A Bright Future for Solar Power in the Middle East

Forecast

• Geography and demographic challenges have made parts of the Middle East and North Africa a prime location for solar power installations.
• While solar will not supplant the role of hydrocarbons, it will enable countries such as Morocco and Jordan to improve energy security and potentially become electricity exporters.
• Countries such as Saudi Arabia and the United Arab Emirates will seek to maintain their position as energy exporters, in part by adopting strategies likely to include renewables development.

Analysis

Deserts are seemingly obvious places to locate solar technology. In fact, the swath of desert stretching from the Atlantic Ocean, across North Africa and the Arabian Peninsula, to the Persian Gulf has vast solar potential. But until recently it has not been economically feasible, or even necessary, to develop the renewable resource. In many areas, geographic constraints such as rough terrain have made solar projects impractical.

 

Only now has a combination of demographic pressure, low oil prices and technological readiness primed Middle Eastern and North African states for more investment in solar power. For countries such as Jordan and Morocco, renewable energy may offer a path toward greater energy independence. Others, such as Saudi Arabia and the United Arab Emirates, are interested in exporting renewable energy technology and financing solar projects abroad.

 

The steady price decline of solar power generation infrastructure, especially photovoltaic cells, is making the renewable option more viable for North African and Middle Eastern states, a region where the sun shines in abundance. Not only is the technology becoming more affordable, but operational costs after construction are also minimal when compared with hydrocarbon-based generation. As a result, several countries in the Middle East and North Africa are focusing on solar power as a means to satisfy rising electricity demand, make cuts to unsustainable government subsidy programs and reduce dependence on energy imports.

 

 

Solar will not replace hydrocarbons as the region's primary energy source, but where markets can meet national goals and strategies, it has the potential to help some countries diversify their power sources. Given the region's growing energy demand, interest and investment in solar generation there will increase in the near and medium term.

Jordan and Morocco: Energy Importers

Jordan, a relatively stable kingdom in a largely tumultuous region, is vulnerable to demographic challenges. The nation imports more than 95 percent of its energy at a cost of roughly 16 percent of its gross domestic product. Its energy dependence makes it somewhat vulnerable: In 2011 and 2012, disruptions in natural gas supplies from Egypt caused Jordan to deplete its energy reserves entirely. The problem arose again in 2013, when oil imports from Iraq were interrupted. Uncertain energy supplies have the potential to stoke unrest in the country, where energy costs are heavily subsidized by the monarchy. After all, an erratic domestic electricity supply has been among the main aggravators of social upheaval in nearby Lebanon, Iraq and Egypt. Jordan subsequently made efforts to diversify its sources of electricity by increasing solar capacity, and in recent years it added wind and nuclear generation. If Jordan is to meet its goal of relying on renewables for a full 20 percent of its generation capacity by 2018, solar will play a major role.

 

Numerous projects, large and small, are underway in Jordan, from installing solar panels on the rooftops of homes to building large solar parks with 200-megawatt capacities. Jordan has made the bidding process for renewable energy projects relatively easy, which has attracted companies from around the world. Jordan will be unable to reach its lofty goals on its own; public-private partnerships will be crucial to the growth of the renewable energy sector.

 

Much like Jordan, Morocco imports most of its energy — about 90 percent. The similarly stable nation is also looking to renewables, especially solar power, to increase energy security and lower energy costs. But Morocco is taking the idea a step further by building what will be the world's largest power plant using concentrated solar technology, which employs mirrors or lenses to focus sunlight that generates heat to power turbines. The first phase of the project, the Noor Solar Complex near the city of Ouarzazate, opened earlier this year. Morocco has set a lofty goal: to have renewables account for half its electricity production by 2025 (solar would satisfy about a third of the demand). The nation even aims to become an electricity exporter. Of course, the scale of its projects requires large tenders, requiring international investment and limiting the participation of domestic companies. 

 

Morocco's burgeoning solar sector still faces some challenges, not least of which is the need for a reliable storage method, all the more important since sunlight is a naturally fluctuating power source. Still, with its geographic advantages and relative social stability, Morocco appears to be in prime position to exploit its solar power potential.

