre for Energy Conservation Efforts which is taking the message to schools and other sectors. However, Al-barrack noted that the power and water sector also needs to help its customers. From August this year, stricter laws have been put in place in Saudi Arabia to limit the flow of less energyefficient appliances into the market. Building codes have been amended to make thermal insulation mandatory for all new buildings. Abu Dhabi too has launched major initiatives to inform and educate customers about the true cost of power and water. A key initiative is the new billing system launched by RSB, in conjunction with the Abu Dhabi Water & Electricity Authority (ADWEA) and the two distribution companies – Abu Dhabi Distribution Company and Al Ain Distribution Company. Customers now get two separate bills for electricity and water, with the bills carrying the actual unit cost of electricity (or water as the case may be) and the related government subsidy. Carter explained: “We have In the Green and In the Red blocks on the residential bills; we have set certain benchmarks for premises, whether they are flats or villas. Green is certain consumption per day; if you exceed the Green, you go into the Red.” Additionally, RSB has been running real projects with real customers to analyse and understand behaviour and consumption patterns. In the time-of-day trial project, which has been running for nearly a year, 400 customers in three separate locations within Abu Dhabi were provided with Customer Display Units (CDU) that display their loads with Green and Red indicators. Notional tariffs were set to see if customers move away from time of day. The results of these 400 customers using the CDUs were juxtaposed with those of a separate customer control group who were not aware that their loads are
being monitored. While the results of this pilot will be presented at the Abu Dhabi Sustainability Week in January 2014, Carter shared some of the initial findings. He continued: “One thing we did find was that only 65% of the customers moved a little bit away from the peak. So it wasn’t that successful but in terms of load reduction, the pilot was hugely successful. Customers with CDU had saved between 25-50% of their load throughout the period they had the device compared to their consumption in the previous year.” While customers were provided with Internet portals to look at their load factors and how they were using units, RSB found that customers tended to focus mainly on whether they were in the Green or in the Red. According to an initial analysis, if all the 70,000 villas in the Abu Dhabi behave in the same manner as the pilot project participants, the emirate stands to save four billion units of electricity annually. “As part of a broad strategy to change people’s behaviour, we are seeking to introduce these CDUs in all villas, paid for by the sector,” said Carter. “I believe we can achieve that by involving the family and providing knowledge and information instead of resorting to making things price sensitive.” By linking tariffs with CDUs and a whole range of other devices and information systems, it is possible to start building up a huge canopy of information that people can use to manage their life styles. At the same time, initiatives like the above, could be factored in while calculating load growth because of the capital costs involved. Back in the 1960s, US utilities were forecasting annual six per cent compound annual growth rates in load. So they commissioned power plants in the 60s and early 70s, many of them big nuclear plants, only to find the actual load growth was about two per cent. Sheldon pointed out that five to six per cent growth rate in Abu Dhabi’s context would means 1,500-2,000 MW of new generation capacity every year, which is a tremendous capital commitment. “We have to be very careful about understanding what the dynamics of demand growth are going to be,” he concluded. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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POWER AND WATER
POWER AND WATER
Water Re-use
Reliable Reuse Dow Water & Process Solutions (DW&PS) offers a broad portfolio of products and solutions with strong positions in a number of major application areas, including industrial and municipal water, industrial processes, pharmaceuticals, power, residential water and waste and water reuse. Rami Abu Amirah, Regional Commercial Manager, DW&PS, Middle East & North Africa spoke to Power & Water Middle East on how DW&PS’ re-use technologies open up new opportunities for treated wastewater in industrial applications. How can water/waste water reuse become a path to sustainable development for countries in the Gulf? It is a widely accepted fact that addressing water scarcity is one of the top priorities for the Gulf countries. The number of countries having to address this issue is on the rise, as economies diversify and populations grow. However, we are seeing positive momentum in the region. The GCC water sector has witnessed a revolution of sorts in recent years with a shift 46
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towards sustainable practices, wastewater treatment and reuse, with several utility and water agencies recently announcing noticeable projects across the region. GCC governments have also committed funds towards improving water technologies and maximising wastewater treatment and reuse. These efforts are bearing fruit as recent Frost & Sullivan research suggests that urban water supply in the Kingdom of Saudi Arabia and the UAE is already above 90% coverage.
Our business, Dow Water & Process Solutions (DW&PS), has been actively engaged in helping the region achieve its water goals by offering a broad portfolio of ion exchange resins, reverse osmosis membranes, ultrafiltration membranes and electrodeionisation products, with strong positions in a number of major application areas, including industrial and municipal water, industrial processes, pharmaceuticals, power, residential water and water reuse.
Water Re-use While considering water/wastewater reuse, what should be the primary considerations? Ultimately, this is a demand-driven application. Selecting the suitable integration of technologies depends on many characteristics that differ from one site to another. Before developing a process, it is essential to understand the nature and quality of the water to be treated, the environmental aspects, the final application requirements, government legislation, and economic impact, which looks at the lifecycle cost of the treated water. Dow has an excellent global track record in wastewater treatment and reuse using our technologies. What is DW&PS portfolio of products and solutions with regard to water-reuse? Dow offers a complete portfolio of bestin-class water treatment technologies to manage a variety of water resource management needs. These include DOW Ultrafiltration modules and skids, DOW FILMTEC Reverse Osmosis (RO) and Nanofiltration (NF) membranes, DOWEX Ion Exchange (IX) resins and the TEQUATIC PLUS fine particle filter engineered to lower the total cost of ownership in extreme and variable high solids environments. What are the sectors driving water reuse globally and in the Middle East? Water reuse across various sectors has the potential to reduce both water supply costs and the pressure on water resources. Depending on the wastewater’s future reuse, it can be reused directly or treated before reuse. Some of the sectors that are driving water reuse globally and in the Middle East include oil and gas, facilities management, waste management, agriculture and construction. From a technology provider standpoint, how is DW&PS driving the economics of water re-use? Water reuse technologies are emerging as a vital solution to the region’s water shortage scarcity. With proper treatment wastewater can be reused for beneficial purposes such as agricultural, landscape irrigation and industrial processes, enabling communities and countries to stretch limited freshwater supplies.
