CURRENT INITIATIVES AND WHAT IT WILL TAKE TO ACHIEVE THE SOLAR ENERGY GOALS OF THE NATION

Transcription

1 CURRENT INITIATIVES AND WHAT IT WILL TAKE TO ACHIEVE THE SOLAR ENERGY GOALS OF THE NATION Solar Qatar Summit 19 November 2013

2 2 Qatar s annual electric power consumption is more than 3x the global rate and is expected to continue to increase in the coming years

3 3 The GCC has announced renewable energy targets to address the increasing rate of electricity consumption

4 4 The following potential pipeline exists to support rapid and strong growth in the region SAUDI ARABIA Solar thermal plant (2-4MW) Planned Solar facility on parking lot (10MW) Planned Solar powered desalina3on plan Under Construc0on KAUST solar rooiop PV panels (2MW) Completed Solar field Under Construc0on Solar park (3.5MW) Under Construc0on OMAN CSP power project (50-200MW) Planned Solar thermal powered oil recovery plant (7MW) Planned Solar powered desalina3on plant (6000litres/day) Planned Biofuel date palm factory (900,000 litres/day) Planned Photovoltaic demonstrator (12MW) Completed KUWAIT Solar power plant (1250MW) Planned Solar component in combined- cycle gas power plant (60MW) Planned Wind turbine (10MW) Under Construc0on BAHRAIN Concentrated solar power plant (500MW) Planned Wind energy plant Planned Two hybrid power plants for solar and wind energy (5MW each) Planned PV plant Planned UAE Dubai solar park (10MW in 2013) 2 wind energy plant (each 30MW) Planned Solar power plant (40MW) Planned Noor 1 solar PV plant (100MW) Planned Shams 1 CSP plant ( MW) Under Construc0on 2 solar power plants Under Construc0on Solar roof program (500MW) Under Construc0on Floa3ng solar island project (1MW) Completed Masdar Ins3tute roof (1MW) Completed Solar PV park (10MW) Completed SOURCE: IRENA

5 5 Like any technology, solar energy faces various challenges that must be tackled in order to drive the solar industry in the region DRIVERS Increasing demand for energy as a result of popula3on and economic growth Desire to diversify energy mix and reduce dependency on oil and gas Growing cost of fossil fuel energy genera3on Need to create jobs and economic opportuni3es for youthful popula3ons Concerns about climate change and the region s high greenhouse gas emissions New poli3cal approaches and frameworks following the Arab Spring CHALLENGERS Insufficient financial incen3ves to make renewable projects viable Weak policy and regulatory frameworks Lack of grid infrastructure and interconnec3ons Limited experience of regional banks in financing renewable projects Insufficient pool of technical specialists and R&D capabili3es Water scarcity and linkage to energy genera3on (i.e., cooling, cleaning solar mirrors) ENABLERS Excellent solar resources Abundant space for large renewable projects Rapidly falling costs of renewable technology, improving cost compe33veness Emergence of new financing sources and innova3ve financing structures Local supply chain investments by leading foreign corpora3ons Lessons learned in renewables development in other emerging markets Growing government commitments to renewable energy

6 6 The establishment of a solar industry will contribute to the strategic goals of the country as well as promote industrial centers and future projects ECONOMIC CONCERNS SOLUTIONS PROVIDED BY SOLAR ENERGY Limited number of high- tech jobs Solar manufacturing creates large number of diversely qualified jobs along the value chain, esp. compared with conven3onal energy sources Solar R&D contributes to building globally compe33ve intellectual capital Dependence on oil, chemical and petrochemical sectors Solar energy helps diversify na3onal economy and generate addi3onal income Presence of chemical and related industries aides development of solar industry Poten3al for improvement in produc3vity, export performance (only 10% are non- mineral products), compe33veness Solar manufacturing offers poten3al to export high value- added investment goods Solar energy allows more profitable and efficient oil use (e.g. for high- growth industries) SOURCE: KICP Annual Strategic Study 2009

7 7 Solar technologies have high potential to act as credible alternative energy sources well-suited to Qatar Limited supporjng infrastructure No fuel re- supply and limited maintenance requirements Highly ajrac3ve in underdeveloped areas Straight forward connec3on to grids Predictable producjon Energy produc3on only dependent on solar irradia3on Data is available for any loca3on Annual solar variance < 5% Storage possible for CSP TYPICAL SUMMER DAY DEMAND PROFILE Good match for energy usage profile High sunlight climates see peak energy requirement in middle of the day matching solar energy produc3on

