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MENA region
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In association with:
MENASOL 2013
5th Middle East & North Africa Solar Conference
BUSINESS
INTELLIGENCE
CSP Today and PV Insider conducted an industry survey in November/December 2012 to assess the current status and priorities of international and local solar companies. Here is a select summary of the survey results:
What type of information is your business looking for regarding the MENA region in 2013?
Other Investment opportunities Cost parameters Meeting new clients
4.1%
Yes
New projects
%
15.6%
Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
35.7%
47.4%
No
Policy updates
52.6%
11.3%
Technology information
Please state in order the 3 most important markets that are priority for your business in the Middle East/North Africa region in the next 12 months:
Market Saudi Arabia UAE Morocco Egypt Kuwait Oman Qatar Tunisia Algeria Jordan Libya Israel Iraq Bahrain Yemen Iran Lebanon Total Score 525 268 181 106 67 64 61 52 44 40 24 18 11 11 9 5 2 As a percentage 35.28 18.01 12.16 7 .12 4.50 4.30 4.10 3.49 2.96 2.69 1.61 1.21 0.74 0.74 0.60 0.34 0.13
312
113
Markets were scored on a points system: 3 points for Market 1 (highest priority), 2 points for Market 2, 1 point for Market 3
MENA
NonMENA
BUSINESS
INTELLIGENCE
Electricity & Cogeneration Regulatory Authority (ECRA) ERCA is the body responsible for the regulation of the electricity and water desalination industry in Saudi Arabia. King Abdulaziz City for Science and Technology (KACST) KACST is an independent scientific organization administratively reporting to the Prime Minister. KACST is both the Saudi Arabian national science agency and its national laboratories. Saudi Arabia Solar Industries Association (SASIA) SASIA is a non-profit, non-governmental association which aims to promote solar power in Saudi Arabia and across the Middle East.
Notable agencies
The King Abdullah City for Atomic and Renewable Energy (K.A. CARE) K.A.CARE was created by a Royal Order on April 17 , 2010, with a mandate to contribute to sustainable development in the Kingdom. Located in Riyadh, K.A.CARE endeavours to meet Saudi Arabias future electricity demand, projected to nearly triple in the next 20 years, while maintaining the highest industry standards for safety, security and transparency. K.A CAREs mission is to be the driving force for making atomic and renewable energy, an integral part of a national sustainable energy mix, creating and leveraging the competitive advantages of relevant technologies for the social and economic development of the Kingdom of Saudi Arabia . Key K.A.CARE Objectives: CREATE a sustainable economic sector for Saudi Arabia anchored by local alternative energy demand market CONTRIBUTE to job creation, GDP growth, environmental footprint reduction and sustainable development MAINTAIN highest levels of safety, security and transparency
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INTELLIGENCE
Novatec Solars Linear Fresnel Collector Technology also holds an advantage with its automated mirror cleaning that uses very little water. Meanwhile, researchers at the Massachusetts Institute of Technology suggest that hybrid fossil-CSP plants could be an optimal solution for the kingdom, as they would overcome some of CSPs shortcomings by boosting efficiency, while providing dispatchable power without the need for storage. Faith in CSP Saudi Arabia, however, hasnt restricted itself with technology preferences and has kept all options open. We are as K.A.CARE open for all technologies and will focus on technologies that bring added value to the country by creating a sustainable, socio-economic development for the nation. In our announced targets, we believe that the proposed CSP will play a larger role and have a much better economic impact on Saudi Arabia than PV technology , Mr. Al Gahtani states. A CSP-dedicated solar policy framework and an incentive scheme are still missing, but these are currently being developed by K.A.CARE with the support of foreign consulting companies Poyry, PWC, Vinson & Elkins, Roland Berger, and Morgan, Lewis & Bockius. In Saudi Arabias ambitious plan for 2032, CSP will supply an eventual 25GW of the total 41GW of planned solar capacity, which would enable it to save billions of dollars worth of exportable oil. It is worth noting that the countrys 2009 domestic consumption of oil and gas was 69% higher than in 1999, while its consumption of crude oil for power in 2011 was estimated to be 582,000 barrels per day, up by a staggering 340% from the 2006 level, according to the Sunrise in the Desert Report. These alarming figures have undoubtedly urged the kingdom to pick up pace and set a date for its first solar power bid. K.A.CARE will start with what we named as the Introductory Round (500-800MW), to be launched with the issuance of the draft request for proposals (RFP), followed by the final RFP most of which will be CSP and PV. But (we have) not yet specified which one will be how much , notes Mr. Al Gahtani. Following that, the first CSP bidding round will offer 900MW, while the second will offer 1,200MW. The wide range of applications offered through CSP make it a natural fit for the kingdoms needs; be it electricity generation, seawater desalination or enhanced oil recovery. Not only can solar power help Saudi Arabia conserve its oil for export, but by deploying 25GW of CSP by 2032, the country could transform itself into an exporter of CSP technology.
BUSINESS
INTELLIGENCE
Abu Dhabi Water and Electricity Authority (ADWEA) / Abu Dhabi Water & Electricity Company (ADWEC) The Abu Dhabi Water & Electricity Authority researches and develops ways to more efficiently produce, distribute and consume water and electricity. ADWEA is owned by the Abu Dhabi Government, but is financially and administratively independent. ADWEC is a wholly owned subsidiary of ADWEA, and the single buyer and seller of water and electricity in the Emirate of Abu Dhabi. Masdar Masdar was launched in 2006 and organised around three business units and an independent, research-driven graduate university. The company aims to advance renewable energy and sustainable technologies through education, R&D, investment and commercialisation. Emirates Solar Industries Association (ESIA) ESIA is a non-profit, non-governmental association and aims to provide an all-inclusive platform bringing together stakeholders of the UAE solar industry. ESIA aims to expand the use of all solar technologies at national and regional level, to strengthen the local UAE solar industry, and to facilitate business opportunities for its members.
