United Arab Emirates: Initial Spark for Renewable Energies

uae special United Arab Emirates: Initial spark for renewable energies

Masdar Initiative and Masdar City herald change for tomorrow’s energy landscape – Mega projects in the area of renewable energies.

The Lighthouse: sun and wind energy systems under one roof Animation: Atkins

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bout 50 years ago, the first oil fields were dis UAE dispose of 8 % of the worldwide resources and the covered in the United Arab Emirates (UAE). fifth largest proven oil reserve. The UAE also dispose of Since then, the region has undergone radical the fifth largest natural gas reserve with a volume of change: Shiny crystal palaces and limousines 3.43 trillion m3 – although still far less developed. have taken the place of Bedouin tents and The UAE oil money keeps pouring into endless con Acamel herds. But the nation that has over decades feast struction projects and yields an impression as if each ed on the export market begins to rethink its future. The emirate were trying to outrun the other with larger and inevitable exhaustion of the natural oil and gas reserves ever more lavish mega projects. While a few years ago along with the problem of serious environmental dam the world still marvelled at the world’s only 7 star hotel age have become an issue the government is ready to Burj Al Arab, new challenges are now found at sea. At address. Measures have been taken in form of green the coast of Dubai, artificial island cities such as Palm mega projects to create a new and worldwide Mecca for Jebel Ali, Palm Jumeirah and The World have been con renewable energies. In this line, a new »green building« structed, and already a new skyscraper is rising whose rule in Dubai was established to improve the ecological final record height is yet undecided: The Burj Dubai will balance of buildings within the emirate while Abu be completed in 2009 and rake 1,000 metres or more in Dhabi’s Masdar Initiative has been pioneering new ave to the sky. Sultan Ahmed Al Jaber, nues for ecological urbanisation. But a truly integral Next, construction of an »Energy and Environment project manager of the ambi- commitment to environmental protection in the region Park« (Enpark) is planned and intended to finish until tious Masdar Initiative is still out of sight. 2010. In this park, which will include office space as well Photos (3): EuPD While less than 170,000 inhabitants were living in as apartments, renewable energies will play a consider the sand and stone deserts at the foundation of the able role. At large, Dubai is bringing a total investment UAE in 1971, population has meanwhile exploded to of US$ 300 billion into its construction projects. 4.1 million. About one third are residents of Abu Dhabi, Still, the total picture reveals a systematic approach. the largest emirate in terms of area, one third lives in Combining financial incentives with ideal leisure and Dubai and the remaining are scattered throughout educational infrastructures and modern urban environ Sharjah, Ajman, Umm al Quwain, Ras al Khaimah and ments has the goal of attracting experts from every Fujairah. Half of the population is under 25 years of the where across the planet and all professional areas. At age. Abu Dhabi’s Urban Planning Council expects that the tractive conditions are created for investors in form of capital alone will until 2020 redouble from 930,000 to free trade zones and technology clusters. Different from 2 million inhabitants. Such population boom, however, other countries as, for example, China, this region al is not left to chance. As a reaction, mega projects are lows companies to remain entirely in the hands of for thought up channelling the growing society into spe eign investors. Without income and corporate tax, cap cial residential and business districts*. ital and profits can be shifted at any time to any coun The region’s power demand is also impressive. About try in the world. As companies are founded without 17,000 kWh is needed in the UAE per capita and year. lengthy licensing procedures, the approach has natural And consumption will increase annually by 6.7 % until ly become popular in the emirates. Dubai already dis 2030, says Keith Miller, director of Planning & Studies poses of 21 free trade zones. Abu Dhabi is thinking Directorate at the Abu Dhabi Water and Electricity Com about declaring its entire territory a free trade zone. pany (ADWEC). In comparison: The current capacity Even the considerably smaller Sharjah disposes of two ranges at 9,501 MWp. Consequently, the emirate needs such zones totalling 14.5 km2. to make an additional 17,000 MWp available until 2030. As long as the new powers plants remain merely Frameworks for renewable energies sketches on a drawing board, saving energy and effi cient resource allocation continue to be the only near Due to the rich oil and natural gas reserves in the UAE, term solutions. At present, the UAE is planning to asso renewable energies have been playing a rather subor ciate network operators and interconnect grids to com dinate role. At the same time, however, climate condi pensate regional fluctuations. Additionally, progressive tions of 360 days of sunshine and global radiation rates tariffs have been introduced with March 2008 to moti with annually 2,200 kWh/m2 at average make solar en vate consumers into an economical and efficient hand ergy an interesting option. Daytime temperatures that ling of energy. After the increase, prices have surged to hit 50 degrees in the summer place ideal conditions for 20 and 33 Fils/kWh (€ct 3.4 and €ct 5.6) varying with the PV systems, which can compensate the high energy de level of consumption in either private household or mands caused by air conditioning. Today, air condition industry. In order to allow for a smooth changeover of ing and cooling systems make up 70 % of the total en the still moderate increase, the original population is ergy demand. excluded from the modifications. This means that only Besides the low prices for conventional energies, the about 20 % of the consumers will be affected. Consid decision-making of the sheiks has also lead to an un ering the country’s natural resources, these changes dervaluation of solar energy. Intransparent regulations will not bring about too much headache. 72.1 % of the hamper the process. Private consumers, for example, primary energy demand is still covered though natural can attach solar modules to their buildings only if these gas and 27.9 % through oil. With 97.8 billion barrels, the are not connected to the public grid. Considering that * Compare: Abu Dhabi Water and Electricity Company (ADWEC) Mega pro 92 % of all consumers receive their energy through the jects: Electricity demand forecasts. public grid, PV installations are for most part not a real

