SOLAR SURVEY REPORT Solar Energy Market in Middle East and North Africa 2016 Overview of the solar market trends
Report no.: 16-0484 ME-R, Rev. 01 Date: 2016-10-03
Project name: Solar Survey Report DNV GL - Energy Report title: Solar Energy Market in Middle East and Energy Advisory North Africa 2016 Burjuman Business Tower, Subtitle Overview of the solar market trends 14th Floor Date of issue: 2016-10-03 Sheikh Khalifah Bin Zayed St. Organisation unit: KEMA International B.V. (Dubai Branch) P.O. Box 28537, Dubai, UAE Report No.: 16-0484 ME-R, Rev. 01 Tel: +971 4 352 6626 Customer reference No.:
Prepared by: Verified by: Approved by:
Elisa Brutto Elisa Brutto Mohammed Atif Consultant Consultant Area Manager Middle East and Africa
Faris Abdul Majeed Intern
☒ Unrestricted distribution (internal and external) Keywords: ☐ Unrestricted distribution within DNV GL Solar, Market, MENA, Survey ☐ Limited distribution within DNV GL after 3 years ☐ No distribution (confidential) ☐ Secret
Rev. No. Date Reason for Issue Prepared by Verified by Approved by 01 2016-10-03 Solar Survey Report Elisa Brutto Elisa Brutto Mohammed Atif Faris Abdul Majeed Reference to part of this report which may lead to misinterpretation is not permissible.
Copyright © 2016 KEMA International B.V. (Dubai Branch), United Arab Emirates. All rights reserved. It is prohibited to change any and all versions of this document in any manner whatsoever, including but not limited to dividing it into parts. In case of a conflict between an electronic version (e.g. PDF file) and the original paper version provided by KEMA International B.V, the latter will prevail. KEMA International B.V. and/or its associated companies disclaim liability for any direct, indirect, consequential or incidental damages that may result from the use of the information or data, or from the inability to use the information or data contained in this document.
Table of contents
1 Introduction ...... 1 2 Solar Survey ...... 2 2.1 Participants ...... 2 2.2 Country potential for solar development ...... 3 2.3 Country status in supporting solar market ...... 5 2.4 Country risks for solar development ...... 10 2.5 Future development and technology application for solar market ...... 14 3 Country Analysis ...... 15 3.1 Abu Dhabi ...... 15 3.2 Bahrain ...... 17 3.3 Dubai ...... 18 3.4 Egypt ...... 20 3.5 Iran ...... 22 3.6 Jordan ...... 24 3.7 Kuwait ...... 26 3.8 Morocco ...... 28 3.9 Oman ...... 30 3.10 Qatar ...... 32 3.11 Saudi Arabia ...... 34 4 About DNV GL ...... 36 4.1 Company overview ...... 36 4.2 DNV GL - Energy Advisory ...... 38 4.3 DNV GL solar services and experience ...... 38 5 Reference ...... 40
List of Figures
Figure 2-1: Participant mix...... 2 Figure 2-2: Short-term country potential ...... 3 Figure 2-3: Short term and long term country potential ...... 4 Figure 2-4: Suitable regulatory frameworks in MENA ...... 5 Figure 2-5: Suitable fiscal incentive in MENA ...... 7 Figure 2-6: Capacity of the grid to accept renewable energy integration ...... 8 Figure 2-7: Correlation of potential and grid status of countries ...... 9 Figure 2-8: Geopolitical risk ...... 10 Figure 2-9: Impact of oil/gas prices fall on solar market development ...... 11 Figure 2-10: Renewable Energy positive impact with regard to Crude Oil Industry ...... 13 Figure 2-11: Renewable Energy positive impact with regard to Natural Gas Industry ...... 13 Figure 2-12: Technology application for solar in MENA ...... 14 Figure 4-1: DNV GL company structure ...... 36 Figure 4-2: DNV GL - Energy Advisory services ...... 38 Figure 4-3: DNV GL services to the solar PV industry ...... 39 Figure 4-4: DNV GL main figures in the solar PV industry...... 39
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List of Tables
Table 2-1: Advantages of Renewable Energy with regards to oil/gas industry ...... 11
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List of Abbreviations and Acronyms
Abbreviation Meaning
AADC Al Ain Distribution Company ADDC Abu Dhabi Distribution Company ADEREE National Agency for the Promotion of Renewable Energy and Energy Conservation ADNOC Abu Dhabi National Oil Company ADWEA Abu Dhabi Water & Electricity Authority ADWEC Abu Dhabi Water & Electricity Company AEOI Atomic Energy Organization of Iran AER Authority for Electricity Regulation AERDDS Association énergies renouvelables développement durable et solidarités BAPCO Bahrain Petroleum Company BOO Build Own and Operate BOOT Build Own Operate and Transfer CC Carbon Credits CDM Clean Development Mechanism CEGCO Central Electricity Generation Company CSEE Chevron Center for Sustainable Energy Efficiency CSP Concentrated Solar Power CTF Clean Technology Fund DEWA Dubai Electricity and Water Authority DISTCO Distribution Company DNV GL KEMA International B.V. (Dubai Branch) DSCE Dubai Supreme Council of Energy DUSUP Dubai Supply Authority EBRD European Bank of Reconstruction and Development ECRA Electricity & Cogeneration Regulatory Authority EEHC Egyptian Electric Holding Company EETC Egyptian Electricity Transmission Company EgyptERA Egyptian Electricity Utility and Consumer Protection Regulatory Agency EIB European Investment Bank EMRC Energy and Minerals Regulatory Commission EOI Expression of Interest EPC Engineering Procurement and Construction EPCO Electricity Distribution Company ERC Electricity Regulatory Commission EU European Union EWA Electricity and Water Authority FDI Foreign Direct Investment FiT Feed in Tariff FRV Fotowatio Renewable Ventures GCC Gulf Co-operation Council
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GECF Gas Exporting Countries Forum GTD Generation Transmission and Distribution GW Giga Watt IBRD International Bank of Reconstruction and Development IDECO Irboid District Electricity Company IFC International Finance Corporation IGMC Iran Grid Management Company IPO Initial Public Offering IPP Individual Power Producer ISCC Integrated Solar Combined Cycle IWPP Independent Water and Power Producer JEPCO Jordan Electric Power Company JNRC Jordan Nuclear Regulatory Commission KA-CARE King Abdullah City for Atomic & Renewable Energy KAHRAMAA Qatar General Electricity & Water Corporation KAPP Kuwait Authority for Partnership Projects KEC Kingdom Electricity Company KFAS Kuwait Foundation for the Advancement of Science KISR Kuwait Institute for Scientific Research KNPC Kuwait National Petroleum Company KOC Kuwait Oil Company KPI Key Performance Indicators KSA Kingdom of Saudi Arabia kV Kilo Volt KW Kilo Watt kWh Kilo Watt Hour LCOE Levelised Cost of Electricity LNG Liquefied Natural Gas MASEN Moroccan Agency for Solar Energy MBR Mohammed Bin Rashid Al Maktoum MEDC Muscat Electricity Distribution Company MEI Ministry of Energy & Industry MEMEE Ministry of Energy, Mines, Water and Environment MEMR Ministry of Energy and Mineral Resources MENA Middle East North Africa MESIA Middle East Solar Industry Association MEW Ministry of Electricity & Water MIS Main Interconnected System MJEC Majan Electricity Company MoE Ministry of Energy MOERE Egyptian Ministry of Electricity and Renewable Energy MW Mega Watt
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MWE Ministry of Water & Electricity MZEC Mazoon Electricity Company NEPCO National Electric Power Company NGC National Grid Company NIOC National Iranian Oil Company NOGA The National Oil and Gas Authority NRA Natural Resources Authority NREA New and Renewable Energy Authority OETC Oman Electricity Transmission Company ONEE Office National de l'Electricite et de l'Eau Potable OPIC Overseas Private Investment Corporation OPWP Oman Power & Water Procurement Company PAAET Public Authority for Applied Education & Training PAEW Public Authority for Electricity & Water PDO Petroleum Development Oman PPA Power Purchase Agreement PV Photo Voltaic PWPA Power and Water Purchase Agreement QEERI Qatar Environment and Energy Research Institute QEWC Qatar Electricity & Water Company QSTP Qatar Science and Technology Park R&D Research and Development RAECO Rural Areas Electricity Company REC Renewable Energy Certificate REEL Renewable Energy & Energy Efficiency Law RRGP Renewable Resource Generating Plant RSB Regulation & Supervision Bureau SEC Saudi Electricity Company SR Saudi Riyal SUNA Renewable Energy Organization of Iran SWCC Saline Water Conversion Corporation TAQA Abu Dhabi National Energy Company PJSC TDSOO Transmission and Distribution System Owner and Operator TRANSCO Abu Dhabi Transmission & Despatch Company TWh Terra Watt Hour UAE United Arab Emirates US United States $ United States Dollar (Symbol)
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1 INTRODUCTION
DNV GL conducts a solar survey every year to understand the solar market trends in the Middle East and North Africa (MENA) region. Major solar stakeholders in the region including government officials, developers, advisors, EPC contractors and manufacturers are included in the survey participants list. The survey provides a holistic overview on the status and the development of the solar market, based on participants’ knowledge and experience of the MENA region.
In the first section of the report, DNV GL will present the results of the 2016 solar survey. Countries and Emirates included in the 2016 survey are, in alphabetic order: Abu Dhabi, Bahrain, Dubai, Egypt, Iran, Jordan, Kuwait, Morocco, Oman, Qatar and Kingdom of Saudi Arabia (KSA). Abu Dhabi and Dubai, although part of one country have been analysed separately due to their distinct renewables programs. DNV GL has categorised the survey into four different sections:
• The country potential section addresses the solar market including both PV and CSP potential development for each country. Two perspectives are considered, short term potential by 2020 and long term potential by 2030.
• The country status section is to understand the most attractive regulatory frameworks, fiscal incentives available for the solar projects and the status of the capacity of the grid to absorb the foreseen solar market development ensuring power stability.
• The country risks section is associated to the geopolitical risks and the effects of low prices of crude oil and natural gas on renewable energy developments.