Advancing wastewater technologies have thus empowered Middle Eastern countries to set their sights on dramatically increased reuse targets. Two of Dow’s most notable water treatment projects in the region are the Al Ain Dairy and Park Hyatt Dubai wastewater reuse projects. These projects demonstrate that sustainable water reuse practices are also profitable as Dow technologies help shift the cooling and utility water sources from high cost desalinated seawater to low cost treated wastewater. Park Hyatt Dubai, a five-star hotel, installed a system with DOW Ultrafiltration technology to safely and effectively treat water from Dubai Municipality. Dow’s membranes filter and process 148,300 m3/ annually for the hotel. The water is used to supply its HVAC (heating, ventilating, and air conditioning) towers which, in turn, help cool the resort’s 225 luxury rooms and suites. The overall system has helped the hotel save as much as 154,880 m3 of potable water since it was launched in 2010. As for Al Ain Dairy, the UAE’s leading dairy producer, they are using DOW Ultrafiltration and DOW FILMTEC technologies to reuse 300,000 cubic litres of treated wastewater per day. Dow technology filters and purifies the treated wastewater, which is then sprayed through an automated cooling system to keep the dairy cows cool and comfortable during the summer season, thereby maintaining optimal dairy production levels. The treated wastewater is also used for irrigation and cleaning purposes. The primary advantage of the existing wastewater reuse technologies offered by DW&PS is the integration flexibility which makes treated wastewater a possible source for many applications, including cooling and power generation. We are witnessing a big shift in the trend in several industrial applications, from seawater desalination to wastewater reuse. Power generation and industrial cooling applications have played a key role in driving a shift towards treating wastewater as a reliable source for energy and cooled air. What is the product development underway at Dow with regard to industrial water treatment and re-use? We are continually exploring new
technologies and looking to utilise the existing technologies we have in a more innovative way. To make this happen, our key success factors are our engineering competencies in integrating our technologies into tailor-made solutions designed selectively and uniquely for each case we have. Additionally, Dow is also working with local partners like the Saudi Saline Water Conversion Corporation (SWCC) and King Abdullah University of Science and Technology (KAUST) to promote desalination technologies through research collaboration. What are Dow’s specific offerings for treatment and re-use in the oil & gas sector? What are the priorities they address? Water quality is critical to improving recovery and minimising the environmental impact of hydrocarbon production. Dow offers a complete portfolio of globally-proven water technologies to help overcome the unique water resource management needs of the hydrocarbon exploration and production industry. These include DOW Ultrafiltration modules and skids, DOW FILMTEC Reverse Osmosis (RO) and Nanofiltration (NF) membranes, DOWEX Ion Exchange (IX) resins, OPTIPORE polymeric adsorbents and TEQUATIC PLUS fine particle filtration modules that enable complete or tailored removal of ionic, organic and particulate contaminants from source waters for injection or produced waters for discharge. What is the status of Dow’s plans to establish membrane manufacturing facility in the region? We are committed to our investment in the region, which would be a best-in-class DOW FILMTEC RO elements manufacturing plant. This new facility would deliver the most advanced, affordable and sustainable water sourcing and treatment options for desalination, wastewater treatment, and other applications currently in demand. Our growing local manufacturing footprint would complement our robust commercial and technical presence throughout the region, helping us to better serve our customers. At present, we are taking a closer look at how best to execute on our vision, including capacity and timing. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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Surface Water
Keeping
the balance The Sultanate of Oman has developed a National Water Resources Master Plan to bolster and manage the country’s conventional water resources. In a detailed e-mail interview, Dr Aisha Mufti Al-Qurashi, Surface Water Expert, Ministry of Regional Municipalities and Water Resources, Sultanate of Oman outlined the key elements of the plan which seeks to balance demand and availability of water resources.
Could you give us a break-up of Oman’s water resources and the key challenge in terms of managing these resources? The available water resources in Oman are of two types: conventional and non-conventional. Surface water resources represent six per cent while groundwater, which is the main water source, represents 94% of conventional water resources. In order to achieve a balance between renewable resources and increasing water demand, an effort was made to augment non48
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conventional water resources through the construction of seawater desalination plants, storage dams, recharge dams and wastewater collection and treatment facilities. The latest water balance study results show that rainfall provides a volume of 15,841 Mm3/year, 51 mm/year, with 79% (12,553 Mm3/year) lost due to evaporation and initial absorption. However, this figure is highly variable, ranging from 167 mm/year in Musandam to 15 mm/year
Surface Water in Haymah with a bias towards the large areas in central Oman with little or no rainfall (for example, Haymah and Najd). The total annual runoff through Wadis is 330 Mm3/year, whereas the direct recharge from rainfall is 2,397 Mm3/year. Total average annual water demand is 1,872 Mm3/year, where the net agricultural demand (1,546 Mm3/year) is mainly met by water supplied from Falaj flow and abstractions from groundwater using wells with a minor contribution from capillary flux, making up 95% of the total groundwater abstraction of the Sultanate of Oman with urban requirements (88 Mm3/year) comprising the other five per cent. Gross urban demand (105 Mm3/year) is met by desalination water and groundwater abstractions. Desalination plants provide 10% of the total demand and wastewater treatment plants provide about two per cent. The study shows that the total deficit is 316 Mm3/year. The high agricultural demands are the main reason for the deficit in some areas as in the Al Batinah coast, which has led to saline intrusion in some cases. Saline intrusion is calculated to occur along the Al Batinah coast with an average annual inflow of 59 Mm3/year. It is clear that the main challenge is the keeping the balance between available resources and increasing demand through the adoption of an approach that seeks to harmonise the requirements of development with available water resources. What is the growth rate of water demand in Oman, and which sectors are the major water consumers? Average water demand is about 1,872 Mm3 with an increase of 35% compared to 2000. Agricultural demand has increased by 36% compared to that of 2000 (1,546 Mm3 compared to 1,131 Mm3). Urban demand has increased 35% more compared to that of 2000 (88 Mm3/year compared to 25 Mm3). Agricultural demand is the highest with about 95% of the total abstractions, as the latest study shows, compared to only five per cent for other sectors. Available data indicate that the quantities of consumed water exceeds available resources by about 316 Mm3. The highest deficits are also linked with the highest demand that originate from agriculture.
