UAE

Great Sea Interconnector drawing US, UAE fund interest

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Latest developments concerning the prospective Great Sea Interconnector, a 1.9 billion-euro project planned to link the power grids of Greece, Cyprus and Israel, indicate that investment interest is growing.

Officials of Greek power grid operator IPTO, promoting the project through an SPV, are expected to hold talks in Nicosia today with representatives of Abu Dhabi-based fund TAQA, one of the key players examining the prospect of becoming a stakeholder in the Great Sea Interconnector.

This UAE fund has been conducting due diligence for months. Today’s meeting between IPTO and TAQA officials in Cyprus suggests TAQA is seriously considering to join the Great Sea Interconnector consortium.

In addition, IPTO is preparing to forward the consortium’s terms to Israeli fund Aluma. The two sides had signed a Memorandum of Understanding last year in view of this fund’s entry into the project.

Without a doubt, growing interest for involvement in the Great Sea Interconnector expressed by US state fund Development Finance Corporation ranks as standout news.

Following up on talks with Greek deputy energy minister Alexandra Sdoukou in Washington last December, DFC’s leadership is believed to have expressed interest to participate in the project by either becoming a stakeholder with a 50 million-euro sum or by contributing to its financing.

Though DFC has not yet gone into details, US state participation in the project would align with American energy security interests in the eastern Mediterranean region and also boost the project’s geopolitical standing.

GREGY gaining momentum, investment decision early ’25

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Elica, a subsidiary of Greece’s Copelouzos group established to promote the Greek-Egyptian GREGY Interconnector, is preparing to push ahead with studies that will determine the project’s cost and also establish sites and partners for the development of 9.5 GW in RES projects.

All these aspects are crucial factors ahead of a final investment decision, expected to take a year. GREGY Interconnector, initially budgeted at 4.2 billion euros, promises to facilitate renewable energy exports from Egypt to Europe via Greece.

Greek Prime Minister Kyriakos Mitsotakis and Egyptian President Abdel Fattah Al Sisi in El Alamein focused on the GREGY Interconnector at a recent meeting that was also attended by Dimitris Copelouzos, chairman and managing director of the Copelouzos group, which has encouraged all parties involved to move faster.

At the meeting, the Egyptian President stressed that cooperation should be accelerated and procedures streamlined, while noting any obstacles that may arise must be cleared.

The Egyptian leader’s words essentially encourage closer ties between Egypt’s electricity and renewables ministry, the Egyptian power grid operator EETC, and the Copelouzos group for swift progress on the project’s studies, expected to be awarded in February and completed, barring unexpected developments, towards the end of the year.

A total of four studies – a technical study; environmental impact study; geophysical-geotechnical study; and seabed mapping, the most challenging of the four, to be conducted at a depth 954 km in the East Mediterranean – are needed. Their total cost is estimated at between 35 and 40 million euros. Investors will seek to cover half this cost through EU funding support.

The Copelouzos group should be ready to announce a final investment decision on the GREGY Interconnector in early 2025.

Italy has corresponding plans with the Italian-German Green Vein project for a line facilitating renewable energy transmission from Egypt to Italy.

This project’s planned capacity matches that of the GREGY Interconnector, at 3 GW, but Green Vein’s subsea cable would be three times longer than that of the GREGY Interconnector’s 954 km. This will definitely weigh heavy on the Green Vein’s cost, still not announced.

Plans for a detailed feasibility study concerning Green Vein were announced by UAE’s K&K Group, Italy’s CESI and the Prysmian group, and Germany’s Siemens Energy at the recent COP28 in Dubai.

 

Greece, Cyprus, Israel grid link attracting wider interest

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The Cypriot State, Israeli fund Aluma, as well as investors from Saudi Arabia and the United Arab Emirates are among a growing list of parties showing interest to secure stakes in a power grid interconnection project plan to link the Greek, Cypriot and Israeli systems.

