Middle East Electricity 2013 Day 1

Afresh flow of GCC constructioncontracts worth US$32.4bn will soonbe awarded for new power and

water projects, according to the latest GCCPower and Desalination Report from researchfirm Ventures Middle East.

Following a lull in 2011 amid uncertaineconomic conditions and political turmoilacross the wider MENA region, GCC annualelectricity demand is now growing at a rateof between 10 to 15 per cent annually andregional governments are attempting tocatch up.

With power demand in the regiontherefore set to triple over the next 25 years,infrastructure developments backed bygovernments and public-privatepartnerships (PPPs) are surging ahead,providing opportunities for global energysector players.

Anita Mathews, exhibition director ofMiddle East Electricity, said, “The GCCregion will require an additional 60 GW ofpower capacity by 2015 and the comingyears are likely to witness a substantialimprovement in the development ofregional utility infrastructure.

“Rapidly increasing population andexpanding commercial, industrial and

residential sectors will ensure that regionaldemand for electricity and water willcontinue unabated, and the timing isperfect for international companies toshowcase their products and services to aproven audience of key decision makers atMiddle East Electricity.”

The report said that Saudi Arabia was setto experience the most activity in 2013, withUS$17bn worth of contracts to be awarded.

Saudi Arabia will be followed by the UAEand Kuwait, which are both expected tosign off brand new contracts totallingUS$4.2bn each.

In Qatar, meanwhile, power and watercontracts worth US$3.2bn are expected in2013, tailed closely by Oman withUS$2.7bn, while Bahrain rounds off thefigures with US$1.1bn worth of contractsexpected this year.

Keynote insightJigar Shah answers our questionsPage 5

Saudi targets solar growthSolar sector set for Saudi Arabian boostPage 6

Carbon controlThe region’s efforts to implement CCSPage 8

German innovationPavilion to showcase country’s bestPages 10-11

I N S I D E

UNLIMITED ENERGY: UNLIMITED OPPORTUNITY

SERVING THE REGION’S BUSINESS SINCE 19849 4

Doing Global Business the Power of Good

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GCC to award powercontracts totallingUS$32.4 billion in 2013

Power demand across the GCC is set to triple over the next 25 years, according to a Ventures Middle East study.

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MEE 2013 DAY ONE

Open Daily: 10am - 6pm

17 - 19 FEBRUARY 2013www.middleeastelectricity.com

S01 MEE 2013 Day 1_Layout 1 26/02/2013 12:35

News

2 Middle East Electricity

Oman Cables Industry SAOG (OCI) signed anagreement with Samsung South Korea towardsthe end of 2012 to supply electrical cables forSamsung’s global engineering procurementand construction projects.

The agreement, which was signed at the Oman Embassy in the South Korean capitalof Seoul, confirmed OCI’s continuing business

development across the world. Thisdevelopment was also demonstrated in 2011,when OCI was placed at number seven inOman Economic Review’s top 20 largestcompanies in Oman.

Founded by Mustafa Mukhtar and HussainSalman in 1984, the company has grown tobecome an industry leader in the

manufacturing and distribution of electricalwires and cables, as well as conductor solutions.

OCI’s cables have been certified according tointernational standards such as BS, IEC, VDE,and are tailor-made to meet the specificationsof individual customer.

Visit Oman Cables on Stand 5B20

Oman Cables and Samsungin worldwide cable deal

Global technology firm Honeywell opened a research andtraining facility in Dhahran last year in the hope that itwould open up career opportunities to Saudi Arabiannationals. Located in the Dhahran Techno Valley businesscluster, the centre offers a platform for engineering researchand training for Honeywell employees, industrial partnersand customers.

The educational facility, the company’s first outside theUSA, offers a range of industrial research and developmentcourses, as well as customer training for Honeywell’s UOPoil and gas technology businesses.

Mohamed Al Mousa, Saudi Arabia country manager forHoneywell, remarked, “This centre provides a base to developstronger relationships with our industrial partners anduniversities such as the King Fahd University of Petroleum andMinerals (KFUPM). The scholarships and internships we areproviding to Saudi students also form part of our long-terminvestment in the country and its future.”

Honeywell has 132,000 worldwide emplyees, 19,000 ofwhich are engineers and scientists.

Visit Honeywell on Stand S1C01

Honeywell opens new training hub

Representatives from Oman Cables Industry accept their award from the Oman Economic Review.

Hosts and guests at the opening of Honeywell’s research andtraining facility in Dhahran, Saudi Arabia.

Jubaili Bros, a member of Jubaili GroupHoldings, celebrated 10 years of businessin Afghanistan in 2012.

Initially opening a small base in Kabul in2002, the company has now expanded toinclude five further branches in Kandahar,Herat, Mazar Shariff, Jalalabad and Kunduz.

Supplied across the Middle East, Africaand Asia, the company’s gas and dieselgenerating sets range up to 2,200 KVA andare powered by engines from Perkins andLister Petter and feature alternators fromLeroy-Somer and Stamford.