Egypt: Growing Demand

Egypt's political, security and financial institutions are not as stable as those of Morocco or Jordan, and in Egypt the threat of social unrest is more potent. But industry publications still tout the country as a potential hot spot for renewable energy investment. Egypt's massive population creates an enormous energy demand, which may strain the government's budget but also opens up opportunities to invest in technologies to meet the growing need.

 

Egypt's energy woes are not new. Production has steadily declined because of a lack of investment in domestic oil and natural gas operations. Meanwhile, domestic energy demand has risen. But President Abdel Fattah al-Sisi has implemented reforms that have attracted renewed investment to the natural gas sector, with projects such as Eni's Zohr natural gas field being fast-tracked.

 

Renewable energy will not necessarily meet all of the public's most urgent needs. Cooking fuel, for instance, has sometimes been in short supply, and solar power will not directly resolve that problem. Still, preventing summer brownouts (now all too common in Egypt) is a priority for the government, which has lost much of its popular support. Improved natural gas production can help provide a more consistent electricity supply, but with demand expected to climb, there is room for additional forms of power generation. Recent agreements signed with Japan and South Korea to develop solar power and associated projects indicate that Egypt is looking beyond traditional relationships to further the renewables energy sector, though both European and regional players such as Saudi Arabia and the United Arab Emirates are still active investors.  

Saudi Arabia, UAE and Algeria: Exporters Remain Exporters

Saudi Arabia relies on oil for electricity production, and it faces rising domestic demand for electricity at a time when low oil prices have put significant financial strain on the government. Its domestic fuel consumption is following an unsustainable trend. Using over 3 million barrels of oil per day domestically, Saudi Arabia is already the largest global consumer of petroleum for power production. About a third of its daily oil consumption is used to fuel power plants. Without additional sources of generation to satisfy climbing electricity demand, the share of oil consumed by electricity generation would climb.

 

Although Saudi Arabia is gradually implementing subsidy reforms designed to reduce domestic energy demand, it still will develop energy alternatives, which is where solar power could come into play. Under current goals, renewables would account for 8 percent of electricity production by 2020 and 15 percent by 2030, with solar power accounting for the majority of that increase. In the past, however, Saudi Arabia has lengthened the timelines for such targets.

 

Yet Riyadh has made significant strides in exporting solar technology. Saudi company ACWA Power is involved in multiple projects in the region (Morocco and Jordan) and farther away (South Africa and Turkey). Saudi Arabian Oil Co., the national oil company, has even expressed interest in developing solar export capability. With plans to add solar technology production facilities, Riyadh could maintain its role as a regional solar exporter, especially as its domestic solar power sector continues to develop. ACWA Power has gained a regional reputation as having sufficient economies of scale to underbid other major solar power firms, mostly Western or East Asian companies. This helped ACWA Power win large bids such as the first phase of Morocco's Noor plant and the Mohammed bin Rashid solar park in the United Arab Emirates.

 

The United Arab Emirates, meanwhile, has positioned itself as a renewable energy financier and development hub. It is the home of the International Renewable Energy Agency, and it hosts important conferences focused on both renewable and nonrenewable energy. Furthermore, it has used its ample hydrocarbon largesse to develop unique large- and small-scale renewable projects in ways that less resource-rich countries such as Morocco, Jordan and Egypt cannot match. The United Arab Emirates has established itself as a regional leader in solar power in part because of its greater ability to adopt the technology (both domestically and through partnerships with other countries) and to fund projects throughout the world. Masdar, the country's renewable energy arm, is connected with the Mubadala Development Co., one of the country's smaller sovereign wealth funds. Masdar is involved in projects throughout the Middle East, Africa, South America and Europe and on islands in the Pacific. 