Players from both Saudi Arabia and UAE view this grid interconnection project as a European gateway for their green-energy production, and also envisage it becoming part of a bigger network of such projects in the region.

Athens and Riyadh warmed their bilateral ties in September, agreeing on a Saudi-Greek Interconnection and establishing a joint venture, an uncommon practice for the Saudis.

The involvement of such players in the Greek-Cypriot-Israeli grid interconnection promises to increase its geopolitical weight and help secure the required capital. The budget for the project, which has been upgraded, has now increased to an estimated 1.9 billion euros.

UAE plans to invest up to 54 billion dollars in RES projects over the next few years with the aim of achieving zero carbon emissions by 2050.

UAE involvement in the Greek-Cypriot-Israeli grid interconnection could tie in with the country’s broader plan for a green export corridor to Europe.

Oil prices rise sharply, time running out for oil-rich countries

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Petroleum-rich countries, seeking to end the reliance of their economies on oil trade through investments in new domains as they prepare for the diminished role of fossil fuels in the new era, currently have a golden opportunity to boost output and make the most of elevated oil prices, especially if other producers remain disciplined in accordance with OPEC rules.

The UAE, a pertinent case, have invested heavily over the past decade in facilities boosting output, the objective being to maximize oil-export revenues for the financing of the country’s economic transition.

However, OPEC will first need to accept this increased production ability before the UAE can implement it. This is a tricky issue as if OPEC accepts the UAE plan, the cartel will then also face similar-minded requests by other members, which would hammer oil prices to low levels.

The UAE seem adamant on their national plan, considering it a matter of existential significance. Saudi Arabia and Russia face a difficult mission as the two countries will need to quell the UAE intention without instigating its withdrawal from OPEC.

In general, oil producers are now striving to sell as much oil as they can, for as long as they can, taking into account that the global decarbonization effort is gaining momentum.

JinkoPower, EDF Renewables land UAE PV project, world’s biggest

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JinkoPower and its bidding partner EDF Renewables have been awarded the Al Dhafra Project, the world’s largest standalone Solar Photovoltaic (PV) Plant in Abu Dhabi, United Arab Emirates, JinkoPower has announced in a statement.

A 30-year Power Purchase Agreement was been signed by the consortium this week with Emirates Water and Electricity Company (EWEC), a leading company in the coordination of planning, purchasing and providing of water and electricity across the UAE, the statement noted.

With an expected production capacity of 2 GW, the Al Dhafra Solar PV Project will almost double the size of the approximately 1.2 GW Noor Abu Dhabi solar plant – amongst the largest operational solar PV plants in the world. The Noor Abu Dhabi project, which was awarded to Marubeni Corp and Jinko Consortium in 2017, commenced commercial operations in April 2019.

Once operational, the Al Dhafra Solar PV Project will lift Abu Dhabi’s total solar power generation capacity to approximately 3.2 GW. This will reduce the overall Emirate’s CO2 emissions by more than 3.6 million metric tons per year, which is equivalent to removal of the combustion output of approximately 720,000 vehicles.

In June 2019, EWEC, a part of ADQ, launched a call for tenders. The winning consortium formed by China’s JinkoPower and France’s EDF Renewables submitted the most cost-competitive tariff of USD 1.35 cent per kilowatt-hour on a levelized cost of electricity (LCOE) basis, which is approximately 44% lower than tariff set by Jinko Consortium three years ago on the Noor Abu Dhabi project – Abu Dhabi’s first large-scale solar PV project and a world record tariff-setter at the time.

With the collaborative effort and consensus with the partners, JinkoPower-EDF Renewables is committed to begin the development of the Al Dhafra Solar PV Project by delivering diligently the latest world-class technology and construction methods in order to reach its commissioning by 2022.

