MENA Solar Brief
August 2014 - issue 1407
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Feature article: Now is the time to go solar in Saudi Arabia
Saudi PV LCOE between $70 and $90/MWh - four times lower than it was in 2009

Few places in the world have all the critical elements needed to create a profitable solar power market, but Saudi Arabia stands out as one of them. From vast deserts that can accommodate large installations and high solar resources that guarantee maximum energy yields, to adequate financial resources and a well-established construction industry - the Kingdom has it all.

 

"Saudi Arabia could easily be one of the largest solar markets in the world. The economics are clear; a pilot program has been completed, and deep policy research has been done," says Jigar Shah, founder of SunEdison and chief executive of the Carbon War Room.

 

Dr. Raed Bkayrat, vice president for Saudi Arabia at First Solar, confirms this viewpoint: "Saudi Arabia has all the factors needed to achieve a low levelized cost of electricity compared to other mature solar markets - factors such as access to low-cost finance, land availability, solar irradiance resource, well-developed construction companies, EPCs and O&M providers".

 

SOLAR GCC ALLIANCE NEWS
Tipping point or stalling point?
Q4 could energize or delay Middle East solar market

Opinions about the potential for solar energy in the MENA/GCC region are mixed as we emerge from a pause for the summer and holiday season. Falling costs and growing infrastructure resources are being counterbalanced by financial setbacks in Jordan's closely-watched solar market and uncertainty about the progress of Saudi Arabia's plans for solar development. 

 

 

While we remain optimistic about solar's medium-term potential in the region and certain of its long-term success, the fourth quarter of 2014 is likely to set the tone for the short term. We see the large number of events throughout the region in the coming quarter as opportunities to capitalize on favorable market conditions, avert a cooling of interest from International stakeholders, and establish a clear path forward.

 

One of the bright spots in the current market is the recent announcement that Saudi Arabia now offers one of world's lowest solar energy costs. According to Thierry Lepercq, founder and president of France-based Solairedirect, falling module prices, lower balance of system costs, increased competition and the availability of financing enable solar PV power generated in the Kingdom to offer levelized cost of energy (LCOE) levels low enough to make it the cheapest energy in the world by 2020. Lepercq will discuss this topic in detail and explore the business case for utility-scale solar plants at the second Desert Solar Saudi Arabia conference, to be held 17-18 September.

 

We also see great opportunities for collaboration between the Middle East and neighboring India, where solar development in the last five years provides a model for the type of utility-scale CSP and PV projects that could reasonably be developed in GCC countries. Key Indian developers are actively looking for investors and partners in Saudi Arabia. To learn more, check out the recording of the recent webinar Exporting Indian Solar Expertise to Middle East, featuring participants from Larsen & Toubro, Masdar, and Jyoti Structures.

 

For a detailed analysis of the current state of the region, we highly recommend a recently-released study suggesting a roadmap for the Pan-Arab Renewable Energy Strategy 2030, published by the International Renewable Energy Agency (IRENA). See the story below for details and a link to the full report. 

 

We look forward to meeting or reconnecting with you during the coming quarter. Visit us at regional trade events or contact us at info@solargcc.com to learn more about opportunities for your solar organization to collaborate and thrive in the GCC region.  


Best regards, 
 
Browning Rockwell
Executive Director, Solar GCC Alliance
 
Solar GCC Alliance Update 

 

Solar Careers in the MENA/GCC Region portal launched

 

The Solar GCC Alliance Jobs Portal is your source for opportunities in the GCC's growing solar industry. Click below to find jobs or qualified candidates.

 

SASIA in the News

Arizona State University (ASU) LightWorks partnership

ASU SASIA logo final April 28, 2013
This month, the Saudi Arabia Solar Industry Association (SASIA)  welcomes Arizona State University as an education and training partner. On August 1st, SASIA , and ASU LightWorks signed an MOU outlining  various areas of collaboration including workforce development and solar education in Saudi Arabia. 

Arizona State University has been a pioneer in solar research and education since the 1970s, and is now bringing a set of much broader emerging technologies together in an initiative called LightWorks. Through integrated interdisciplinary efforts and cross-functional systems, LightWorks seeks to open doors to sustainable design, new fabrication practices, and breakthroughs in cost-effective solar technologies.
In This Issue
Upcoming Events
 
September 14 - 18, 2014

"The most effective way to build partnerships in Saudi Arabia"
September 17-18, 2014

Exploring the solar market opportunities for PV, CSP and CPV technologies during this unique Conference & Exhibition
Solar &Energy Storage Forum - Dubai , U.A.E.
November 5, 2014

Empowering successful and profitable MENA solar utilities.
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REGIONAL & GLOBAL SOLAR NEWS
MENA - GCC countries: 

Pan-Arab Renewable Energy Strategy 2030: Roadmap of Actions for Implementation

The Pan-Arab Renewable Energy Strategy adopted in 2013 represents a consensus across the League of Arab States on pursuing a sustainable energy future. The strategy calls for large-scale development of the Arab region's enormous renewable energy potential, including resources for renewable electricity generation, by the year 2030. 

 

The report analyses the main gaps concerning  renewable energy deployment in the region. Three categories of gaps have been identified: (1) political, legal, regulatory and institutional; (2) financial, market and economic; and (3) technological, infrastructure and human capacity. In addition, key strengths, weaknesses, opportunities and threats (SWOT) for the Pan-Arab Renewable Energy Strategy and possibilities to maximise renewable energy deployment in the region are illustrated.

