Summaries and Outcomes Jeddah, Saudi Arabia 26 October 2010

Transcription

1 The 6th Saudi Water & Power forum Session Summaries and Outcomes Jeddah, Saudi Arabia 26 October

2 Contents As a catayst for change and innovation, SWPF pays a key roe in uniting Saudi and internationa stakehoders to discuss the poicies and strategies which wi determine the future of the power and water sector in the Kingdom. In 2010 the program wi focus on how we can achieve sustainabe prosperity through knowedge, innovation and cooperation. Inauguration Ceremony H.E. Eng. Abduah A-Hussayen, Minister of Water & Eectricity H.E. Dr Hashim A Yamani, President, King Abduah City for Atomic & Renewabe Energy Day 1: Sunday, 3 October 2010 Dr. Adi Bushnak, Chairman, SWPF Advisory Committee Session 1/A : Poicies, Projects & Prospects for a sustainabe Future Session 1/B : Poicies, Projects & Prospects for a ustainabe Future Session 2 : Saudi Initiatives to Support Innovation Session 3 : Reaizing the Potentia of Technoogy in Power & Water Day 2: Monday, 4 October 2010 Session 1: Transformation of Saudi Arabia s Power & Water Sector Session 2: Renewabe Energy Opportunities & Soutions in Saudi Arabia Session 3: Energy Conservation & Demand Management Day 3: Tuesday, 5 October 2010 Session 1: Management Soutions for Water Resources Session 2: Produced Water: Waste or Resource? Session 3: Consumer Reations SWPF 2010 Recommendations

3 0 2 Inauguration Ceremony H.E. Eng. Abduah A-Hussayen, Minister of Water & Eectricity Your Roya Highness Prince Khaid A-Faisa bin Abdu Under the patronage of H.R.H. Prince Khaed A Faisa bin Abduaziz, Governor of Makkah, the Saudi Water and Power Forum was inaugurated on Sunday 3rd of October 2010 under the theme «Sustainabe Prosperity through Knowedge, Innovation and Cooperation». The forum, discussion sessions asted for three days, where a number of experts and speciaists in poicies and strategies determining future of water and power in the Kingdom articuated these issues. The opening ceremony incuded speeches by H.E. Eng. Abduah A- Hussayen Minster of Water & Eectricity and H.E. Dr Hashim A Yamani, President, King Abduah City for Atomic & Renewabe Energy. As we as an opening note by Dr. Adi Bushnak, Chairman of the Bushnak Group and Head of the forum. Aziz, Governor of Makkah Province Your Exceency Dr. Hashim bin Abduah Yamani President of King Abduah City for Atomic & Renewabe Energy Their Exceency participants and Attendees. It is my great peasure and honor to wecome you, Your Roya Highness. Aow me to show my gratitude for your kind inauguration and patronization of this Forum as your vaued participation has made the hoding of this Forum for the sixth year in Jeddah a significant event, expressing concern for water and eectricity issues. It has become the focus of attention of consumers, contractors, manufacturers and service providers in these two industries. It is aso my peasure to shed ight on the most important achievements in the water and eectricity industries and their trends in our beoved country since the convention of the Fifth Forum a year ago, and what we aspire to achieve in the future, God Wiing. Your Roya Highness, Our Honorabe Audience, As a continuation of the kind patronage paid by the Government of the Custodian of the Two Hoy Mosques, and its continuous support for water and eectricity services, more and more new projects are being impemented this year and, thanks to God, more funds are being aocated, making this year truy a year of achievements and deveopments. In the fied of Water and Sanitary Drainage, work is in progress for the expansion and improvement of the infrastructure. The costs of the projects currenty in progress amounted to neary SAR 102 Biion. The tota number of water connections exceeded 1.69 miion, and the overa ength of water pipe work amounted to 65,000 km. The tota number of sanitary drainage connections exceeded 830,000 and the overa ength of the sanitary drainage network amounted to 17,000 km. The tota number of dams constructed, or under construction, is 452 dams with a tota storage capacity of 2.4 Biion cubic meters.