Maher Jubaili, managing director ofJubaili Bros, said, “It's been an amazing 10years and through our experienced 'on-the-ground' team, Jubaili Bros is able to offertrue solutions to the region's power needs.”

The company also designs and installspower plants, which can be utilised asstandalone applications, as well as inparallel with utility companies to serve theresidential and commercial sectors.

Jubaili Bros’ Power for Rent departmentleases generators at competitive prices andoffers 24-hour back-up services. It alsostocks mobile light towers, spare parts andaccessories, control panels, ATS andsynchronising systems, load banks and fueltanks. The company employs 1,600 peopleacross seven countries.

Visit Jubaili Bros on Stand S3C25

Jubaili Broscelebrates 10years inAfghanistan

Alfred Kuhse GmbH has announced it will upgrade its KEA control unit series by the endof the first quarter of 2013. The control technology, which has been designed foremergency power systems, is currently available as the KEA Sophisticated Line and KEAStandard Line. These lines have now been upgraded to comply with the new VDE 4105directive for emergency power control units.

Meanwhile, the new KEA Compact Line is a compact automatic system with anintegrated additional relay unit, designed in accordance with the directive’s newregulations. For the modernisation of existing emergency power control units, Kuhsehas designed the KEA Retrofit Line. The Retrofit Line is suitable for the KEA 041, 071 orNC3 and NP1 from SEG, contains new processors without an additional relay unit and isreplaceable on a 1:1 basis.

Founded in 1928, Alfred Kuhse began as a repair workshop for electric motors. Thecompany started producing switchboards in 1938, developing from a small business intoa medium-sized industrial company. The company also began developing and producingDC-solenoids in 1948.

Visit Alfred Kuhse on Stand S1C30

Alfred Kuhse set to upgradeseries of KEA control units

S01 MEE 2013 Day 1_Layout 1 26/02/2013 12:35

Middle East Electricity 3

Welcome/News

I would like to extend a warm welcome toall exhibitors, delegates and visitors to thefirst day of Middle East Electricity 2013.

This year’s event promises to be evenbigger and better than previous editions,with a broad and exciting range ofcompanies and key industry figures fromacross the world in attendance.

With the region's power sector set tobenefit from a large number ofinvestments throughout 2013, there canbe no better place to feel the industry'spulse than at Dubai World Trade Centreover the course of the next three days.

As usual, a host of events will be takingplace alongside the exhibition, withnotable highlights including the GreenEnergy Conference, co-located exhibitionSolar ME and the annual MEE AwardsGala Dinner, which will take place on sitethis evening.

I hope you enjoy the show and I wouldlike to wish the best of luck to all oftonight's award nominees.

Ben Watts, Editor

Welcometo MEE2013

LETTER FROM THE EDITOR

Dubai Electricity and Water Authority(DEWA) has posted a six per cent rise inyear-on-year profits for 2012 to US$1.2bn.

DEWA said that investments to boostnetwork reliability and operatingefficiency had contributed to a rise inoperational capacities with year-endelectricity capacity at 9,646 MW and awater output capacity of 470 millionimperial gallons per day.

Power demand last year in Dubai peakedin July at 6,637 MW, marking a 6.94 percent increase on the year before.

Notable future projects the authority hasoutlined include the award of a 13 MWsolar PV power plant contract for what hasbeen called a prelude to the 1,000 MWSheikh Mohammed Bin Rashid Solar Parkplanned for the emirate.

DEWA has also successfully registered anumber of clean development mechanism(CDM) projects, which have helped toreduce up to 750,000 tonnes of carbonemissions annually, including a compactfluorescent lamps (CFL) distributionproject, a solar farms programme and athermal energy storage turbine inlet airchilling project in Jebel Ali.

DEWA was recently honoured by the UAE'sMinistry of Environment and Water for its

efforts in supporting the ‘Green Economyfor Sustainable Development’ initiativelaunched by HH Sheikh Mohammed binRashid Al Maktoum, Prime Minister of theUAE and Ruler of Dubai.

DEWA also reported that a feasibilitystudy into clean coal-based generationhad been completed and would bepursued as part of an energy sourcesdiversification programme.

DEWA posts six per centrise in profits for 2012

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Power demand in Dubai last year peaked in July at 6,637 MW, marking a 6.94 per cent increase on thesame period a year earlier.

S01 MEE 2013 Day 1_Layout 1 26/02/2013 12:35


Feature

Embracing nuclear energy is a costlyinvestment strategy - civil nuclearpower plants do not come cheap -

and one that would have seemed unlikelyjust a few years earlier.

The region’s traditional reliance on fossilfuels, plus a general stance to keep theGulf nuclear-free – reiterated many timesin the face of Iran’s own contentiousresearch programme – made the nuclearoption unappealing, politically andeconomically, until only recently. But thetimes are changing, it seems.

According to Laura el-Katiri, a researchfellow at the Oxford Institute for EnergyStudies, the introduction of civiliannuclear programmes is symptomatic of ashift in the way the region produces andconsumes energy. She said fast-risinglevels of domestic energy consumptionhave already made the Gulf a regionalenergy consumer to rival the combinedenergy demand of Latin America.

