Energy Efficiency as an important building block for Saudi...

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Energy Efficiencyas an important building block for Saudi Vision 2030

Prof. Dr. Rainer M. Speh @ Jubail Energy Management Conference 2017 on December 5, 2017

Unrestricted © Siemens AG 2017. All rights reserved

Agenda

• Energy Supply @ KSA – Status Quo

• Smart Buildings as Key Contributors

• Roof-top PV Installations

• Introduction

• Energy Efficiency in the Industrial Sector

• Summary & Takeaway




• Introduction




Five megatrends shaping our world of tomorrow

1) UN World Population Prospects (2015)2) Met Office Hadley Centre observations (2014)

3) McKinsey Global Institute Cityscope (2011)4) UNCTAD (2013)

5) Cisco: The Internet of Everything (2013)6) IDC: The Digital Universe (2012)

Demographic change

Urbanization

Climate change

Globalization

Digital transformation

Trend to increaseinvestment abroad

Growing and ageingpopulation

Cities as main driver ofGDP growth

Global warming andweather extremes

Contribution to global GDP growth,2007-20253), in %

Foreign direct investmentvs. global GDP, in %4)

World population1), in bn Annual mean temperaturevariations 1950-20142) (in °C)

Connected devices5), in bn

-0,3

0

0,3

1950 1970 1990 2010

0.3

-0.3

0

2

4

6

1970197519801985199019952000200520102013

Other citiesand rural areas

38%

Cities >10mn

5mn – 10mn

2mn – 5mn

150k – 2mn

50

23

9

2012 20202016

Exponential growthof connecteddevices ...

… anddigital data6)

2.8 ZB40.0ZBZB = Zettabytes = 109 Terabytes

9.000.831.920.166.10

2050

1.360.12

-0.010.00

2015

1.25

Developingcountries

Industrialcountries

0-14

15-65

65+


Demographic change

Digital transformation

Climate change

Urbanization

Globalization

Growing importanceof energy efficiencyand sustainability

…that influence theenergy industry

Higherinnovation

speed

At least three megatrends dealing with energy efficiency


Agenda




• Introduction




Energy Efficiency is playing an important Role in Saudi Vision 2030

A vibrant society

Kingdom’s wealth lies in its peopleand society and it takes pride inwhat makes it exceptional: Beingthe heart of Islamic faith and itsnational unity.

A thriving economy

A thriving economy for citizens tofulfill their aspirations. Creatingmomentum towards an era ofprosperity through diversification,education and training, employmentopportunities and entrepreneurialdevelopment.

An ambitious nation

Any government needs to evolveand improve to keep pace withrising expectations of its citizens,and provide them with the tools forincreasing their quality of life.

Increase the efficiency of fuelutilization in the electricity generation

and water desalination sectors

Increase HouseholdSavings from 6% to 10% of

total household income

Stimulating innovative industrial solutionsto improve energy efficiency and waste

management.


Almost 50% of Energy is used in the residential area (as of 2014)

Source: SEC (KAPSARC)


Realizing Energy Efficiency Potential Across Sectors

Source: Capturing the Multiple Benefits of Energy Efficiency; OECD/IEA, 2014

44% 38%18%20%

Industry PowerGeneration

Unrealized EnergyEfficiency Potential

Realized EnergyEfficiency Potential

100

56%

100

62%

100

80%

Transport Buildings

82%

100 These energy efficiency potentials arebased on the IAE New Policies Scenariooutlined in the World Energy Outlook2012. Investments are classified as“economically viable” if the paybackperiod for the up-front investment isequal to or less than the amount of timean investor might be reasonably willing towait to recover the cost, using the value ofundiscounted fuel savings as a metric. Thepayback periods used were in some caseslonger than current averages but theywere always shorter than the technicallifetime of individual assets.


Energy consumption in buildings in Saudi Arabia in 2016

Cooling

67.9% Heating2.3%

Ventilation4.0%

Equipment11.0%

Lighting14.9%

Energy Use by Type in the Residential Sector Energy Use by Type in Commercial andGovernment Buildings

Cooling

67.0% Ventilation1.0%

Equipment6.0%

Lighting25.2%

Source: KAPSARC


Agenda




• Introduction




Energy costs account for 40% of a building’s lifecycle costs

Tear

dow

n

Desig

n

Build

Operating costs 60%

Energy costs 40%Oper

atio

nRe

nova

tionLife-

cyclecosts

Costs

Years 1-2 2-5 50 0-1

80%20%


Cost Efficiency of Energy Efficiency Measures

Use of as muchas passiveheating / cooling Renewable

energyintegration Heat recovery

Insulation Windows Tightness

Raising staff awarenessfor Energy efficientwork procedures BPO: Readjustment of

Plant Energy Audit

Investment

Payb

ack

t

$

Building automation(integrated control)