4 0 74 Perhaps, the most significant event this year, with regard to dams, is the Ministry s tendency to provide a reguar suppy of potabe water from some of the argest and most productive dams in the Kingdom, particuary those ocated in the South West areas, to serve as an affuent source supporting other sources of desainated and ground water, in order to meet the growing demand for water throughout the kingdom. One of these dams is Baysh Dam in Jizan Region, which is considered as one of the argest water reservoirs in the Kingdom, as it is ocated in an affuent vaey, with a storage capacity of 194 miion cubic meters. The dam s water storage this year has exceeded 160 miion cubic meters, despite the fact that the dam reeases 50 miion cubic meters of water in Baysh Vaey to maintain natura and agricutura environments. One can say that the water storage in one singe year has exceeded 200 miion cubic meters, equivaent to the production of five years at the desaination pant in Shuqaiq (Phase I). The daiy fow rate of the vaey is 200,000 cubic meters and the tota cost of such a fow rate at a desaination pant amounts to SAR 300 miion approximatey. This means that Baysh Dam and its purification pant can recover their financing costs in eight months ony, when compared with the costs of the ast desaination project i.e. Shuqaiq Pant (Phase III), besides the priviege of being ocated at 300 meters above the sea eve, which enabes it to suppy water to the whoe Jizan area and the second pumping pant in Assir, using gravity ony and without the need for pumping equipment. I do beieve that, with God s hep and assistance, if we propery expoit these surface water resources, we wi be abe to meet the needs of A-Baha, Assir and Jizan provinces for water at east in the near future, and wi dispense with the construction of more desaination pants. This woud form huge savings of water, effort and power. The Ministry has aso emphasized its position by focusing on the management of water demand, particuary by reducing eakages in the pubic network. The funds aocated for this purpose have exceeded SAR one biion. The Ministry managed to reduce the eakage quantities in the cities covered by this project, from 25% to 7%, which is a considerabe saving of water, money and effort, when compared to the increase in production. With regard to the privatization of the water and sanitary drainage industries, the Nationa Water Company «NWC», despite being recenty estabished, coud achieve the strategic targeted resuts set in its pans for the cities in which it carried out the management of water and sanitary drainage. NWC proceeded to compete and deveop the infrastructure and enhance the services provided in both quantity and quaity. This has had a positive impact on the rea status of water and sanitary drainage services, as per the standards of service in deveoped countries, resuting in an outstanding improvement in the quaity of these services. Moreover, the company succeeded in impementing its strategic projects in accordance with the set priorities and programs, and contributed to an acceeration in carrying out vita projects and supporting and deveoping water resources, as we as investing in treated water in order to enhance the Company s earnings. NWC has entered into contracts in this fied exceeding SAR 2 Biion during the year The Company started appying the internationa FIDIC contracts for the first time on Water and Sanitary Drainage Projects «WSDP». This is expected to attract many internationa and oca companies which are quaified to participate in these projects. NWC has aso appied state-of-the-art SCADA technoogy and software for the management of water distribution networks. Furthermore, it appied the Leakage Detection System using Heium. The Company signed a contract for the management of Water and Sanitary Drainage services in Makkah and Taif, and entered into contracts with a number of consutancy firms to hande the requirements of contracts for the management of water and sanitary drainage services and operations in Medina, Dammam and Khobar, in order to invite tenders or bids for the same. Tenders and bids for other cities wi foow in succession. When the above-mentioned cities are incuded in the Company s scope of work, NWC wi be in charge of 60% of the whoe water and sanitary drainage industry in the Kingdom. The Company wi keep on carrying out its job for the deveopment and improvement of water and sanitary drainage services. Aongside this Forum, NWC is hoding a workshop on Wednesday this week to review the opportunities of investment in water and sanitary drainage projects. With regard to the water desaination industry, the Saine Water Conversion Corporation (SWCC) has competed Phase II of its privatization pan, and a the documents needed to set up the Hoding Company have been finaized and submitted to the competent authorities. Moreover, SWCC has started in Phase III of the pan and restructuring. As for the arge water and eectricity joint projects that wi be impemented by the Private Sector, thanks to God, this year the Shoaiba Desaination Pant (Phase III) has been in fu production, and has expanded its production capacity to be one miion and thirty thousand cubic meter per day. Likewise, the Desaination Pant of Marafiq Company has reached a capacity of 800 thousand meter per day, and Shuqaiq Desaination Pant Phase II has started its production, and is now producing 70% of its fu capacity, and construction works are expected to be competed next year to reach its fu production capacity of 212 thousand cubic meter per day by the beginning of next year. A of these projects produce two miion and forty two thousand cubic meter of desainated water per day, and 3,500 MW of eectric power. This is equivaent to 85% of the tota production of desainated water by SWCC, and neary its fu production of eectric power. This is a cear evidence of the huge scae of contribution of the Private Sector to this industry. SWCC has aso invited tenders for Ras A-Zour Power and Desaination Pant Project with tota production capacity of one miion cubic meter of water and 2,400 MW of eectric power per day. The contract has been