What are the steps taken by the Ministry to drive rational use of water across different segments? The National Water Resources Master Plan has three broad-based principles - Supply actions, Demand management actions and Quality control actions. The key issues being addressed by the government through the plan are as follows: • Balancing water use to availabilit • Adopting improved irrigation techniques and selecting appropriate crops to reduce agricultural water use • Managing water resources effectively and efficiently • Increasing the use of treated wastewater and desalinated water • Minimising water pollution, flood damages and drought consequences • Provision of sufficient water to spur and sustain economic development • Provision of access to safe, adequate and affordable water supply, hygiene and sanitation • Protecting the groundwater resources in qualitative and quantitative terms • Creating and cultivating conservation awareness • Establishing an integrated programme for the conservation and management of the resources at basin level • Controlling saline intrusion by reducing abstraction below the long-term recharge • Controlling urban water losses Could you also elaborate on Oman’s surface water management strategy? Facing rapid increase in demand with very limited natural water resources and decrease in rainfall, which is the main source of water resources (as the records show) is our greatest challenge. Oman depends mainly on groundwater, the renewal of which depends on direct recharge from rainfall, which is decreasing. There is also the danger of using up all the non-renewable resources and aquifers, which should be treated as strategic future resource and emergency reserve. Being an arid country, Oman does not have perennial rivers but Wadis that flow only after intense rainfall events and for short periods, sometimes as short as a few hours. Constant flow can only be seen in few Wadis like Dayqah. Other sources
of surface water are the Ghaili aflaj which is based on the perennial flow in a Wadi. These types of aflaj represent 48% of the total number of aflaj in the Sultanate. Springs also constitute a surface water resource, with the majority being located in mountainous areas, discharging their water from two major geological formation Al Hajar limestones and the ophiolites. Great efforts are being made by the government to ensure sustainable use of these limited resources through continuous maintenance of Ghaili aflaj. The government is continuing with its programme to construct recharge and storage dams to capture and store the Wadi flows instead of letting them end up in the desert or the sea. Protection dams are also being constructed to protect downstream villages and towns from severe floods and cyclones. These dams aid in groundwater recharge too. Fog collection, cloud seeding and rain water harvesting are some of the other solutions being studied by the government, with few already being implemented. What are the steps being to maximise wastewater recycling/re-use in the country? Oman’s production of treated water is around 25,000 m3 daily and about 42 Mm3 annually. In the Governorate of Muscat, the first phase of the expansion of both wastewater collection network and the treatment stations have been completed, enabling the production of an additional 70,000 m3/day. It is expected that production of treated water will increase gradually to 100 Mm3 by the year 2030. However, treated wastewater is being used on a large scale for beautification, and in some cases, for groundwater recharge. In Salalah, a 20,000 m3/day wastewater treatment re-injection project was initiated in 2003 to reduce seawater intrusion along the coastal area of the Salalah plain. The subject of treated wastewater re-use has been accorded top priority as it will help conserve fresh water resources while relieving the stress on ground and surface waters, especially if the current studies are implemented - treated water could be used in agriculture to minimise the stress on depleted groundwater aquifers. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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Test & Measurement
lead
Take the in design Test leads are a key component of any precision instrument stresses Paul Swinerd, Product Portfolio Manager, Megger
T
he design of HV insulation test lead sets is intended to facilitate connection to a variety of de-energised systems for the purpose of making insulation resistance measurements. In all cases, it is the responsibility of the user to employ safe working practices and verify that the system is safe before connection. Even electrically isolated systems may exhibit significant capacitance which will become highly charged during the application of the insulation test. This charge can be lethal and connections, including the leads and clips, should never be touched during the test. The system must be safely discharged before touching connections. Safety, long life, and the ability to provide reliable connections to the wide variety of test pieces found in real applications are of utmost importance. Careful design ensures repeatable connections, which are practical and safe to use. Only the best materials and most appropriate materials should be used to provide the
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essential blend of performance and safety. As an example the careful specification of the cable ensures it remains flexible in all conditions and has extremely good insulation properties which will not affect the measurements made. Using a double-insulated silicon cable will ensure reliable and safe measurements. Testing with poor or electrically leaky leads can provide misleading measurements and may result in perfectly good insulation being diagnosed faulty, wasting both time and money on unnecessary repairs. This is especially so when using long test leads. Significant safety enhancements The international standard IEC 61010-031 details the safety requirements for hand-held probe assemblies for electrical measurement and test. A number of amendments were made to the standard, in particular: prevention of hazard from arc flash and short circuits. Two hazards are considered:
Test & Measurement
1. Maintaining practicality with a fully insulated clip If a clip’s added insulation impedes the operation and ability to make reliable connection to the wide variety of bus bars, wires and terminals that are needed, the design is useless and the operator may be tempted to remove the additional insulation to make connection.
