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Solar O&M outfit ‘boosts’ Jordan project output

Solar O&M outfit ‘boosts’ Jordan project output

reNEWS Solar reports on 2 April 2020 that Alectris, MASE work together to automate asset management activity with the Solar O&M outfit ‘boosts’ Jordan project output. As reported countless times, Solar is gaining traction in MENA region. And this story is not the last one.

Alectris is a global service provider for the integrated care of solar photovoltaic (PV) energy assets and MASE, (Modern Arabia for Solar Energy), was established by the Arabia Group of Companies, to lead clean energy development in Jordan and the MENA+GCC region. 


Solar operations and maintenance company Alectris has completed a project to automate asset management activity at a photovoltaic plant in Jordan.

Alectris implemented the initiative at the 11.5MW facility with MASE, a solar O&M provider in the Middle East.

The partnership between Alectris and MASE aims to automate and standardise asset management activity across new solar projects in the Middle East and North Africa (MENA).

As solar development has increased in the MENA region, O&M and asset management has “struggled to keep pace”, limiting long-term productivity prospects, said Alectris.

The partnership began in 2016 with MASE responsible for field operations and maintenance services on location, while Alectris provided operations and “legacy expertise” in global asset care.

“Working together, both businesses successfully improved the bankability of the project, which was financed by key development finance institutions operating across the region,” said Alectris.

The initiative involved the integration of Alectris’ ACTIS software platform for solar PV plant asset management, with all data monitoring streams gathered under the single platform to “improve oversight” into project activity.

Alectris managing director Vassilis Papaeconomou said: “Solar development in the MENA region offers a significant opportunity to invest in clean energy projects.

“But if this market momentum is to be maintained, it is imperative that operating plants offer security and stability of financial returns. By partnering with MASE, we’ve been jointly able to combine the latest in asset management software with leading experience in services activity.

“This will ensure that project owners and investors benefit from enhanced and efficient performance reporting and operational management, saving time, reducing costs and ensuring the plant delivers at its optimum. As a result, the plant delivered above expectations with an excellent performance ratio and availability close to 100% over the last three years.”

MASE chief executive Tareq Khalifeh added: “Throughout this collaboration, Alectris have proved to be reliable, dedicated and experienced with a wealth of knowledge that has been indispensable when working in an exciting but challenging market.”

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A new low-cost solar technology for environmental cooling

A new low-cost solar technology for environmental cooling

A new low-cost solar technology for environmental cooling developed in Politecnico di Torino, Italy could bring some advantages in this day and age; especially in the MENA region.


Space cooling and heating is a common need in most inhabited areas. In Europe, the energy consumed for air conditioning is rising, and the situation could get worse in the near future due to the temperature increase in different regions worldwide. The increasing cooling need in buildings especially during the summer season is satisfied by the popular air conditioners, which often make use of refrigerants with high environmental impact and also lead to high electricity consumption. So, how can we reduce the energy demand for building cooling?

A new study comes from a research group based at the Politecnico di Torino (SMaLL) and the National Institute of Metrological Research (INRiM), who has proposed a device capable of generating a cooling load without the use of electricity: the research has been published in Science Advances*. Like more traditional cooling devices, this new technology also exploits the evaporation of a liquid. However, the key idea proposed by the Turin researchers is to use simple water and common salt instead of chemicals that are potentially harmful for the environment. The environmental impact of the new device is also reduced because it is based on passive phenomena, i.e. spontaneous processes such as capillarity or evaporation, instead of on pumps and compressors that require energy and maintenance.

“Cooling by water evaporation has always been known. As an example, Nature makes use of sweat evaporation from the skin to cool down our body. However, this strategy is effective as long as air is not saturated with water vapour. Our idea was to come up with a low-cost technology capable to maximize the cooling effect regardless of the external water vapour conditions. Instead of being exposed to air, pure water is in contact with an impermeable membrane that keeps separated from a highly concentrated salty solution. The membrane can be imagined as a porous sieve with pore size in the order of one millionth of a meter. Owing to its water-repellent properties, our membrane liquid water does not pass through the membrane, whereas its vapour does. In this way, the fresh and salt water do not mix, while a constant water vapour flux occurs from one end of the membrane to the other. As a result, pure water gets cooled, with this effect being further amplified thanks to the presence of different evaporation stages. Clearly, the salty water concentration will constantly decrease and the cooling effect will diminish over time; however, the difference in salinity between the two solutions can be continuously – and sustainably – restored using solar energy, as also demonstrated in another recent study from our group**”, explains Matteo Alberghini, PhD student of the Energy Department of the Politecnico di Torino and first author of the research.