5 0 6 2,400 MW of eectric power per day. The contract the impementation of the project has just started. province, by competing the power transmission consumers cost of eectricity, owering the growth has been awarded by the end of Ramadan to Another project in Riyadh has been awarded to ine between Medina and Qassim, and it was in the peak oad, and achieving what is known a consortium of companies, with a tota cost a winning bidder on the same basis. It is caed eectrified during the month of Ramadan. This has as oad dispacement. Among the most important of approximatey SAR 25 biion, incuding the «The Eeventh Generating Power Station», with been one of the most important achievements Decrees that have been recenty issued is the extension of water ines to beneficiary cities. It a generation capacity of 1,800 MW. The Steam made under the eadership of the Custodian of the Roya Decree that therma insuation shoud be is expected that this project wi be competed Viage project with a generation capacity of Two Hoy Mosques, King Abduah bin Abdu Aziz, compusory in a buidings, and the approva of in eary 2014 AD. SWCC is currenty engaged in 2,000 MW wi be awarded under the same God Bess him, under the ong-term deveopment the Counci of Ministers of changing the votage the preparation of tender documents needed scheme. SEC is currenty impementing many pan of the eectric power industry, which aims to of eectric transmission ines to the internationa to award a contract for Yanbu Project Phase III. power generation projects, with a tota cost of enhance the reiabiity of service in the Kingdom, standard of Vots. It is expected, in the near The production capacity of this project wi be more than SAR 85 biion, incuding but not imited so as to be in ine with the best internationa future, to approve of setting up the Nationa Centre improved to meet the needs the Roya Commission to the significant Viage Pant Expansion Project in performance standards. Such achievements for the Rationaization of Eectricity Consumption. in Yanbu, to become 550 thousand cubic meter of the Eastern Province with a generation capacity coud not be made without God s hep and the In view of the chaenges facing the water and water and 1,700 MW of eectric power per day. of 3,160 MW, Shoaiba Pant Expansion Project, in gracious and continuous support of our prudent power industries, the most significant of which the Western Region with a generation capacity government to the eectric power industry, and the being the increase in growth rates, rationaization Your Roya Highness, Our Honorabe Audience The of 1,200 MW, the Tenth Power Pant in Riyadh with sincere efforts made by executives of the industry. of eectricity consumption has become an urgent eectric power industry in the Kingdom is currenty a generation capacity of 2,000 MW, and Rabigh One of the most important power transmission nationa need/concern. The surveys conducted facing a huge increase in demand, as growing Steam Generating Power Pant (with a generation projects is the Power Grid Project between Saudi about the prospects of rationaization confirm demand for eectricity has been this year 8% more capacity of 2,500 MW) whose contract has Arabia and Egypt, which is aso one of the most the promising opportunities for the investment than the peak power oad of ast year, i.e. around been awarded ast month. The tota generation important power inkage axes in the Arab Word. in water and power consumption programs, 3300 MW. The combined capacity in the Kingdom capacity of a projects under execution by SEC is On that regard, a consutancy firm is carrying on and enhancing the management of demand increased to around 50,000 MW, incuding the more than 12,000 MW. the detaied studies of this project and preparing for water and power. I see that it is now a good contributions of desaination pants and arge its tender documentation which are in the fina opportunity to invite the private sector to increase participants. The tota number of customers of Preparations are now under way to invite bidders stages, and it is expected to invite tenders for this its contribution to these matters. Saudi Eectricity Company (SEC) has become six for power generation projects during the next project in the near future, God Wiing. Upon its miion. In order to meet the increasing demand three years, with a tota generation capacity impementation, this project wi not ony make the Your Roya Highness, Our Honorabe Audience, for eectric power, a estimates of the eectric exceeding 6,000 MW, in addition to power two countries share their eectric power reserves, Keeping in ine with the Saudi Government s poicy power expansion pan indicate that there wi be transmission projects, transformer stations, and but wi make them aso interchange eectric to encourage the private sector and enhance its a need for impementing eectric power projects power distribution networks. With regard to the power at peak times which are different in both roe in participating and investing in eectric power in the coming ten years, with a tota cost of more network inter-connection inside the Kingdom, SEC countries every day. projects, to set up a convenient environment than SAR 300 Biion. The private sector is expected has with God s hep connected about 95% of a With regard to the rationaization of eectric that promotes competition in this industry, and to to contribute to around 30% of the cost of these eectricity networks operating in the Kingdom, power consumption and improving its efficiency, provide the reguatory, funding and operationa projects, i.e around SAR 90 Biion. and they became one composite network after the Ministry is carrying on with the awareness requirements needed, the Counci of Ministers competion of most eectricity transmission ines programs, in coaboration with the reevant has authorized the Board of Directors of the An agreement for one of the argest of these by SEC. The most recent ine competed was that authorities, and is conducting a number of Eectricity & Co-Generation Reguatory Authority projects has been signed this year with the private connecting the southern region with the western programs under the nationa pan for reducing the (ECRA) to review the eectricity tariff to a non sector for the construction of Rabigh Power pant, region. SEC has aso connected the transmission consumption of eectric power and enhancing its residentia consumer categories (governmenta, with a generation capacity of 1,200 MW, on the network of the western region with the transmission efficiency, in order to attain the targeted resuts commercia and industria), and to enter and basis of buiding, ownership and operation, and network of the centra region and the eastern which incude, but are not imited to, reducing the adopt any amendments thereon, provided that