“This renders alternative sources ofenergy, including nuclear power, anincreasingly attractive long-term solutionin view of the region’s otherwise rapidlyrising drag on its own main exportproducts, crude oil and natural gas,” shecommented in a recent research paper,GCC and the Nuclear Question.

Although there is a huge new wave ofthermal power infrastructure building stilltaking place to meet this surge indemand, Gulf officials are clearly planningahead. And it is not only meetingprojected electricity demand that isforcing the issue. It is an investmentstrategy that goes beyond pure supplyand demand economics.

For GCC states, civil nuclear powercarries a wide range of strategic, politicaland energy security benefits that add toits attractiveness. Though it is clearly notfor all: the 2011 Fukushima disaster inJapan, plus the thorny issue of nuclearwaste disposal, will not endear it toenvironmentalists. But, away from thehullabaloo of Iran, there is now a huge

range of nuclear research initiativesunderway across the Gulf.

UAE leadershipAbu Dhabi began construction of theGCC’s most advanced project, theemirate’s first nuclear reactor, Barakah-1,in July 2012; the intention is to follow thiswith three further reactors. The four-reactor complex could add some 5.6GW ofelectricity to the UAE’s power sector by2020, making a huge impact on theprecarious energy supply/demandbalance that the nation has to overcome.

This first GCC project (worth upwards ofUS$20bn) is unlikely to be cost-competitive with the UAE’s extensivenatural gas-based electric power,however, though it will help to underpin energy security for years tocome. It also places Abu Dhabi - and theEmirates Nuclear Energy Corporation(ENEC) - at the vanguard of nuclearresearch in the Gulf, just as it has emergedas a pioneer in the renewables segment,as world host to the InternationalRenewable Energy Agency.

Saudi Arabia thinks bigSaudi Arabia is rolling out a huge new-build thermal generation programme to

help meet fast-rising energy demand. Butit is also keen to reduce its heavydependence on using its own gas andliquid fuels for power, hence the appeal ofnuclear energy. The kingdom’s largepopulation also presents an additionalchallenge, especially as the economyexpands, sucking in even more energy. Potentially, Saudi Arabia could becomethe region’s biggest nuclear powerproducer over the next 20 years or so, ifcurrent plans proceed. This could see theconstruction of some 16 nuclear powerplants with a combined capacity of 17GW,providing roughly one-sixth of thecountry’s anticipated electricity needsaround 2035. The total project cost couldexceed a staggering US$80bn.

Other GCC interestQatar was actively involved in the GCCdecision of 2006 to pursue nuclear energyfor peaceful purposes and announcedplans to build its own plant in 2008. It hasalso raised the possibility of a regionalproject for nuclear power generation.Likewise, Kuwait too has shown muchinterest in nuclear power. It has signedvarious nuclear cooperation agreementswith countries such as the US, France,Russia and Japan. In 2010, it announced a

plan to build four reactors by 2022 butthis was scrapped the following year.Outside the GCC region, the other leadinglight in advancing nuclear power isJordan, which is making great strides onits first reactor project.

So, all change in the Gulf then, asnuclear power begins to gain inpopularity. But so many questions remainunanswered, including crucial detailssuch as pricing and competitiveness.Whether nuclear power will realisticallyoffer the GCC the long-term solution as itattempts to manage its risingconsumption remains uncertain.

The current absence of cost-recoveringtariffs throughout the region alreadyrenders effective cost recovery for nuclearpower unlikely, reckons el-Katiri. This,therefore, implies a substantial bill – inthe form of nuclear power subsidies – tobe picked up by the GCC governments.And, potentially, the outlook is evenbleaker for the more cynical-minded.

“The acquisition of nuclear technologyby GCC states, albeit for civilianpurposes, provides fuel to those critics ofnuclear power who fear a nuclear armsrace in the Gulf should Iran pursue anuclear weapons programme in thefuture,” said el-Katiri.

Gulf nuclear powerindustry advancesGulf states have shown great interest in nuclear power in recent times,with Saudi Arabia and the UAE gearing up to launch their first reactorswithin the coming years, writes Martin Clark.

Atomstroyexport, part of Russia’s Rosatom, hasproposed its 1,100 MWe capacity AES-92 reactorfor use at Jordan’s first nuclear power plant(Photo: Rosatom)

Saudi Arabia could be on the verge of building 16 nuclear power plants with a combined capacity of 17GW over the next two decades.

S02 MEE 2013 Day 1_Layout 1 26/02/2013 12:37

TOMORROWAhmed Sfar, SchneiderElectric's vice presidentof infrastructure businessfor the UAE and Oman.

Interview


Jigar Shah will be giving the keynote speech at today’sinaugural Solar Middle East conference, entitled ‘TheFuture of Solar Energy in the Middle East’. Shah iscurrently a partner at Inerjys, a US$1bn clean energyinvestment fund, and CEO of Jigar Shah Consulting. He wasthe first CEO of the Carbon War Room, the RichardBranson-founded organisation set up to help combatclimate change, of which he is still a board member. Shahfounded leading solar services company SunEdison in2003, which had a major impact upon the global solarenergy market, and now works closely with some of theworld’s leading influencers and policy makers toimplement solutions for global warming and sustainability.He also sits on the boards of SolarNexus, KMRInfrastructure, Prometheus Institute and Greenpeace USA.