Charles Bai, President of Jinko Power International Business, commented: “Jinko, once again, is privileged to take on the unforeseen challenge of building the largest PV generation plant in the world, following our success of Noor Abu Dhabi project. Utmost fairness, transparency, and an attractive environment for investors underpin our long-term desire to keep developing renewable energy projects in Abu Dhabi. The Al Dhafra Solar Project raises the bar for international infrastructure investment and creates the avenue for an elite group of competitions to demonstrate how records can be made. Today Jinko undertakes within our capacity to deliver this technology and construction benchmark in two years to come. We are proud to have the chance to break our own world record and Jinko will diligently execute this project with our partners.”

Speaking about the milestone, Othman Al Ali, Chief Executive Officer of EWEC, said: “We are delighted to work with our partners and sign a PPA with a record-low tariff for solar power. We are working to secure long-term energy supply and reinforce solar power’s integral role in meeting current and future energy needs. Combined with key technological advances, the Al Dhafra Solar PV project will have a significant impact on diversifying the approach to our current electricity supply, and drive our strategic plan to further contribute towards the sector’s transformation in water and electricity production, as we develop a low-carbon grid in the UAE.”

Bruno Bensasson, EDF Group Senior Executive Vice-President Renewable Energies and Chief Executive Officer of EDF Renewables added:

“We are very proud to be awarded the largest solar project in the world at Al Dhafra. This success reflects the quality of our competitive bid submitted to EWEC in Abu Dhabi, in partnership with Jinko Power.

After the Mohammed bin Rashid Al Maktoum Solar Park 1 GWp Phase 3 with DEWA and Masdar as partners, and the implication in the built of the Hatta hydroelectric with storage power plant, near Dubai, this new ambitious project represents a major step forward in EDF group’s renewable energies development in the UAE. These solar projects, along with the Dumat Al Jandal 400 MW wind farm under construction in Saudi Arabia, clearly demonstrate our commitment to actively participate to the energy transition of the Middle East. The region with its great ambitions in low carbon energies is strategic for EDF. Al Dhafra new project greatly contributes to meet the EDF Group’s CAP 2030 strategy, which aims to double its renewable installed energy capacity from 2015 to 2030 worldwide to 50 GW nets.”

Investment opportunities to be discussed in Abu Dhabi, Tokyo

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Deputy energy minister Gerassimos Thomas will be looking to discuss opportunities in Greece’s energy market during foreign trips this month, beginning with Abu Dhabi and followed by Tokyo.

The deputy minister is scheduled to attend an IRENA (International Renewable Energy Agency) annual conference this weekend in the capital of the United Arab Emirates.

A prominent event on the global RES agenda, the IRENA conference will give the Greek official an opportunity to meet with investors as well as European and American authorities.

Meetings have already been lined up with Estonian politician Kadri Simson, the European Commissioner for Energy, as well as Francis Fanon, the US Assistant Secretary of State and head of the country’s energy portfolio.

US interest in Greek privatizations, gas exports, as well as renewable energy projects is at a high, as was made clear to Prime Minister Kyriakos Mitsotakis during meetings in Washington this week.

Fanon has made regular trips to Athens over the past few months for meetings with government officials as well as officials at Greek and US companies, the focus being on the Greek energy market and its investment opportunities.

The IRENA conference comes not long after a Greek government decision placing emphasis on green energy.

Following the Abu Dhabi trip, the Greek energy deputy will be in Tokyo on January 25, joined by the Deputy Minister for Economic Diplomacy Kostas Frangogiannis and the Deputy Minister for Development and Investments Yiannis Tsakiris.

The Tokyo agenda includes meetings with officials at Mitsubishi, Hitachi and the Japan Bank of International Cooperation (JBIC). This bank, globally active with a focus on green energy investments, has shown strong interest in Greek projects.

During a visit to Athens last September, JBIC officials requested, from the Greek government, a list of projects deemed mature for financing.