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Masdar test facility: about 30 km outside of Abu Dhabi option. At present, a legal regulation for pricing and follow the standards of the US American Leadership in feeding in green energies through the utility compa Energy and Environment Design (LEED). nies does not exist, as Majid Al Mansouri, secretary gen In expectation of a future market, about 35 solar en eral of Environment Agency Abu Dhabi confirms. One ergy companies have settled in the region. One of these example that illustrates the consequences of the miss companies is Microsol International in the Fujairah free ing regulatory context is the Solar Tracker in Knowledge trade zone. Microsol is the only solar cell manufacturer Village. The Solar Tracker is a project of the Swedish in the region with a production capacity of 45 MWp. Switchpower that was manufactured by the company Most of the other companies are distributors and sys Deger: »As intended, the tracker, equipped with dual tem integrators that have simply added solar products axes, tracks the sun but does not produce electricity be to their catalogue of electronic and telecommunication cause it cannot be connected to the grid,« says Andrew technologies. Machirant, business development & communication But also some of the major international solar corpo manager at Switchpower. Although the manager is ex rations are hiring solar experts for their offices. Addi pecting a regulatory change in the future, the exact tionally, manufacturers have begun to rethink the re point of time remains unclear. gion and establish their own networks. »Without com mercial advertising and corporal presence, solar prod »Green Building Initiative« and ucts cannot be retailed in the region,« Jörg Westphal, Masdar – milestones for a new era vice president at Schüco, Germany, explains. European companies, however, do not hold a mo Today, activities in the area of PV and solar thermal en nopoly. For example, Chinese façade and building spe ergy are practically as sparse as desert oases. But ex cialists also hope for impulses from the »green building« perts in the region are expecting changes in the future. rule. CG Solar introduced an a-Si thin film module for With the reorganisation of the cabinet in 2006, a Feder building integrated solutions to their solar pump pro al Environment Ministry was established to formulate duction. With transparencies of 10 % to 25 % these regulations and legal directives for the protection of the modules reach competitive outputs in view of modules environment. At the same time, sheik Mohammed bin with poly-Si and CSI technologies. According to corpo Rashid Al Maktoum of Dubai enacted a »green build rate information, the modules range 7.5 % and 12 % ing« rule for new constructions with effect on January above modules with the latter technologies. PV cell and 1st 2008. While the specific contents are left to be dis module manufacturer Zhuhai Singyes Curtain Wall cussed with non-governmental organisations and in Engineering Co., Ltd. from Guangdong also wants to be dustry representatives, it is perceivable that the rule will among the first to establish contacts in the region and

182 Sun & Wind Energy 3/2008 uae special introduced its Green Houses projects that had already been successfully realised in China. Key figures for the United Arab Emirates