(1) The dangers of a probe tip or crocodile clip temporarily bridging two high energy conductors, and (2) The dangers of a contact being broken while current is flowing. These hazards are particularly applicable to many of the environments in which 5- kV and 10-kV insulation resistance testers are used. Should a probe or clip momentarily short out two high energy conductors during connection, an extremely high current will flow heating the metal and melting insulation. This itself may cause serious burns to the operator or bystander near the clip or probe. Additionally, should the contact be broken while current is flowing, arcing may occur leading to an extremely serious situation known as arc flash. The standard describes the danger of arcing as follows: ‘The arcing will ionise the air in the vicinity of the arc, permitting continued current flow in the vicinity of the probe tip or crocodile clip. If there is sufficient available energy, then the ionisation of the air will continue to spread and the flow of current through the air continues to increase. The result is an arc flash, which is similar to an explosion, and a cause injury or death to an operator or a bystander.’ IEC 61010-031:2008 requires probe tips and crocodile clips to be constructed to mitigate the risk of arc flash and short circuits, and this requirement applies to all crocodile clips or clamps that are rated to Installation Category III or IV (CATIII or CATIV). The outer surfaces of crocodile clips must not be conductive and no metal parts should be accessible (as defined by the standard) with the clip closed. During design phase, detailed measurement and test procedures are used to assess the electrical creepage and clearance paths, to assure compliance with the standard. Accessibility of conductive metalwork is assessed using an IEC standard test finger. Things to consider for safe operation In electrical test environments, safe working practices are essential to ensure the safety of operators. Insulation testing in high-voltage, high-energy environments poses a number of unique hazards listed below:
2. Protection from charged capacitance of long cables Locked high-voltage plugs at the instrument end reduce the likelihood of a plug losing connection or pulling out which could result in the load inadvertently remaining lethally charged at the end of a test and the instrument to incorrectly report that no voltage was present. The lock facility is simple to use and prevents ‘plug end’ disconnection and helps ensure the integrity of load discharge after a test. 3. Protection from high voltage in CATIV 600 V environment As a connection is made to more upstream supply systems, (overvoltage Category IV relates to incoming supplies of industrial premises), increased protection is required from over-voltages. These are transients that naturally occur on the supply, which are typically caused by switching actions or distant lightning strikes and present the connected equipment, test leads, clips with impulses of many thousands of volts. Such equipment must provide protection to the operator during the process of connection. A clip rated for use on a 600 V supply in overvoltage category CATIV must be able to withstand such impulses up to 8 kV. Clips that are molded from a high dielectric strength insulating polymer with carefully defined dimensions ensure electrical creepage and clearance distances are maintained even under adverse conditions. 4. Protection from instrument output (5 kV or 10 kV) Many people fear the electrical output from their insulation tester may be 5-kV or 10-kV. However, in reality the current available from the instrument is generally limited to a few milliamperes in itself presents a relatively low hazard. The danger here is not so much the output of the instrument but more the working environment. If the connected load is capacitive, this can provide very significant energy when charged to high voltage by the instrument, and can be lethal if touched. Additionally, when testing insulation in many HV environments, it is not uncommon to have to climb ladders to reach connections on equipment such as transformers, with associated risks of working at height. In such situations, an otherwise harmless electrical impulse may cause the user to react automatically, with a potentially serious injury from a fall. Fully insulated clips help minimise the risk. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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POWER AND WATER
Presented by:
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POWER AND WATER
In association with MiddleEastTenders.com
POWER & WATER MIDDLE EAST / NOVEMBER 2013
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10 projects that matter
Rabigh PP7 Conversion Project Engineering, procurement and construction (EPC) contract for the conversion of gas turbine generators (GTGs) from simple cycle to combined cycle in Rabigh 7 Power Plant. BUDGET: CLIENT: Saudi Electricity Company - Central Region CONTRACTORS: CONSULTANTS: REMARKS: This project is at Makkah in Saudi Arabia. It is understood that project is still under planning. Tendering and bidding process for the engineering, procurement and construction (EPC) contract is expected to start soon.
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New Umm Al Hamam 8175 Substation Construction Project Engineering, procurement and construction (EPC) contract to build 132/13.8kV substation in New Umm Al Hamam 8175. BUDGET: CLIENT: Saudi Electricity Company - Central Region CONTRACTORS: CONSULTANTS: REMARKS: This project is at Al Kharj in Saudi Arabia. Purpose of the project is to enhance electricity distribution in the region. The project is currently under planning stage.
Qurayat Power Plant Expansion Project
Makkah Solar Power Plant Project
Engineering, procurement and construction (EPC) contract for the expansion of a power plant by adding two gas turbine generators in Qurayat. BUDGET: CLIENT: Saudi Electricity Company - Central Region CONTRACTORS: CONSULTANTS: REMARKS: This project is located at Al Jawf in Saudi Arabia. Invitation to bid (ITB) has been issued for the engineering, procurement and construction (EPC) contract on this scheme. The closing date for the project is February 27, 2014. An award is expected in the second quarter of 2014.
Build-Operate-Transfer (BOT) contract for construction of 100 MW solar power plant in Makkah. BUDGET: USD 650,000,000 CLIENT: Makkah Municipality CONTRACTORS: CONSULTANTS: REMARKS: Client is still considering bids for the BOT contract. Bids have been received from two consortiums to build the power plant. Local ACWA Power has submitted the lowest bid for the 100 MW and 50 MW options (129 Months & 94 Months respectively). UK’s EDF Energy & Local Al-Gihaz has submitted the lowest bid of 93 months for the 25 MW option. An award is expected by the end of 2013.
POWER & WATER MIDDLE EAST / NOVEMBER 2013
10 projects that matter
Integrated Gasification CombinedCycle Power Plant Project - Jizan Economic City Engineering, Procurement and Construction (EPC) contract to build an integrated gasification combined-cycle (IGCC) power plant with capacity of 2,400 MW in Jizan Economic City BUDGET: USD 5,000,000,000 CLIENT: Saudi Aramco CONTRACTORS: Siemens (Saudi Arabia) is the specialist contractor CONSULTANTS: Kellogg Brown & Root (Saudi Arabia) is the project manager and FEED consultant; HSBC Saudi Arabia is the financial consultant REMARKS: The power plant will supply 2,400 MW of electricity to Jizan Economic City, 500 MW of which will go to Jizan Refinery. It will be split into five packages: • Air Separation unit/oxygen supply • Combined cycle power plant • Gasification • Offsites & Utilities • Sulphur Recovery. The client is pre-qualifying contractors interested in bidding for the water system package in this project. The package is expected to be floated to contractors in mid-December 2013. Scope of work will include the EPC of a water intake pipeline for the gasification plant, a water treatment plant and all accompanying pipelines as well as other facilities.
Nuclear Plant Project Construction of a 17GW capacity nuclear power plant. BUDGET: USD 460,000,000 CLIENT: King Abdullah Centre for Atomic & Renewable Energy (KA-CARE) CONTRACTOR: CONSULTANT: Oliver Wyman has been appointed as Specialist Consultant. Riyadh Bank and BNP Paribas Saudi Arabia have been appointed as financial consultants. REMARKS: This project will be located at Riyadh in Saudi Arabia. It is still in early stages and expected to have (16) reactors spread around the country and costing USD7billion each, but this is expected to change as programme develops. Client has appointed a group of advisers to work on this development. They will be involved in helping to establish a holding company for the ownership of the nuclear plants, setting up regulatory frame work for the nuclear sector and advising on possible financing options. It is understood that three firms have signed a memorandum of understanding (MoU) to create a joint proposal for the construction of nuclear power plants. Japan’s Toshiba Corporation and US’ Westinghouse Electric Company aim to provide reactor expertise, while US-based Exelon Nuclear Partners (ENP) will provide operations services for the scheme.