QA

The Carbon War Room, of which JigarShah was the first CEO and is still aboard member, is a global,independent non-profit organisation.

Founded by Sir Richard Branson anda variety of other CEOs andentrepreneurs in 2009, it states that itsmission "is to harness the power ofentrepreneurs to unlock market-drivensolutions to climate change".

The Carbon War Room (CWR) hastargetted the removal of 17 gigatonsof anthropogenic carbon, and believesthat this will not be achieved bygovernment legislation and policiesalone, but by the active participationof business. CWR states that US$550bnextra is needed in green investmentand that this can be raised via privatecapital, with profit to be made fromsuch investment.

CWR's funding sources, individuals,corporations and foundations, providethe capital for organisationaloverheads, new potential operationsand active operations, includingresearch programmes, while CWR'sfounders fund all core operationaloverheads. The organisation allowsentrepreneurs, government andbusiness leaders, and other keystakeholders to collaborate and workout how best to raise carbon-cuttingstrategies to an unprecedented scale.

What is theCarbon WarRoom?

MEE DAILY: 2013 marks the inauguraledition of Solar Middle East. Do you believethe creation of such an event is indicative ofthe region's growing focus on renewablesand how do you personally view the currentstate of the solar energy market within theMiddle East?

JIGAR SHAH: The Middle East has beenstudying renewable energy for the pastfive years, but the recent drop in solar andother prices has accelerated interest. Theinterest is now moving quickly from studyto deployment.

MEE DAILY: To a casual observer, solarwould seem plentiful in the Middle East. Thatalone, however, is probably not enough.What are the factors challenging the efficientharnessing of solar in the region?

JIGAR SHAH: The Middle East is used tofossil fuels. Its energy intensiveinfrastructure is based on fossil fuel use.Even with a compelling economic case, oldhabits die hard. It will take real leadershipto change long standing practices – evenwhen they make financial sense.

MEE DAILY: Unlike, say, northern Europe,much of the Middle East has a regular sourceof solar power supply. However, is thatenough on its own or will it need to beintegrated with conventional power? If it is,how can this approach be made as efficientand responsive as possible?

JIGAR SHAH: Given that 50 per cent ofpeak electricity now comes from solar inGermany, the technical aspects are knownand can be solved. Today, it is a matter ofleadership. Does the Middle East want toswitch, if so, how fast and who shall lead the

investment. These are tough questions, butthe technology is no longer a bottleneck.

MEE DAILY: Solar might be able to operatemore efficiently at times of no sun if storagecan be guaranteed. How efficient are systemsfor renewable power storage?

JIGAR SHAH: The technology is not thebottleneck. Today, solar is not at highenough penetrations to worry aboutstorage. When a commitment is made tolarge amounts of storage, solutions can beimplemented for storage such as advancedthermal storage, demand response, andbattery storage.

MEE DAILY: Given breakthroughs indeepwater and shale oil recovery, as well asmajor gas finds in many regions, is the needto develop renewables slightly less urgent?Or should we avoid a false sense of security?

JIGAR SHAH: There are many answers tothis question. On oil, deepwater and otherunconventional oil extraction is veryexpensive and therefore needs a consistentprice above the historical norms to achievea good profit. On gas, shale gas is onlyprofitable at around US$5.50/mmBTU, atthis price renewables are more competitivefor electricity. In any case there need not bethis competition. There simply needs to bea level playing field.

MEE DAILY: Can solar power incentiveschemes be structured to encourageinvestment without undermining acompetitive market environment?

JIGAR SHAH: Yes, very successfulprogrammes in Japan and California provethat policy can be done smartly.

MEE DAILY: How important is the role of thevarious standards bodies in aiding thegrowth of the emerging solar energy industryin the Middle East?

JIGAR SHAH: Standards bodies are veryimportant. The good thing is that many ofthese standard bodies have alreadyconducted a lot of work on solar and areprepared to extend these standards to theMiddle East.

MEE DAILY: Are you optimistic thatstandardisation can keep pace withtechnological breakthroughs given the speedwith which this industry is growing?

JIGAR SHAH: You know, breakthroughshappen, but not as often as you wouldthink. When a breakthrough occurs, it isusually at least five years to reach scale –there is plenty of time to include them inthe standard if necessary.

MEE DAILY: Is there anything else youwould like to add about solar energy in theMiddle East?

JIGAR SHAH: The Middle East hasintrigued the solar industry for some time.The question is whether the Middle Eastcan harness the enthusiasm within theindustry to help them deploy solar at scalecost effectively.

S02 MEE 2013 Day 1_Layout 1 26/02/2013 12:37

The contract, awarded by government-controlled Saudi Electricity Co. (SECO),will see ACWA and partners build a

facility that will have a 1,813 MW capacitywhen it is operational. Construction isexpected to be complete by summer 2016,the Saudi Press Agency quoted SECO CEO, Alial-Barrak, as saying, with financing detailsexpected to be finalised by March.