6 0 8 such amendments do not exceed (26 Haaas ) per kiowatt-hour. Pursuant to this prudent decree, ECRA has compied a proposa for amending the eectricity tariff based on ceary stated scientific standards, using state-of-the-art word appications in this regard, seeking to enhance the efficiency of the eectric power system, to support the stabiity of eectric power service and its deivery to consumers, to encourage rationaization and contro of oads, and to dispace oads by using the variabe tariff that depends on the time of consumption (i.e. according to the peak hour of the day or the peak season of the year). ECRA s Board has adopted the proposed tariff and SEC has started appying this new tariff at the beginning of Juy, this year. ECRA, in coaboration with the Ministry, continues to foow up a matters pertaining to SEC in order to carry out its part within the nationa pan for restructuring the eectric power industry in the Kingdom, incuding the estabishment of an independent company for Power Transmission that woud be caed the Nationa Power Transmission Company (NPTC), power generation companies, and other power transmission companies to be owned provisionay by SEC which wi be changed into a Hoding Company. Your Highness Our Honorabe Guests The points mentioned above iustrate the growth and exuberant environment of investment in the water and power industries for the years to come, and the immensity of projects needed by the Kingdom and the promising opportunities for the participation of the nationa and foreign private sectors in the investment in these services. It is expected that the funding requirements for the expansion in the water and power industries wi exceed SAR 500 Biion (five hundred biion Riyas) in the next ten (10) years. According to these estimations, the investment opportunities wi not ony be imited to these services, but wi enhance the roe of the private sector in various investments needed by these industries, incuding the participation in the management, operation and maintenance of their projects as we as the deveopment and repatriation of their supporting industries and services. Finay, I woud ike to extend again my sincere thanks to Your Highness for your honorabe sponsorship of this Forum, and to the a the honorabe audience for their attendance and participation. I am aso thankfu to the organizing committee and the agencies that contributed to the preparation, organization and sponsorship, and to the participants in the associated Exhibition. I invoke Aah the Amighty to bestow upon us honesty in our words and deeds, grant us success and guide us in the right path. H.E. Dr Hashim A Yamani, President, King Abduah City for Atomic & Renewabe Energy, «KA-CARE» Your Roya Highness, Prince Khaid A-Faisa bin Abdu Aziz, Governor of Makkah, Your Highnesses, Exceencies and Eminences, Dear Brothers and Sisters I have the peasure of being with you tonight for the inauguration ceremony of the Saudi Water and Power Forum. I woud ike to brief you on the progress made at King Abduah City for Atomic and Renewabe Energy since the Roya Decree that estabished the City. I wi aso share with you the detais of its vision, namey, to be the driving force for the integration of atomic and renewabe energy with the nationa sustainabe energy system. The importance of energy stems from its being the main driving force of both the oca and word economies. It is expected that such importance wi increase in the foreseeabe future, and wi retain its poe position thereafter. The Kingdom of Saudi Arabia s eading roe in the goba energy andscape, together with the Kingdom s energy poicy, which has aways payed a key roe in the stabiity and growth of the word economy, shoud quaify the Kingdom to retain its eading position in the internationa energy arena. Therefore, and as a natura and ogica progression, it is expected that the Kingdom wi deveop a nationa sustainabe energy system, where atomic and renewabe energies wi effectivey and efficienty contribute to the economy. The estabishment of King Abduah City for Atomic and Renewabe Energy embodied the Roya Vision of contributing to the sustainabe deveopment in the Kingdom utiizing science, research and industries in the fieds of atomic and renewabe energy,faciitating the growth of a new energy ecosystem that woud enabe the Kingdom s transition from a country depending totay on oi and gas in meeting its energy needs, to a country with an efficient and effective energy system in which atomic and renewabe energies pay an effective deveopmenta roe. Therefore, and as a natura and ogica progression, it is expected that the Kingdom wi deveop a nationa sustainabe energy system, where atomic and renewabe energies wi effectivey and efficienty contribute to the economy. The estabishment of King Abduah City for Atomic and Renewabe Energy embodied the Roya Vision of contributing to the sustainabe deveopment in the Kingdom utiizing science, research and industries in the fieds of atomic and renewabe energy, faciitating the growth of a new energy ecosystem that woud enabe the Kingdom s transition from a country depending totay on oi and gas in meeting its energy needs, to a country with an efficient and effective energy system in which atomic and renewabe energies pay an effective deveopmenta roe. This is a ong-term nationa initiative that wi have positive impacts, God wiing, on the oca, regiona and internationa eves. It is an initiative based on accurate anaysis of the current status, couped with scientific forecasts of the favorabe future that may resut impementing this initiative. The growing oca demand on energy wi resut in triping the eectricity needed by the year 2032.

7 1 0 This is due to the growth in oca energy at the time being, continuous investment wi The first assignment that the City has carried maintaining sustainabe growth of the nationa consumption and the acceerating growth of the make aternative energy economicay viabe in out was to conduct in-depth studies of the economy wi ony be achieved through buiding nationa economy. Obviousy, this transates into the foreseeabe future. anticipated structure and content of the nationa competitive features of the nationa economy, an ever increasing demand on oi products. energy strategy, the methodoogy of work and the based on the vaue chain of atomic and This begs the question: How can this initiative meet operationa business mode for King Abduah City renewabe energies. This entais: This is evident from the remarkabe acceeration the country s substantia growing need for energy for Atomic and Renewabe Energy. This strategy in the oca consumption of oi products during in the future, which, in the absence of a nationa has a great importance in estabishing the firm 1. Drafting and impementing effective poicies the past four years. This acceeration is higher sustainabe energy system, wi require enormous foundations of the targeted sustainabe nationa and reguations. than that of other counties that have witnessed a reserve commitments of oi and gas? energy system. 