• The future development strategies section is to understand the best suitable technology application for solar in future and the ways to integrate solar energy to achieve further benefits.
In the second part of the report, DNV GL provides an overview of the energy sector of each country, with a focus on the solar market development. The key indicators include the overview of main stakeholders, implemented regulatory frameworks and fiscal incentives, solar projects and programs ongoing and future projects.
In the third part, key information is given with regards to DNV GL group and services.
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2 SOLAR SURVEY
DNV GL conducts a solar survey every year to understand the solar market trends in the MENA region. Major solar stakeholders in the region including government officials, developers, advisors, EPC contractors and manufacturers are included in the survey participants list. The survey provides a holistic overview on the status and the development of the solar market, based on participants’ knowledge and experience of the MENA region.
The countries and Emirates considered for this survey were limited to, in alphabetic order: Abu Dhabi, Bahrain, Dubai, Egypt, Iran, Jordan, Kuwait, Morocco, Oman, Qatar and KSA. Abu Dhabi and Dubai, although part of one country have been analysed separately due to their distinct renewables programs.
The questionnaire, which includes four different sections and a total of nine questions, was sent to a list of contacts by email and was also distributed to the attendees of the “Testing and Qualification” event, organised by MESIA in partnership with DNV GL. The event took place on May 2016 in Dubai.
In the sections below the results of the survey are presented and analysed.
2.1 Participants Having a diversified mix of participants in the solar survey is key to understanding the different perspectives and dynamics of the stakeholders operating in the energy market.
The respondents were from different sectors of the solar and energy industry, including officials from government organizations, utility and grid operators, investors, manufacturers, developers, EPC contractors, advisors and professionals of the energy industry.
In total DNV GL received 33 responses. Figure 2-1 shows the participants mix.
3% 3% 12% 9% Governmental Entity Utility/Grid operator 15% 18% Investor Manufacturer 15% Regulator 24% Developer EPC contractor Advisor Other
Figure 2-1: Participant mix
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2.2 Country potential for solar development
DNV GL questioned participants on the potential of the development of the solar market in each of the focus countries and considering two time periods: the short-term defined by a 2020 timeline and the long-term by 2030. The results issued from the analysis of participants’ answers and DNV GL’s interpretation is presented in the next sections.
2.2.1 Short-term country potential In the short-term Dubai and Abu Dhabi show the highest potential for solar PV projects developments, followed by KSA, Morocco and Egypt.
With the world record tariff of 2.99 US cents/kWh for Phase 3 of the Sheikh Mohammed bin Rashid Al Maktoum solar park, provided by the consortium led by Abdul Latif Jameel of KSA, Fotowatio Renewable Ventures (FRV) of Spain and Masdar of UAE, Dubai takes the top position.
With the launch of the large scale solar PV project to be developed in Sweihan under an IPP bidding process, Abu Dhabi ranked second. Considering the number of bidders responding to the Expression of Interest phase and the number of pre-qualified ones, the IPP scheme seems well suited to the Emirate.
KSA presents the third highest potential with a significant renewable energy target of 9.5 GW by 2023. Though the new energy minister of KSA has revised the solar targets for the country to a lower value, still the solar industry believes that KSA has the ability to change the regional picture in a short-term and execute large scale utility projects. With the recent launch of the first two solar PV projects, to be developed under an IPP scheme, KSA shows good potential even in the short-term.
Abu Dhabi 4 Saudi Arabia 3.5 Bahrain 3 2.5 2 Qatar 1.5 Dubai 1 0.5 0 Oman Egypt
1= Low Potential 2= Medium Potential Morocco Iran 3= High Potential 4= Excellent Potential Kuwait Jordan
Short term (by 2020)
Figure 2-2: Short-term country potential
With the successful completion of the first phase of world’s largest CSP plant, Noor 1, Morocco is considered the fourth highest potential country. The 160 MW Noor 1 CSP plant has been operating from February 2016 and is the first phase of the Noor Ouarzazate Solar complex.
Egypt with its ambitious Feed-in-Tariff scheme with a target of 2.3 GW of solar energy stands at fifth place in terms of short-term country potential. Bahrain is the country with the least potential.
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2.2.2 Long-term country potential When considering the ranking in the long-term, another country enters the top-five positions, Iran. Dubai and Abu Dhabi present the highest potential, followed by Egypt, then Iran and KSA.
Dubai has made its intentions of becoming the leader in renewable energy and sustainability in the MENA region clear. The present Sheikh Mohammed bin Rashid Al Maktoum Solar Park will reach a total capacity of 5,000 MW by 2030. Additionally, with the Shams Dubai Net Metering program, part of Dubai smart initiatives, solar development is likely to ramp up in the coming years. With solar module prices falling and record low tariff, Dubai shows the highest potential in the short-term (by 2020) as well as long-term (by 2030).
Abu Dhabi has recently granted a number of solar generation licences to various test sites and off-grid schemes. The Emirate of Abu Dhabi shows the second highest potential for development in the long-term. With the IPP scheme, more investors are likely to add significant contributions to the Abu Dhabi economy.
Egypt ranks third in the long-term evaluation. Due to its abundance of solar irradiation readings and with its Feed-in-Tariff and PPA scheme the potential is huge. However, the projects may possibly face a slight delay, due to some disputes with regards to changes in the Power Purchase Agreement. Egypt offers high tariff for solar projects attracting international investors and developers. However, in the future, Egypt might be looking forward to invest more towards IPP rather than Feed-in-Tariff scheme though no official statement has been made.
Despite the fact that Iran holds 10% of worlds crude oil reserves and 17% of worlds natural gas reserves, the energy sector in the country is set for a transition from conventional energy sources to renewables. With a renewable target of 5,000 MW by 2020, Iran is ready to embrace solar.
KSA announced the “Saudi Arabia Vision 2030” paper, which targets 9.5 GW of renewable energy, but it is the national transformation plan which stipulates timeframe by which renewables will be deployed (2023). Nevertheless, KSA shows good potential over the long-term. Solar Market Potential
Short term (by 2020) Long term (by 2030)
Excellent
Good Medium
Low
Abu Bahrain Dubai Egypt Iran Jordan Kuwait Morocco Oman Qatar Saudi Dhabi Arabia Figure 2-3: Short term and long term country potential
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2.3 Country status in supporting solar market Country status in supporting the solar market is analysed on the basis of its existing regulatory framework, the fiscal incentives being provided and the status of the capacity of the grid to absorb further power being injected by Renewable Resource Generating Plant (RRGP).
2.3.1 Regulatory Framework Regulatory framework plays an important role in the reliance and confidence level which an investor can hold, to execute energy sector projects in any defined country. DNV GL analysed the most attractive regulatory framework in the MENA region from survey results. The provided four options are given below:
• Feed-in Tariff: cost-based compensation to solar energy producers (e.g. USD/kWh produced)
• IPP Bidding: Independent Power Producer bidding process, to allocate solar projects to generate electric power for sale to utilities and end users.
• Net metering: credit system for solar energy system owners for the electricity they generate and inject into the grid.
• Electricity wheeling: generate electricity in one part of the country and use it in another location by paying fees to the grid operator.
IPP bidding was the most attractive and interesting scheme among all other regulatory frameworks in MENA. The IPP framework is being used in the major projects in all the major MENA countries like UAE, KSA, Morocco, Jordan.
Regulatory framework in MENA 60% 52%
50%
39% 40%
30% 24%
18%
Respondent % Respondent 20%
10%
0% Feed-in Tariff IPP bidding Net metering Electricity wheeling
Regulatory Framework
Figure 2-4: Suitable regulatory frameworks in MENA
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The IPP scheme is gaining more acceptance with the lower recorded levelised cost of electricity (LCoE) from solar PV in the region and with falling prices of solar modules globally. Though some of the countries considered for the survey do not have a functioning renewable framework or dedicated renewable agencies in place, solar projects are being studied and executed on a small scale and frameworks are being discussed among the top officials.
The IPP scheme has the highest ranking as the most suitable regulatory framework in the MENA region. Many projects are being developed in MENA under using the IPP model. Second and third phases of Rashid Al Maktoum solar park in Dubai, 350 MW Sweihan PV power plant in Abu Dhabi, 100 MW solar PV projects in KSA, the world’s largest solar CSP power plant being constructed in Morocco etc. are some examples illustrating the trend of the IPP model in the MENA region.
Feed-in Tariff (FiT) scheme reaches the second position. With ongoing FiT programs to be executed in Egypt and Jordan, other MENA countries are developing and using the same model. With the lifting of UN Sanctions, Iran has experienced a dramatic growth in investor interest which includes the energy sector. A FiT scheme is in place in Iran.
The net metering scheme is also being studied by many countries, though most of the countries already have some small scale rooftop programs and solar panels ongoing; Dubai is a leader in this case. The Emirate has already served the “Shams Dubai” program with projects completed already. Some examples are given below (based on information available as of May 2016):
• 30 PV rooftop systems have been installed so far in Dubai; 6 of them are connected to DEWA electricity network, the rest is under process to be connected to grid. Around 100 plus requests for solar are to be approved by DEWA;
• 1.5 MW solar rooftop in Jebel Ali power station;
• A solar car-parking facility in Emirates engine maintenance centre at Warsan with 1 MW capacity; and
• The solar roof top in premier composite technologies at Dubai Investment park with 200 kW capacity.
Dubai is also collaborating with 18 government organizations in the emirate to connect 37 projects under the Shams Dubai initiative with a total capacity of 279kW.
Electricity wheeling is the scheme achieving the lowest scoring in MENA region, though it has been implemented in some regions with a limited number of projects. At present, only Jordan seems to have a framework policy with regards to power wheeling.
2.3.2 Fiscal Incentives Fiscal incentives boost the overall attractiveness and provide financial support to developers executing renewable energy projects. DNV GL considered four options in determining the most attractive fiscal incentive in the region:
• Tax incentive: deduction, exclusion or exemption from the payment of tax for the solar activity.
• Funding program: financing the solar activity, a program, a project, etc. (international program and/or, national programs).