Rapid population growth and increasedindustrial energy demand mean that energyusage in Saudi Arabia is increasing by aroundeight per cent per year. Some economistshave warned that, if this continues, theKingdom could burn two-thirds of its totalcurrent crude production capacity of 12.5mnbpd within two decades.

This has sparked a clear, proactive responsefrom the Saudi Arabian authorities to ensurethat their energy infrastructure is as future-proof as possible by embracing alternateenergy sources such as renewables andnuclear energy. The King Abdullah City forAtomic and Renewable Energy (KACARE)recently announced that Saudi Arabia shouldincrease its solar power capacity from thecurrent 3 MW level to 41 GW: 16 GW fromphotovoltaic solar power and 25 GW from

concentrated solar thermal power. TheKingdom is currently seeking investors for itsambitious US$109bn solar energy programme,with solar power predicted to provide a thirdof Saudi Arabia’s electricity by 2032.

The inauguration of the 55,000 sqm, 3.5 MWKing Abdullah Petroleum Studies andResearch Centre's (KAPSARC) solar energy fieldin Riyadh in late December 2012, formed animpressive step on Saudi Arabia’s path to amore solar powered future. The solar field uses12,684 fixed-angle, polycrystalline PV panels,provided by Suntech, but this will be followedin the near future by even larger solar plants.

An estimated 3.5 GW of solar power will beinstalled in the Middle East and North Africa in2015, compared to 149 MW in 2013, with SaudiArabia responsible for much of this growth.According to GTM Research’s recent MiddleEast and North Africa Solar Market Outlookreport, demand for PV and solar-thermalsystems will rise sharply in 2015 when “thelarge bulk” of Saudi Arabia’s solar projects gointo operation. In fact, Saudi Arabia will beresponsible for a third of the region’s demandfor such systems.

The Kingdom’s increased solar capacity couldalso allow it to export power to other countries

in the region and further afield. There is theprospect of increased grid connectivity, withNorth Africa’s giant Desertec solar projectplaying a vital role, seeing Saudi Arabia’s solarenergy being exported to Europe.

The head of the International RenewableEnergy Agency, Adnan Amin, recently toldthe UK’s Financial Times, “If you get theconnection to Egypt then you can connectto the North African grid and if that’sconnected into Europe, you have amotorway for renewable energy. Europe hasa tremendous need to source renewable

energy to meet its emissions targets and itsrenewable energy targets and would be veryopen to importing competitively pricedrenewable energy. I think [Saudi Arabia]would be in a position in 15 years to be ableto export substantial amounts.”

In the shorter term, the government hasannounced plans to switch to buying powerfrom generators of renewable energy. SECO,the Kingdom’s electricity distributor, currentlybuys power from generators to sell to residents.The restructured arrangement will see energypurchased from renewable generators by aseparate company, or ‘offtaker’, then sold to thedistributor. The company will then pay thedifference between the cost of the electricityand the price the distributor pays.

Saudi Arabia’s plan to generate 50 per cent ofits power from renewables and nuclear powerby 2032 will also see the construction of 16nuclear reactors by 2030. The plants, which willcost an estimated total of US$100bn, will takenine to 11 years to complete and have acombined capacity of 17 GW. KACARE vice-president Khalid Al Sulaiman, said that the firstplant would be operational by 2020.

It was revealed by French industry minister,Arnaud Montebourg, that the tender offerprocess for the reactors has yet to begin.Montebourg visited Saudi Arabia with Frenchutility executives and the head of CEA, France’snuclear research organisation, as they soughtto sell the Kingdom French reactors. Thebidding process has yet to begin, however, asKACARE is currently assessing all of theproposals it has received.

"We expressed a certain number of proposalsand it is up to KACARE to decide on themethodology they want to use to select theoffers,” Montebourg was quoted as saying byDow Jones.

This is clearly a time of unprecedentedchange for the Saudi Arabian energy marketbut the Kingdom’s willingness to act and investin comprehensively altering its powerinfrastructure seems likely to ensure that thetransition from oil-dependency to a cleanerenergy future is as smooth as possible.

Country Insight

King Abdullah Petroleum Studies and Research Centre inaugurated a 55,000 sqm solar energy field in Riyadh in late December 2012.

The recent news that ACWA Power International andits partners had been successful in their bid to buildand operate the US$2.6bn, Rabigh II power plant onSaudi Arabia’s Red Sea coast, was just the lateststatement of intent by the Kingdom’s government inits drive to dramatically increase capacity from allpotential energy sources.

Full steam ahead forSaudi Arabia power plan

A third of Saudi Arabia’s

electricity will beprovided by solarpower by 2032


S02 MEE 2013 Day 1_Layout 1 26/02/2013 12:37


News

Ducab announced late last year that it had been awarded ‘Superbrand’ status by theinternational Superbrands organisation for the fourth consecutive year, after achieving recordsales of US$1.3bn for 2011. Out of 1,341 companies shortlisted, Ducab was one of the 54 to beawarded ‘Superbrand’ status, an award for consumer and retail marketing excellence.

