Joint Forces for Solar YOUR GLOBAL LEADING SOLAR PLATFORM
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YOUR GLOBAL LEADING SOLAR PLATFORM JF4S - Exclusive Country Market Analysis OMAN Presentation @ Oman Solar Forum | Muscat, May 2, 2018 Markus Hoehner, CEO, Joint Forces for Solar WHO WE ARE Joint Forces for Solar – Globally Leading Business Platform . global synergy of solar stakeholders . ranging from multinational corporations to industry associations and local installation companies . aims to expand the use of solar technologies at the global and local level . aims to establish a vibrant renewable and clean energy industry . provides target group oriented marketing support and all the benefits of its extensive local networks around the globe Our mission is to strengthen your position in the solar market, expand your local and international networks and increase sales! 2 TRACK RECORD Our international PV network: 9 years 14 countries 30 locations 150 events and more than 15,000 delegates 3 OUR SERVICES We are a globally operating synergy of solar stakeholders – For a vibrant renewable and clean energy industry What we can do for your business: . Marketing & Communications: Maximize the global industry exposure of your brand be visible on our communication channels, list your press releases and own events in the JF4S monthly newsletters, use the JF4S partner seal for on- and offline marketing materials . Build Partnerships & Explore Local Markets: Business matchmaking and networking made easy on more than 20 industry events – each year! JF4S Partner Seal . Market Intelligence: Ensure your competitive edge by receiving continuous market intelligence on global trends and challenges Example: Exclusive Country Market Analysis OMAN 4 EXCURSUS Exclusive Country Market Analysis OMAN by our market research partner EuPD Research ©Violeta Chalakova - Fotolia.com Country Market Analysis Oman EuPD Research Sustainable Management GmbH Bonn, Germany April 2018 A. Key data Key data | Oman Average West Asian Indicator Oman countries Electricity production 28.97 TWh 62.6 TWh Electricity consumption/capita 6,554 kWh 4,827 kWh Access to electricity 100 % 96.1 % Share of renewable energies (installed 0.02 % 2.7 % capacity) Share of PV (installed capacity) 0.02 % 0.6 % Diesel price 0.62 US$/l 0.63 US$/l Political stability* 0.80 -0.66 Trade freedom (0-100) 85 78.6 GDP 66.3 bn. US$ 212.3 bn. US$ GDP/capita 14,982 US$ 34,006 US$ Real growth rate 3% 0.1 % GDP composition (agriculture | industry | 2 % | 47.5 % | 50.5 % 6.6 % | 36.1 % | 57.3 % services) * -2.5 weak; 2.5 strong Cumulative installed PV capacity (2017) Residential Commercial Subsidy Subsidy Utility-scale Total Targets RE Targets PV sector sector Scheme RE Scheme PV 0.0 MW 0.0 MW 8.2 MW 8.2 MW 8 B. Market Analysis Oman Energy Market Status quo energy market Oman produced a total electricity capacity of 28.97 TWh in 2016. Officially, there are no renewable energies used in the provision of electricity. 100 per cent of the population had access to electricity in 2017. 100% of the energy provided was by fossil fuels (97,5% natural gas and 2,5% oil). Oman does not have a connected power grid. There are three different power grids: . Main Interconnected System (MIS) in the North of Oman (the largest one) . Salalah Power System in the South of Oman . Rural Areas Electricity Company SAOC (RAECO) in the rest, rather in the country side of Oman Oman signed the Kyoto Protocol in 2005 and the Paris Agreement in 2016. According to the Intended Nationally Determined Contribution (INDC) in the Paris Agreement, Oman is planning to cut their greenhouse gas emissions by 2% from 2020-2030. Therefore, Oman wants to increase the share of renewable energies as a main measure. Also, due to a shrinking of oil and gas reserves, a growing population, and therefore higher energy consumption, Oman is tipping into renewable energy resources such as wind and solar power. 10 Oman PV Market Status quo PV market Oman is one of the only countries in the region with a Ministry for Environment and Climate Affairs. Sultan Qaboos bin Said announced the 2020 which shows the intention to invest in the development of renewable energies and thus to produce 10 % of the total electricity from renewable sources by 2020. On behalf of the Sultan, the Authority for Electricity Regulation (AER) carried out a study on renewable energy resources in 2008, which indicates that solar technology, as well as wind power, are of most interest in Oman. Solar power would be an excellent option in Oman, especially in the north and in desert areas . The study recommended to implement small-scale pilot projects to produce electricity from renewable sources. Therefore, the AER invited developers of renewable energy solutions to submit proposals for pilot