• Renewable Energy Certificates (REC) / Carbon Credits(CC): REC and CC are tradable certificates attesting the purchase of renewable energy directly from the electrical grid.
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• Research and Development (“R&D”) support: programs to support the development of products, programs, etc.
As indicated by the survey results the “Funding program” is considered the most important fiscal incentive which is in line with the renewable energy industry expert’s expectations. 70% of the survey participants selected funding program as the best fiscal incentive and 18% selected tax incentives and REC/CC as the appropriate incentive while 6% selected R&D support to be included in the fiscal incentive provided in MENA region.
Fiscal incentives in MENA 80% 70% 70%
60%
50%
40%
30% Respondent % Respondent 18% 20% 18%
10% 6%
0% Tax incentive Funding program Renewable Energy R&D support Certificates / Carbon Credits
Fiscal incentives
Figure 2-5: Suitable fiscal incentive in MENA
In MENA, only a few countries have fiscal incentives in place. Dubai has a funding program, carbon credits and R&D support in place. Egypt has tax incentives, funding program and R&D support in place. Jordan also has tax incentives and funding program.
All other considered MENA countries, despite their renewable energy targets and projects executed and ongoing, lack attractive incentive schemes which would boost the renewable energy sector. Iran does not have mandatory domestic content requirement, though if local contents are used an added tariff up to 30% would be offered by Iranian government.
More efforts from governmental renewable agencies are being expected to attract investors into the solar industry.
2.3.3 Grid status The capability of a grid to accept the interconnection of renewable energy power plants is a fundamental factor for the development of solar projects. In MENA countries in particular, it is expected to have a very high penetration of renewables into the electricity systems, grids need to be upgraded, investments have to be planned to extend the network and improve system stability.
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Recently in Jordan, the government cancelled its plans to develop wind energy projects for a total capacity of 400 MW due to the inability of grid to absorb additional loads at its current status. In 2014, the Jordanian Ministry of Energy and Mineral Resources announced national grid expansion and in October 2015 a tender was issued for an additional grid capacity extension of 1,000 MW. The project (Green Corridor) is expected to be completed by 2018 and is being financed by the European Investment Bank, French Development Agency and the EU’s Neighbourhood Investment Facility.
Participants were requested to provide their advice on the status of the grid in the different MENA countries with regards to their capability to accept renewable energy systems interconnection.
According to the survey results, Dubai and Abu Dhabi grids need minor improvements to absorb renewable loads. For the other MENA countries, and according to the survey results major improvements seem necessary in order to deploy more renewable energy power generation. For KSA a mitigated result has been obtained.
The following graph represents the status of the capacity of the grid in MENA region according to participants’ perception.
Status of Grid Capacity
Ready
Dubai
Abu Dhabi
Minor Minor Saudi Arabia are necessary improvements Morocco
Bahrain Egypt Jordan Oman Iran Qatar Kuwait Major are necessary improvements
Figure 2-6: Capacity of the grid to accept renewable energy integration
As reflected in Figure 2-6, most of the MENA countries need to upgrade their national grid to accommodate the expected renewable energy generation over the next years. Though financial investments required for upgrading grid infrastructure is a short-term obstacle, there are financial institutions ready to invest in this sector. For example, recently Jordan arrived at the financial close with the European Investment Bank for improving and expanding its electric transmission networks.
Correlation of country potential results with the grid status assessment
The analysis conducted on the perception of the short and long-terms potential of the different MENA countries has been compared with the grid capacity results.
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The following graph shows the trend line between short-term potential, long-term potential and status of grid capacity. Countries receiving better scoring for the highest renewable potentials correspond to those where only minimal improvements in the grid are required.
Therefore, grid capacity plays a more important role in determining the solar market potential relative to the regulatory frameworks implemented in the country and the fiscal incentives provided by the government.
Figure 2-7: Correlation of potential and grid status of countries
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2.4 Country risks for solar development Country risk with respect to solar market development is analysed based on the geopolitical risk assessment and effects of the recent crude oil and natural gas price fall on renewable energy projects execution.
2.4.1 Geopolitical risk Geopolitical risk is a critical risk factor to be considered. DNV GL analysed the results coming from respondents’ perception of the geopolitical risk in MENA countries and noticed that Egypt, Iran and Jordan present the highest risk factor.
In Abu Dhabi and Dubai, the risk is categorised at the lowest levels. It is interesting to see that countries like Egypt and Iran, despite presenting a high risk, are still considered having high potential in the long terms.
Geopolitical Risk factor
risk High
Egypt Iran
Jordan
Bahrain Kuwait Saudi Arabia
risk Morocco Medium Qatar Oman
Dubai Abu Dhabi
risk Low Low
Figure 2-8: Geopolitical risk
2.4.2 Effects of oil and gas price fall The impact of lower oil and gas prices in the Middle East is a key risk globally. It is interesting to understand how the instability in the oil and gas prices affects the renewable energy projects deployment in the MENA countries.
DNV GL analysed the survey results for impact of oil and gas price fall on solar market development in MENA countries as given below.
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Impact of oil/gas prices fall on solar market development 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% Abu Bahrain Dubai Egypt Iran Jordan Kuwait Morocco Oman Qatar Saudi Dhabi Arabia
Positive impact Neutral impact Negative impact
Figure 2-9: Impact of oil/gas prices fall on solar market development
The following table represents how renewable energy can be feasible for the economic development of the MENA countries which depends heavily on crude oil and natural gas industry for energy generation. Table 2-1: Advantages of Renewable Energy with regards to oil/gas industry
Abu Dhabi Abu Dhabi is a net exporter of oil and natural gas and uses natural gas to meet its domestic energy demand. Renewable energy can be used to free up more natural gas to improve its net import position and national balance of payments.
Bahrain Bahrain depends on fossil fuel and natural gas to meet its energy demand. Bahrain also plans to import more natural gas from Iran and Qatar since it is a small producer of natural gas and due to its increasing demand growth. With renewable energy projects ongoing and planned, Bahrain can reduce its high cost natural gas imports and free up oil for more exports.
Dubai Dubai has only 4% of UAE’s total oil fossil fuel reserves and it relies on import of natural gas from emirate of Abu Dhabi and Qatar to meet its energy demand. Renewable energy would help the emirate to decrease the natural gas import. Since there are very little natural resources in Dubai, there is no negative impact for oil/gas price fall on renewables.
Egypt Egypt is the largest non OPEC oil producer and second largest natural gas producer in Africa. At present Egypt relies on natural gas to meet its energy demand. Egypt was a net natural gas exporter, but since 2015 it started importing natural gas to meet its domestic demand. Renewable energy would help the country to reduce its high cost gas imports.
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Iran Iran is the second largest natural gas producer the fourth largest oil producer in the world. Iran uses natural gas to meet its energy demand with has only lower power generation from oil. Renewable energy can be used to free up more natural gas to export.
Jordan Jordan does not have natural resources like its neighbouring countries. Natural gas is used to meet its energy demand and 96% of its energy needs are met by importing. Around 30% of country’s power generation is by oil and major share of power produced is from natural gas which is imported. Renewable energy would help to reduce its high cost for natural gas imports to meet its rising energy demand.
Kuwait Kuwait has 7% of worlds proven oil reserves and depends heavily on oil to meet its energy demand. Kuwait’s natural gas production is very less and recently became a natural gas importer from Yemen, Oman and Qatar. Renewable energy can be used to reduce the high cost of natural gas import.
Morocco Morocco is a net importer of natural gas. 80% of Morocco’s energy is imported. Renewable energy would help to reduce the high cost of natural gas import.
Oman Oman depends on natural gas to meet its internal energy demands. It is a net exporter of both oil and gas. Renewable energy can be used to free up both oil and gas for export.
Qatar Qatar has the fourth largest natural gas reserves in the world and uses natural gas to meet most of its internal energy demand. It thus exports most of its liquid fuels production. Qatar is the largest exporter of natural gas too. Renewable energy can be used to free up more gas for export.
Kingdom of KSA has 16% of world proven oil reserves and fifth largest natural gas reserves. Its Saudi energy requirement is met by oil. One third of the oil produced is consumed internally Arabia to meet its increasing energy demand. Renewable energy can be used to free up more oil for export. In June 2016 KSA announced its new renewable energy targets of 9.5 GW by 2023 (previously the target was fixed to 50 GW by 2032) and stressed that their energy mix has been shifting towards gas and would use more gas to meet energy demand to free up more oil for export.
The following figure represents the renewable energy role with respect to the current natural resources and trading. Countries exporting oil and natural gas can free up more oil and gas for exporting and countries importing natural gas can cut their high import cost by depending upon the renewable energy generation. In Error! Reference source not found. and Figure 2-11 are given the statistical information for each country on oil and gas import and export. Data are taken from “OPEC Annual Statistical Bulletin – 2015” and are 2014 values.
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Figure 2-10: Renewable Energy positive impact with regard to Crude Oil Industry
Figure 2-11: Renewable Energy positive impact with regard to Natural Gas Industry
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2.5 Future development and technology application for solar market DNV GL asked participants to select the most suitable technology application of solar power in MENA with respect to five different applications: integration of PV in buildings, utility scale projects, desalination application, solar thermal for heating / cooling industrial processes and replacement of conventional plants. 40% of the respondents state that utility scale projects are the most suitable application for solar energy and to ensure the energy transition in MENA region. As the results indicate, utility scale projects might be predominant over all the other suitable applications due to their ability to meet the requirement in a short span of time.
Integration of PV in buildings such as building rooftop solar and solar car parking slots counts 23% of results.
Whereas, 17% of the respondents think that desalination can be the most suitable technology application for solar. Desalination plants using solar energy are already operating in the emirate of Abu Dhabi and those pilot projects were commissioned in November 2015.
Solar thermal for heating / cooling industrial processes and the replacement of conventional plant received 11% and 9% of the results respectively.