Ashish Chaturvedy, marketing manager of Ducab, said, “We are absolutely delighted toreceive this recognition for the fourth time. The consistency with which the Ducab brand isgrowing is a testament to the dedication of our team, to whom I wish to dedicate this award.

“Ducab’s success is based on a continuous commitment to the highest standards of quality,rigorous testing and safety compliance, and locally producing cables, wires and high-gradecopper products.”

Established in 1979 by the Dubai government and BICC Cables, the Dubai Cable Company(Pvt) Ltd (Ducab) offers a range of cables up to 400 kV for the energy industry. The company’sproducts are currently sold in more than 40 countries worldwide.

Visit Ducab on Stand 7E10

Global renewable energy investmentreached a record high of US$257bn in2011, but the MENA region lagged behindthe rest of the world, accounting for just2.1 per cent (US$5.5bn) of totalrenewables investment for the year.

The statistics, featured in the latestGlobal Trends in Renewable EnergyInvestment report, indicated that althoughthe MENA countries have an abundance ofrenewable sources, socio-political turmoilhas delayed progress.

The report, which was written by theUnited Nations Environment Program(UNEP) and the Frankfurt School ofFinance and Management, suggested thatelectricity price subsidies have stalledrenewables deployment within the region.Countries spared by the turbulence, suchas the UAE and Morocco, have howevermade significant progress.

MEE exhibition director Anita Mathewssaid, “By 2030, almost 15.7 per cent of theworld’s energy will be coming fromrenewable sources. With globalhydrocarbon resources dwindling amid a

concerted effort to build a greenenvironment while reducing carbonemissions, countries across the world arenow turning to green energy.

“While the MENA region has a long wayto go to catch up with the rest of the worldin terms of renewable energy investment,governments are definitely reviewing theirstrategies and aiming at increasing theshares of renewable energy in their energymix of the future.

“For example, the UAE, Kuwait, Oman,Egypt, Jordan and Morocco are all movingforward with at least 10 solar powerfacilities worth a combined US$6.8bn andwe believe that more regional renewableenergy projects will be announced in thenext 12 months.”

Mathews’ confidence has been backedby Informa Exhibition’s decision to launchSolar Middle East alongside MEE. Thethree-day, co-located event is dedicated tothe regional solar industry, which is set tobecome the largest gathering of solartechnology suppliers ever seen in theMiddle East.

One of Ducab’s cable manufacturing facilities.

MENA renewables are‘lagging behind’ - UNEP

Political and social turbulence across parts of the Middle East and North Africa has affected investmentin renewable power.

Cummins Power Generation, a division of Cummins Inc, will be showcasing its latestproducts at MEE 2013, including its new solution for the telecommunicationsmarket and a new high-horsepower generator set.

During the exhibition Cummins Power Generation will launch its new hybridsolution for the telecommunications market, aimed at reducing operating expenseswhere grid supply is inadequate.

The company will also showcase the Cummins QSK50 generator set, part of itshigh-horsepower range of generator sets specifically developed to meet today’sdemands for emission-optimised and seismic-certified generator products.

Visitors to the Cummins Power Generation stand will be welcomed by expertsfrom the company who will be available to discuss the complete range of newdiesel and gas generator products.

Visit Cummins Power Generation on Stand S3D40

Cummins Power Generation tolaunch new products at MEE

Ducab awarded ‘Superbrand’status for fourth year running

S02 MEE 2013 Day 1_Layout 1 26/02/2013 12:37


Feature

Carbon capture and storage (CCS)has slipped down the agendarecently, but scientists and their

respective institutions contend thevarious technologies still have a majorcontribution to make to amelioratingglobal warming. The cost-consciouspower generation industry is the maintarget for change and offers plenty ofpotential here in the Gulf, even thoughcarbon sequestration (the alternativeterm) has so far been applied locally – andglobally – to enhanced oil recovery.

The basic hurdle to overcome is that CCSis calculated to add something like 10-40per cent to the fuel cost, right at the topend of this range in the case ofconventional coal-fired thermal plants,probably at the lower end with gas(whether baseload steam or top-up gasturbine). This is because so much energyhas to be expended in actually capturingand processing the unwanted gas; theresult is that nearly all the carbon is safelyremoved for sale or disposal.

In addition the projected capital cost remains excessively high, partlybecause the plants have yet been built (orretro-fitted) to bring in the sort ofeconomies of scale we are now seeing soclearly with renewables.

Some say that expenditures like thiscould be better made on the latter with itsmuch simpler hardware, ultra-cleanhistory and plug-in applications.

Although pioneering EOR operators likeADNOC and Sonatrach continue to pursuethe CCS route, to squeeze more out of

mature resources such as Rumaitha and InSalah, elsewhere the fervour seems tohave cooled with the world economy. Inpart this is because the rate of increase incarbon emissions seems to be on the waydown anyway. Not nearly fast enough saythe climate experts.