2. Sponsoring internationay competitive simiar notabe economic growth. The strategy and operating mode were based research, deveopment and innovation. The Roya Vision has deineated the tasks and on studies of a number of tracks, which resuted 3. Entering into partnerships with nationa With no positive change affecting the nationa identified the mechanisms for King Abduah City in formuating a Kingdom-suitabe energy system and internationa institutions, in addition to energy system the expected increase in the for Atomic and Renewabe Energy to carry out and the vaue chain needed to serve this system. coaboration with speciaized technoogy demand on energy may have a negative impact the responsibiities with which it was entrusted. This providers. on the Kingdom s abiity to meet the goba incudes the foowing: The said studies have identified four major tracks: demand for energy in the next two decades. It is aso cear that atomic energy has many This wi undoubtedy have a serious effect on the 1. Poices and strategies. First Track: Benchmarking reevant internationa technica, operationa and investment merits, oca and word economies, and may adversey 2. Necessary reguations and egisations. expertise, and starting from where others have incuding the foowing: affect the Kingdom s eading position in the goba 3. Research and deveopment. ended, by anayzing the experience of a number energy andscape. 4. Deveoping human capacity. of countries in devising their energy systems. 1. The capacity factor of nucear energy is one 5. Set up and manage projects in order to carry of the highest in energy generation pants. Therefore, this initiative affirms the Kingdom s out its assignments, either independenty or Second Track: Identifying the vision and objectives, 2. The operationa ife of one cyce of nucear readiness in deaing with new deveopments in in coaboration with other entities in order to and prescribing the targeted energy mix. fue is ong and stabe. the future goba energy andscape in such a way buid an economic framework for the atomic 3. In terms of word prices, the economics of that woud maintain its position and enhance the and renewabe energy resources. Third Track: Buiding up the nationa economy eectricity generation from nucear power strength of its nationa economy. 6. Representing the Kingdom before the reevant sector that serves the targeted energy mix, stations is competitive at the moment, when internationa institutions. incuding industry, research and deveopment, compared with fossi fue power stations. This initiative suggests using mechanisms that 7. Meeting the nationa obigations in a as we as buiding up human capacity and 4. Nucear safety standards have improved proved their effectiveness. The word is graduay agreements that have been signed, or wi be speciaized expertise. significanty, and do not necessariy depend moving towards substituting oi and gas energy signed, in reation to atomic and renewabe on human intervention. with renewabe and atomic energies. It is expected energies. Fourth Track: Proposing the organizationa 5. Preiminary capita investment is very high, but that the share of atomic and renewabe energy 8. The Roya Order has assigned a permanent structure and byaws of the City as we as its it is counter-baanced with ow operationa wi reach 19% of the overa instaed energy ocation for the City that shoud incude operating mode. and maintenance costs. capacity by the year research and deveopment centers and 6. Nucear power stations provide attractive and aboratories, in addition to a other faciities A these studies have ceary indicated that the high vaue added empoyment opportunities. Notwithstanding the fact that depoying needed to enabe the City to fuy perform the move of the Kingdom towards an energy mix aternative energy is not economicay competitive tasks assigned to it. based on atomic and renewabe energies whie

8 1 2 Likewise, renewabe energy has technica, the sun and the wind. This means that, at the This again begs the question: How can we mature. The difference between the peak oad operationa and investment merits, such as: time of unavaiabiity, eectric power can be determine the best nationa energy mix? and the basic oad, in winter, shoud be provided suppied ony if some surpus power is stored at by fossi fue power stations. 1. Generation of eectricity from renewabe time of avaiabiity. There is no doubt that the targeted mix wi incude energy is not accompanied with undesirabe 3. Renewabe energy efficiency is substantiay a combination of atomic and renewabe energies The situation is different in summer as the demand emissions or waste. It is very safe. ess than nucear energy efficiency. Hence, it such that it meets the foowing criteria: increases and the peak hour is different. This means 2. The Kingdom is bessed with abundant is inappropriate for heavy power consumers, that it is economicay viabe to use renewabe soar radiation that makes soar eectricity such as manufacturing. 1. Maximizing the oi saved. energy to meet the needs during daytime hours, generation more efficient than most countries. 4. The renewabe energy system is affected by 2. Seecting an energy source having a high oad in addition to the power generated by nucear 3. Renewabe energy requires no fue, and environmenta factors, such as humidity, dust, factor and stabe generation for stabe winter. energy. Fossi fue power stations wi sti be required therefore its operationa costs are very ow. and sun bocking, which may resut in suppy 3. Seecting a dynamic source that is capabe of in order to meet peak oad needs. Renewabe 4. Renewabe energy can be used for utiity- disruption. responding to the eectric power needs in the energy can be used more efficienty when energy scae generation, and it can aso be used for summer. storage technoogy becomes mature. It is aso domestic, pubic and commercia roof-top Simiary, it is cear that the nationa energy system 4. Maximizing the amount and efficiency of the cear that no matter what structure the energy generation, as we as in remote areas. cannot excude renewabe energy, because nationa power production system. mix assumes, there are promising opportunities for 5. It is expected that production costs wi dependence on nucear energy ony wi have the 5. Maximizing the participation in the the Kingdom in targeting certain technoogies, fa substantiay and over a ong period of foowing disadvantages: deveopment of nationa manpower such as: time due to the internationa trend towards speciaized in atomic and renewabe energies. dependence on renewabe energy. 1. The operation of nucear power stations shoud 6. Maintaining a eading goba position in Concentrated soar therma 6. The Vaue Chain of renewabe energy, from maximize the capacity factor, to recoup targeted technoogies. Desaination using atomic and industry to power stations, provides much the investment in a meaningfu timeframe. 