The interesting feature of the suggested device consists in its modular design made of cooling units, a few centimetres thick each, that can be stacked in series to increase the cooling effect in series, as happens with common batteries. In this way it is possible to finely tune the cooling power according to individual needs, possibly reaching cooling capacity comparable to those typically necessary for domestic use. Furthermore, water and salt do not need pumps or other auxiliaries to be transported within the device. On the contrary, it “moves” spontaneously thanks to capillary effects of some components which, like in kitchen paper, are capable of absorbing and transporting water also against gravity.

“Other technologies for passive cooling are also being tested in various labs and research centres worldwide, such as those based on infrared heat dissipation into the outer space – also known as radiative passive cooling. Those approaches, although promising and suitable for some applications, also present major limitations: the principle on which they are based may be ineffective in tropical climates and in general on very humid days, when, however, the need for conditioning would still be high; moreover, there is a theoretical limit for the maximum cooling power. Our passive prototype, based instead on evaporative cooling between two aqueous solutions with different salinities, could overcome this limit, creating a useful effect independent of external humidity. Moreover, we could obtain an even higher cooling capacity in the future by increasing the concentration of the saline solution or by resorting to a more sophisticated modular design of the device” commented the researchers.

Also due to the simplicity of the device assembly and the required materials, a rather low production cost can be envisioned, in the order of a few euros for each cooling stage. As such, the device could be ideal for installations in rural areas, where the possible lack of well-trained technicians can make operation and maintenance of traditional cooling systems difficult. Interesting applications can also be envisioned in regions with large availability in water with high saline concentration, such as coastal regions in the vicinity of large desalination plants or nearby salt marshes and salt mines.

As of now, the technology is not yet ready for an immediate commercial exploitation, and further developments (also subject to future funding or industrial partnerships) are necessary. In perspective, this technology could be used in combination with existing and more traditional cooling systems for effectively implementing energy saving strategies.

###

[*] Matteo Alberghini, Matteo Morciano, Matteo Fasano, Fabio Bertiglia, Vito Fernicola, Pietro Asinari, Eliodoro Chiavazzo. Multistage and passive cooling process driven by salinity difference, SCIENCE ADVANCES (2020), URL: https://advances.sciencemag.org/content/6/11/eaax5015

[**] Eliodoro Chiavazzo, Matteo Morciano, Francesca Viglino, Matteo Fasano, Pietro Asinari, Passive solar high-yield seawater desalination by modular and low-cost distillation, NATURE SUSTAINABILITY (2018), URL: https://www.nature.com/articles/s41893-018-0186-x

UAE best-positioned in GCC to absorb oil shock

UAE best-positioned in GCC to absorb oil shock

Following the recent oil price collapse, risks of a political and financial storm for MENA producers can easily be imagined but here is Waheed Abbas, Dubai, March 18, 2020, with his UAE best-positioned in GCC to absorb oil shock.


Nation will be able to finance current account deficit for 35 years even with prices this low


UAE best-positioned in GCC to absorb oil shock
Oil prices have plummeted over the last few weeks, with Brent dropping 45 per cent in the past month.
(Reuters file)

The UAE is best-positioned among GCC economies to weather the decline in oil prices as it can finance its current account deficit longer than any of its regional peers, says a new report.

According to Capital Economics, the UAE can finance its current account deficit for 35 years if oil prices stay at $25 a barrel. Kuwait comes second followed by Qatar, Saudi Arabia, Bahrain and Oman.

“In the four largest Gulf economies – Saudi Arabia, the UAE, Kuwait and Qatar – current account deficits could be financed through a drawdown of large foreign exchange savings for a considerable amount of time. Saudi Arabia could do so for around a decade and the other three countries for even longer,” said Jason Tuvey, senior emerging markets economist at

Capital Economics. The report said the UAE still runs a current account surplus at $30 a barrel.

Brent crude was trading down $3.37, or 12 per cent, at $25.35 a barrel by 1720GMT after dropping as low as $25.23, its weakest since 2003. US crude was down $5.19, or 19 per cent, at $21.76. The session low was the lowest since March 2002.

Data showed that UAE-based sovereign wealth funds held over $1.21 trillion worth of assets in August 2019 compared to $825.76 billion by Saudi Arabia, $592 billion by Kuwait, $320 billion by Qatar and $22.14 billion by Kuwait.

Oil prices have plummeted over the last few weeks, firstly due to coronavirus and then the collapse of Opec+ talks on production cuts. Brent has dropped 45 per cent in the past month from $57.60 a barrel on February 17 to $31.60 on March 17.

Tuvey noted that large foreign exchange savings provide substantial buffers and the likes of Bahrain and Oman, which are most vulnerable to a period of low oil prices, and can probably rely on financial support from their neighbours to avert devaluations.

He said dollar pegs in Bahrain and Oman are more vulnerable, with foreign exchange savings only able to cover current account shortfalls for a couple of years at most. Bahrain secured a $10 billion financing package from its neighbours in mid-2018.