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10 projects that matter
380 kV projects Engineering, Procurement and Construction (EPC) contracts for 380 kV transmission lines BUDGET: CLIENT: Saudi Electricity Company - Central Region CONTRACTOR: CONSULTANT: REMARKS: Hail - Al Madina Electricity Transmission Line Reinforcement Project - the planning phase is expected to commence in fourth quarter of 2013. Tendering and bidding process for the EPC contract is expected to commence in first quarter of 2014. Eastern Operating Area & Central Operating Area Transmission Line Project - It is currently under planning stage. Tendering and bidding phase for the construction contract is expected to commence in the fourth quarter of 2013. Project completion is expected in 2018. Western Operating Area & Central Operating Area Transmission Line Project - Tendering and bidding phase for the construction contract is expected to commence in the fourth quarter of 2013. Project completion is expected in 2018. Eastern Operating Area High Voltage Network Reinforcement Project - Stage 1 - The scheme is currently under planning. Tendering and bidding process for the EPC contract is expected to commence in the fourth quarter of 2013.
Water Storage Reservoirs Construction Project - Jeddah Construction of eight cylindrical reservoirs of reinforced concrete, each with a capacity to hold 188,000 m3 of water. BUDGET: 587,000,000 CLIENT: National Water Company (NWC) CONTRACTOR: CONSULTANT: REMARKS: This project will be built at Briman Area of Jeddah in Saudi Arabia. The first phase water storage will have a total capacity of 1.5 million m3 of water. It is expected to be operational by the second quarter of 2014.
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10 projects that matter
Wadi Al Dawaser Power Plant Conversion Project Engineering, procurement and construction (EPC) contract for the conversion of a power plant by simple cycle to combined cycle gas turbine generators (GTGs) in Wadi Al Dawaser. BUDGET: CLIENT: Saudi Electricity Company - Central Region CONTRACTOR: CONSULTANT: REMARKS: This project is at Riyadh in Saudi Arabia. The project is still under planning, with no progress made.
Uqair RO Desalination Plant Engineering, procurement and construction (EPC) contract to build a reverse osmosis (RO) desalination plant with a capacity of 10,000 m3/day in Uqair. BUDGET: CLIENT: Saudi Water Conversion Corporation CONTRACTOR: CONSULTANT: REMARKS: This project is at Al Sharqiyah in Saudi Arabia. It is currently under planning stage. Project completion is expected in 2015
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POWER AND WATER
MARKET PLACE
FLUKE
Smart vibration tester
F
luke Corporation has launched a new vibration tester Fluke 810 for troubleshooting mechanical problems. The handheld instrument is designed and programmed to diagnose mechanical problems of unbalance, looseness, misalignment and bearing failures in a wide variety of mechanical equipment, including motors, fans, blowers, belts and chain drives, gearboxes, couplings, pumps, compressors, closed coupled machines and spindles. The company claims that the Fluke 810 identifies the problem and rates its severity on a four-level scale to help the maintenance professional prioritise maintenance tasks and even recommends repairs. Steve Hood, Fluke General Manager, Middle East, Africa and Turkey, pointed out that traditionally, vibration analysers used in condition-based monitoring or predictive maintenance programs rely upon the previously established baseline conditions to evaluate machine condition and estimate remaining operating life. “In contrast, the Fluke 810 is a troubleshooting tool that analyses current machinery condition and identifies faults by comparing vibration data to an extensive set of rules developed over years of field experience,” he said. “This means that every measurement taken is compared to a “like new” machine.” Typical vibration analysers and software are intended for monitoring machine condition over the longer term, but they require special training and investment that may not be possible in many companies. The Fluke 810, the company claimed, is designed specifically for maintenance professionals who need to troubleshoot mechanical problems and quickly understand the root cause of equipment condition. Context-sensitive on-board help menus provide new users with real-time guidance and tips. Mechanical diagnosis with the Fluke 810 begins when the user places the Fluke triaxial TEDS accelerometer on the machine under test. The accelerometer has a magnetic mount and can also be installed by attaching a mounting pad using adhesive. A quick-disconnect cable connects the accelerometer to the Fluke 810 tester. As the machine under test operates, the accelerometer detects its vibration along three planes of movement and transmits that information to the Fluke 810. Using a set of advanced algorithms, the 810 Vibration Tester then provides a plain-text diagnosis of the machine with a recommended solution. Viewer Application Software The Fluke 810 Vibration Tester includes Viewer PC software, compatible with Windows XP and Vista, to expand its data storage and tracking capability. With Viewer the user can: • Create machine setups at the computer keyboard and transfer the data to the 810 Vibration Tester. • Generate diagnostic reports in a PDF file format. • View vibration spectra in greater detail. • Import and store JPEG images and Fluke IS2 thermal images for a more complete view of a machine’s condition.