Suitable technology application of solar in MENA
9% 23% Integration of PV in buildings 11% Utility scale projects
Desalination
Solar thermal for heating / 17% cooling industrial processes Replacement of conventional plant 40%
Figure 2-12: Technology application for solar in MENA
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3 COUNTRY ANALYSIS
DNV GL has made an analysis on the key figures related to the energy sector of all the countries which were considered for the survey. The key indicators include the overview of country KPI, stakeholders, regulatory frameworks implemented, current projects and future projects.
3.1 Abu Dhabi Emirate energy information
Abu Dhabi has: - 95% of UAE's proven oil resource, corresponding to 4% of world's reserves; and - 94%of UAE's gas reserves, corresponding to 3.5% of world's proven natural gas reserves. 85% of its economy is based on oil and natural gas exports.
A program has been developed for the Emirate and it is call "Abu Dhabi Economic Vision 2030", which includes infrastructure development and environment sustainability along with transparent regulatory environment.
Main stakeholders in the energy sector
Authority Supreme Council of The Authority is in charge of ensuring the Emirate's growing Energy economy, developing alternative and renewable energy sources for the Emirate, while increasing energy efficiency to reduce demand.
Abu Dhabi National Oil In charge of a managing crude oil and natural gas feedstock. Company ("ADNOC") Abu Dhabi Water & ADWEA is responsible of implementing government policy about Electricity Authority power and water provision. It is expected to be the Off-taker on ("ADWEA") renewable projects. Regulator Regulation & Supervision In charge of regulating the water, wastewater and electricity sector Bureau ("RSB") in the Emirate of Abu Dhabi. Buyer/Seller Abu Dhabi Water & Owned by ADWEA, ADWEC is the buyer-seller of all the electricity Electricity Company of the Emirate. ("ADWEC") Producers Abu Dhabi National TAQA in an international energy and water company owned 75.5% Energy Company PJSC by Abu Dhabi government. TAQA is in charge of oil and gas ("TAQA") exploration and production, pipelines, underground gas storage, power generation and water desalination.
Independent Power & IWPPs are major players in the water and electricity sector in the Water Producers ("IWPPs Emirate. & GDs") Transmission Abu Dhabi Transmission TRANSCO is a subsidiary of ADWEA and is responsible for & Despatch Company developing, operating and maintaining the high voltage power ("TRANSCO") transmission and bulk water transmission networks within the Emirate of Abu Dhabi. Distributors Abu Dhabi Distribution ADDC is in charge of the planning, design, construction, and Company ("ADDC") operation of the Abu Dhabi water and electricity distribution Al Ain Distribution network, excluding Al Ain region. For Al Ain region, AADC is the Company ("AADC") responsible authority.
Others Masdar In charge of a mission to support the economic diversification of the Emirate, Masdar is composed of four different business units: Masdar Clean Energy, Masdar Special Projects, Masdar City and Masdar Institute.
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Regulatory policy
Feed-in Tariff All transactions within the water and electricity sector occur on a Feed-in Tariff basis. At the moment no Feed-in-Tariff program exists for the solar market, but RSB is working on a solar rooftop panel programme including a FiT.
Long term Investors benefit from long-term power and water purchase agreements ("PWPAs") and, at the PWPAs same time, benefit from the fact that the majority shareholder is a government institution which can bring comfort and confidence to commercial lenders.
IWPPs Generation and desalination projects are generally developed by IWPPs on a build, own and competitive operate ("BOO") basis, where projects are awarded through a competitive bidding process. biddings IWPP model is usually a joint-venture between the government entity and private companies, in which equity is shared and the majority is for the government entity.
Completed solar projects
Shams-1 100 MW CSP plant, developed by Masdar Power (now Masdar Clean Energy) in collaboration with Spain's Abengoa Solar and France's Total.
Masdar City 10 MW PV plant in Masdar City. Built by Enviromena Power Systems with Suntech and First Plant Solar modules.
Solar Masdar inaugurated four small-scale desalination pilot plants powered by solar in Ghantoot desalination area of Abu Dhabi. The fifth desalination plant powered by off-grid solar power has been plants awarded to Mascara by Masdar.
Rooftop Solar rooftop project has been installed in 11 sites around the city of Abu Dhabi with an projects installed capacity of over 2 MW.
Current solar projects
Noor 1 Solar Noor 1 solar PV plant is a 350 MW IPP project which is under bid invitation stage. It is proposed PV in Sweihan area and is being developed by ADWEA. ADWEA owns 60% and the winning bidder will take 40% of the PV plant.
Over 90 companies originally showed interest to Adwea's request for an Expression of Interest or EOI, of which 48 companies subsequently submitted their Statement of Qualifications, in accordance with a Request for Qualification sent on 10 March 2016.
Future solar projects
Rooftop The regulations for implementing a scheme in Abu Dhabi are yet to be drafted. The exact program capacity figures are yet to be announced but are anticipated shortly. Abu Dhabi has recently granted a number of solar generation licenses to various test sites and off-grid schemes at institutions including schools, the judiciary and the Al Ain Zoo for on-site rooftop solar projects to be developed by site owners. At present, further 28 licenses are pending.
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3.2 Bahrain Country energy information Bahrain depends on fossil fuel to meet its primary energy demand: - producing 50 thousand barrels of crude oil per day; - having proved reserves of natural gas; - importing additional natural gas, mainly from Iran and Qatar, to meet its energy requirements. The floating terminal project is planned to be completed by 2018 to facilitate LNG imports to Bahrain and support the expansion programs in the oil industry.
Stakeholders Authority Electricity and Water In charge of electricity and water sector in the Kingdom of Bahrain. Authority (EWA) It is also responsible to maintain, develop and improve the transmission and distribution network in the kingdom. Regulator The National Oil and NOGA is the government’s body for regulation, policy and control of Gas Authority (NOGA) the nation’s hydrocarbon assets. The strategic objective of the body is realization of long term financial returns and petroleum legislations & policies. EWA EWA is the governmental body for regulation of electricity and water sector. Producers EWA EWA is producer in the water and electricity sector (Hidd station, Al Ezzel station, Sitra station, Riffa station, Alba station, Ras Aby Jarjur station and Ad Dur Station).
Transmission EWA Electricity Transmission Directorate under EWA. Distributors EWA Electricity Distribution Directorate under EWA. Regulatory policy Feed-in Tariff No structured policy has been implemented so far.
Long term Under the government's privatization programme private companies can supply electricity to PWPA's the Ministry of Electricity & Water under a 20-year power purchase agreement ("PPA").
Completed solar projects BAPCO PV plant This 5 MW pilot PV solar electricity grid connected project was a collaborative effort between NOGA, the Bahrain Petroleum Company ("BAPCO"), Petra Solar Inc. and Caspian Renewable Energy Inc. The plant included ground mounted, car ports and street light projects.
Petra solar PV US-based Petra Solar and Caspian Renewable Energy have completed the installation of a 5 Park MW solar plant at Manama’s Awali township in Bahrain. The plant is owned by Bahrain Petroleum Company (BAPCO).
Current solar projects
Rooftop Small scale solar applications are being carried out in the Kingdom, especially in rooftop solar projects projects. Al Dur A 5 MW hybrid solar/wind power project is expected to be finalized by 2017. It will comprise a renewable 3 MW solar PV system and a 2 MW wind farm. project Future solar projects
Rooftop solar Energy Minister announced new laws in Bahrain are being developed to make mandatory for homes and buildings owners to use renewable energy sources. The main goal is to ensure all properties are 100 percent dependent on renewables – particularly solar energy.
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3.3 Dubai Country energy information
Dubai has only 4% of the UAE’s total fossil fuel reserves and thus relies on imports of gas from both Abu Dhabi and Qatar for its electricity generation.
Dubai has launched its Smart Initiative plan based on six main sectors which are centered on achieving smarter economy, smarter lifestyle, smarter transportation, smarter governance, smarter environment and smarter generations. • Shams Dubai - Connecting solar energy to households and buildings • Smart Meters - Smart application via smart grid and meters • EV Charging Stations - Infrastructure and electric vehicles charging stations.
As part of the Dubai Clean Energy Strategy 2050, in 2012 started the development of the Sheikh Mohammed bin Rashid Al Maktoum Solar Park, with a planned production capacity of 5000 MW upon completion in 2030.
Stakeholders
Authority Dubai Supreme Council The Dubai Supreme Council of Energy is the governing of Energy (DSCE) body in charge of policy development, planning and coordinating with concerned authorities & energy bodies to deliver new energy sources. Dubai Electricity & Water DEWA is in charge of electricity and water supply in the Authority (DEWA) Emirate of Dubai. It solely handles the electricity production, transmission and distribution in Dubai. It is also in charge of the implementation of the strategy and policy. Regulator Regulatory & RSB is the regulator body acting under the DSCE in Supervisory Bureau developing regulatory frameworks to support Dubai’s (RSB) economic growth. The RSB licenses and regulates Independent Water and Power Producers ("IWPPs"), ensuring new entrants to the sector deliver safe, reliable and efficient services. Producers DEWA DEWA is also producer.
Dubai Supply Authority DUSUP is responsible for procuring, transmitting, storing (DUSUP) and delivering all natural gas to end customers in the Emirate of Dubai.
Transmission DEWA Electricity Transmission Directorate under DEWA.
Distributors DEWA Electricity Distribution Directorate under DEWA.
Regulatory policy
Feed-in Tariff No feed-in-Tariff exists for the moment. IPP bidding IPP is the trend at present in the region. Strong global solar players are in the market and drives very tough competition. The recent bid for 800MW solar project was at 2.99 US cents/kWh which is a global lowest LCOE.
Net Metering As a part of DEWA Smart Initiatives, Shams Dubai program has been initiated in the region. Consumers can generate their own electricity by installing solar photovoltaic panels on their rooftops and excess power can be fed to DEWA grid. It is mandatory that the consumer shall not generate more than its consumption.
Long term PPA Investors benefit from long-term power and water purchase agreements (PWPAs).
Carbon Credits DEWA received 10,635 carbon credits from the Clean Development Mechanism (CDM) Executive Board of United Nation Framework Convention on Climate Change (UNFCCC) for the first phase of Mohammed bin Rashid Al Maktoum Solar Park (MBR Solar Park).