In recent days, GCC governments have stepped up fiscal support in order to mitigate the economic hit from efforts to contain the virus. “If oil prices stay low even after the virus fears have subsided, austerity will come on to the agenda and this means that an eventual recovery in non-oil sectors will be slow-going,” he said.

Khatija Haque, head of Mena research at Emirates NBD, has said that the UAE posted a budget surplus of Dh37 billion ($10 billion) in 2019 and is well-positioned to withstand lower oil prices in 2020.

“If we strip out volatile oil revenues, we estimate the UAE’s non-oil budget deficit narrowed to just under 20 per cent of non-oil GDP, down from 27 per cent of non-oil GDP in 2015, and pointing to a tightening of fiscal policy in recent years,” Haque said.

Monica Malik, chief economist at Abu Dhabi Commercial Bank, said the sharp fall in oil prices and the outlook for a price war adds significant downside risks to the economic outlooks of GCC countries.

“We estimate that all GCC countries will realise a significant fiscal deficit at the current oil price of $37 per barrel, with Oman and Saudi Arabia seeing particularly significant shortfalls relative to GDP. A weaker oil revenue backdrop will require a meaningful pull-back in government spending, as was the case in 2015 and 2016, to limit the size of the fiscal deficit,” Malik said.

She sees a forecasted increase in output from Saudi and Russia and the changing dynamics of oil market fundamentals will likely bolster global oil stocks significantly in 2020. A number of oil-importing countries are also likely to accumulate inventories at the current low price levels, which in turn would lower oil demand during second-half of 2020.

Furthermore, the outlook for inventories beyond 2020 will depend on global demand and coronavirus-related developments in the coming months, she added.

Edward Bell, commodity analyst at Emirates NBD Research, has said that dust has not entirely settled yet caused by travel restrictions and lockdowns due to coronavirus.

– waheedabbas@khaleejtimes.com

Why do Arabs dream of leaving their homelands?

Why do Arabs dream of leaving their homelands?

A popular question these days more than ever before would be “Why do Arabs dream of leaving their homelands?“. The answer could be something to do with their environment, climate and internet networking.


High unemployment rates, oppressive regimes and a desire for better education are some of the reasons cited by Arabs who express a desire to leave their countries.

The Arab world has seen a lot of its youth move in search of better opportunities for employment, freedom of expression, in addition to escaping from social and cultural norms they find oppressive.

According to an August 2019 poll by the Arab Barometer company, titled “Youth in the Middle East and North Africa,” the daily living situation in the region is far from ideal.

Noting that youth between the ages of 15 to 29 comprise about 30 percent of the Middle East and North Africa (MENA) countries, the Arab Barometer finds a significant number of them dissatisfied with their economic prospects.

They are also not happy with the education system. Moreover, “less than half say the right to freedom of expression is guaranteed”. Then there’s the high unemployment rates and widespread corruption.

This is why, Arab Barometer suggests, youth in the MENA region are more likely to consider emigrating from their country than older residents. The preferred destinations are varied, including Europe, North America, or the Gulf Cooperation Council (GCC) countries.

Another survey by Arab Barometer, titled “Migration in the Middle East and North Africa,” published in June 2019, notes that across the region, “roughly one-in-three citizens are considering emigrating from their homeland.”

The surveys were conducted with more than 27,000 respondents in the MENA region between September 2018 and May 2019 in face-to-face interviews.

According to the Arab Barometer’s findings, there had been a decrease in people considering emigrating from 2006 to 2016. Yet since 2016, the trend is no longer in decline but has shown an increase “across the region as a whole.”

The Arab Barometer finds that citizens are “more likely to want to leave” if they are young, well educated and male. The survey has found more than half of respondents between the ages of 18 and 29 in five of the 11 countries surveyed want to leave.

While older potential migrants are more likely to cite economic factors as the primary decision, the survey suggests, younger ones “are more likely to name corruption, for example.”

As for the desired destination countries, they vary according to the homeland of potential migrants. Among those living in the Maghreb countries of Algeria, Morocco and Tunisia, Europe is the favoured destination. 

Whereas migrants from Egypt, Yemen and Sudan point towards Gulf Cooperation Council (GCC) countries. The survey has also found that those from Jordan or Lebanon prefer North America, notably the US or Canada.

The survey also notes that while most would only depart if they had the proper paperwork, young males with lower levels of education who may not see a positive future in their homeland have said they would be willing to migrate illegally, “including roughly four-in-ten in six of the 11 countries surveyed.”

In a blog post for Unesco’s Youth Employment in the Mediterranean (YEM) published in January 2020, Sabrina Ferraz Guarino observes that “Migration is a coping mechanism based on the assumption that moving to another country is the best and most efficient investment for their own and one’s family future” and that improving people’s lives in their home countries will likely result in less desire to migrate.