7. Optimizing the deveopment of the Vaue renewabe energy more job opportunities than traditiona energy Therefore, nucear power stations are most Chain in both atomic and renewabe energies. Cooing technoogies system. suited for base oad generation, but are Energy storage technoogies 7. Renewabe energy has a promising future for not suitabe for seasona or daiy peak oad A cose inspection of the annua pattern of both individua and institutiona investors, and variations. eectricity demand in the Kingdom reveas that it represents a fertie environment for research, 2. Nucear power stations with ow capacity (ess the average daiy oads in winter are 40% ess than deveopment and innovation. than 100 MW) are not commerciay avaiabe. the average daiy oads in summer. In addition, 8. Capita investment is high, but operation and Therefore, they are argey oversized for sma the peak daiy oads in the winter or the summer maintenance expenses are very ow. consumers or remote areas. vary ony sighty during the day. 3. The prices and suppies of nucear fue are, at Having said that, the nationa energy mix cannot, times, uncertain. Accordingy, eectricity generation from atomic however, excude nucear energy, because 4. The construction of nucear power stations energy is idea to meet the basic oad in winter, dependence on renewabe energy ony wi have takes as much as 10 years. Nucear energy because the cost of construction of nucear power the foowing disadvantages: cannot, therefore, be reied on for short-term stations is much higher than their operating costs, demand on eectric power. and therefore the stations shoud be operated 1. The capacity factor of renewabe energy is 5. The Vaue Chain of the nucear energy with the maximum possibe capacity to ensure substantiay ow, which makes it inappropriate system can ony be deveoped nationay their economic viabiity. Given that the peak oads for basic oad generation. by everaging very ong-term investments, in winter occurs after sunset, it is inappropriate to 2. The renewabe energy system operates ony at and contributes to the nationa economy, use soar energy to meet the needs of peak oads the time of avaiabiity of its resources, such as therefore, in the medium to far future. as ong as energy storage technoogy is not yet

9 1 4 The success of the seected nationa energy mix, which is based on atomic and renewabe energy in addition to traditiona energy and energy conservation, wi be based on four main tenets: Day 1: Sunday, 3 October Providing appropriate funding mechanisms for a types of energy, in a dynamic structure that responds to time-reated changes. Quaifying the human capacity needed to manage and deveop the energy mix. Quaifying, buiding, supporting and enabing providing the industria infrastructure and support faciities. Competing the reguatory framework to make the proposed system sustainabe. Day 1 - Session 1/A : Poicies, Projects & Prospects for a Sustainabe Future Chairman: Dr Adi Bushnak, Chairman, Bushnak Group & Past President, IDA Keynote Presentations: H.E. Dr Mahmoud Abu-Zeid, Former Minister of Water Resources & Irrigation, Egypt & President, Arab Water Counci Dr Hussain Sindi, Project Manager, A-Aghar Group The preparation of the energy mix wi require ongoing studies as we as fu and constructive consutation with the competent authorities in order to agree on aternatives that can be submitted to the Supreme Counci of King Abduah City for Atomic and Renewabe Energy to enabe the Counci to take the appropriate steps to adopt the suitabe aternative that puts the sustainabe nationa energy mix in the core of the nationa strategy. Dr Adi Bushnak, Chairman, Bushnak Group & Past President, IDA On behaf of the Advisory committee I woud ike to extend a warm wecome to distinguished Ministers, speakers, sponsors and guests of SWPF. SWPF pays a key roe in aying down the poicies and strategies that wi determine the future of power and water on the one hand and in guiding investors in accompishing their objectives on the other. This year s forum, under the theme Sustainabe Prosperity through Knowedge, Innovation and Cooperation, wi serve as a catayst for change in the power and water sectors in the Kingdom. I am peased to announce a new partnership between SWPF and A-Aghar Group, an independent non-profit think-tank in the Kingdom. The partnership is working on a study and recommendations on how Saudi Arabia can become a eader in knowedge and innovator in power, water and renewabe energy. I woud ike to take this opportunity to thank H.R.H. Prince Khaid Bin Faisa Bin Abduaziz, Governor of the Makkah Region for his continued endorsement and H.E. Eng. Abduah A-Hussayen, Minister of Water & Eectricity, for his ongoing support and commitment to the success of SWPF. I hope you enjoy the forum and make the most of the opportunity to network, join the debate and deveop your business. I ook forward to meeting you and to receiving your feedback. Yours faithfuy, On behaf of the SWPF Advisory Committee

10 1 6 H.E. Dr Mahmoud Abu-Zeid Former Minister of Water Resources & Irrigation, Egypt & President, Arab Water Counci Dr Hussain Sindi, Project Manager, A-Aghar Group, Project manager of Water and Power study through A-Aghar group and a professor of computer science in King Abdu-Aziz University H.E. spoke about the Arab Counci with its various discipines in a matter reating to water, and invited attendees to attend the coming forum convened every two years, which states basic tasks performed by Counci, incuding counting and assessment of water resources in Arab word every two years. Consequenty, he historicay shed ight upon civiizations buit on water, specia conditions of renewabe water source scarcity in Arab word, and presents an accurate statistics in this regard. He aso mentioned the mean chaenges facing Arab word, incuding water scarcity, food security, hardship to get water, exposure of sources to unsafe environmenta conditions, and inabiity of body responsibe for water sources governance. In addition to, he noted some facts about Arab word, incuding that 65% of Arab word water came from outside sources, and drawdown rate from groundwater in KSA exceeds by fourfod than the rate of annuay refi of groundwater tank. After giving a brief overview of A-Aghar an independent, not-for-profit think-tank, Dr. Sindi started by taking briefy about the importance of water, the universa water shortage and he continued saying, when ooking at the acceerated pace of growth of domestic demand versus the Kingdoms pan to expand both parts of this sector, one reaizes that suppy does not match the potentia increase in demand, keeping in mind that the rate of increase in demand for eectricity during the period from 1998 to 2008, amounted to 85% compared to ony 70% in growth of the Kingdoms abiity to generate eectricity during the same period. Aso the increase in the proportion of agricutura consumption exhausted 88% of the kingdoms tota water consumption, which in turn ed to the depetion of non-renewabe groundwater resources. It is shown here that the transformation of the water and eectricity sectors in the kingdom require not ony the financing of arge