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Completed solar projects MBR Solar Park Phase 1 13 MW solar PV project was developed and built by First Solar and it is in operation since October 2013.
Rooftop projects 1.5 MW solar PV rooftop project was completed for Jebel Ali Power Station. 1 MW solar PV rooftop project for car parking structure was completed in Emirates Engine Maintenance Centre in Warsan. Current projects MBR Solar Park Phase 2 200 MW phase of the MBR Solar Park is planned to be in operation in 2017. The project was awarded in 2015 to the consortium ACWA Power and TSK and will share the equity of the project with DEWA.
MBR Solar Park Phase 3 800 MW phase of the MBR Solar Park is in the bid evaluation stage. DEWA received 5 bids for international firms and the lowest recorded bid at the opening of the envelopes was US 2.99 cents per kilowatt hour.
Shams Dubai The rooftop solar projects are ongoing. In May 2016 Dubai could count thirty PV systems already installed, six of them connected to DEWA electricity network, the rest under process for the connection to the grid. Around 90+ requests were under process by DEWA to grant permission. Future projects MBR Solar Park It is targeted that the MBR Solar Park will have a capacity of 1,000 MW by 2020 and 5,000 MW by 2030. Solar rooftop program Dubai declared that it would be mandatory to have solar panels on every buildings and thus generating its own power by 2030.
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3.4 Egypt Country energy information
Egypt is the largest non-OPEC oil producer and second largest natural gas producer on the continent in Africa. 70% of Egypt's electricity is fueled by natural gas, with the remaining being fueled by petroleum and renewable energy (mostly hydroelectricity). Egypt' natural gas exports declined after 2009 due to its increased domestic demand. Egypt began to import LNG in 2015.
Stakeholders
Authority Egyptian Ministry of MOERE is the governmental entity in charge of setting Electricity and Renewable and implementing policies and plans in the fields of Energy ("MOERE") electricity generation, transmission and distribution in Egypt. Regulator Egyptian Electricity Utility EgyptERA is the government organization responsible and Consumer Protection to ensure all activities related to electric power Regulatory Agency generation, transmission and distribution (GTD). (EgyptERA) It sets regulation for GTD and reviews the conformity of investments and plans related to the GTD sector with respect to government policies. New and Renewable Energy NREA is the Government entity responsible to plan, Authority (NREA) implement, promoting and supporting renewable energy in Egypt. Its responsibilities include research, development, demonstration, testing and evaluation of the different renewable technologies focusing on solar, wind and biomass. Producers Egyptian Electric Holding EEHC together with its affiliated companies (Cairo, Company (EEHC) East Delta, Middle Delta, West Delta, Upper Egypt and Hydro-Power Plants Electricity Production Companies) is responsible for supplying electricity. Transmission Egyptian Electricity It is the transmission company in Egypt which comes Transmission Company under EEHC. (EETC)
Distributors EEHC Distribution companies Distribution companies: North Cairo, South Cairo, Alexandria, Canal, North Delta, South Delta, El- Behera, Middle Egypt, and Upper Egypt Electricity Distribution Companies Regulatory policy
Feed-in Tariff Feed in Tariff scheme was declared in 2014 for 2.3 GW solar and 2 GW wind projects. The FiT fixed rate for power plants between 20 MW to 50 MW has been fixed at 14 US cents/kWh.
IPP bidding IPP is the trend at present in the region. Development areas have been assigned for allocation to domestic and international IPPs (i.e. BenBan area, Zaafarana area, West Nile). Long term PPA PPA for 25 years for the PV projects and 20 years for the wind projects.
Net Metering A net metering scheme is in place.
Financing opportunities All the major international financial institutions like IFC, EBRD, European Development Bank, OPIC etc. are active the market. Capital subsidies, tax incentives and customs exemptions exist.
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Completed solar projects
Kureimat Hybrid Power Egypt's first hybrid solar-thermal plant. Kureimat uses parabolic trough technology to Plant produce a total of 150MW electric capacity.
Current projects
Benban, Zaafarana, Gulf FiT scheme projects are expected to reach PPA signature with the Egyptian authority of Suez - FiT scheme in 2016. projects
Kom Ombo PV project 200 MW PV project in Aswan region.
Future projects
Close to 1.5 GW of PV power plants are expected to begin construction in 2016 and there is also a tender for CSP technology expected in 2016.
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3.5 Iran Country energy information Iran has: - 10% of the world's crude oil reserves; and - 17% of the world's proved natural gas reserves, the second largest natural gas reserves in the world. Iran's crude oil production has substantially declined and natural gas production growth has been slower than expected. With the lifting of the international sanctions in 2016, Iranian energy sector is expected to grow in the next years.
70% of the energy generation is based on natural gas with oil, hydro and nuclear. Rest 30% is met by coal.
Stakeholders Authority Ministry of Energy MoE is responsible for management of supply and demand of (MoE) water, electricity, energy, and wastewater services and also promoting the training, research and technology.
Renewable Energy SUNA was assigned since 1996 and it is operating under the Organization of Iran MoE directorate. In addition to participating in the country’s (SUNA) renewable energy strategies, SUNA determines research priorities, implements projects such as providing renewable energy map and installing off-grid PV systems in rural areas.
Regulator MoE MoE is in charge of the regulation of the water and energy sector. National Iranian Oil NIOC is the government body in charge of the control of oil Company (NIOC) and gas sector.
Producers Tavanir Tavanir is the government entity responsible for generation, transmission and distribution of electricity under the MoE. Tavanir’s holding structure includes 16 regional electric companies, 42 distribution companies and 27 generation management companies. Atomic Energy It manages the nuclear power plants in Iran. Organization of Iran (AEOI)
NIOC Oil and gas producer.
Other Private power Few Energy Conversion Agreements, Build-Operate-Transfer plants (BOT) and Build Own Operate (BOO) projects with private investors exists. In 2013, TAVANIR tendered and sold some of its power plants and increased the share of private electricity generation to 41% of the total installed capacity. Transmission Tavanir In charge of electricity transmission.
Distributors Tavanir In charge of electricity distribution.
Others Iran Grid Management IGMC is responsible for conducting and monitoring utilization Company (IGMC) of production and transmission of the national network & preparing the conditions for competitive transactions, establishing, operating, and developing power market and stocks.
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Regulatory policy Feed-in Tariff A FiT scheme exists for renewable energies according to the type of technology used (biomass, wind farm, solar power, geothermal, waste recycling in industrial processes and less than 10 MW hydropower projects).
Long-term PPA Guaranteed power purchase for a period of up to 20 years
Fiscal incentives A Renewable Energy Development Fund is created to develop rural electricity grids and support the generation of renewable and clean energy. An amount per kWh on the electricity bill is collected by the MoE to constitute the fund.
Net metering A national smart metering program is in place called FAHAM. Rural electrification Thousands of small direct current individual photovoltaic units which are used in roads, highways, parks and communications.
Current projects Qazvin solar farm Two Italian companies, Genesis and Dynkun have signed a memorandum of understanding with the Iranian officials in April 2016 to develop a 1 GW of solar PV, composed of 100 PV plants, each with a capacity of 10 MW.
Rural electrification Installation of solar PV plant continues in rural areas.
Future projects
Grafit Energy Project German solar company, Grafit Energy, and SUNA are about to conclude a contract for 2,520 MW capacity solar project. The company intends to establish a PV panel factory along with the construction of power plant in Iran. It is planned to implement 100 to 200 MW of the project for the first phase.
Potential Investments Turkish Company CALIK Energy, Dutch Company RMX Energy had already contacted SUNA expressing their interest to develop solar projects in Iran. Austrian company (Solar Benefit) is to install of 400 MW photovoltaic power plants in Semnan province. Company starts its activity with the installation of 10 MW power plants in the first phase. Khuzestan energy park A consortium of Iranian, Indian and south Korean companies are aiming to set up a 1 GW energy park in Khuzestan province in Iran, a $10 billion project.
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3.6 Jordan Country energy information Despite some proven oil and gas reserves, Jordan has no oil and gas production of its own; the country currently relies on imports for 96% of its energy needs.
At present 40% of the energy mix is met by gas that is supplied by the Arab Gas Pipeline from Egypt. For the remaining needs, Jordan uses diesel and heavy fuel oil, costing more than the gas importations.
Stakeholders
Authority Ministry of Energy and MEMR is responsible for comprehensive planning Mineral Resources (MEMR) process in energy sector of Jordan. Its responsibilities include attracting Foreign Direct Investments (FDI) in energy sector and import/export electricity with neighboring countries.
National Electric Power NEPCO is in charge of the development and control of Company (NEPCO) the power sector. The company is divided into 3 operating companies: - Central Electricity Generation Company (CEGCO) - National Electric Power Company (NEPCO) - Electricity Distribution Company (EPCO) It is the main entity responsible of buying electricity from the generating companies and selling to the distribution companies.
Regulator Energy and Minerals EMRC is the government body that regulates and Regulatory Commission protects the rights of electricity producers. (EMRC) It is the legal successor of the Electricity Regulatory Commission (ERC) and the Jordan Nuclear Regulatory Commission (JNRC) and the Natural Resources Authority (NRA).
Producers CEGCO The producers are quasi government companies in Samra Power Generation which government has a majority or minority share. In Co. (IPP 1) case of CEGCO, Government of Jordan has 40% share Amman Power Generation along with Social security corporation with 9% share Co. (IPP 2) and ENARA Energy Investment holding majority share Al-QatranAh Electric of 51%. Power Company (IPP 3)
Transmission NEPCO NEPCO is also in charge of the transmission and exchange of electrical power through connection networks with Egypt and Syria.
Distributors Jordan Electric Power IDECO and EDCO are owned by a private owned Company (JEPCO) company in the Kingdom Electricity for Energy Irboid District Electricity Investments Company (KEC). Company (IDECO) EDCO
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Regulatory policy
Feed-in Tariff Feed in Tariff was introduced in 2012, thereby enabling direct proposal submission scheme. Renewable Energy & The REEL was established in April 2012 and it enables private companies to Energy Efficiency Law negotiate directly to MEMR regarding renewable energy projects and exempts all (“REEL”) systems and equipment for renewable energy projects from customs duties and sales tax.