Guarino says the unemployment rates in the Mediterranean region affect youth the most: “Unemployed youth are the highest in Palestine (45%), Libya (42%), Jordan (36.6%) and Tunisia (34.8%), while Morocco (21.9%) and Lebanon (17.6%) fare relatively better.”

She adds: “Viewing this together with the share of the youth that is not in education, employment or training (NEET), reveals how the challenges of youth employment remain self-compounding. The youth NEET rates tally around 14% in Lebanon and 21% for Algeria, but progressively increase across Tunisia (25%), Jordan (28%), Morocco (28%), and Palestine (33%).”

In its MENA report published in October 2019, the World Bank says growth rates across the region are rising but are still below “what is needed to create more jobs for the region’s fast-growing working-age population.” 

The World Bank recommends reforms “to demonopolise domestic markets and open up regional trade to create more export-led growth.” Source: TRT World

Related:

ME buyers surge to third place in the UK’s country house buying

ME buyers surge to third place in the UK’s country house buying

The surge in number of Middle Eastern buyers spending over £5 million on UK property market that translates on the ground as ME buyers surge to third place in the UK’s country house buying. This means the following is probably happening.

The number of the ultra-wealthy individuals seeking a second citizenship is on the rise, and is expected to increase at an even faster rate over the next 10 years.

According to several reports, nearly 60 per cent of applicants for a second citizenship or second residence programmes come from the Middle East.


ME buyers surge to third place in the UK's country house buying

Middle Eastern buyers surge to third place in the UK’s country house £5 million+ buyer rankings, just behind UK and European buyers who maintain their positions in first and second place, according to Knight Frank.

  • Analysis of purchaser data confirms that 2019 saw a tripling in the market share taken by Middle Eastern buyers in the £5 million+ country market compared to their share in 2018
  • This makes them the third largest source of international demand
  • Brexit went official last month, which could cause a shift in spending habits

Middle Eastern buyers surge to third place in the UK’s country house £5 million+ buyer rankings, just behind UK and European buyers who maintain their positions in first and second place, according to Knight Frank. 

Analysis of purchaser data confirms that 2019 saw a tripling in the market share taken by Middle Eastern buyers in the £5 million+ country market compared to their share in 2018, making them the third largest source of international demand. This was followed closely by near doubling in the share of purchases taken by European buyers, who upheld their second place position in the country house buyer rankings.

Although dropping slightly in 2019, UK buyers maintained their position with the largest share of the prime country market responsible for nearly six in ten purchases.

Henry Faun, Head of London International Project Sales at Knight Frank Middle East, said: “The attraction of private education options is particularly significant to Middle Easterners seeking to place their children in the UK education system. Areas in close proximity to London, such as North Surrey, have been extremely popular with Middle Eastern buyers. The many respectable international schools, combined with easy access into London, makes the Surrey area particularly attractive to buyers from the Middle East looking to settle in the UK.”

Rupert Sweeting, Head of National Country Sales at Knight Frank, said: “Although the dip in UK buyers can be explained by the concerns over the general election and Brexit that clouded 2019, international purchasers still consider the UK as politically stable and are confident in the country’s long term growth prospects – despite stamp duty taxes.”

Read: $23 billion worth of hotels to be built in MENA by 2023

Read: Foreigners’ guide to buying property in Dubai

Raising crops in PV facades of buildings

Raising crops in PV facades of buildings

An international research group has analyzed the visual impact of PV facades on buildings which include crop cultivation. Architects, PV specialists and farmers were surveyed and the results showed broad acceptance of such projects. The ‘vertical farming’ survey generated suggestions for the design of productive facades. So here is Raising crops in PV facades of buildings by Emiliano Bellini.


February 19, 2020

An international research team including scientists from Cuba’s Technological University of Havana and the National University of Singapore has investigated the potential of integrating PV facades with ‘vertical farming’ on buildings in densely-populated cities.

According to findings presented in the study Architectural quality of the productive façades integrating photovoltaic and vertical farming systems: Survey among experts in Singapore, published in Frontiers of Architectural Research, there is broad acceptance for projects combining crop cultivation and solar power generation – which the researchers defined as “productive facades (PF)” – despite concerns over architectural integration.

Web survey

The researchers conducted anonymous 10-minute, multiple-choice web surveys in English with 15 questions. The group also provided images of four variants of productive facade, with respondents asked to rate their architectural quality on a scale of one to five.

The questions addressed topics including the visual impact of PV modules and crops, preferences about the arrangement of PV modules and ease of operation for owners and workers. Around 80% of the 97 respondents were architects with the remainder engineers, PV specialists, productive facade experts, horticulturalists, solar facade professionals, consultants and other professionals.