Notable agencies
Dubai Supreme Energy Council The Dubai Supreme Council of Energy (DSCE) was formed in August 2009. The Governing body seeks to ensure that the Emirates growing economy will have sustainable energy while preserving the environment. The Authority is developing alternative and renewable energy sources for the Emirate, while increasing energy efficiency to reduce demand. The Dubai Supreme Council of Energy is the governing body tasked with policy development, planning and coordinating with concerned authorities & energy bodies to deliver new energy sources while employing a balanced approach to protecting the environment. Mission: Support Dubais economic growth through secure energy supply & efficient energy use while meeting the following environmental & sustainability objectives: Effective planning of energy sector Develop an integrated approach to securing energy supply and employing efficient energy practices for the sustainable growth of Dubai Ensure sustainability of energy supply while preserving environment Rationalize use of energy and ensure environmental sustainability Plan and facilitate the execution of the strategic initiatives, demand management and supply options with view of diversifying energy sources Set a governance framework to streamline existing energy practices across the DSCE entities to optimise synergy and energy efficiency
BUSINESS
INTELLIGENCE
BUSINESS
INTELLIGENCE
In addition, the Ministry of New and Renewable Energy has requested expressions in interest and shortlisted 5 CSP projects. Currently four of them have already, or are about to, sign a memorandum of understanding - meaning that they will submit concrete development plans for the Maan Development Area. Shortlisted developers have until May 2014 to submit their final proposals and technology selections. Firas Rimawi, advisor to the CEO at the South Company for Construction and Development (the development agency for the south of Jordan) comments: The Maan Development area is ideal for solar; it is flat, making for easier construction and is well connected to roads, so making the logistics much easier. It is now up to the developers to submit competitive proposals and make this happen he says. And Georgio Akiki, AREVA Solars Business Development Manager - Middle East adds: Although the deadline is 2014, proposal submission can take place at any time. The MEMR will evaluate proposals within 6 months of submission and sign a Power Purchase Agreement within 2 months of the Notification of Acceptance, he says. But not all the proposals will come to fruition NEPCO would struggle to connect all five projects to the national grid. Akiki comments: Technical constraints mean that the government will select only the best possible projects using the direct proposal mechanism to develop the targeted 1800MW renewable energy projects as per the energy strategy. He also cites finance as a barrier to development. Unfortunately, attracting investment for renewable energy projects has been challenging. There are a variety of reasons for this, including unfavourable market conditions, challenges in project financing due to the financial crisis and the relatively small size of Jordan as a market for renewable energy. However, Jordan is a part of the MENA CSP scale-up initiative which is eligible for funding from the Clean Technology Fund (CTF). Another positive move is that the government has now published proposals for upper limits for power purchase agreements for each type of renewable energy. This will, according to Rimawi, make it easier for developers to submit proposals that are both realistic and competitive. Ultimately the industry must wait until the 2014 deadline before it will know how the CSP industry is likely to develop based on which proposals are successful. Only then will it also know whether the government will provide financial incentives or whether it will need to seek international funding. For now all developers can do is ensure that their proposals are watertight and cost efficient in the hope of being accepted.
Notable agencies
Central Electricity Generating Company (CEGCO) The Central Electricity Generating Company (CEGCO) is the largest power generator in Jordan with seven power generation complexes nationwide, totalling around 1,550MW of installed power capacity of a mixed portfolio of technology and fuel types that meet around 59% of the countrys current electricity consumption. On July 18, 2011 it was announced that ACWA Power, the Saudi-based Water desalination and Power Generation Company, completed its acquisition of a 65% controlling stake in Enara Energy Investments PSC that in turn owns 51% of CEGCO. In April, 2012, ACWA Power then completed the acquisition of a further shareholding CEGCO from Malakoff Corporation of Malaysia, by purchasing the latters 25% stake in Enara. Ministry of Energy and Mineral Resources The Ministry of Energy and Mineral Resources was established in 1984 and entrusted with administering and organising the energy sector. Electricity Regulatory Commission of Jordan The ERC, established in 2001, was created to apply the government policy of restructuring the electricity sector on the basis of equity, and provide electricity services to more than one and a half million consumers. National Electric Power Company (NEPCO) Provides electrical generation and transmission in Jordan.
BUSINESS
INTELLIGENCE
Notable agencies
Moroccan Agency for Solar Energy (MASEN) MASEN aims to implement a program for the development of integrated electricity production projects from solar energy with a minimum total capacity of 2,000MW. MASEN is responsible for the design of integrated solar development projects in the areas of Morocco suitable for solar energy. Other features of MASENs role include: Conducting the technical, economic and financial studies which are necessary to the qualification of solar sites Contribution to research and to the raising of the funding necessary to the realization and to the exploitation of the solar projects Project management and infrastructure implementation lOffice National de lElectricit (ONE) ONE is the sole publicly-owned utility in Morocco, and holds a 25% stake in MASEN. The Moroccan Agency for Development of Renewable Energy and Energy Efficiency (ADEREE) ADEREE is responsible for overseeing the development and promotion of renewable energy in Morocco. Ministry of Energy, Mines, Water & Environment The Ministry of Energy and Mines is responsible for the development and implementation of government policy in the areas of energy, mining and geology, as well as control of other areas under its jurisdiction.
For more information about MENASOL 2013 (14-15 May, Dubai), including the full agenda, speaker list and networking opportunities please visit: www.csptoday.com/mena
CSP Guide to the MENA region | www.csptoday.com/mena