projects to expand the productive capacity but aso a comprehensive pan for reform and deveopment As for foods, he mentioned a statistics, contains that 80% of food production depends on irreguar rain, and irrigated agricuture share is estimated by 90% of avaiabe water resources. Regarding drink water and sanitation, the water is not provided to one miion peope, and sanitation networks are not avaiabe to 77 miion person. He aso spoke about the concept of integra management system aiming at increasing utiization from a water resources through maximizing use efficiency. Furthermore, he noted the necessity of baancing between suppy and demand, through water use conservation and it reuse. Concerning water demand management means, he mentioned investment in technoogies minimizing water demand and improving water connection services, participation of users at a eves as to panning, management and provision of irrigation water, as we as, provision of home uses water, industria activities and number of means to achieve them. As for speaking on executive steps to increase water management, he mentioned minimizing water osses in irrigation system, minimizing consumption through better management of crops, water reuse, controing foods and inundation, education and scientific research, decentraization, participation of water users, and expanding extent of farmers participation. Concerning innovation in institutiona management, he numerated some of adopted systems in different Arab countries, incuding one institutiona structure for water resources management, and other decentraized systems. Then he mentioned some types of untraditiona water that may be used to decrease the existing gap between suppy and demand, such as disentaied water and wastewater treatment. Finay, he emphasized on the necessity of increasing genera investments, costs recovery, participation of private sector in sanitation, and consequenty he concuded with underining on the importance of governance in water management, transparency and spreading decentraization in water sector management. From that perspective, A-Aghar group in coaboration and agreement with A-Bushnak Academy, have prepared a report as a preiminary step for the initia study which is expected to be reeased at the end of The report covers a detaied study of the water and energy sectors in the kingdom, based on cear foundations that are associated with an assessment of the current situation and future visions for the needs of the kingdom, in ight of avaiabe resources on the one hand and constraints that infuence them on the other. He then expained the methodoogy A-Aghar has foowed to deveop the study, by conducting a workshop in King Abduah Economic City. The format of the workshop incuded brainstorming sessions and engaging 65 experts, professionas, stakehoders, decision-makers and inteectuas from across the Kingdom, to be contributors to this study. The outcome of this was the vision, mission, a ong range pan and quick wins focusing on different aspects the human deveopment, the financia, technica, egisative and ega aspects; and the private sector s contribution to the deveopment of these sectors in the Kingdom. The study aso proposed a strategic framework which is based on three piars or thrusts: enabers, production and consumption that wi be detaied in the study and presented to the decision makers. Dr.Sindi addressed the first and most important issue A-Aghar had to dea with, which was the current situation that was found to be more compex with many conficting interests were at pay Here, around 15 important eements were specified some of which are the current tariff regime, the gap between government or water and power strategic direction and the pubic vision or response,

11 1 8 the uncear priorities for water and power consumption in the absence of a comprehensive nationa pan, the ack of cear egisation and absence of government bodies tasked with monitoring consumption, the weakness of renewabe sources for drinking water, the poor sewage treatment and not taking advantage of it in agricuture. Wasting non-renewabe water resources in agricuture production and aging desaination pants. Dr. Sindi aso addressed the probem of the cuture of the individua interest overriding the cuture of pubic interest with regard to the serious probem the kingdom wi face in the next 10 years if no serious measures were taken. Here he quoted Dr. Adi Bushnak in saying If we don t take it persona, we take it home to our chidren we te them just a minute, this running tap here is reay ife running to waste. Dr. Sindi concuded by mentioning that the report has been distributed to a the forum attendees and invited them to be part of this initiative and enrich the report with their vauabe input and feedback. SWPF2010 Press Conference: From Left, Dr.Sindi, Dr.Adi Bushnak, H.E. Dr Abu-Zeid, and Mr.Fahad Abunasr CEO of A-Aghar Group Day 1 - Session 1/B : Poicies, Projects & Prospects for a Sustainabe Future Moderator : Dr Adi Bushnak, Chairman, Bushnak Group & SWPF Pane: H.E. Dr Abduah M A-Shehri, Governor, Eectricity & Co-Generation Reguatory Authority (ECRA) Dr Mohammed A Saud, Deputy Minister for Water, Ministry of Water & Eectricity Dr Abduah M A-Shehri, Governor, Eectricity & Co-Generation Reguatory Authority (ECRA) H.E. Dr. Abduah A- Shehri, Governor of Eectricity & Co- Generation Reguatory Authority (ECRA) started with a retrospective ook at the history of the Saudi eectricity Sector which started as a private sector unti the tremendous economic growth in the eary 70 s which caed for the government to intervene in order to sustain the deveopment through financing and managing. The growth and expansion in services continued ever since. Upon a review of the status of the eectricity sector in 2000, a decision was made to aow the private sector to participate more activey and to estabish an entity which can be restructured to aow the private sector participation on pain fied bases and finay to estabish a reguator. And the first mission was to ay down the rues and reguations that wi assure sustainabiity of the eectricity suppy. He shed some ight on the high and increasing demand growth of the kingdom since 2000 and the eve of government support without which the tariff woudn t have provided sufficient funding to meet the expansion. The eectricity reguatory authority since its estabishment worked on estabishing and issuing the eectricity aw which indentifies the responsibiities of each party invoved the government, the private sector, the reguator, and others. The duties of ECRA are great but wi create a ong-term fruitfu resut. Finay, he emphasized on his wish for the deveopment in renewabe energy to be not ony deveopment of usage, but aso of production which wi justify any support that the government can provide.