Architectural concerns

The results indicated architects and designers gave low ratings to all four of the designs presented and rated the design of PV installation poor. However, respondents with experience in horticulture, farming and PV facades showed stronger acceptance of building-integrated productive facades. “All groups of experts agree that PFs have the most positive effect on the exterior facade design and have accordingly graded them with higher marks than the designs without PV and VF [vertical farming] systems,” the paper noted.

Concerns were expressed by almost all respondents about the logistics of crop cultivation and irrigation near electronic devices such as the vertical solar modules.

“Several comments recommended exploring more creative designs,” the researchers added.

The lowest rating – 2.84 – was given to a productive facade with only PV modules visible from the inside. The highest mark – 3.9 – was scored by the image in which only plants were visible.

Tips for developers

The study also generated recommendations for the improvement of productive facade prototypes. “It should be noted that the selection of elements for practical application cannot be made based on a single isolated PF element – the entire building should be considered, especially the aesthetic elements of the building envelope, such as composition, proportion, rhythm, transparency, scale, colors and materials,” the researchers stated.

The study’s authors recommended the installation of the PV systems on north and south-facing facades, with ceiling level a preferable location.

Tilt angles of less than 20 degrees were suggested as a better aesthetic solution which would also avoid reflection onto neighboring buildings. “However, a well-designed integration of the PV modules with the planter of the above storey provides additional advantages – it improves the quality of indoor daylight and obstructs the view from inside to a lesser degree,” the study stated.

The researchers added copper indium gallium selenide (CIGS) panels were preferred to crystalline silicon modules, due to their more homogeneous structure.

Emiliano Bellini

Emiliano joined pv magazine in March 2017. He has been reporting on solar and renewable energy since 2009.

emiliano.bellini@pv-magazine.com

More articles from Emiliano Bellini

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Siemens transforms buildings from passive to adaptive

Siemens transforms buildings from passive to adaptive

In a Press Release on 6 February 2020, Siemens transforms buildings from passive to adaptive as elaborated on below.


At this year’s Light+Building trade fair, Siemens will showcase its vision for transforming today’s passive buildings into learning and adaptive environments that intelligently interact with people. The company’s focus at this year’s show is “Building the future today”, outlining the innovations that will make this possible. These include cloud-based technologies, digital planning, occupant-centric building automation and services. New solutions for smart electrical infrastructure that seamlessly connects to the Internet of Things (IoT) are also at the core of this transformation. 

Siemens transforms buildings from passive to adaptive

„Building the future today”: Siemens at Light+Building 2020 in hall 11, booth B56“Around 99 percent of today’s buildings are not smart. Digitalization has the power to transform buildings from silent and passive structures into living organisms that interact, learn from and adapt to the changing needs of occupants. This is a significant leap in the evolution of buildings where our technology plays a vital role,” said Cedrik Neike, Member of the Managing Board of Siemens AG and Chief Executive Officer of Siemens Smart Infrastructure. “This transformation is already becoming a reality. We expect to see the first entirely self-adaptive buildings in three to five years from now.”

Digital solutions for the entire building lifecycle

Globalization, urbanization, climate change, and demographics are changing the way people live and work. At the same time, digitalization is ubiquitous. With some 10 billion building devices already connected to the IoT, buildings are ready to leverage the potential of digitalization. People spend an estimated 90 percent of their lives indoors, so ensuring buildings meet the broad range of individuals’ needs is crucial. On one hand, smart buildings actively contribute to occupants’ enhanced productivity, wellbeing and comfort. For operators and owners, they help them collect and analyze data to create actionable insights, boosting buildings’ performance and therefore revenue.Siemens will showcase the smart buildings suite of IoT enabled devices, applications and services. At the core of the suite is the “Building Twin” application, which will be on display at the booth. It provides a fully digital representation of a physical building, merging static as well as dynamic data from multiple sources into a 3D virtual model. With real-time understanding of how a building is performing, operators can immediately make adjustments to boost efficiency as well as extract data to improve the design of future buildings. One of the new IoT-enabled applications is “Building Operator”, which allows remote monitoring, operation and maintenance of buildings. Available as Software as a Service (SaaS), it provides real-time building data as the basis for predictive and corrective maintenance.

Smart electrical infrastructure

Given that buildings account for more than 40 percent of electricity consumption in cities, building efficiency is crucial in the battle towards decarbonization. Electrical infrastructure lays the foundation for safe, reliable and efficient building operations, while delivering essential data for a holistic, cloud-based building management. This is made possible by communication-capable low-voltage products, power distribution boards and busbar trunking systems that enable the measurement and wireless transmission of energy and status data. To illustrate this, Siemens will exhibit a unique end-to-end solution for cloud-based power monitoring in buildings. Electrical installations can now be supplemented with digital metering without additional space requirements or wiring outlay. This makes it easy for electrical installers to start using digitalization to their benefit. With “Powermanager”, a power monitoring software, now fully integrated into the Desigo CC building management platform, all building and energy data can be managed, monitored and analyzed from one single platform.Siemens will also display its electromobility ecosystem, including battery storage and charging systems for residential buildings. In a parallel show, “Intersec Building 2020”, in hall 9.1, booth B50, the company will exhibit integrated and networked systems for safety and fire protection.  