 

Algeria, a leading natural gas producer, has ambitious plans to follow a similar path with solar energy. Renewable power installations totaling 22 gigawatts of capacity — 13 gigawatts of that solar — are proposed to go online by 2030. That is enough power to meet nearly a quarter of domestic needs while still reserving a significant portion for exports. But exporting renewable power will require substantial research and investment into solving the problem of insufficient energy storage, which is a barrier to incorporating large amounts of variable renewable power worldwide. Algeria will require foreign investment and cooperation to meet its grand plans. While Algeria is more stable than some of its neighbors, such as Libya, its government is in a slow leadership transition, and the risk of instability caused by protests relating to development and distribution of energy resources is high. Nonetheless, the country has made strides toward attracting the necessary investment to build out its solar capacity. With over 250 megawatts of capacity installed in 2015 and work occurring at additional sites in 2016, Algeria is moving toward its target of 15 percent of electricity being generated by solar by 2020.

Keeping Things in Perspective

Solar power's role in the region is poised to grow. The technology is nearing grid parity, the point at which it costs the same or less than the traditional technologies that feed the electrical grid. And solar's cost will likely come down even more. Until energy storage technology improves, however, incorporation of renewables into electricity grids will be somewhat constrained, especially for the full use of larger planned projects.

 

Although it will stay subordinate to hydrocarbons, solar is primed to become a more prominent part of the energy mix in the Middle East and North Africa. Its development offers investment opportunities that, while limited to well-capitalized entities, could eventually shift a portion of energy dependence in the region. In the shorter term, solar projects may actually create dependence on other countries for some nations, but they will also nurture the nascent renewable energy sectors in which domestic companies are eager to invest. In time, solar projects could help states diversify their sources of electrical power and become more energy independent.

source:https://www.stratfor.com

Zimbabwe Ministry defends solar energy projects tenders

THE Ministry of Energy and Power Development has dismissed widespread misgivings on the ability of companies who were awarded tenders for the country’s solar energy projects, including deals signed by controversial businessman Wicknell Chivayo.

This comes at a time Zesa Holdings has reportedly started a process to review the tenders because of his criminal record.
He was sentenced to five years imprisonment with labour, with two years suspended, after being found guilty of stealing Z$37 665 000 through false pretence in 2004.
Chivayo was also in the eye of a storm when he was controversially roped in the tender in 2014 after initially losing the bid to China Jiangxi Corporation (CJC) .
In response to enquiries by the Zimbabwe Independent on the suitability of those awarded the solar energy contracts by the Zimbabwe Power Company namely Chivayo’s company, Intratek, ZTE and No.17 Metallurgical, the ministry said the three were extensively assessed adding that it was “unbefitting” to claim that the solar tenders were awarded to inexperienced companies.
“Contractors for the three solar projects were selected through a competitive tendering process conducted by the State Procurement Board (SPB). A total of six bidders responded to the Request for Proposals (RFP) on the solar tenders. The RFP requested for technical, funding and commercial/price requirements, and bidders were required to demonstrate their technical and funding experience,” the ministry said.
“On technical experience, bidders were instructed to provide a list of reference plants and contractors’ involvement [Engineering, Procurement and Construction (EPC)/Subcontractor/Consultant], as well as letters of authorisation from manufacturers and principals.
“Under funding, bidders had to demonstrate their funding ability and state suggested percentage finance offered (in relation to EPC value). They also had to demonstrate their level of credit approval or certainty of financing offered, and attach proof. Tenor and pricing of debt and fees, conditions and security/guarantees, as well as experience of EPC contractor or consortium in providing this type of financing were all part of the funding requirements.”
The ministry said the three had been awarded tenders after meeting the criteria for the projects.
Intratek, the ministry revealed, was a wholly owned Zimbabwean firm which had partnered with Chinese firm Chint, for the construction of a 100 megawatt solar plant in Gwanda.
“Due diligence on Chint confirmed that they have vast experience in the construction of solar power plants. Some of their work involves construction of a 100MW solar power station in Ningxia China which was commissioned in 2009 and a 100MW PV solar power station in Yongchang which they commissioned in December 2012,” the ministry said.
“They have also done smaller projects such as the 5,5 MW solar PV power station in Thailand which they commissioned in 2011. All these power plants have not had any negative record since they were commissioned, indicating that their work is of superior standards.”
The ministry added that No 17 Metallurgical and ZTE have proven track records in solar generation.
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source:http://www.theindependent.co.zw