The United Arab Emirates consist of Abu Dhabi, Dubai, Sharjah, Ajman, Umm al Global thinking – minimal realisation Quwain, Ras al Khaimah and Fujairah. The below figures refer to the collective UAE: Besides the size of the emirate projects, concepts such as zero energy or plus energy have until now been of Area: 83,600 km² little or no importance. One exception has been the »Lighthouse Tower« that will be located in the heart of Population: 4.1 million (2007) the Dubai International Financial Centre (DIFC). The 400 m GDP: US$ 189.6 billion (2007) commercial office tower will incorporate three inte grated wind turbines with diameters of 29 m each as Economic growth: 7.7 % (2007) well as 4,000 PV panels on the southern façade. It is pro GDP per capita: US$ 55,200 (2007) jected to reduce energy and water consumption by up to 65 % and 35 % compared to buildings of equal di Unemployment: 3.5 % (2006) mension and to obtain 10 % of the total power demand Energy demand per from renewable energy sources. Its only flaw has been 17,000 kWh (70 % for cooling & air conditioning systems) capita and year: that the project is still in design phase! With the aim to strengthen the interest of further l No quota for renewable energies specified generations in renewable energies, the German Energy Objectives l No feed-in tariffs specified Agency (DENA) equipped the roof of the Emirates Na for renewable ener- l A green building rule is effective in Dubai tional School (ENS) in Abu Dhabi with a 2.8 kWp PV sys gies: since 1 January 2008, however, lacking tem. The system was installed by Nashwan from Abu further specifications. Dhabi as part of the International Solar Roof Pro gramme. Additionally, the building was equipped with l 8 % of the world’s total oil reserves a gauge to demonstrate the level of generated power l Several free trade zones as well as the reductions in CO2 emission. The project l Individuals are permitted to mount PV systems was accompanied by an educational programme and Particular only to buildings without access to the public grid an exhibition to raise the awareness of pupils and teach characteristics: l 92 % electricity supply ers for solar energy. Next to these tangible examples, l Masdar Initiative founded in April 2006 and 100 % state there have been forerunners for voluntary uses of solar owned by Abu Dhabi with a budget of US$ 22 billion; energy. One example has been the Grand Hyatt Dubai US$ 15 billion allocated to research of green energies hotel that has replaced its diesel water heater with a so lar thermal system. According to the company, the project was meant to contribute to the reduction of the climate change and the current expenses. The plant is the first commercial installation of its kind in the UAE, explains Phil Barnett, director of engineering at Grand Masdar Initiative (Masdar in English translates to Hyatt in Dubai. Where connecting to the public grid has »source« or »origin«). The initiative, founded in April become too expensive, off-grid systems have been a 2006 in Abu Dhabi and 100 % state owned, disposes of profitable option for several years now. Tenesol, for ex a planned budget of US$ 22 billion. A share of US$ 15 ample, a company that has been in Abu Dhabi since billion available through the City of Abu Dhabi is allo 2004, was able to build a 12.5 kWp system for the Abu cated almost exclusively to researching green energies. Dhabi Company for Onshore Oil Operations (ADCO) The aim is to make these technologies ready for the powering a pump for the oil and gas field. The system market and reduce the long term dependency on oil contains a number of TE 1300 modules with outputs of production. Masdar will operate in close cooperation 135 Wp. with leading companies and research facilities. Abu Dhabi is ambitious to become worldwide leader in the Masdar – a new Mecca for renewable field of renewable energies, says Sultan Ahmed Al Jaber, energies project manager in the Masdar Initiative. In his opinion, there currently exists no other project with comparable But Arab rulers are less interested in small off-grid sys ambitions to join researchers, companies and investors tems. The emirates think big. This is illustrated by the for solving the world’s key problems.

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Abu Dhabi plans to finance Masdar partly from trades with emission certificates for project based greenhouse gas emission reductions, the so-called »car bon finance«. This has become possible with the Kyoto protocol that binds the developed countries to reduce greenhouse gas emissions. Additionally, the global in vestment initiative ››Clean Tech Fund‹‹ worth US$ 250 million was set off. According to Sultan Ahmed Al Jaber, the possible income return has already attracted a large number of investors in the first year. Besides the British Consensus Business Group and Siemens, the Swiss Credit Suisse shared in with 25 %. In order to turn the initiative into reality and give life to a true paradigm shift, Abu Dhabi decided to create a complete new city from scratch. Shaded streets, sun- drenched buildings, purling fountains and palm trees – this is the vision the inventors of Masdar hold for the future life in the deserts of the Arab emirates. Cars are left outside the city walls and power supply is exclusive About 50,000 people will be ly covered by renewable energies. Masdar City, core living and working in Masdar project of the Masdar Initiative, is to become the first City until 2016. pleted. Another 19 % of the surface will be used for and only zero-emission city in the world. service and transportation, for example, the elevated The official groundbreaking for Masdar City took railway that will take over public transportation in the place on February 9th 2008. Construction will continue car free city. The remaining 8 % are reserved for munic in seven project phases until completion in 2016. The ipal facilities and cultural institutions. zero-emission city was planned and designed by the 1,500 companies are going to find a new home in British star architect Sir Lord Norman Foster who was al the urban life of Masdar. Short distances from work to ready experienced in sustainable building. Masdar City family home, luxurious dwellings and office buildings will be built on a 6 km2 desert surface near the interna are designed to make the desert city an attractive des tional airport 20 km outside the capital of Abu Dhabi. tination for employees. Life in the Arab desert land By expanding the airport and destinations of the state- scapes will not ask for sacrifices. Masdar City’s energy owned airline Etihad, managers, researchers and em demand will largely be covered by large wind and solar ployees will be enabled to connect to Masdar from al power plants. In addition, residential houses will be most anywhere In the world. equipped with PV modules while heat pumps and Creating an adequate infrastructure alone will cost ground probes allow conveying cold streams from un US$ 4 billion. 30 % of the surface is intended for hous derground and thereby reducing the energy demand ing, 24 % for industrial and research facilities and 13 % for air conditioning systems. for business premises. The »Masdar Institute of Science According to the Abu Dhabi Future Energy Compa and Technology«, a university for applied sciences ex ny, a CSP (Concentrating Solar Power) plant with para clusively reserved for new energies, occupies 6 % of the bolic through technology is designed for a capacity of available area and will be the first subproject to be com 100 MW. However, an incremental expansion of the project with an investment volume between € 200 and 300 million is possible. Construction of the power plant in Madinat Zayed, west of Abu Dhabi, is going to be completed by the end of 2010. In January, 11 compa nies were invited to submit their pre-qualification doc uments. After evaluation had been closed, 4 companies – or consortia – were short listed. »Four bidders come into question for the project. They will receive the ten der until mid-May and will then have time to return of fers until August 31st. Construction is scheduled to start in December this year,« says Olaf Goebel, senior project manager of Masdar. Planning of the power plant was preceded by a com mission to the Tokyo Institute of Technology. Masdar and the Japanese Cosmo Oil Company had contracted the institute to conduct research in the field of Rio »Solar Thermal Beam Down« technologies, in which heliostats Solar systems for pumps pencil the sunlight to a central reflector, which directs and transfer stations are the bundled light to a receiver. A beam down pilot power presently highest in demand. plant with a capacity of 100 kW is going to be finished Photo: Nashwan until the end of 2008 in Abu Dhabi.