For further information on Siemens Smart Infrastructure, please see
www.siemens.com/smart-infrastructure

For further information about Siemens at Light+Building 2020, please see
www.siemens.com/press/lightbuilding-2020

Oil demand decline a huge challenge for GCC: IMF

Oil demand decline a huge challenge for GCC: IMF

Manama, Bahrein, one day ago, TradeArabia News Service posted this article on Oil demand decline a huge challenge for GCC: IMF. Everyone around the world is currently aware of the new trend of moving away from any fossil fuel, at investments and even real-life levels. We were also informed per local media, that the GCC’s financial wealth could be depleted by 2034: IMF.

Meanwhile, here is anyhow Trade Arabia’s.


Recent oil market developments reveal a strong and sustained declining trend in the global oil demand, which is now expected to peak in 2040 or earlier. This outlook spells a significant fiscal sustainability challenge for the GCC region, says a new International Monetary Agency (IMF) report. The expected speed and size of the fiscal consolidation programmes in most GCC countries may not be sufficient to stabilise their wealth. These adjustments need to be accelerated and sustained over a long period of time, in line with the expected path of hydrocarbon revenue, says the study titled “The Future of Oil and Fiscal Sustainability in the GCC Region.”  The oil market is undergoing fundamental change; new technologies are increasing the supply of oil from old and new sources, while rising concerns over the environment are seeing the world gradually moving away from oil.  The combination of rising supply amid the global push to reduce reliance on fossil fuels is expected to continue, heralding what has been dubbed “the age of oil abundance”, the report says. This spells a significant challenge for oil-exporting countries, including those of the GCC who account for a fifth of the world’s oil production, says the report. The GCC countries have recognised the need to reduce their reliance on oil and are all implementing reforms to diversify their economies as well as fiscal and external revenues. Nevertheless, as global oil demand is expected to peak in the next two decades, the associated fiscal imperative could be both larger and more urgent than implied by the GCC countries’ existing plans. At the current fiscal stance, the region’s financial wealth could be depleted by 2034. Fiscal sustainability will require significant consolidation in the coming years. Its speed is an intergenerational choice. Fully preserving current wealth will require large upfront fiscal adjustments. More gradual efforts would ease the short-term adjustment burden but at the expense of resources available to future generations, it says. Anticipating and preparing for what comes next will be critical for oil-exporting regions. Oil remains critical to both external and fiscal revenues and overall GDP of the GCC states. A legacy of sharply rising fiscal expenditure during 2007–14 followed by a steep decline in hydrocarbon revenues have weakened fiscal positions in the GCC region. The decline in oil revenues sparked a period of intensive reforms, including sizable fiscal consolidations. Nevertheless, the effect of lower hydrocarbon revenue is yet to be fully offset. The resulting fiscal deficits have lowered the region’s net financial wealth during 2014–18, the report says. A path of prolonged deceleration in hydrocarbon revenue growth would add to this decline in wealth. At the current fiscal stance, the region’s existing financial wealth could be depleted in the next 15 years, warns the report.  Although the importance of non-oil sectors has increased in recent decades, many of them still rely on oil-based demand either in the form of public spending of oil revenue or private expenditure of oil-derived wealth. The 2014–15 oil price shock, which notably slowed non-oil growth in most of the region, was a stark reminder of this dependence, it says.  Recognising this challenge, the GCC countries are all implementing programmes to diversify their economies as well as fiscal and external revenues away from oil. The success of these programmes will be central to achieving strong and sustainable growth in the years to come, says the report.The report estimates that growth of global oil demand will significantly decelerate, and its level could peak in the next two decades. In assessing the long-term oil market prospects, it is useful to look beyond the geopolitical and cyclical factors and focus on trends that are robust to temporary shocks. Growth of global demand for natural gas is also expected to slow, although it is expected to remain positive in the coming decades. The fiscal policy need implied by this challenge is both larger and more urgent when compared to GCC countries’ existing plans. In the context of broader goals of sustainability and sharing of exhaustible oil wealth with future generations, all GCC countries have recognised the lasting nature of their challenge and are already planning continued fiscal adjustment in the context of their broader strategic long-term visions.  Managing the long-term fiscal transition will require wide-ranging reforms and a difficult intergenerational choice. Continued economic diversification will be important but would not suffice on its own. Countries will also need to step up their efforts to raise non-oil fiscal revenue, reduce government expenditure, and prioritise financial saving when economic returns on additional public investment are low. While fiscal starting positions are still strong in a global context in four of the six GCC countries, the longer-term fiscal challenges are substantial, the report adds. – 

Integrity of solar and wind-based power generation

Integrity of solar and wind-based power generation

Jarand Rystad, CEO of Rystad Energy, says existing fossil fuel plants will play a major role in the transition towards a near-zero-carbon electricity system, due to intermittency of renewable energy sources in a short but incisive article titled Fossil fuel plants key for integrity of solar and wind-based power generation.