SunEdison Just Filed for Chapter 11 Bankruptcy

SunEdison is filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the Southern District of New York today. The SunEdison YieldCos, TerraForm Power and TerraForm Global, are not involved in the filing.
The company has also secured commitments for $300 million in new debtor-in-possession (DIP) financing from a group of first and second lien lenders to keep the company afloat during the restructuring.
Ahmad Chatila, oddly still SunEdison's CEO, comments: "Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues," adding, "The court process will allow us to right-size our balance sheet and reduce our debt, providing the opportunity to support the business going forward while focusing on our core strengths."
The troubled firm, once the largest renewables developer in the world, has a dedicated web page to answer questions on the bankruptcy filing here.
Bloomberg New Energy Finance’s Head of Solar, Jenny Chase, comments, "SunEdison’s bankruptcy says more about the company’s strategic decisions than about the solar industry as a whole. Comparable companies SunPower and First Solar have managed a develop-and-sell business profitably over the past three years." She adds, "What has distinguished SunEdison has been the relentless and unfocused pursuit of growth, in which it has invested vast amounts of borrowed money. Not all of its ventures succeeded, which is inevitable in the project development business, but SunEdison’s win-to-loss ratio was evidently insufficient. It borrowed a lot of money and lost it -- or at least tied it up in projects at various degrees of completion, which it needs to sell to realize the gains and pay back creditors."

source: https://www.greentechmedia.com

Statoil to Pair Wind, Energy Storage for Offshore Rigs

Statoil ASA is planning to park its floating Hywind turbines next to rigs, using lithium-ion
 batteries to store energy for times when the wind isn’t blowing, said Stephen Bull, a senior vice president overseeing the work. If it succeeds, the technology may spread to the fish-farming industry, which also has big offshore electricity needs.
The project dubbed “Batwind” is an example of innovation that governments are hoping to encourage by putting a price on the pollution that causes global warming. Norway charges as much as 436 krone ($53) per metric ton of carbon emitted for fossil fuels extracted on its continental shelf, 10 times the price of certificates in the European Union’s offset market.
It’s the “financial upside” that’s making the project more attractive financially, Bull said, whose company wants to be the world’s greenest fossil-fuel producer. “When you look at the platforms and you look at the exposure we have for power and carbon dioxide, it’s considerable.”
Norway’s carbon tax is the fourth-highest in the world behind Sweden, Finland and Switzerland, none of which produce significant quantities of fossil fuels. The next highest at about $25 a ton is the U.K., according to the World Bank’s annual report on the market.
Norway was one of the first countries to adopt a carbon tax in 1991, and the fee now covers about 55 percent of the nation’s CO2 emissions, according to the World Bank. Emissions not covered by a carbon tax are included in the country’s ETS, which was linked to the European ETS in 2008.
Statoil has already committed $214 million to the Hywind offshore wind plant, which will supply 30 MW when it’s complete in Scotland in 2017. That in itself is unique, since only about 8 MW of floating offshore wind is working worldwide to date, according to Bloomberg New Energy Finance. By 2018, Statoil will add a 1 megawatt-hour of batteries to the Hywind project at a cost BNEF estimates at $1.2 million more.
Batwind is important because it’s one of a handful of large-scale examples where companies are using storage devices to balance the variable power flows coming from a renewable energy generator. If perfected and economical, the technologies used together may spread, challenging diesel generators and maybe even coal plants, whose main selling point is reliability.
“It is expensive, there’s no doubt about it,” said Bull, who declined to provide cost estimates. “The key part for us is being able to offer predictability on power and that has a much higher value than the variability.
Battery Wind
The lithium-ion battery elements in the battery-wind project, or “Batwind” for short, will come online in 2018. Together, they’ll be attached to Statoil's’floating wind farm in Scotland as part of a demonstration project.
“Statoil is well on the way to competitive costs, having already shown a price per megawatt drop of 77 percent from its from first demo turbine in 2009 to its latest array,” said Tom Harries, an analyst at BNEF.
While it may take another decade or more to make floating wind turbines as cheap as ones anchored to the ocean floor, Statoil’s project may prove that marrying the two technologies can help generate clean electricity more economically. It’s also being helped by the falling cost of lithium batteries, which are being pushed down by a boom in hybrid-electric vehicles. Battery storage could fall by as much as 52 percent, to $182 per kilowatt hour, by 2025, according BNEF.
Batteries increase the appeal of the project by ensuring a steady supply of electricity will flow, making Batwind as reliable as more polluting incumbents for small-scale backup power. Bull said fish farmers in Norway already have approached Statoil about tapping its electricity.
“Many of them come to us, saying ‘we’re burning a lot of diesel, it’s costing us a lot of money,”’ Bull said. Norway is the world’s biggest salmon market, exporting a record 48 billion Norwegian krone ($6 billion) of trout and salmon in 2015.
Statoil may even seek to sell its Batwind energy-storage solutions abroad. It has bought domain names in key markets including the U.K., Japan and U.S.
source: http://www.renewableenergyworld.com

