Solar Energy Market in Middle East and North Africa 2016 Overview of the Solar Market Trends
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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 DNV GL - Energy – Report No. 16-0484 ME-R, Rev. 01 – www.dnvgl.com/energy Page i List of Tables Table 2-1: Advantages of Renewable Energy with regards to oil/gas industry ................................... 11 DNV GL - Energy – Report No. 16-0484 ME-R, Rev. 01 – www.dnvgl.com/energy Page ii 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 DNV GL - Energy – Report No. 16-0484 ME-R, Rev. 01 – www.dnvgl.com/energy Page iii 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