However the main reason for waninginterest is the extra fuel (whether coal,the main target application, but alsopotentially gas) costs that the variousflue-gas scrubbing technologiesassociated with clean power generationbring with them. These are the costs that

the highly uncertain price of carbon(where such a concept exists at all) fails tocompensate for. And as the absence ofany working commercial-scale CCSsystem in the highly competitive powermarket shows the various technologieshave yet to be proved affordable, letalone widely adopted.

The common-sense approach at thisstage of such a step forward in climate-change control is to regard expensive andgroundbreaking CCS as just one ‘tool’ in acomplete emissions-reduction kit. As seenthroughout MENA this includes muchmore wind and PV power (the capitalcosts of which are falling fast anyway),more informed customers and smartergrids to serve them, that could all makebetter use of the kilowatt hours that areavailable. Less deforestation, cleanervehicle engines and so on could help too.This could match the contributions ofprobably hundreds of costly new oradapted existing power plants.

EOR operators such as ADNOC and Sonatrach have continued to pursue CCS technology in order to reduce their carbon emissions.

Keeping carbonunder controlGetting rid of CO2 is the goal of energy producerseverywhere. Coal-based power generators are themain targets, but those using gas can contribute too.

● continues on next page

Carbon capture and storage has been calculated to add between 10-40 per cent to fuel costs for power plant operators.

S03 MEE 2013 Day 1_Layout 1 26/02/2013 12:39

Only with such a ‘package’ up andrunning could the different technologiesbe tried on a commercial as distinct fromresearch scale by power generators here,whether they are based on the scrubbingof existing exhausts or modifying thepre-combustion processes such as gasprocessing that remove the carbonbefore it ever reaches the burner. Bothroutes are being extensively tested inChina, where unfortunately the energymarket is significantly different frommost other countries; hard to drawconclusions from therefore.

Compared to these challenges theproblems surrounding the storage andtransportation of CO2 – a valuableindustrial commodity used in refrigeration,inerting and pressurising - are relativelyminor. Indeed wherever CCS has beenadopted to aid EOR in North Africa and theGulf this is already a proven aid to boostingoutput, in some Gulf countries newsources like the steel industry having to beinvestigated. With CCS scaled up to thepotential needs of the power industrywhat will be needed is larger undergroundreservoirs to hold the carbon securely.

So the main problem is the issue of fixedcapital and variable running costs, highlyuncertain as they both are. What is neededright now is a guaranteed system offinancial support to those power andother energy operators who are braveenough to have a go; the CleanDevelopment Mechanism should beconsidered. A guaranteed andunavoidable carbon price of at least US$60tonne – offset by any available sales of theCO2, as already achieved by ammonia andother steam-reforming intermediatesproducers here in the Gulf - is thought tobe needed, far above the maximumUS$20-30 that seems to prevail right now,and that not in any of the main coal-burning targets such as the USA.

In short, a combination of governmentsubsidies and a well understood flatplaying field are needed. OPEC’s activeparticipation in the International EnergyForum, as seen here in Kuwait last March, could make a major contributionto these developments.

Meanwhile two completely newtechnologies are currently being testedon a commercial-scale twin-stream plant(80,000tpa combined based on rivalamine and ammonium carbonatescrubbing processes) at Mongstad inNorway. There, gas-based power is justpart of the refinery’s product mix, givinghope to the Gulf ’s generators who arebeing encouraged to invest in a cleanerand cooler future.


Feature/News

Wherever CCS has been adopted to aid EOR in North Africa and

the Gulf, it has become a provenaid to boosting output

Ensto Chagoelectric motorcharge pointsintroduced

KNIPEX Tools Middle East (KTME) opened its fourth internationalbranch in Dubai last year, adding to those it has already establishedin Chicago, Moscow and Shanghai.

The company’s Middle East headquarters serves customersacross 20 countries, supplying them with its specialised Germanmanufactured pliers.

Ralf Putsch, managing partner of the Dubai KNIPEX facility, said,“With one of the largest man-made sea ports, Dubai acts as a hubin the Middle East and therefore offers the ideal conditions tosupport the surrounding Arabian countries as well as the strongly

expanding markets in Asia. This enables us to achieve greaterproximity to customers there.”

Currently supplying more than 100 countries throughout theworld, KNIPEX has been selling its tools in the Middle East since the1960s. The company’s export ratio is 60 per cent, with some 20 percent of sales achieved outside Europe.

KNIPEX is a family-owned business, aiming to achieve economic,social and ecologically sustainable development.

Visit KNIPEX on Stand S1C18

KNIPEX opens fourth global branch in Dubai

Netcontrol Oy recently launched Netcon 100,a new type of control and monitoring solutionfor secondary substation systems.

Netcon 100 has been developed for themonitoring and control of medium-voltagenetworks, and the monitoring of low-voltagenetworks. Thanks to standard protocols andinterfaces, connectivity to other systems isstraightforward. The compact all-in-oneplatform combines all necessary functions,

including fast fault location, reliable control ofswitching devices, advanced electricity qualitymeasurement, intelligent battery monitoringand charging and a diverse set of datacommunication features. The product will beone of many energy automation systemsshowcased by Netcontrol and its local UAEdistributor, Autochim Systems, at this year’s MEE.