EDF Prepares for Renewable Energy Development in Egypt

source:http://www.renewableenergyworld.com

On the occasion of the State visit by the President of the French Republic, Francois Hollande, EDF has signed five memoranda of understanding thus confirming its strategy for developing low carbon, renewable energy in Egypt.
Three of these agreements concern the future development of EDF Energies Nouvelles projects in wind power and solar energy in partnership with the Egyptian El Sewedy Electric Group as well as the future funding of solar projects. EDF EN, the NREA and Proparco (a subsidiary of the French Development Agency) also signed a joint statement in favour of the development of renewable energies.
Another agreement concerns technical cooperation for projects of new power generation plants taking full advantage of EDF's know how in thermal engineering. The purpose of this agreement is also to initiate discussions with the local authorities in the field of smart grids. Lastly, Edison International, a subsidiary of EDF, has signed an agreement on the implementation of a projected gas-fired power plant and on the plant’s supply from a future gas production facility operated by Edison.
These agreements are essential for the EDF Group, which has upheld constant relations with the Egyptian electricity companies for 60 years. EDF has supported Egypt with the development of electricity generation, transmission and distribution based on numerous projects, especially over the past 30 years. In addition, EDF is a leading participant in the Egyptian gas sector with its subsidiary, Edison.
Today, EDF intends to actively support the country’s energy transition, based on its expertise in renewable energies and innovative service offerings to develop sustainable cities and smart grids.

The US Solar Market Is Now 1 Million Installations Strong

Sometime around the end of February, the millionth solar installation came on-line in the United States -- a milestone that says as much about where the solar industry is going as it does about how far the industry has come.
“It took us 40 years to get to 1 million installations, and it will take us only two years to get to 2 million,” said Dan Whitten, vice president of communications at the Solar Energy Industries Association (SEIA). “This is a time to mark when the solar industry started to accelerate at warp speed.”
At the end of 2015, the U.S. solar market hit a total capacity of 27 gigawatts. That represents just 1 percent of the current U.S. electricity mix, but it could triple to 3 percent by 2020. This year alone, the U.S. solar market is projected to grow 119 percent, which represents an additional 16 gigawatts of new installed capacity and more than double the record-breaking 7.3 gigawatts added in 2015.
Over the coming weeks, SEIA will run a campaign called #MillionSolarStrong to raise awareness around the U.S. solar industry’s achievements to date. The campaign includes a social media “thunderclap” and a flagship event in Washington, D.C. on May 3.
“We want to open this conversation and let people know that we are now a part of the energy mainstream,” said Whitten. “We’re central to any discussion about America’s energy future.”

source:/www.greentechmedia.com

THE PRINCIPLE AND OPERATION OF SOLAR EGG INCUBATOR

 The solar panel (photo voltaic cells) converts the energy from the sunlight to dc power . The solar panel feeds its power to a battery which is then control by a charge controller , the function of the charge controller is to keep to the battery from being overcharged .The power from the battery goes to heat the incubator .Temperature regulator and fan are also very important component of the operation of the solar incubator .The temperature regulator helps to keep the temperature of the incubator at a constant level .