Itron
New ultrasonic water meter
T
he new Intelis residential ultrasonic water device from Itron integrates advanced measurement technology, embedded communications and sensors to help water utilities measure, manage and analyse water use. According to a press release issued by the company, the allin-one smart measurement device helps utilities gather more accurate, detailed information about their water distribution systems, giving them more insight to efficiently manage their systems. The press release notes that the meter measures and captures enhanced flow rates data, temperatures, detect air in pipes, measure water volume, and is equipped with data logging capabilities, recording consumption in configurable intervals. The release further claimed that with no moving parts, the meter allows for protection against unplanned maintenance costs and performs accurately over the entire product life. Moreover, it can installed in nearly any environment, including direct sunlight and flooded areas, and is read with an advanced mobile or fixed network data collection system. The Intelis ultrasonic water meter was designed using an eco-design approach that considered the environmental impacts of the product over its whole lifecycle, optimising the ability to recycle its components. “The Intelis ultrasonic water meter is the most advanced water measurement device available today. By combining ultrasonic, sensing and communication technologies, we’ve created a device that gives utilities unprecedented visibility into their distribution systems so they can better manage water resources,” said Gavin van Tonder, President of Itron’s water business. “As a global leader in water utility automation solutions, Itron is committed to creating products that meet our customers’ needs so they can address the various challenges they face.” POWER & WATER MIDDLE EAST / NOVEMBER 2013
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Market place
GRUNDFOS
New range of pump motors
MEGGER
Portable cable fault locator system
M
egger has launched its New EZTHUMP series of portable Cable Fault Locator system, which the company claims provides safe, efficient and easy-to-use solutions for quickly identifying, pre-locating and pinpointing various types of cable faults over a wide variety of power cables. Apart from a 12kV model, Megger has made available a 4kV model to meets the growing demand for full fault location capabilities on lower and medium voltage networks as well as on street light circuits, which are gaining importance due to public safety concerns. A press release issued by the company claims that their lightweight and battery and AC line operated features and intuitive user interface gives them performance and operation advantage over available competitive equipment. The new systems provide DC testing up to 12kV (model dependent), breakdown detection, insulation measurement and sheath testing. With the optional instrument ‘ESG NT’ sheath fault location can also be undertaken. Pre-location using the 4 or 12kV ARM and TDR modes are available to the operator as is pinpoint fault location using the 4 or 12kV 500 joules surge generator in conjunction with the Digiphone Plus Pin-Pointer.
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G
rundfos has unveiled its new line of MGE and MLE motors – with integrated frequency converters up to and including 2.2 kW – that the company claims to be among the most intelligent and energyefficient pump motors in the world. The MGE/MLE motors (models H & I) operate above the minimum requirements for the new IE4 motor efficiency level, as defined by the International Electrotechnical Commission (IEC) in the upcoming standard for rotating electrical machinery, IEC 60034-30-1 Ed.1 (CD). Preben Poulsen, Grundfos Program Manager of Motors & Drives, said: “Customers will get a standard product that consumes less energy than ever seen before within these kinds of motors.” (As the only defined standard at present, Grundfos uses IEC 60034-30-1 Ed. 1 (CD) as a reference, even though the motor technology used in MGE models H & I is outside its scope. Thus, Grundfos cannot mark the motors’ nameplate with IE4, but instead uses the efficiency levels as a reference). The MGE/MLE upgrades are the first generation of IE4 motors in Grundfos Blueflux pumps driven electronically via a built-in, ‘intelligent’ frequency converter. Frequency converters automatically control motor speeds after actual demand, whereas standard pumps run at either full speed or off. The new motors are currently available for solutions up to 2.2 kW. “We believe this is one of the most energy-efficient products in this market,” says Poulsen. “We are one of the only suppliers with a motor that runs with efficiency above IE4 level including the losses in the frequency converter.” Grundfos will also offer IE4 motors up to 45 kW for projects based on standard motor technology. The motors (3-45 kW for 2-pole and 2.2-37 kW for 4-pole) will be supplied by Siemens via a special agreement. The 2-pole versions are available in mid July 2013 and the 4-pole from mid-September. Grundfos is the first company to be able to offer these motors with its products. These motors can be connected directly to the power supply or coupled to standard frequency converters. Poulsen says the upgrades are just the beginning of a long, coming program of improved motor technology that stays well ahead of global motor regulations. The current legislative demand for motor efficiency in Europe is IE2. In 2015 and 2017, Europe will increase its legislative demand to IE3. “As a part of our Grundfos Blueflux program, we already supply IE3 as a standard for most of our products,” says Poulsen. “We are ready to be one step above the next level. We want to be on the front edge of technology, along with the cutting edge of efficiency and life-cycle costs.”
special report
LNG dominance under threat? Business Monitor has just released its latest findings on Qatar’s expanding oil and gas sector in its newly-published Qatar Oil and Gas Report.
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uelled by the world’s third largest proven gas reserves, Qatar has dramatically expanded export capacity to become the largest supplier of liquefied natural gas (LNG) globally. Business Monitor believes that rising competition, led for now by Australia but also from East Africa and North America, will pose a challenge to Qatar’s hold on the global gas market later in the decade. Qatar is responding by making increasing efforts to protect its revenue stream by expanding its downstream network, including additional investments in gas-to-liquids, as well as expanding the international presence of the national oil company to offset what will likely be slow growth in domestic oil and gas revenues given the absence of plans for an expansion of LNG export capacity. Key trends and developments Business Monitor expects Qatari gas production to reach nearly 180bn cubic meters (bcm) by the end of their forecast period in 2022; however, they expect growth of output to slow compared to the gains seen in recent years. The Barzan gas project, due online from 2015, is the last major approved expansion of upstream capacity with a self-imposed moratorium on further development of the giant North Field as the country evaluates its oil and gas strategy. There is some upside to this outlook, with an active effort to boost foreign exploration of Qatar›s onshore and offshore acreage. The recent discovery offshore Block 4 - the first new find in 42 years - hints at Qatar›s untapped potential. Exploration success could support future productions, but with consumption rising and no plans to expand export capacity, any additional supplies look likely to fuel the domestic market. Indeed, natural gas consumption is set to rise from an estimated 32bcm in 2012 to nearly 60bcm by 2022. The report sees Qatari proven oil and natural gas reserves declining modestly over the forecast period, with a 1.9% decline in natural gas reserves expected between 2013 and