Jordan Renewable Energy MEMR launched an investment fund financed by government of Jordan in order to & Energy Efficiency Fund finance renewable projects: loans and grants to domestic and international investors, subsidies to privately owned and operated facilities, interest rates subsidies on commercial loans, a public Equity Fund, a renewable energy guarantee etc. It receives donations from Gulf Co-operation Council (GCC). Current projects
Round 1 Solar 20 MW in Mafraq region; 282.3 MW in Maan region; 10 MW in Aqaba region; 10 MW in Amman region. Round 2 Solar From 24 developers MEMR has chosen the lowest 4 tariffs for the development of 4x50 MW PV plants, and is currently negotiating the PPAs. PPAs for two 50MW projects in the Mafraq Development Area have already been signed. Power prices were offered around 6 cents/kWh. ACWA Power of KSA is one among the successful developer selected for Round 2 solar which is being developed in Ma'an development area.
Future projects Round 3 In February 2014, developers were invited to submit EoI for solar and wind projects with capacity of 100MW each. However, round 3 has been cancelled by MEMR because it failed to get funding to expand the national power grid to accommodate the projects. However, the Government secured funding from European Investment Bank (EIB) and French Development Agency, Jordan will be capable to increase its transmission capability via Green Corridor project paving way to further developments.
Electricity Wheeling & Net In 2016, it is anticipated that around 80MW of power wheeling projects and over 50 Metering MW of net metering systems would be connected to the distribution grid.
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3.7 Kuwait Country energy information Kuwait has proven oil and natural gas reserves. Kuwait is one of the top 10 global producers and exporters of total petroleum liquids. Kuwait’s economy depends on petroleum export revenue and accounts for 60% its gross domestic product and about 94% of export revenues. Kuwait mainly imports natural gas (LNG-Liquefied Natural Gas) from its neighbors including Yemen, Oman, and Qatar.
Stakeholders Authority Ministry of MEW is the policy maker, regulator, generator, transmitter and distributor Electricity & of the electricity in the State. It operates and funds all current generation Water (MEW) plants.
Kuwait Authority KAPP, formerly Partnerships Technical Bureau (PTB) is responsible in for Partnership implementing Public Private Partnership (PPP) program which promotes Projects (KAPP) collaboration between the public and private sectors to develop quality infrastructure and services. It is currently in process of initiating several high-impact projects in the power, water/wastewater, education, health, transportation, communications, real estate, and solid waste management sectors.
Regulator MEW MEW’s responsibilities include framing the necessary regulatory framework in the Country with respect to renewable energy.
Producers MEW KNPC is responsible for Domestic Refining and Gas Processing and is in Kuwait National charge of the fuel feedstock for power plant. Petroleum KOC is responsible for exploration, drilling and production of oil and gas Company (KNPC) within the State of Kuwait. Kuwait Oil Company (KOC)
Transmission MEW MEW is responsible entity to operate the transmission network.
Distributors MEW MEW is responsible entity to operate the distribution network.
Others Kuwait Institute KISR responsibility includes studying and formulating regulations and for Scientific policies that may assist the Kuwaiti government in promoting renewable Research (KISR) energy development.
Regulatory policy
Policies & Fiscal Renewable energy policy is not yet well established in Kuwait. Instead, the government’s incentives focus has been on reducing the environmental impact of fossil fuel used to generate electricity. However, KISR is working on the policies. There are IPP by-laws and feed-in tariff structures under discussion in MEW and government.
No incentives exist at the moment, as all the power provision in the State is currently sourced from the government. Though government gives R&D support to entities like KISR to carry out advanced researches on in the field of solar energy.
Current projects
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KOC - Umm 10 MW Umm Gudair PV plant that is being developed by Spain’s Gestamp Solar after signing a Gudair contract with Kuwait Oil Company (KOC).
Al-Abdaliya ISCC The Integrated Solar Combined-Cycle plants will be developed under the PPP law. The Project project company ownership will be split between investor, government and the public following the initial public offering (IPO). The Offtaker will be MEW based on a PPA. The 280 MW al Abdaliya power plant in Kuwait, which combines 60 MW of solar capacity with gas fired units, is in the list of newly approved power and infrastructure projects. In September 2015, Kuwait signed a contract with Spain’s TSK Group to set up a 50 MW solar PV power project.
Shagaya The project of 2 GW in Al-Shagaya Renewable Energy Park is managed by KISR and MEW. Renewable The park shall include a mix of PV, CSP, and wind technologies. The first phase of the park is Energy Park currently under construction and expected to be completed by the end of 2017.
Rooftop solar In rooftop solar, a total of 1 MW capacity has been already installed. By 2018, it is planned to projects ramp up the rooftop solar projects in the country and is expected to increase from current 150 rooftop projects to 1,500 rooftop projects. Future projects
KISR programme On the basis of an IPP tender: Phase 2: 550 MW CSP and 380 MW PV by 2020 Phase 3: 1,150 MW CSP and 720 MW PV by 2030 Phase 4: 2,000 MW of RE plants (timeframe not given) MEW It has undertaken the feasibility studies to be presented to the government for: 1. 300 MW PV facilities at 25 water reservoirs 2. 280 MW CSP plant for heating at steam generation facilities
Oil Sector KOC has tendered a 5MW off-grid PV plant to power electrical pumps in West Kuwait. KFAS has asked for governmental budget approval for the retrofit of PV panels on 50 residential buildings for a total capacity of 2MW. PAAET (Public Authority for Applied Education & Training) planned to tender to install 2MW PV panels on roofs and parking areas. Rooftop Rooftop solar multi home rooftop PV across Kuwait and a solar PV project for the new Kuwait International Airport is expected to be tendered, adding around 16 MW of solar capacity in 2016.
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3.8 Morocco Country energy Information 80% of the Morocco's energy is imported. Morocco produces marginal amounts of oil, natural gas, and refined petroleum products, which fall below the consumption and mainly consumed domestically. A portion of the Maghreb-Europe Pipeline (also known as the Pedro Duran Farell pipeline), which transits natural gas between Algeria and Spain, passes through Morocco. In lieu of transit fees, Morocco receives natural gas from the Europe-Maghreb Pipeline, Limited every year.
Stakeholders Authority National Agency for ADEREE is the main organization responsible for the the Promotion of development of energy management policies. The tasks of Renewable Energy ADEREE comprise the development of national, regional and and Energy sectorial plans for renewable energy and energy efficiency, Conservation the realization and coordination of renewable energy and (ADEREE) energy efficiency program and projects.
Moroccan Agency for MASEN is a state-owned limited company which contributes Solar Energy in planning , conception, promotion towards domestic and (MASEN) foreign investors and development of technical and economic feasibility analysis of solar projects in Morocco.
Association énergies AERDDS is experienced in implementing, demonstration, renouvelables conducting the workshops, debates and panel discussions développement and in engaging with different stakeholders’ with respect to durable et solidarités renewable energy technologies at micro and small scales. (AERDDS) The association has partnerships with local communes, Ministry of Energy and Environment, private companies and international organizations. Ministry of Energy, MEMEE authorizes the energy, mine and water sector in Mines, Water and Morocco. The Ministry consists of three departments: the Environment (MEMEE) Mining Development department, the Fuels and Energy department and the Electricity and Renewable Energies department. Regulator MEMEE MEMEE is responsible for Regulation in Moroccan energy sector. The MEMEE implements the government policies in energy sector, mines and geology. It also supervises companies and public institutions that come under its jurisdiction. Producers ONEE ONEE is the national Utility and is responsible entity for Transmission ONEE generation, transmission and distribution
Distributors ONEE Regulatory policy
Policies The Kingdom has achieved significant progress and has taken important steps to reforming the policy and regulatory framework, and is one of the most de-regulated electricity sectors in the MENA region.
Feed In Tariff Morocco has no feed-in tariffs, but the government supports large-scale projects by experienced developers on a project-to-project basis. A feed-in tariff or a simplified tender process could be considered to accelerate power development in Morocco. The existing ONE IMs tender process is a long and costly process for bidders which sometimes end with no project.
Fiscal incentives Currently, there is no remuneration policy framework in place for solar PV technology in Morocco, though International financial institutions are funding the programs.
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Completed solar projects
Noor I The first complex deployed by Masen approximately ten kilometers northeast of the city of Ouarzazate is NOOR Ouarzazate. As a part of MASEN 510 MW world's largest CSP plant, Noor I with a capacity of 160 MW has been operating from February 2016. Once completed Noor CSP program is to contribute around 18% of Morocco's annual generated electricity. Noor I was sponsored by MASEN and developed by ACWA Power. It uses CSP- parabolic trough technology. It has a thermal storage capacity of 3 hours.
Current solar projects Noor II ACWA Power is constructing 200MW CSP project which has been awarded by MASEN. Project has a thermal storage capacity of 8 hours. Project uses CSP- parabolic trough technology. The expected commissioning date is 2017.
Noor III ACWA Power is constructing 150MW CSP project which has been awarded by MASEN. Project has a thermal storage capacity of 8 hours. The expected commissioning date is 2017.
Noor PV Project MASEN has launched a dedicated IPP based PV program, NOOR PV I, the first phase entails three projects with a total capacity of 170MW. While a 70MW project will be situated in Quarzazate at the CSP site, a 80MW plant will be in Laayoune and a 30MW plant in Boujdour.
Future solar projects
Noor IV 70MW solar PV project is a part of Noor Ouarzazate complex. The project is expected to be commissioned in 2018.
Phase 1 - Noor Tafilalt ONEE has announced to develop its own solar project with a capacity of 400MW. First phase is Noor Tafilalt with a capacity of 75-100MW. Three sites Zagora, Erfoud and Missour were selected for the development of solar plants. The project is funded by International Bank of Reconstruction and Development (“IBRD”) and the Clean Technology Fund (“CTF”) to channel the BIRD. Project is expected to be commissioned by the end of 2016. Phase 2 - Noor ATLAS It is the second phase of ONEE's solar project with a capacity of 200MW. Eight sites TATA, Bouizakarne, TANTAN, Boudnib, Bouanane, Enjil, Outat El Haj and Ain Beni Mathar are selected for the project development. The project will benefit from concessional loans from KfW and EIB and a donation of the European Commission. Project is expected to be commissioned by the end of 2017.