MechanicalequipmentInstallation

Building-shell

BPO *)

*) BPO: Building PerformanceOptimization

Capital expenditure

Heating / cooling /lights / blinds Occupancy

dependent Demand

controlledventilation


The implementation of an Energy Management Processis key for sustainable energy efficiency improvements


TAIPEI 101 – a world-class reference

INVESTMENT US $ 12 million

ANNUAL ENERGYCOSTS US $700,000

ELECTRICITYUSE 4.8 million kWh

WATERCONSUMPTION 28,000 metric tons

GARBAGEPRODUCTION 1261 metric tons

CARBONEMISSIONS 2995 metric tons

Floor Area: 2,050,085.23 sq.ft.


Energy Performance Contracting -Investments paid back by the energy savings


Agenda




• Introduction



Summer Winter

Source: Electricity and Co-generation Regulatory Authority (ECRA), KAPSARC analysis

Typical load curves in KSA

valuesaveragedover one year Source: Dr. Peter Klamser, Gemeinfrei,

https:/ /commons.wikimedia.org/w/ index.php?curid=11417511

Generation Characteristic of Photo Voltaics


Develop dedicated PV modules to beused in the Kingdom but also being soldin the world-wide sunbelt

Enable a “Saudi Blue Roof Program”based on the net-metering principle

Establish SMEs for implementation,monitoring and maintenance

Thus, let existing peak power plantscontribute to base load

Additionally, add wind power resourcesas another renewable resource

Source: RMS

CSP PV

Dedicated PV modules could be used locally and globally

The Electricity & Cogeneration Regulatory Authority (ECRA)has already paved the way to small roof-top PV Systems


Agenda




• Introduction




Benefits from Industrial Energy Efficiency

Production Working EnvironmentCompetitiveness O&M Environment

Expanded capacity. Reduced production

costs. Deferred plant

capital investments. Corporate risk

reduction. Improved

reputation andcorporate image.

Capacity utilization. Improved product

quality. Increased product

value.

Improved operation. Reduced need for

maintenance.

Improved siteenvironmentalquality (improvedthermal comfort,lighting, acoustics,ventilation.. Etc). Increased worker

health and safety.

Reduction of airpollution andemissions. Solid waste

reduction. Waste water

reduction. Reduction of input

materials, e.g. water


Agenda




• Introduction




Development of electricity demand in KSA from 2016 to 2030

144

74

218 194

48

43

9276

38

61

4554

77

76

30

2030adjusted

421 TWh

Desalination

+10 TWh

District cooling

-5 TWh

Efficiency levers

-52 TWhb) -8

a) -44

2030intermediate

468 TWh20

Business growthas usual

166 TWh

23233

2016

301 TWh17

Source: Siemens CommercialOthers GovernmentalIndustrial Residential

Adjustments due to change in behavior, technologyBusiness growth as usual

Insulation andhigher efficiencyappliances

Consumptionbehavior(could be higher iftariffs hiked to marketprices)

2.4% p.a.

GDP: 3.4%Population: 1.4%

Energy demand reduction effects


Public budget impacts of energy efficiency measures



Energy efficiency measures could increase oil export revenues

0%

5%

10%

15%

20%

25%

30%

35%

20132000 2016

27

31

20

Domestic Energy Consumptionas Share of Production

Domestic energy consumption hassignificantly increased since 2000,and thus reducing share of energyproduction going to exports. Saudi Arabia has implemented

efficiency standards on key sourcesof domestic energy demandincluding vehicles and airconditioners. Air conditioner standards alone are

targeting efficiency improvementsby 35%, saving 47 million barrels ofoil and increasing export revenuesby $2.5 billion.


Your Takeaway

Energy efficiency isplayinga vital role inSaudi Vision 2030

Residential consumersare using~50 % ofelectricity in Saudi Arabia

Most of the electricity isused für air conditioning

A state-of-the-art energy management processcould significantly improve the situation

Energy efficiency measuresin industrieswouldcontribute aswell

Roof-top installed PV could easily be integrated andsupport sustainibility on the lowest level

Energy efficiency measurescould have a hugeimpact on the economy

Any commentsor questions?

Energy Efficiency

Thank you!

Prof. Dr. Rainer M. Speh

Chief Technology Officer (CTO)Siemens Ltd.

Airport Road; Qurtuba DistrictBusiness Gate

11423 Riyadh, KSAPhone: +966 (11) 277 8153Fax: +966 (11) 277 8488Mobile: +966 (54) 916 1445

email: [email protected]

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