 
Saudi Arabia: Is silence golden?


Following almost a year of delays and uncertainty, K.A.CARE's silence since the release of the competitive procurement process white paper has raised a wide range of speculations over the future of CSP in Saudi Arabia. But the truth is a great deal is cooking beneath the surface.

 

As early as in May 2012, Saudi Arabia announced its installed CSP capacity target of 25 GW by 2032. About 10 months later, in February 2013, King Abdullah City for Atomic Renewable Energy (K.A.CARE) released a white paper requesting feedback on the proposed draft of the competitive procurement process.

 

And that was the last the media heard of from K.A.CARE, apart from the launch of the Saudi Renewable Atlas in December 2013. The silence was worsened when the departure of Khalid al-Sulaiman, K.A.CARE's vice president for renewable energy was circulated in the news last week.

 

Qatar sheds light on its solar-powered future

 

Qatar has unveiled a first-of-its-kind solar-panel factory, saying it was now the largest solar-power producer in the region with the ability to generate 300mw of energy a year. On Sunday, the Qatar Solar Energy company also announced a three-phase plan to eventually produce 2.5gw of solar energy annually, though QSE board member Reyad Fezzani would not specify a timeframe. 

 

"It's an exciting future for solar energy and we haven't even scratched the surface," Fezzani said on a tour of the facility on the outskirts of the capital, Doha.  While Qatar - the largest exporter of liquid natural gas in the world - is unlikely to trade fossil-fuel production for solar anytime soon, Fezzani said the time had come to focus on renewable energy. Qatar's government plans to convert two percent of its power output to renewable sources by 2020.

 

Jordan shelves tender of renewable contracts 

 

Jordan has scrapped plans for a procurement round to build four 100MW renewable energy power plants after failing to secure the finance needed to expand the national power grid to accommodate them.

 

In a statement on its website, the Energy Ministry confirmed that the round, which was open to both solar and wind projects, has been shelved.

 

"We could not secure the funds to expand the capacity of the national grid to absorb the load of these four projects," Energy Minister Mohammad Hamed said, told the Jordan Times.       

Morocco steps up CSP activity with R&D funds

Six innovative solar thermal and CSP R&D projects have been awarded US$2.3 million by IRESEN, and a new call for 2015's funding round is expected to be made in September this year. 

Morocco Solar Industry Assoc

The Moroccan solar industry is set to power on. The government has chosen six research and development (R&D) projects involving novel solar thermal and CSP technologies to receive US$2.3 million from the Moroccan Institute for Research on Solar Energy and New Energy (IRESEN).

 

The projects received their funding in May during a formal signing ceremony. At the same time, a further 11 were announced to have gone on to the second stage of the programme for examination, with a view to finalising their funding in September.

"These initial proposals were to support research and development in renewables, with a focus on PV and CSP," Nadia Zeddou, who leads the submissions process at IRESEN, told CSP Today.

 


US-based GlassPoint is in discussions with state-owned Petroleum Development Oman (PDO)  to build a mega solar-based steam generation project for enhanced oil recovery (EOR) programmes, with an estimated capacity of 700 megawatt to one gigawatt.

GlassPoint's enclosed trough technology harnesses the power of the sun to power thermal EOR operations. EOR requires steam, typically produced by burning large volumes of natural gas - a scarce and valuable commodity in many oil producing countries including Oman. By deploying GlassPoint's innovative solar steam generators, oilfields operators can reduce EOR gas consumption by up to 80 percent.

"Today, nearly a quarter of Oman's gas is used for oil production, and that percentage continues to increase each year," noted MacGregor. "By adopting solar steam generation, oil companies can release these valuable natural gas supplies for use in power generation, desalination or industrial development, diversifying the Sultanate's growing economy."

Dubai offers $1 million solar solution prize to tackle water shortage

Sheikh Mohammed bin Rashid Al Maktoum will award $1 million to any research institute that devises a solar-powered way to solve the region's water scarcity. 

 

Employing solar (abundant) to tackle the perennial problem of providing clean water (scarce) in one of the world's hottest, driest and richest regions - that is the challenge laid down this week by the Dubai ruler and UAE vice president, Sheikh Mohammed bin Rashid Al Maktoum.

 

Speaking at this year's launch of the UAE Water Aid Foundation, Al Maktoum threw down the gauntlet to some of the world's leading research institutes to devise a solar-powered solution to tackling the Middle East region's chief problem - securing a safe, steady and sustainable water supply.

 

The reward for any successful solar endeavor adopted by the UAE is set at US$1 million, which is sure to turn the heads of solar experts convinced they can be of assistance.

 

CONFERENCES & EXHIBITIONS
Featured Event
SASIA & Solarplaza host 2nd Annual Desert Solar Conference & Exhibition 
September 17 - 18 - Riyadh, KSA

"The perfect way to discover, evaluate and build partnerships in the Saudi Arabia solar market" 

Desert Solar Conference & Exhibition - Event details - click here

World Future Energy Summit 2015 
January 19 - 22, 2015
Power-Gen Middle East Oct 12-14, 2014
Abu Dhabi, U.A.E. 

Solar GCC Alliance Jobs Portal

Solar Jobs * Qualified Candidates * GCC/MENA

 

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Driving Qatar's Solar Energy Future Today  17 - 18 November 2014, The Ritz-Carlton, Doha
West Bay Lagoon - Qatar

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