Digitization projects at electricity distribution network operator DEDDIE/HEDNO, development of major-scale wind energy arms, installation of smart meters, as well as auto recharging stations are among the projects included on this list, according to sources.

JBIC’s foreign investment loans portfolio is worth 148.8 billion dollars, 17.2 percent of these projects being in Europe.

 

 

 

JinkoSolar begins operating world’s largest solar plant in UAE

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JinkoSolar, one of the largest and most innovative solar module manufacturers in the world, has begun commercially operating, as scheduled, the world’s largest solar plant, a 1,177MWp facility in the United Arab Emirates, jointly developed with Japan’s Marubeni Corp. and the Emirates Water and Electricity Company (EWEC), JinkoSolar has announced in a statement.

The AED 3.2-billion project, in Sweihan, Abu Dhabi, which uses all JinkoSolar’s high efficient mono panels, features another record, the world’s most competitive tariff of 2.42 cents per kilowatt hour.

Mohammad Hassan Al Suwaidi, Chairman of EWEC said: “The completion of the project marks a significant milestone in the UAE’s Energy Strategy 2050, launched in 2017, to increase the contribution of clean energy in the total energy mix from 25% to 50% by 2050, while reducing the carbon footprint of power generation by 70%. This is in line with the sector’s transformation strategy by providing alternative sources of energy that can help us improve the sustainability of the water and electricity sector.”

Othman Jumaa Al Ali, EWEC’s CEO, added: “Noor Abu Dhabi will generate renewable energy and enable us to improve the use of our natural resources. The fact that a project of such scale has been successfully completed on time and on budget highlights our commitment to ensuring sustainable energy for the future and it is a true testament of the UAE’s delivery capabilities to execute world-class energy projects.”

Kangping Chen, CEO of Jinko Solar, remarked: “It is our privilege to participate and contribute to the winning and successful execution of this prestige project that will help power the sustainable economic growth of Abu Dhabi. We are thankful to the government team that created a tender program of world class, for the high-level professionalism, as well as the strong support throughout the process. The project wouldn’t be where it is without seamless collaboration among our partners and other stakeholders. We are grateful for such wonderful team work.”

In line with the Year of Tolerance in the UAE, the project – a venture between international companies, managed and constructed by a multi-national team – signifies the multicultural essence of the company and its ability to integrate resource and top partners from around the world, the JinkoSolar statement highlighted.

 

PPC eyeing Dubai pumped storage hydropower project

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The main power utility PPC is preparing to submit an offer for the construction of a 250-MW pumped storage hydropower plant (PSHPP) in Hatta, southeast of Dubai City.

The project, estimated to be worth over 450 million euros, is planned to utilize water at the Al Hattawi dam in Hatta, near the UAE’s border with Oman.

PPC aims to take part in the project’s tender as the head of a consortium including Archirodon Construction (Overseas) Co Ltd. and Hitachi – Mitsubishi Hydro Corporation.

The project description includes construction of a higher-elevation reservoir with a storage capacity of 880 million gallons, 300 meters above the Al Hattawi dam, whose storage capacity measures 1.72 billion gallons of water. The dam lies 400 meters above sea level. The distance between the existing dam and prospective higher-elevation reservoir will be approximately 3 to 4 kilometers.

During off-peak hours, turbines are planned to pump water from the existing dam to the higher-elevation reservoir, utilizing solar energy.

Last June, DEWA, the state-run Dubai Electricity and Water Authority commissioned EDF, at a price of 15.8 million dollars, to prepare plans for the project, including design, geological, hydrygeological, environmental and excavation studies.  DEWA announced the completion of this stage in November.

An initial November 18, 2018 deadline has been extended to January 13 following requests by participants.

PPC and Archirodon, a Dutch group headquartered in Dordrecht, are joining forces for the first time following the signing of a MoU for a five-year partnership, announced last October.

Archirodon has maintained an international presence, offering EPC services, for approximately 60 years, including in the Middle East and North Africa regions.