Phase 3 - Noor Argana It is the third phase of ONEE's solar project with a capacity of 100-125MW. The sites selected for this phase are located in the regions of Errhamna, Tensift and Boumalen. Many donors have expressed interest to fund the program. Project is expected to be commissioned by the end of 2017.
Hybrid solar power project The Moroccan Agency for Solar Energy (MASEN) has invited bids from prospective project developers to set up a hybrid solar power project. The project will have a total installed capacity of 400 MW and will include systems based on solar photovoltaic as well as solar thermal power generation technology.
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3.9 Oman Country energy Information Oman has proven reserves of oil and natural gas. Oil reserves of 5.2 billion barrels accounting 7th largest proved oil reserve holder in the Middle East and the 22nd largest in the world. 25 trillion cubic feet of proved reserves of natural gas.
In 2012, Oman generated 97.5% of its electricity from gas fired facilities whilst 2.5% amounted to diesel generation. Oman is oil exporter, particularly to Asian markets. In 2014, virtually all of the country's oil exports went to countries in Asia, of which 72% went to China. Oman is a member of the Gas Exporting Countries Forum (GECF) and exports natural gas as LNG through its two liquefaction facilities near Sur, in the Gulf of Oman. Nearly all of Oman's natural gas exports go to South Korea and Japan, accounting for 93% of exports in 2014.
Stakeholders Authority Authority for Electricity AER regulates and privatize the electricity and related Regulation (AER) water sector in Oman.
Public Authority for PAEW is the government organization providing water Electricity & Water and power services to the consumers in Oman except (PAEW) Sohar city and Dhofar governorate. In addition to this PAEW is the regulator for both water and electricity services in Oman. PAEW also takes responsibility to study potential usage of renewable energy in generating electricity, so that the government will reduce reliance on oil resources. Oil & Gas Ministry PDO and Oman Gas Company S.A.O.C are the two important government organizations governing oil and gas sector. PDO is responsible for construction of major new oil and gas facilities in Oman. OGC is the government organization responsible for transmission and distribution of natural gas.
Regulator AER AER plays the role of energy sector regulator to frame renewable energy regulatory frameworks for Oman.
Producers Oman Power & Water OPWP is the sole buyer of electricity and it procures Procurement Company electricity from IPP and transfers it to OETC. (OPWP)
Transmission Oman Electricity OETC owns and operates the main electricity Transmission Company transmission network in Oman. It has 220/132 kV (OETC) transmission system to serve the areas in the Main Interconnected System with new transmission assets at 400kV under construction. The system connects eight main power plants and transmits power over 220kV and 132kV lines stepping down to 33kV for distribution.
Distributors MEDC, MZEC, MJEC The Main Interconnected System (“MIS”) covers the Governorate of Muscat, the Governorate of Buraimi and most of the South Batinah, Dakhliyah, Sharqiya, North Batinah and Dhahirah regions. It comprises three distribution systems (networks), owned and operated by Muscat Electricity Distribution Co. (MEDC), Mazoon Electricity Co. (MZEC) and Majan Electricity Co. (MJEC).
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Regulatory policy
Feed in Tariff No Feed in Tariff scheme exists at the moment in Oman. Authorities are discussing to introduce Feed in Tariff mechanism in the country.
Rooftop Project In 2013, PAEW has prepared guiding frame for RE sustainable plan in the Sultanate. The study has focused on the residential buildings; and concluded the possibility to produce 450 MW in Muscat governorate only and possibility to produce 1.4 GW if the technology been implemented in all governorates, which equals to 1.4 TWh in the year. Current projects
PAEW's solar project The study identified and shortlisted four locations- Adam, Manah, Ibri, AL- Khaboura- for future solar power plants which can have a capacity up to 200 MW .Adam and Manah have been recommended as ideal locations for such projects and preliminary environmental assessment was made. Meteorological stations are installed in the sites for studies.
Solar energy programme A 7MW project built by Glasspoint. It is Solar thermal Enhanced oil recovery project, thus not included in the solar plants generating electricity.
Miraah Project 1,021 MW CSP project developed jointly by Petroleum Development Oman (PDO) and Glasspoint, Solar EOR developer based in California. Project is under construction from October 2015 and is expected to finish in 2017. Rooftop Solar Projects Small capacities are being installed. Future projects
Phase two of the strategy Tender for the development of policies and funding mechanisms to encourage investment in the sector. (Feed in tariffs, tax credits and investments subsidies, etc.) Phase three of the strategy Development and construction of a large-scale of renewable energy projects.
RAECO The joint stock utility, Rural Areas Electricity Company (RAECO) has started developing four solar plants and two wind facilities as part of its five -year renewable energy plan.
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3.10 Qatar Country energy Information Qatar has proven oil and natural gas reserves.
Natural gas meets most of Qatar’s domestic energy demand, so the country is able to export most of its liquid fuels production.
Qatar’s natural gas consumption has increased by 80% in the past five years driven by increasing demand of electricity and water. Qatar is the largest exporter of liquefied natural gas (“LNG”) in the world, and the country’s exports of LNG, crude oil, and petroleum products provide a significant portion of government revenues.
Stakeholders Authority Ministry of Energy MEI is responsible of the general policy and strategy in energy & Industry (MEI) sector. Qatar General Kahramaa is the sole transmission and distribution system Electricity & Water owner and operator (“TDSOO”) for the electricity and water Corporation sector in Qatar. (Kahramaa) Its responsibilities include laying out regulations, standards and codes of practices for electricity & water supplies to buildings and facilities. Regulator Kahramaa As above. This company is controlled by MEI.
Producers Kahramaa As above Qatar Electricity & QEWC is a private sector company engaged in electricity Water Company generation and water desalination. (QEWC) The State of Qatar and its affiliates own approximately 52% of the share capital and the rest of the shares, around 48%, are held by companies and individuals. Transmission Kahramaa Kahramaa is the sole responsible entity for transmission network in Qatar. Distributors Kahramaa Kahramaa is responsible government entity for distribution sector in Qatar. Others QEERI The 3 important research centers in the Qatar are as CSEE following: QSTP The Qatar Environment and Energy Research Institute (QEERI) The Chevron Center for Sustainable Energy Efficiency (CSEE) The Qatar Science and Technology Park (QSTP) Regulatory policy
Feed-in Tariff Qatar currently does not have a formal renewable energy policy framework. Currently no FiT is in use; however the absence of a proper policy and its implications are being noticed by government and would be implemented over the coming years as part of achieving the solar target of the Country. Fiscal incentives There is no formal fiscal incentive for RE production, most of the planned projects are under the State-sponsored framework and any investor in solar electricity production will benefit from the PPAs. Financing opportunities There are lots of local institutions able to fund investments in solar energy production and solar energy component manufacturing. Project is funded by Qatari banks and the funding is secured against assets in Qatar.
There is no requirement in Qatar to use either conventional or Islamic funding structures and it is not unusual to see funding structures that combine both.
Rooftop Projects Although there is no formal Government policy on solar rooftop systems, it is likely to see many showcase real estate projects adopt a solar component as it is seen in several cases including the Qatar National Convention Centre and the QSTP.
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Current projects
KAHRAMAA – Solar A 220MW solar PV plant is being developed by Kahramaa at Duhail location in Qatar. Energy Power Plant According to the local media, plant is expected to be fully operational by 2020.
KAHRAMAA – Solar A 10MW solar PV plant is being executed at same Duhail location in Qatar Energy Power Plant
Future projects Qatar Electricity and QEWC is planning to undertake the Mega Solar Power Plant project of capacity 1GW Water Company in Qatar. (“QEWC”) A start-up capital fund is to be created to pursue the solar venture, with QEWC controlling 60% of the fund, and Qatar Petroleum to operate a 40% stake.
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3.11 Saudi Arabia Country energy Information Saudi Arabia has: - world's largest crude oil production capacity and 16% of the world's proved oil reserves, is the largest exporter of total petroleum liquids in the world. - proven reserves of natural gas but production remains limited. - high dependency on oil exports accounting for 80% of the country’s revenue.
One fourth of the oil produced is consumed domestically.
Stakeholders Authority Ministry of Water & MWE sets the policies for electricity sector, makes long Electricity (MWE) term energy plans, IPP's and overseeing private investment in the sector.
Regulator The Electricity & ECRA is the regulatory authority for water and electricity Cogeneration Regulatory sector in KSA. It also develops and pursues a regulatory Authority (ECRA) framework, in accordance with government laws, regulations, policies and standards, as well as international best practices. Producers Saudi Electricity SEC is responsible for generation, transmission and Company (SEC) distribution activities in KSA. It is listed on the Saudi Arabian Stock market and it is the largest source of electric power in KSA. This company is controlled by the MWE.
Saline Water Conversion SWCC is an independent government corporation Corporation (SWCC) responsible for the desalination of seawater producing electric power and supplying to various regions in KSA.
Gencos A Fully owned by SEC Gencos B Gencos C Gencos D Transmission National Grid Company Fully owned by SEC (NGC)
Distributors Distribution Companies Fully owned by SEC (DISTCO) Others Saudi Aramco Saudi Aramco is the state-owned oil company of the KSA and a fully integrated, global petroleum and chemicals enterprise. Saudi Aramco manages proven conventional crude oil and natural gas reserves. King Abdullah City for K.A.-CARE is responsible for renewable and nuclear Atomic & Renewable energy sectors. It designs and facilitates the Energy (K.A.-CARE) procurement process, implements policy, regulates development and frames commercial and legal structure. Regulatory policy
Feed-in Tariff, Net KSA is still in the process of establishing a regulatory framework to support power metering supply from renewable sources and grid connections.
Institutional Setting The entities that will lead renewable energy initiatives are still nascent and have yet to establish the required capabilities and partnerships to achieve their goals.
Other policies White Paper published by K.A.-CARE does not outline how renewable energy will be subsidized or how the establishment of a supply chain will be incentivized.