184 Sun & Wind Energy 3/2008 The world’s largest One third of the power plant’s output will come from solar PV Solar energy event thermal beam down technology in form of a solar thermal power plant using turbines and liquid salt tanks as heat storage in order to provide 24 hour power supply. The other two thirds will be pro vided by thin film and crystalline-silicon modules manufactured through a special production line on location. In order to also cover previous project phases, a silicon production of 6,000 tons per year is targeted. In addition, Abu Dhabi plans to launch its own thin film production in 2009 with a capacity of 140 MW. In order to find solar modules suitable to maintain high per formance even under difficult climate conditions, a comprehen sive test site was established at the gates of Masdar City and un der direction of the German Technical Inspection Agency (TÜV Rheinland). When tests were started on January 15th 2008, 21 manufacturers had sent 25 different 1 kW systems into competi tion. 14 additional systems have since been contributed. Each in dividual system incorporates an inverter by SMA. The field study will be closed in 18 months and results be made public. The gen Programme Online eral contractor for the instalment of the PV systems will then be Register Early! bound to use exclusively modules tested in this study. In view of the size of the systems, this is a lucrative business 23rd European for manufacturers. But conditions are fierce: Summer tempera tures of up to 50 °C that cause the street asphalt to melt must be overcome. A particular challenge is posed by desert dust wetting Photovoltaic and cluttering during the rainfalls at the beginning of the year and building up a tenacious layer on the crystal surfaces. In order Solar Energy to guarantee equal conditions for all modules, employees rinse the surfaces with water every day. Whether a time consuming Conference and expensive cleaning will continue to be necessary during the operation of the plant is still uncertain. Hari Kiran, research and and Exhibition development engineer at CSEM-UAE Innovation Center LLC in Ras al Khaimah, is sure that the modules will not reach full per FERIA VALENCIA formance without the necessary cleaning and care. Convention & Exhibition Centre Alternative energies are not the Valencia, Spain only focus

According to information of the World Bank, the UAE are planning Conference 1-5 September 2008 project investments for environmental protection and prevention Exhibition 1-4 September 2008 of ecological damage in the range of at least of US$ 46 billion for the next decade. However, Sultan Ahmed Al Jaber, CEO of Coordination of the Technical Programme: Masdar, does not rely on renewable energies alone. Besides the European Commission expansion of the country’s oil and natural gas production, Al DG Joint Research Centre Jaber is negotiating with the French Total, Suez and Areva on plans for the construction of a nuclear power plant. »In our Realised by WIP-Renewable Energies: project we are thinking of the future generations. Alternative Tel. +49-89-720 12735 Fax. +49-89-720 12791 energies will contribute to expand the lifespan of the natural re [email protected] serves,« Al Jaber explains. Tangible activities such as subsidies or possible feed-in tariffs for PV are not foreseeable. Akihiro Terao of the New Business De The leading platform for PV Science & Industry velopment Division at Sharp views the region’s construction boom with the emerging energy problems as an opportunity for solar energy. »Particularly PV systems could be installed much faster than nuclear or other power plants with construction spans of more than 10 years from planning to the first kWh generated,« Terao says. The next World Future Energy Summit 2009 will take place in Abu Dhabi. It will be interesting to see which projects could be completed until then and what kind of new mega projects are going to be introduced on the renewable energy sector. Y Michael Forst Stefan Hausmann