8 8 Solar energy is capable of offsetting the high-cost generation of non renewable options

9 9 Key initiatives are laying the foundation for the use of clean technology in Qatar

10 10 Our flagship project, the Solar Testing Facility was formally inaugurated by Her Highness Sheikha Mozah bint Nasser in December 2012

11 11 Aside from supporting solar R&D efforts, the facility allows us to evaluate technologies appropriate for the Qatari/GCC market The project was first announced on March 18 th 2009 under the patronage of Her Highness Sheikha Mozah bint Nasser A Joint Study Agreement between GreenGulf and Chevron was signed to develop and operate the QSTP Solar Test Facility in November 2010

12 12 GreenGulf has also been contracted to develop and implement a Distributed Solar Smart-Grid System at Qatar Foundation 0.9 MW of new rooiop solar systems on 3-4 rooiops in Educa3on City (EC) 0.7 MW of new solar car park shades in 3-4 areas in EC Development of a centralized Energy Monitoring Center (EMC) for smart grid management and solar genera3on monitoring Integra3ng of exis3ng solar systems at QNCC (667kW), QF Student Housing Complex (male and female, 784kW), Solar Tes3ng Facility (250kW) to the EMC Development of a Power Quality Monitoring network and its connec3on to the EMC

13 13 Additionally, other entities in Qatar are making significant strides towards the growth of the local solar industry Qatari energy distributor Kahramaa announced in May this year, the signing of a memorandum of understanding gran3ng approval for Qatar Founda3on s Solar Smart Grid Project Connec3vity to be connected to Kahramaa's main grid This is a revolu3onary step towards developing a na3on- wide model for incorpora3ng renewables into Qatar s energy mix Kahramaa is also beginning the process of deploying 200MW of solar projects by 2020, genera3ng 2% of the country's current electricity from renewables The Na3onal Food Security Plan sets out recommenda3ons for delivering power requirements for water desalina3on and opera3ons of the agricultural sector through solar technologies. To deliver maximum efficiency and encourage private sector development, the Na3onal Plan recommends establishing a Solar Park where companies from Qatar and around the world can bring solar technologies online to meet the requirements of the agricultural sector and other users Through bejer technologies, bejer prac3ces and a strategic mix of crops, Qatar will be able to produce five 3mes more food using the same amount of land and one- third less water. This highly- efficient agricultural sector will require a significant amount of solar energy capacity Qatar 2022 has commijed itself to a zero- carbon, solar- powered cooling technology for open air stadiums for the event Solar can also be used for a variety of other applica3ons related to the event

14 14 Certain policies need to be formulated to encourage the use of renewable energy Policy DescripJon Regulator Role Market Pros Cons Feed- in tariffs Electricity distributors / suppliers obligated to buy renewable energy electricity at a premium which is guaranteed for a certain 3me period Sets the price for renewable energy Sets the quan3ty of renewable energy The most effec3ve (and efficient) way to promote renewable energy Provides long- term certainty for infrastructure investors Less economically efficient than quota systems Necessity of a permanent disequilibrium between offer/demand of green Cer3ficates Market based mechanism (quota, green cer3ficates, etc.) The supply of renewable energy is achieved by obliging generators to deliver consumers a por3on of their power from renewable energy, Sets the amount of renewable energy for an agent Sets the price of the green cer3ficate If perfect compe33on for market for green cer3ficates was valid, this mechanism would produce a more efficient use of resource than feed- in tariff Schemes Assumes a perfect market, but market ar3ficially created by government through arbitrary quota defini3on Does not provide long term certainty Tax incen3ves or other subsidies Renewable energy is fiscally incen3vised in order to reduce the cost gap between other conven3onal power sources Sets a fiscal incen3ve for renewable energy or a penalty to conven3onal power to internalize cost N/A Doesn t represent a cost for the electrical system Neutral system: Amounts awarded are balanced through fiscal system or other penal3es Depends on budget decisions by governments Requires long term horizon vs. year to year planning Can be easily eliminated regardless of poli3cal decisions

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