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Current projects
SEC – Duba Integrated 600 MW Duba 1 solar plant (CSP: 20-30 MW) is being executed at Duba, near Tabuk Solar Combined Cycle in KSA. It is country's first CSP plant. (ISCC) Power Plant Phase I Tabuk KJC CPV 1 MW solar PV plant is under execution at Tabuk in KSA.
Mecca PV Saudi Aramco was awarded the Mecca Municipality 100MW solar project. The present project status is not clear. Integrated Solar SEC signed a SR4.5 billion contract with General Electric to establish the Kingdom’s Combined Cycle (ISCC) first fossil fuel and solar power plant near the Red Sea port of Dhuba in the Tabuk plant region. The 600MW ISCC plant will primarily burn natural gas, but will also generate 50MW from solar energy to increase fuel efficiency.
SEC PV project KSA’s state electricity utility SEC has issued a call for tenders for 100 MW solar PV projects. The two solar farms are to be located in KSA’s northern regions of Al-Jouf and Rafha.
Future projects
PV / CSP Status After first pushing backs its renewable goals, KSA looks to have vastly reduced plans for PV and CSP deployment. In June 2016, The Energy Minister has announced a reduction of its 2040 renewable goals from 50% to 10% of the country's electricity supply.
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4 ABOUT DNV GL
4.1 Company overview In 2012 KEMA became part of Det Norske Veritas (DNV), a global provider of services for managing risk. In 2013, a merger between DNV and Germanischer Lloyd (GL) took place. KEMA International B.V. (Dubai Branch) is fully owned by DNV GL and part of the Energy Business area as shown in Figure 4-1.
Driven by our purpose of safeguarding life, property and the environment, DNV GL enables organizations to advance the safety and sustainability of their business. DNV GL provides classification and technical assurance along with software and independent expert advisory services to the maritime, oil and gas, and energy industries. DNV GL also provides certification services to customers across a wide range of industries.
DNV Foundation Mayfair 63.5 % 36.5 %
DNV GL Group Headquarter: Oslo, Norway
Group President & CEO: Remi Eriksen
Software
Maritime Oil & Gas Energy Business Assurance
Headquartered in Headquartered in Headquartered in Headquartered in Hamburg, Germany Høvik, Norway Arnhem, Netherlands Milan, Italy
Appr . 6000 employees Appr . 4500 employees Appr . 3000 employees Appr . 2000 employees
Global Shared Services
Figure 4-1: DNV GL company structure
Combining leading technical and operational expertise, risk methodology and in-depth industry knowledge, DNV GL empower our customers’ decisions and actions with trust and confidence. DNV GL continuously invests in research and collaborative innovation to provide customers and society with operational and technological foresight. With our origins stretching back to 1864, our reach today is global. Operating in more than 100 countries, our 16,000 professionals are dedicated to helping customers make the world safer, smarter and greener.
DNV GL works from a position of global knowledge, experience and advanced techniques. As an independent, objective business and technical advisor DNV GL help clients achieve higher levels of reliability, availability, sustainability and profitability. As a solutions partner DNV GL help clients enhance value to their customers, stakeholders and shareholders. DNV GL is one of the few companies in the world able to provide economic and technical expertise that combines policy and strategy topics, with operational and technical advice with an explicit focus on the energy industry. DNV GL understands the technical consequences of a business decision, and the business consequences of a technical decision.
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In the Energy Industry DNV GL delivers world-renowned testing and advisory services to the energy value chain including renewables and energy efficiency. Our expertise spans onshore and offshore wind power, solar power, conventional generation, transmission and distribution, smart grids, and sustainable energy use, as well as energy markets and regulations. DNV GL - Energy is headquartered in Arnhem, the Netherlands, with major offices throughout Europe, North America and China as well as Asia-Pacific, Latin-America and the Middle East.
As an objective and impartial knowledge-based company, DNV GL advise and support organizations along the energy value chain: generators, TSOs, DNOs, suppliers and end-users of energy, equipment manufacturers, as well as government bodies, corporations and non-governmental organizations. Our 3,000 energy experts support clients around the globe in delivering a safe, reliable, efficient, and sustainable energy supply. As an energy powerhouse, DNV GL delivers trusted opinions throughout the energy value chain.
In the Maritime Industry DNV GL is the world’s leading classification society and a recognized advisor for the maritime industry. DNV GL enhances safety, quality, energy efficiency and environmental performance of the global shipping industry - across all vessel types and offshore structures. DNV GL invests heavily in research and development to find solutions, together with the industry, that address strategic, operational or regulatory challenges.
In the Oil and Gas Industry DNV GL is the leading technical advisor to the global oil and gas industry. DNV GL provide consistent, integrated services within technical and marine assurance and advisory, risk management and offshore classification, to enable safe, reliable and enhanced performance in projects and operations. Together with our partners, DNV GL drives the industry forward by developing best practices and standards. Our people combine industry expertise, multi-disciplinary skills and innovation to solve complex challenges for our customers.
For Business Assurance DNV GL is one of the world’s leading certification bodies. DNV GL help businesses assure the performance of their organizations, products, people, facilities and supply chains through certification, verification, assessment, and training services. Partnering with our customers, DNV GL builds sustainable business performance and creates stakeholder trust across all types of industries.
For Software DNV GL is the world-leading provider of software for managing risk and improving asset performance in the energy, process and maritime industries. Our solutions support a variety of business critical activities including design and engineering, risk assessment, asset integrity and optimization, QHSE, and ship management. Our worldwide presence facilitates a strong customer focus and efficient sharing of industry best practice and standards.
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4.2 DNV GL - Energy Advisory Under our new brand DNV GL - Energy, DNV GL have united the rich heritage of five well-known entities: DNV, GL, KEMA, Garrad Hassan and GL Renewables Certification. DNV GL - Energy Advisory is part of the DNV GL - Energy Business Division and serves the diverse needs of the energy and sustainability marketplace with the strong heritage and experience of KEMA and DNV. This heritage gives us a solid foundation for providing world-class, innovative solutions in the fields of business and technical consultancy. In a world of increased energy demand, climate change, environmental concerns, finite fossil fuel reserves, and aging energy assets, DNV GL are playing a vital role in serving the needs of our customers globally.
DNV GL support DNV GL's initiatives across the energy value chain (see Figure 4-2) through consulting on energy and greenhouse gas management, (distributed) generation, sustainability strategy and certification, and smart grid opportunities such as demand response, energy storage and energy information.
Transmission & Policy Production Distribution Use
Figure 4-2: DNV GL - Energy Advisory services Our activities include:
• Support industry to reduce their energy costs and remain competitive • Design, implement and evaluate policy • Assist project developers, owners or lenders with developing projects successfully • Develop, operate and measure the effectiveness of utility obligation schemes • Capacity building and market assessments for the new energy economy (smart cities, demand side management, measurement & verification, renewable energy sources etc.) • Research & innovation
4.3 DNV GL solar services and experience DNV GL provides independent advisory, analysis, engineering and testing services to the global solar photovoltaic (PV) and concentrating solar power (CSP) markets. We work with investors, project developers, owners, and equipment manufacturers to help manage risk throughout the entire project life cycle and to ensure the performance and safety of systems from residential rooftops to multi-megawatt power plants.
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Figure 4-3: DNV GL services to the solar PV industry Building on humble origins providing power in the remote corners of the world, solar PV has evolved to become a significant source of renewable distributed generation, being found on rooftops and open fields throughout Europe, North America, Asia and Middle East. DNV GL provides independent third party services in support of the global solar PV industry. DNV GL has more than 25 years of experience in the solar industry and in some regions DNV GL is the leading solar expert. The position and experience DNV GL have in the industry enables us to set standards, which is followed by the industry.
Our relationships with many of the premier developers in North America and Europe provides DNV GL the opportunity to set the very highest standards of engineering excellence in today’s PV systems. Financial institutions engage DNV GL to perform due diligence on large solar PV projects; many banks, insurance companies and private equity firms rely on DNV GL to protect their investments. Starting with desktop design reviews and finishing with on-site performance verification tests, DNV GL helps insure that projects meet their financial goals. Component manufacturers turn to DNV to perform technical due diligence on new products. Armed with a DNV GL technology review, a company can help build its case for acceptance into the market.
Our combined solar expertise covers thousands of Megawatts of solar projects
DNV GL, with its large resource of independent energy experts, is a world-leader of expert advisory services.
Figure 4-4: DNV GL main figures in the solar PV industry.
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95 http://www.saudiaramco.com/en/home.html 7/24/2016 http://www.pv-magazine.com/news/details/beitrag/saudi-arabias-first-
96 global-tender-seeks-100-mw-of-solar-pv_100024989/#ixzz4DQYWLNCK 7/24/2016 http://www.internationalfinancemagazine.com/article/Saudi-Arabia-cuts-
97 back-its-solar-target.html 7/24/2016
98 http://www.coface.com/Economic-Studies-and-Country-Risks/Egypt 7/31/2016 99 http://www.iea.org/policiesandmeasures/pams/iran/name-32119-en.php 8/22/2016 https://www.dewa.gov.ae/en/about-dewa/news-and-media/press-and- news/latest-news/2016/05/dewas-shams-dubai-initiative-achieves- 100 outstanding-results 8/22/2016 http://www.jordantimes.com/news/local/gov%E2%80%99t-floats-tender- 101 expand-national-power-grid-1000mw 8/22/2016 102 http://www.utilities-me.com/article-4203-kuwait-to-tap-into-rooftop-solar/ 8/22/2016 http://www.powerqatar.com/news-detail:26dab6f9-588a-fc86-1012- 103 56c975fbeed5.html 8/22/2016
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About DNV GL Driven by our purpose of safeguarding life, property and the environment, DNV GL enables organizations to advance the safety and sustainability of their business. We provide classification and technical assurance along with software and independent expert advisory services to the maritime, oil and gas, and energy industries. We also provide certification services to customers across a wide range of industries. Operating in more than 100 countries, our 16,000 professionals are dedicated to helping our customers make the world safer, smarter and greener.