2021. Oil reserves are also due to decline gradually, but actual liquids production should grow slowly over the forecast period, namely on the back of increased recovery operations and field redevelopment alongside growing condensate and natural gas liquids (NGL) volumes. Plans are underway to increase production capacity from 950,000 barrels per day (b/d) to 1.2mn b/d. Already OPEC›s smallest oil producer, Business Monitor expect growth gains in liquids production to slow toward the tail-end of their forecast period. Export capacity is also set to hold steady, with no plans to increase liquefied natural gas (LNG) capacity behind the current 77 million tonnes per annum (or around 107bcm mark) reached in 2011. However, Business Monitor expect that overall LNG export levels will remain elevated, with growing demand led by Asia. Qatar is increasingly expanding the reach of its exports, with Brazil and Argentina for example receiving LNG. According to Qatari officials, any addition to LNG send-out capacity will come from efficiency gains rather than new trains. There is some upside to pipeline exports supplies, with proposals to add additional compression facility to the Dolphin Pipeline which would allow for supplies closer to full design capacity. Growing demand in the GCC markets would support expansion, but a key sticking point will be price with gas currently sold at a significant discount. While Qatar has proven resistant to calls to rethink its oil-indexed LNG pricing mechanism, importing countries are becoming more vocal in the de-linking of gas and crude in a bid to lower prices. With new supplies of gas from Australia, Russia, East Africa, and North America due to come online, Qatar›s ability to resist reform on pricing may soon be under strain. Qatar›s dependence on oil leads to high volatility in the country›s export revenues. Business Monitor’s assumptions of slower growth in China and persistent economic weakness in the Eurozone, pose a threat to global oil demand. POWER & WATER MIDDLE EAST / NOVEMBER 2013
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EVENTS S T N EVE November 26 - 28, 2013, Abu Dhabi
ADIPEC TROPHY
TRANSFORM 2013
November
10-13, 2013 Abu Dhabi ADIPEC ADIPEC - the Abu Dhabi International Petroleum Exhibition and Conference - is the largest gas and oil event in the Middle East. Supported by Abu Dhabi National Oil Company (ADNOC) and the UAE’s Ministry of Energy, it hosts more than 1,600 exhibitors and attracts more than 50,000 attendees This year’s re-worked ADIPEC Awards – Excellence in Energy 2013 aims to recognise excellence in individual projects and departments of gas and oil companies in the Middle East and North Africa region; and to support development of a stronger, even more successful gas and oil business community throughout the region. ADIPEC’s technical gas and oil conference will take place alongside the exhibition at the Abu Dhabi National Exhibition Centre (ADNEC) Contact: Mike Hughes, Marketing Manager Tel: +971 2 406 4477 E-mail: mikehughes@dmgeventsme.com URL: www.adipec.com. 62
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November
14, 2013, Dubai CEBC Annual Event The Clean Energy Business Council’s (CEBC) annual event is themed ‘MENA - The Clean Energy Upstart? Challenges, Innovation, Unlimited Potential.’ This event will bring together industry leaders and experts from all over the MENA region in exciting panel discussions with a focus on the arrival of clean energy and energy/water efficiency in the region, its ramp up over the last number of years and the future potential for innovation in technology and finance. This event hopes to emphasise MENA’s potential for leadership in this space in the years to come. Ernst & Young will launch their Cleantech Report during the event Contact: Alice Cowman E-mail: alice@cleanenergybusinesscouncil.com URL: www.cleanenergybusinesscouncil.com
Transform is held every two years at a different location and has become the main trade conference for decision makers at international transformer manufacturers, utilities and industrial companies. The 2013 edition in Abu Dhabi is themed ‘Pole position for Transformers.’ The exclusive exhibition cum event will have 10 European premium suppliers from the transformer industry making high-quality presentations. These include Maschinenfabrik Reinhausen (MR), Essex & LS Cable, GEA Renzmann & Grünewald, HSP & Trench Bushing Group, Krempel, Nynas AB, OMICRON electronics, PFISTERER Kontaktsysteme, Röchling Engineering Plastics and ThyssenKrupp Electrical Steel. The international TRANSFORM conference, which has been held every two years since 1998, is an established event in the industry for obtaining information about power transformer innovations and meeting with specialists. Contact: Markus Bauer Tel: +49 941 4090-5241 Fax: +49 941 4090-905241 E-mail: markus.bauer@reinhausen.com URL: www.reinhausen.com
POWER AND WATER
POWER AND WATER Flipside
3D
EXPERIENCE Olivier Leteurtre, Regional Managing Director, Dassault Systèmes explains how his company’s 3D design software enables companies to ‘imagine innovations’
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3
D Experience is a journey helping create the experiences to let people, businesses and their customers innovate together in social enterprises. It leverages and adapts multiple products and technologies including Product Lifecycle Management (PLM) and social networks, and it captures human emotions. When companies create a new product or service they go through multiple processes of ideation. These involve ideas, emotions, technologies, social and business interaction, promotion and marketing. 3D Experience supports each of these
innovation process elements. It digitises them and makes them accessible through the extended enterprise, and beyond into the social and personal realm. It creates a multi- channel, multi-level dialogue across business, society, education and research. And it helps make companies, cities and establishments more sustainable. We replicate customers’ emotions and experiences. What will customers think and feel when they encounter products and what is important to them. If you get into a car or use a smart phone or buy
Flipside
clothes the experience is both physical and emotional. The product is not just a product. It means different things to different people and they react to it accordingly. With 3DEXPERIENCE these differences can be understood and incorporated into the innovation process. The first stages of innovation for business or consumers with 3D Experience can be expressed very intuitively and simply through colour, pictures or shapes. It allows people to see and share through networking what they want or need and what they love about products and services. Further down the line product ideas have to be defined, specified, efficiently manufactured and put into their usage context. What does it involve? To innovate companies must put the experience of consumers at the heart of their business and that is what we have also done. ‘What experiences do people want and how can we satisfy them?’ is the key
question of many businesses. Customers want experiences as well as products. 3D Experiences are catalysts for innovation because they enable stakeholder to participate in the innovation process and drive up the value that end consumers receive. The technology itself is has been created to incorporate the following elements: Social and collaboration apps that deal with structured or unstructured information. Unstructured information is just a chat or casual conversation it could be a picture for reference or a rough sketch, a free form idea or a social interaction. Once you have an idea that is worth capitalising it can be put into a structured context to develop, explore, exploit, retrieve and manage. 3D modelling apps help create ideas and make them real. It puts them into the world and digitally shows their impact, performance and effect. Content and simulation apps for scientific simulations that reproduce actions including production environments and factories. Information intelligence apps allow searching and the gathering of complex information on any topic, in any format, from any source in an efficient and easy to see way. Leading through history I believe that the availability of this new technology is an important breakthrough that builds on the 3D, technology that we invented, developed and very successfully brought to the market for the past 3 decades, by adding experiences and social dimensions to innovation journeys. By looking through their eyes we are facilitating customers’ migration from product attributes to product experiences. That’s what customers want and the company’s purpose it to support them in getting closer to their customers with intuitive, non-technical technology that everyone can use. Envision for the Planet All products need to be made in a way that is respectful to the planet. The dream is that the 3D Experience Platform lets people foresee the impact on the planet, the environment and the economy of any