projects. So far, 35 projects were submitted in total - Only one 303-kW-PV project was implemented in Al Mazyunah in 2015 and delivers electricity to the RAECO. Further, two solar projects are planned: Dakhiliyah (200 MW) and Duqm (1 GW). (December 2017) Shell Development Oman LLC is also investing in PV sector with their into Schools by providing 22 schools with solar systems. In 2017, they already provided three pilot schools in Nizwa, Al Buraimi and Salalah with solar panels. The next two schools in Saham and Sohar will be provided with bifacial PV panels, which will be the first of its kind in Oman. 11 Oman PV Market Status quo PV market Additionally, the Oman Power and Water Procurement company (OPWP) participated in a tender to build a 500 MW solar plant in Ibri. The system would be the first large utility-scale project in Oman and will be connected to the MIS. This project is part of plan to add 4 GW of renewable sources by 2030. Furthermore, the AER recently signed a contract with the British smart energy management provider PassivSystems to build up to 1GW of residential solar systems. The plan of the AER is to install residential PV systems on 30% of residential buildings in Oman in the next few years. (March 2018) PV potential Oman has a high ratio of and solar radiation it ranges from 5,500-6,000Wh/ m² a day in July to 2,500-3,000 Wh/m² a day in January. Therefore, it has one of the highest solar energy densities worldwide. A study of the Engineering College of Sultan Qaboos University has identified the three spots with the biggest solar energy potential: Marmul, Fahud and Sohar. According to the study the best choice would be a solar plant in Marmul. It would produce around 9,000 MWh a year and would cost US$210 MWh. In the north and in the desert area of Oman the solar radiation is extremely high, therefor these regions have the highest potential. The southern area around Salalah has a lower potential due to the rainy season. 12 Oman PV Market Players Status quo PV market players Most important domestic market players Inverters / System- Installation Services Components Modules Mounting integration/ systems Wholesale Abu Malak Global Multitech LLC (BEC Enterprise Group); Oman Solar System Co. LLC (OSS); Shell Development Oman LLC; Hussam Technology Status quo PV market players Company LLC Most important foreign market players Inverters / System- Components Modules Mounting integration/ Installation Services systems Wholesale UKSOL, U.K. Su-Kam, U.A.E. Astonfield, PassivSystems, U.S.A. U.K. 13 Oman PV Barriers and Drivers Summarizing the collected data, the following barriers and drivers can be identified regarding the three categories: Economic and political Energy market PV market framework + Positive economic growth: + Energy consumption is expected to - Lack of experience in the 3 % grow by 8% annually until 2022 PV business + 10% target - Electricity outages (e.g. in Muscat + Dwindling petroleum for renewable energy sources by region a customer experienced 1.36 reserves give an incentive 2020 interruptions with an average outage to invest in PV projects duration of 169 minutes in 2016) + Focus on solar and wind - Large oil reserves and a low diesel + One of the highest solar power as renewable sources price -> restrict the acceptance of radiations renewable energies + Existence of a Ministry for Environment and Climate affairs + Signing of the climate agreement 14 Imprint EuPD Research Sustainable Management GmbH Adenauerallee 134 53113 Bonn Tel +49(0)228-971 43-0 Fax +49(0)228-971 43-11 [email protected] www.eupd-research.com Contact Natalja Semerow [email protected] 15 Disclaimer NEITHER EUPD RESEARCH SUSTAINABLE MANGEMENT GMBH NOR ANY OF ITS EMPLOYEES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, OR ASSUMES ANY LEGAL LIABILITY OR RESPONSIBILITY FOR THE ACCURACY, COMPLETENESS, OR USEFULNESS OF ANY INFORMATION, PRODUCT, OR PROCESS DISCLOSED. THIS PRODUCT WAS PREPARED USING PROFESSIONAL METHODS AND WITH GREAT CARE, TAKING ACCOUNT OF RELEVANT LEGISLATION. THE DATA CONATINED IN THIS PRODUCT IS BASED ON SURVEYS OF SAMPLE POPULATIONS, CONDUCTED USING STANDARD STATISTICAL METHODS. AS SUCH, THE STUDY IS SUBJECT TO A CERTAIN STATISTICAL ERROR RATE AND IS BASED EXCLUSIVELY ON THE FACTS WHICH WERE AVAILABLE AT THE TIME OF THE SURVEY.THE AUTHORS MAKE NO GUARANTEES THAT ANY DECISION BASED ON THE INFORMATION PROVIDED WILL BENEFIT YOU IN SPECIFIC APPLICATIONS, OWING TO THE RISK THAT IS INVOLVED IN DECISION-MAKING OF ALMOST ANY KIND. REFERENCE TO ANY SPECIFIC COMMERCIAL PRODUCT, PROCESS, OR SERVICE BY TRADE NAME, TRADEMARK, MANUFACTURER, OR OTHERWISE DOES NOT NECESSARILY CONSTITUTE OR IMPLY ITS ENDORSEMENT, RECOMMENDATION, OR FAVORING BY EUPD RESEARCH SUSTAINABLE MANGEMENT GMBH. 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