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29 March 2024

Incentives key to boosting 'natural' energy projects

Solar and wind projects in the GCC will allow member states to save hydrocarbon wealth. (AFP)

Published
By Nadim Kawach
Gulf oil producers need to introduce an attractive incentive mechanism to kick off massive solar and wind energy ventures to ensure the region's power needs and save the hydrocarbon wealth, according to an expert.

Waheeb Al Nasir, Director of Arab section at the International Solar Energy Society (ISES), said he expects the amount of new solar and wind electricity in the Gulf Co-operation Council to reach 5,000MW by 2015, including 1,000MW in Bahrain, 3,500MW in Qatar, 400MW in the UAE.

But he added that such capacity remains tiny compared to the massive solar and wind potential in the six-nation GCC.

In a new study sent to Emirates Business, Al Nasir cited figures by the World Energy Council, showing that the GCC will require 100GW of additional power over the next 10 years to meet its demand at a cost of $25 billion (Dh91.7bn), most of which is expected to be invested by the private sector.

Al Nasir said solar and wind projects in the GCC, which controls more than 45 per cent of the world's extractable crude deposits and a quarter of the global gas wealth, will allow member states to save their hydrocarbon wealth, expand their petrochemical industry, produce hydrogen for export and create jobs.

"Solar and wind energy will also contribute to reduction of the high ratio of CO2 per capita in the GCC. Using renewable energy will lead to prolonging the life of oil and natural gas in these countries and use this resource for petrochemicals industry or use it to produce hydrogen for local use and export," said Al Nasir, who is also an economics professor at Bahrain University.

"Given the high cost of solar and wind energy, there should be an incentive system that provides a sufficient rate of return on such costly investment to encourage investors, such as introducing Feed In Tariff (FIT) and making the national grid capable to be integrated with solar and wind electricity."

He said the FITs place a legal obligation on utilities to purchase electricity from producers of renewable energy at a set rate.

The tariff rates are set for each viable technology, to take account of their differing generation costs, he added. "The payments are guaranteed for long periods, such as 20 years in Germany. The simple guarantees that come from the FIT mean that a producer can obtain financing with much lower investment risk and hence more cheaply," he said.

"This brings down costs and increases market confidence for manufacturers, suppliers, generators, and investors. More than 40 countries, states and provinces now have FIT systems. Germany, Italy, Spain and Denmark are clear world leaders in renewable energy largely due to this law. GCC countries must learn from these countries.

"The Gulf should start local manufacturing of solar and wind technologies, should have government policies to support this manufacturing and should have a strategic approach towards boosting solar and wind energy," he said.

Al Nasir said the potential of solar and wind energy is high in GCC given the immense sunlight and reasonable wind speed.

He said the futuristic project in solar and wind energy in the region should be much higher than "we had anticipated" as it represents a tiny fraction of only five per cent of the expected electricity demand of 100GW in the coming 10 years.

"Leaders, governments, and citizens are becoming more aware of the advantages of utilising wind and solar energy in this region. The oil and gas can be used for petrochemical and industrial applications instead of burning it as fuel.

"The creation of Clean Mechanism Development, Certificate of Reduction of Emissions, and Carbon Trading are elements that will help in using solar and wind energy as well as constructing sustainable or green buildings," he said.

"The long coast of GCC countries is about 2,222 kilometres. It can be used for wind turbine installation. Now, there are 6MW turbines with 60 metre blade size. This means that we need only 10,000 wind turbines to fulfil the electricity need. These turbines can be installed offshore. This means that we need no more than 10 rows separation of 0.5km from each, going up to eight km deep in the Arabian Gulf, assuming optimal wind turbine performance and wind speed."

But Al Nasir said the GCC nations cannot proceed with solar and wind energy projects with high subsidies of electricity prices as well in the absence of incentives for solar and wind energy projects. His figures show the cost of kWh in the GCC is 22 times less than Japan, 15 times less than Germany, 11 times less than the United Kingdom, eight times less than the United States, 2.5 times less than Indonesia and 3.4 times less than India.

"The area is rich in solar radiation. On average, the total solar radiation for use is about 6 kWh/m2/day and the direct solar radiation for use of solar rough concentrator is 4.5 kWh/m2/day. The GCC consumed 400 terra watt per hour (TWH) of electrical energy in 2006. This means that an area of 10 km2 , with solar systems having efficiency of 20 per cent, we will be able to produce 4,380GWh; for 1,000 km2 area we will produce 438,000GWh," he said.

"Solar energy is well qualified to solve the water scarcity issue in the region as the fresh water per capita does not exceed 100 m3 annually. Mechanisms, visions, and strategies should be planned as soon as possible."

Al Nasir said estimates by the WED show the GCC will require 100GW of additional power over the next 10 years to meet the demand.

"If there is a political decision that at least 20 per cent of this demand, or 20GW, is meant by renewable solar and wind sources, then excellent job opportunities will be available. The technological studies science and engineering will be in demand," he said.

Al Nasir said GCC states have unique energy characteristics, including:

- Healthy economic growth has triggered substantial growth in energy demand

- Domestic consumption of petroleum products is growing at more than eight per cent annually

- Natural gas consumption is growing at more than six per cent annually 

- Electricity consumption is growing at more than six per cent annually 

- Take exhaustibility of gas reserves seriously

"These must be used by policy and decision makers to accelerate the use of solar and wind energy. The cost of electricity production from conventional energy sources will increase substantially in the future probably beyond 2015. This will make the need for solar and wind energy resources desirable."