We all know that the world is undergoing an energy transformation, from a system based on fossil fuels to a system based on renewable energy, in order to reduce global greenhouse gas emissions and avoid the most serious impacts of a changing climate.  This article however realistic it appears, could be understood as some sort of justification of the ineluctable surrender of the fossil fuel to its time penalty.


Integrity of solar and wind-based power generation

Jarand Rystad Jan 25, 2020

Existing fossil fuel power plants will play a pivotal role in enabling the full transition to a near-zero-carbon electricity system in many countries. How can such a surprising and perhaps counterintuitive conclusion be reached? The key word is intermittency, in reference to the wide fluctuations of energy supply associated with solar and wind. Even if these two sources are, to some degree, complementary (with more wind at night and during winter, complemented by more sun at daytime and during the summer), the combination still carries a high degree of intermittency.

In this analysis, we have used data from Germany from 2012 to 2019, and scaled this up to a near 100% renewable system – assuming that the total capacity will be 160 GW, or three times the average consumption. In this system, there will still be 28 days where solar and wind combined produce less than 30% of the consumption. This happens typically during high-pressure weather systems during the winter months from November to February. 

Moreover, there will on average be two extreme periods per year, with up to three days in a row when sun and wind will deliver less than 10% of Germany’s total energy consumption. Even with adjustments to imports and consumption levels, the country would still need some 50 GW of power to avoid blackouts (with 72 hours at 50 GW equating to 3.6 TWh). Total water pumping capacity today is 7 GW over four hours or about 30 GWh. Assume this multiplies ten-fold by 2050, and assume that 45 million cars are battery electric vehicles with surplus capacity of 20 kWh each. This would deliver about 1.2 TWh in total, meaning the system would still need 2.4 TWh of power or a continuous load of 33 GW. 

During these periods, restarting old gas-fired power plants could be an economically rational way to deliver the power needed to keep the nation running as usual. The carbon footprint of this would be small – probably less than the footprint associated with constructing gigantic battery facilities for those few extreme cases. Germany presently has 263 gas power plants, with a total capacity of 25 GW. 

Thus, finding a way to maintain these plants for emergency back-up capacity could be an enabler for an energy future based around solar and wind power. Capacity pricing rather than price per kWh is probably one of the commercial changes needed. This is the same pricing model that most people also have for home internet services, and should thus not be too difficult to implement.

Solar is gaining traction in MENA region

Solar is gaining traction in MENA region

Solar deployment continued to pick up in the Middle East and North Africa in 2019, the Middle East Solar Industry Association has said in its annual report.  Brian PUBLICOVER in a PV magazine article titled ‘Solar is gaining traction in MENA region – but plenty of obstacles remain’ and dated January 17, 2020, explains the whereabouts of such deployment.


Solar is gaining traction in MENA region
Last year was a big one for solar in the MENA region, but there is plenty more to be done, according to MESIA.
Image: Acciona

The Middle East Solar Industry Association (MESIA) says energy investment in the Middle East and North Africa (MENA) region could hit $1 trillion in the 2019-23 period.

The organization cited statistics from consultancy Frost & Sullivan valuing the region’s operational PV capacity at $5-7.5 billion, with an additional $15-20 billion worth of projects set to come online by 2024.

However, policymakers in many countries are still struggling to find the right mix of legislation, technology, financing and procurement options to kick-start development, the region’s top solar industry group said in its Solar Outlook Report 2020.

MESIA noted a large gap among the region’s varied PV markets in terms of cumulative installations and development. Egypt, Jordan, Morocco and the United Arab Emirates lead on deployment with Saudi Arabia soon to swell their ranks. While a handful of countries including Pakistan and Iraq are struggling to bring more solar online, markets such as Tunisia, Kuwait and Oman are starting to add significant projects to the regional PV pipeline, said the association.

Regional policymakers are increasingly prioritizing distributed solar, led by Dubai. The most populous city in the United Arab Emirates launched its Shams Dubai program in 2015 to support residential PV and commercial and industrial solar installation. By October, Dubai had installed around 125 MW of distributed PV capacity at 1,354 sites, MESIA said.