12 2 0 Dr Mohammed A Saud, Deputy Minister for Water, Ministry of Water & Eectricity Dr. Mohammed A-Saud, Deputy Minister for Water, Ministry of Water & Eectricity, taked about the cimate change and how if it continued, the temperature increase in the kingdom wi put more pressure on the ground water used for agricuture and domestic water use. He mentioned that the ministry tried to narrow the gap by raising the eve of dependence on nonrenewabe resources to the eve of renewabe resources. He aso taked about the possibiity of rain probems which cas for a need to put a strategy to protect the cities from fush foods and make use of it as an additiona water resource. Finay he spoke about the initiative between KACST and the ministry and its effort to buid a desaination pan in A-Khafiji to produce desated water using soar energy with the production of about 30,000 cubic meters per day. After thanking the organizers for their exceent work, Dr. Abduah A- Shaikh, Deputy Governor for Panning and Deveopment and the moderator of the session started it by giving an introduction about innovation through defining it as not ony the invention of a new idea but aso expoiting it in a manner that resuts in an added vaue and bringing it to the market. He then pointed out the main eements necessary for creating an environment of innovation which are atmosphere, communication, chaenges and processes. Later he introduced the audience to the goba innovation index and stated that the Kingdom, being in the midde of the index, has a chaenge of cimbing up the adder through initiatives that contribute to creating the right environment for innovation. Finay, as one of the main initiative supporting innovation, he pointed to King Abdu-Aziz and his companions Foundation for the giftedness and creativity (Mawhiba) and presented its goas of offering necessary sponsorship to gifted students and inventors, encouraging citizens to generate creative ideas and producing a new generation of creative youth in a fieds of science and technoogy. During the audience questions and comments session, HE Minister of water A-Hussaini stressed the importance of raising Tariff to achieving sustainabiity. After which, Dr. Adi acknowedged the great effort the minister is putting on convincing the decision makers to restructure the water tariff and urged him to continue. Day 1 - Session 2 : Saudi Initiatives to Support Innovation Moderator : Dr Abduah A-AShaikh, Deputy Governor for Panning & Deveopment, SWCC & Director, IDA Pane: Dr.Omar A-Harbi, Director, Nationa Center for Water Research, King Abduah City for Science & Technoogy (KACST) Dr. Raed B kayrat, Manager, Industry Coaboration, King Abduah University of Science & Technoogy (KAUST) Dr Faeh A-Suaiman, Vice Rector Technoogy Deveopment & Industria Reations, King Fahd University of Petroeum and Mineras (KFUPM) Dr.Omar A-Harbi, Director, Nationa Center for Water Research, Dr. A-Harbi highighted the initiative for soar water desaination, which is the first of its kinds in the Kingdom. It is the best strategic choice to provide drinking water for the Kingdom. Whie the Kingdom is aready producing more than 18% of goba desainated water, the major probem is cost of production driven by high energy consumption. The Kingdom is, however, advantaged with a high eve of sunshine. KACST has more than 30 years of experience in promoting the use of soar power. In this vein, KACST has started the initiative of a joint research cooperation with IBM. Together, they have deveoped many technoogies in the fied of soar energy and desaination. The cooperation s efforts have produced technoogy that reduces the cost of soar power and desaination. One of the major targets of the initiative is to have a water desaination conducted by soar energy. This initiative wi be impemented in three phases. Before detaiing the initiative, Dr. A-Harbi discussed the objective of desaination in KSA and the committee estabished for this initiative. The objectives are: 1. To desainate seawater by soar energy at ow cost to contribute to the Kingdom s water security and support the economy.

13 2 2 To make use of nanotechnoogy techniques deveoped in the fied of soar energy To buid advanced industry in KSA supported by the industria strategy of ministry of commerce 2. and industry 3. To deveop a cean energy and protect the environment 4. Dr. A-Harbi then highighted the IBM-KACST cooperation and the projects invoved. He expained that the KACST-IBM s joint cooperation through the center of nanotechnoogy has deveoped many technoogies in the fied of soar energy and membrane. Dr. A-Harbi concuded by saying that the above initiative wi resut in knowedge-based economy products. The Ministry of Commerce and Industry have a nationa industry strategy where R&D resuts (such as these of KACST) estabish production companies and deveop industria custers that wi utimatey distribute these products in oca and internationa markets. Dr Faeh A-Suaiman, Vice Rector Technoogy Deveopment & Industria Reations, King Fahd University of Petroeum and Mineras (KFUPM) Dr. Faeh Asuaiman, Vice Rector Technoogy Deveopment & Industria Reations KFUPM, Started by stating the vita importance of technoogy deveopment and knowedge based economy to Saudi Arabia as no country in the word can depend on one commodity. He then taked about Dhahran Technoogy Vaey roe in this aspect starting with the first tenant of King Abduah Science park Shumbergere, who in two years doubed their business and created a winning experience for Shumbergere, Aramco and KFUPM as ots of the professors and students got to dea with a new cutting edge technoogy. He then taked about the creation of Dhahran techno-vaey and expressed KFUPM s gadness at this being taken by other universities in Riyadh and Jeddah and hoped for many others to Dr. Raed B kayrat, Manager, Industry Coaboration KAUST. Dr. B kayrat started by defining KAUST as not merey a university but rather a much more wider scope institution buit upon many piars one of which is economic deveopment. He then isted and briefy expained the foowing main initiatives and programs under economic deveopment: An active industry coaboration program with two sides one focusing on business and one on R&D which insures that industry advices research on the topics they woud ike to see them operate on and opens the path for commerciaization on the back-end, a Research park where companies can buid their centers in conjunction with KAUST, an Innovation Custer dedicated for cean technoogy companies to come in, demonstrate and prove their technoogies such as New energy oasis on which one current initiative is soar PV, Technoogy transfer office and innovation group, an Eary stage fund initiative, an Entrepreneurship Program, and an Active Seed Fund Program on phase two with over two miion doars dedicated funding. come. He aso isted the main activities in Dhahran techno-vaey starting with King Abduah Science Park (KASP) with the goa of having the technoogy partners to estabish their own R&D programs and R&D centers in the university and focus the research of the university on the needs of the kingdom. KFUPM s ambition is to foow MIT mode who has the size of KFUPM and has estabished throughout the history companies that have a tota GDP which woud pace them if they were a country as number 27. He then mentioned that KFUPM is targeting mainy two technoogies petroeum gas and chemicas and secondy water in which they have not yet been successfu to work with a partner and hope to have NWC or the ministry as a partner. He then taked about the technoogies produced by KFUPM incuding 52 patents, five more under registration, 188 appied patents and 83 not yet fied. And the university s target is to match MIT with 150 patents per year, the business incubator and its nationa business pan competition, aiance of their base and consuting services to hep nationa sma and medium businesses and finay SciTech state of art science museum which heps in impanting the ove of technoogy and science in the kids and disseminating innovation. He concuded by saying that the word university doesn t do KAUST justice as it is a massive project that s sti taking off and has eements that go across the board from education, advanced R&D as we as economic deveopment he stated how it is very important for KAUST to ink with the industry as they deveop this project.