product or service while giving businesses a sustainable competitive advantage. Technology achieves this with an integrated software system that enables ultraefficient development of products making the best use of materials, energy, capital and labour. It lets people easily understand and experience how products, services and even whole cities interact with and affect other systems and the overall environment. This provides the means for better risk assessment and management using the universally understood language of 3D. Purpose In the past products have been made, cities built and resources used with little consideration for environmental wellbeing. The 3D Experience Platform lets people see the things they are making, buying or using in both a personal and a global context. This is helping progress innovations that improve our lives and our world. Enhancing and then incorporating our understanding of these interactions at many levels rapidly delivers evolutions that demonstrate respect for people, business and the natural world. Technology is connecting designers, engineers, marketers and consumers into a unified social enterprise helping them to see products in life. The First Moment The First Moment of Truth (FMoT) is the emotional response that consumers experience for a few seconds when they connect with a product. It is often the deciding factor that makes them to buy it or to leave it behind. It’s an emotional moment. Technology now captures that moment, digitises it, optimises it and lets companies use it commercially. Reproducing that unique moment and putting it at our customers’ disposal offers them a massive competitive advantage. For example, in retail buying a product such as shaving foam or cosmetics the shelf positioning of products, their colour, shape and packaging graphics influence purchase decisions. 3D Experience can track and record thousands of shoppers and their eye and body movements; capture how they react to products, how they pick them up and their responses. Do POWER & WATER MIDDLE EAST / NOVEMBER 2013
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flipside they turn the product over, do they smell it, weigh it in their hand… It is possible to assess the experience that people most value when they travel. For example, surveying people and capturing their preferences is a high value input for aerospace companies. Do customers want a big screen, what is their preferred air moisture level, how much legroom do they appreciate? These factors can make the difference between deciding to use one carrier or another and are therefore crucial considerations for airline companies. Extending the reach of what we offer gives companies more input for their designs and their thinking. It lets them include customer’s experiences in their designs and plans. This goes way beyond what has been known and available before and puts us all in a new context Another example can be found in the fashion industry. It’s a business that moves so fast that it can lose 20% of profits by not responding to trend changes quickly enough. The question they need to answer is - how to capture and capitalise trends? Social and collaboration apps help them connect to consumers and see trends emerging on the web by region, age or economic group. There is also a technology that can show in ‘magic mirror’ what clothes would look like if worn. 3D Experience allows consumers to share that look with their friends on social networks who can help them make better choices. Some of our biggest apparel customers are using this technology today because it lets them design better, connect better and ultimately have more positive interaction with their customers. Industry and academic partnerships and others with our own leading customers, complement our work by giving it more precision, value and relevance. From Philosophy to Profit The competitive edge that this technology delivers, results from going beyond simple, (or complex) design and production issues into customers’ minds. It has become possible to capture and record customers’ emotions, choices and feelings, and use them for competitive 66
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advantage. Feeding these nuggets of information into products and services greatly increases their desirability. Companies that have partnered us in developing 3D Experience are currently using it to innovate in new ways. Users discover that the dimension that they have entered contains commercial jewels. All enterprises want to know what their customers think. This new technology lets companies understand and react to what customers expect and what experiences they need to choose certain products in preference to others. How do companies capitalise? Advanced technologies make this technology easy to use for consumers but very powerful for businesses. Because it is easy for anyone to be part of it and connect to it 3D Experience extends the scope of designers, engineers and marketing people. It makes their work more effective, efficient and productive. Companies can start anywhere, use any apps and build valuable IP as they progress in their 3D experiential journey. These applications encourage advancement of a social enterprise within and beyond company departments. Because experience is the ultimate value perceived and enjoyed by end consumers the technology platform releases the creative potential of all stakeholders, including end customers, and helps shape solutions and meet commercial challenges. They also provide experiences that customers use to accurately ‘foresee’ the experiential values of products and to share these with consumers. It lets them realistically experience and more accurately evaluate the relative commercial or personal benefits of products before they are physically made. A better society Technology allows people and business to anticipate the impact of their actions on the planet. It lets us see our carbon footprint and develop clear strategies that allow it to be reduced. Choices about materials, utilisation of resources and labour, how to assemble and how to recycle can be based on better information and a more universal outlook. It im-
proves the way organisations respond to, and respect our environment now and tomorrow. It helps businesses, and society cross boundaries, connect via social innovation and work together to invent a better future. Because virtual universes make it easier to innovate and share information, communities are using this technology to accelerate discovery in research, learning education and other societal experiences. Speaking together with the universal language of 3D, communities can easily share and reuse ideas and content. This results in new concepts that are transforming the way social and sustainable innovation processes are initiated and conducted. We are currently working in partnership with major cities around the world. Mexico City, Seoul, Hong Kong, Tokyo, have massive atmospheric and noise pollution problems. Dassault Systèmes has formed partnerships with energy, water conservation, city planning and waste management companies in these and many more places. They use out technology platform to simulate current and future situations that show how the city looks now and how it will be in 30 years. They can see the impact of past decisions and how today’s decisions will impact tomorrow’s habitation, pollution and waste management, transportation and technological provision. All services are included and planners have the ability to realistically simulate the complete urban picture. This helps mitigate planning risk by allowing many more factors and greater breadth and depth of detail to be considered. This precision view can also digitally demonstrate the effects of potential natural disasters and assist in the development of more effective and better-understood plans for future events. This new technology is simple and friendly for consumers, efficient and productive for professionals and a new power for commercial and social enterprise. It makes innovation something that anyone and everyone can take part in for their mutual benefit and the improvement of our world.