The industry association also highlighted the important role played by the Dubai Electricity and Water Authority in getting commercial and industrial projects built, noting market drivers for the segment vary across the MENA region. Cuts to electricity tariffs in markets such as the UAE, Jordan, Oman and Saudi Arabia have played a role, backed by the establishment of supportive regulatory frameworks, particularly for wheeling and net metering, the regional body said.

Egypt

The Egyptian authorities made significant progress on the massive Benban solar complex last year. Roughly 1.47 GW of solar capacity – including a wealth of bifacial and tracking projects – was commissioned at Benban by the end of November, MESIA said. The $4 billion, 1.8 GW complex will eventually feature 41 projects.

The Egyptian government wants renewable energy to account for 20% of its electricity mix by 2022, and 42% by 2035, including 52 GW of large scale and distributed-generation projects. It continues to look beyond feed-in tariffs with the Egyptian Electricity Transmission Co (EETC) and World Bank private sector arm the International Finance Corporation signing a deal in April to fund projects chosen via auctions, for example. The EETC signed a solar power purchase agreement with Saudi’s ACWA Power in October for the 200 MW Kom Ombo project, at a price of $0.0275/kWh. Construction is expected to wrap up in the first quarter of next year.

However, Egyptian energy demand is set to leap from 27.6 GW last year to 67 GW by 2030, MESIA said, citing Frost & Sullivan data. To facilitate renewables deployment, the country will need a competitive electricity market and will have to scrap subsidies for fuel and electricity tariffs dating back to 2016 while also facilitating the development of energy storage to support distributed PV roll-out, the industry group argued.

United Arab Emirates

MESIA describes the UAE as a regional “front runner” for PV and it made undeniable progress last year. Having launched commercial operations at the 1,177 MW Sweihan PV project, Abu Dhabi in November the allocated the fifth, 900 MW phase of the massive, 5 GW Mohammad bin Rashid Al Maktoum Solar Park for a record low power price of $0.01693/kWh. The solar park’s installed capacity currently hovers around the 713 MW range, MESIA said, noting the third to fifth stages of the project will be finished in the years ahead, with full completion scheduled for 2030.

The future also looks bright for solar in the wider UAE, particularly at utility scale. In November, the Emirates Water and Electricity Co closed submissions from developers for a 2 GW solar project at Al Dhafra. That project is set for completion by the first quarter of 2022.

MESIA said it expects a similarly sized tender early this year, as Abu Dhabi may be gearing up to install another 6 GW of solar by 2026. However, PV will have to compete with nuclear and rival renewables in future. With more intermittent renewables capacity coming online, MESIA expects the UAE authorities to start to include more energy storage capacity in future PV tenders.

Jordan

MESIA said energy storage will be “pivotal” to the development of Jordan’s solar sector. The country has been developing storage capacity for a while, as it is struggling to stabilize its electrical transmission network while it brings significant amounts of large scale solar and wind capacity online.

“At this stage, Jordan’s capability to strengthen the grid, commitment to achieve increased energy efficiency and develop additional storage is key for the future market attractiveness,” the industry association reported.

The authorities launched a tender last year for a study on the feasibility of installing 30 MW of pumped storage capacity at the nation’s key dams, MESIA noted.

Saudi Arabia

Saudi Arabia’s growing PV market continues to move from strength to strength, according to the association, which highlighted the 300 MW Sakaka PV plant – the kingdom’s biggest to date. The regional body also noted the Renewable Energy Project Development Office asked 60 pre-qualified companies to submit bids for “six solar energy schemes with a combined capacity of 1.5 GW” late last year, in addition to six projects the authorities started tendering this month.

However, while the country remains one of the most promising regional PV markets, the Saudi authorities still need to tackle key challenges, MESIA said. The government must collaborate more effectively with the private sector, among other things. It also needs to improve the regulatory environment and propose new business models to unlock the potential of its fledgling commercial and industrial solar sector, the industry group said.

Tunisia

Tunisia’s PV sector had a relatively big 2019, MESIA said. The authorities allocated 500 MW of new solar capacity in December to three consortia. Elsewhere, Italian energy giant Eni closed 2019 by commissioning a 5 MW solar plant at an oil concession in Tunisia’s Tataouine governorate, backed by 2.2 MW/1.5 MWh of energy storage capacity.

MESIA sees Tunisia’s commercial and industrial solar segment as particularly promising but noted the market continues to struggle in the face of fossil fuel subsidies. The regional body argued the Tunisian government must introduce incentives such as tax breaks to encourage greater investment in commercial and industrial PV, among other policy considerations.

MESIA also noted the Tunisian authorities have overseen critical investments in grid infrastructure upgrades over the past year, in anticipation of $2 billion of anticipated foreign investment in the solar and wind sectors over the next three years. The Tunisian Ministry of Industry and Small and Medium Enterprises has said the expected influx of funds could support development of 1.9 GW of fresh renewables capacity by 2022.