In another study published this week, the government-controlled Emirates Industrial Bank (EIB) said the selection of Abu Dhabi as the location of the International Renewable Energy Agency (Irena) will support Gulf efforts to diversify their sources of energy, adding that the UAE has plans to invest about $50bn in renewable energy projects in the coming period.

It said a switch by the UAE and other Gulf countries to solar and wind energy has become imperative given the high level of CO2 emission in the region, with the GCC per capita of emission standing at 40 tonnes per year.

The level is far higher than the global average, with the per capita rate in the United States at 20 tonnes, in Australia at 21 tonnes, in Europe at 22 tonnes and in Singapore at 30 tonnes .

"GCC countries need to intensify their efforts to increase their reliance on renewable energy given their heavy dependence on hydrocarbons in generating power and fuelling economic growth in the region.

"The reliance on renewable energy is relatively low compared with other countries as this energy source accounts for only 21 per cent of their total energy sources, while it exceeds 79 per cent of the total energy balance worldwide," said EIB.



OMAN

The total renewable energy installation in Oman is 235kW. Among these projects are the following:

1. Oman Solar System (OSS) has already designed, manufactured and installed solar lighting systems for:

- interior roads

- public toilets

- solar power supply systems for unmanned microwave telecommunications systems for Omantel

- pay phone booths

- TV transposer systems MOI

- variety of systems for oil and gas industry

2. The solar systems for TV transposer stations have been installed at mountain top with access to the sites by helicopters.

3. Oman Solar System has also recently completed a project for design, manufacturing, installation, testing and commissioning of solar photovoltaic power systems for Petroleum Development Oman to power 12 radio base stations at interior operation sites.



SAUDI ARABIA

1. Joint programme with the United States

The programme, which is called Solar Energy Research American/Saudi (Soleras) addressed solar energy technological and economical related issues. Soleras began in 1977 and concluded in 1987. A second programme started in 1989 with US Department of Energy.

2. Soleras

In the Soleras programme each country contributed $50 million (Dh183.5m) to the budget. This solar research funding exceeded all expenditures by Saudi Arabia on any solar research activity and the total international solar research commitment of the United States.

3. Solar Village project

The Solar Village project is located near the villages of Al Jubailah, Al Uyaynah and Al Higera, which are about 50km northwest of Riyadh.

The objective was to use solar energy to provide power to villages not served by an electric power grid.



BAHRAIN

1. Bahrain World Trade Centre

The first windmill was installed in Bahrain in the 1950s but the latest one was in 2007 and was integrated to a building, Bahrain World Trade Centre.

It consists of three parallel wind turbines, each having a blade diameter of about 30 m.

The total power output of these three turbines is 0.66MW.

They were expected to provide 11 per cent to 15 per cent of the total electricity consumption of the country.

The three wind turbines are expected to provide about 10 per cent to 15 per cent of the power for both towers, representing about 3.5 per cent of the total cost of the project.

2. Alba solar water heater

Solar water heating system at Alba healthcare centre:

- Passive system using thermo siphon concept

- Flat plate collectors with water tank on top

- 10 units, each with 2 m2 surface area

- Hot water circulation pumps

- 2.4kW auxiliary boosting element



KUWAIT

A systematic analysis was conducted to assess the technical benefit and economics of solar-based technologies to produce electricity, water and heating or cooling. The solar cooling was found to save up to 50 per cent of electricity compared to conventional system and much more, if the auxiliary power is supplied from PV source. Solar PV power supply can, obviously, save 100 per cent electricity for off-grid applications. Some of the PV advantages are:

- viable off-grid power source

- no fuel requirement

- supplied as individually sized modules

- high reliability

- long life

- viable economically 

- environmentally friendly



QATAR

Qatar had much interest in renewable energy. There were three published papers on wind and solar potential in Qatar. Also, there was a relatively large-scale Solar Pond Project with, probably, not less than 10kW power.

These two projects were conducted in the 1980s and 1990s. It is expected that with the establishment of Energy Science Park in Qatar and the existence of many energy firms more innovative work and projects will take place.



KEY SOLAR AND WIND PROJECTS IN the GCC

The UAE

1. Etisalat

In 1997, a major project of etisalat started the installation of passive cooled shelters and solar photovoltaic power systems for powering 33 remotely located island and desert based GSM base stations. The project, valued at $10 million (Dh36.7m), involved design, manufacturing, installation, testing and commissioning.

2. Solar system for warehouse-Umm Al Quwain

UAE Green Energy is providing solar system for warehouses for Barracuda Beach Resort in Umm Al Quwain, installed by Green Energy.

3. Dubai Civil Aviation orders solar airport

Lights for Dubai International Airport's Green Energy, Dubai, has received an order from Dubai Civil Aviation to supply solarpowered LED airfield lights to be installed at Dubai International Airport. The order consists of solar-powered LED model A601 red lights.

After testing A601 lights, the authorities concluded the solar-powered LED lights were ideal.

The lights are completely integrated, self-contained, waterproof, and compact. They offer high performance and are field-proven to provide reliable dusk-to-dawn operation with no scheduled maintenance for up to five years.

Without the need for wiring, the solar-powered LED aviation lights can be moved and placed at any location requiring taxiway, runway, threshold, obstruction, or helipad lighting applications.

Model A601 is the world's most advanced solar-powered LED aviation light with two miles of visibility.

4. New solar LED flashing beacon in The Gardens, Dubai.

Green Energy has been contracted by The Gardens, a Nakheel project, to supply solar-powered LED R247C flashing beacons for installation at their property.

The number of vehicles moving inside this large living community increased the risk of accidents. The Gardens is the first community of its kind in the UAE spread over 220 hectares.

 

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