Founded in Finland in 1991, Netcontrol’sheadquarters are located in Helsinki, with four

other offices located in Sweden (Västerås andKarlskrona), Norway (Oslo) and the UK(Manchester), all of which provide sales,engineering and support services. In additionto its own offices, Netcontrol has partners anddistributors all over the world, located inPoland, the Balkans, the Middle East, SouthAfrica and Malaysia.

Visit Netcontrol on Stand 4A14

Netcontrol launches Netcon 100 for secondary substation systems

The KNIPEX headquarters in Wuppertal, Germany.

● continued from previous page

Ensto has recently introduced a selection ofelectric vehicle charging points products aspart of its Ensto Chago range.

Products from the Ensto Chago rangeoffer safe and easy-to-use solutions forelectric vehicle charging in both public andprivate parking areas.

Ensto EV Charging Solutions directorAllan Ahlgren said, “To emphasise theecological side and the quietness thatcomes with electric motoring, the name[Ensto Chago] is complemented by thepromise, ‘Because green sounds better’.”

The Ensto Chago Pole is a chargingsolution for normal electric vehiclecharging (16A). The poles, available forboth ground and wall mounting, are madefrom durable stainless steel and includeone or two 16A power outlets and a watt-hour meter to measure the amount ofenergy obtained. As standard, the pole canbe controlled remotely from, for example,a parking-ticket machine.

Alternatively, the Ensto Chago Stationrequires a fee to be paid in order for it tooperate and can be used for both normaland fast charging (three-phase, 32A).

The station is made of robust materialsand it is easy to clean, making it ideal forstreet-side installations. The Ensto ChagoStation can be installed with a useridentification system and a data link toexternal information systems over a GPRSconnection or a RS485 cable.

The Ensto Chago Point is a wall-mountedsolution for locations that require multiplecharging points, such as large workplacesand apartment-building parking facilities.This charging point was awarded the RedDot design award in 2012.

The range includes the Ensto ChagoMaster, a master unit for installations of fiveto 20 charging points, and the browser-based Ensto Chago Server charging-pointmanagement program.

Established in Finland in 1958, Enstospecialises in electrical solutions, placingparticular emphasis on energy efficiencyand sustainability.

Visit Ensto on Stand 3H19

S03 MEE 2013 Day 1_Layout 1 26/02/2013 12:39

Founded in 1956, Doepke Schaltgerätespecialises in RCCBs, residual current controltechnology and special solutions.

Today, its product range comprises residualcurrent circuit breakers (RCCBs), miniaturecircuit breakers (MCBs), circuit breakersproviding residual current protection (CBRs),modular residual current protective devices,residual current monitors, load disconnectors,installation relays, impulse relays, as well astwilight, float and manometric switches.

Products on display will include type FRCCBs, which recognise mixed frequencieswhen using equipment with installed single-phase frequency converters (for example,washing machines or rotary hammers). Theproduct also complies with all requirementsfor conventional type A RCCBs.

Meanwhile, the company’s 2- and 4-poleRCCB with overcurrent protection (RCBO) forthe protection of smaller installations up to 32A are now also available in AC-DCsensitive versions.

The DMRCD modular RCCBs and the DRCMresidual current monitors ensure that thelegal requirements regarding fire protectionand protection of persons are being met bymonitoring residual operations currents (30to 3,000 mA).

DoepkeSchaltgeräte GmbHSheikh Saeed Hall 1,Stand A21


Country pavilion profiles

Walther-Werke, Ferdinand Walther GmbH, is amanufacturer of industrial plugs and sockets,including CEEtyp (IEC standard), ‘Procon’heavy-duty connectors, combination unitswith sockets and breakers and charginginfrastructure for electrical vehicles.

The company will showcase its newestproduct range, the CEE 63A, along withcustomised solutions for industrial customers.

Walther-Werke is the only company to offercustomers in the Middle East portable rubbercombination units, which are of Germanquality, but manufactured locally in Dubai.

Thomas Kalthoff, management assistant atthe company, said, “Due to our localassembly in Dubai we can serve our highquality products in a very short time to themarket. That gives us a strong position inindustrial projects.

“Our best-selling products arecombination units with CEE sockets andbreakers, wall-mounted or portable, madeof high-quality thermoplastic material orsolid rubber. That makes the products verylong-lasting and stable, which is veryimportant regarding the Middle East climateconditions,” Kalthoff added.

Walther-Werke,Ferdinand WaltherGmbHSheikh Saeed Hall 1,Stand A30

Germanexhibitors toshowcasepioneeringsolutionsGermany's regional trade presence hasenjoyed rapid growth in recent years and thecountry is one of the UAE's five mostimportant trade partners. Within the GermanPavilion at MEE, exhibitors will be presentedwith the latest developments in the fields ofpower engineering, energy efficiency andelectrical engineering. Below we have selectedsome of the best at the show.

German technological innovation has helped it to become one of the UAE’s largest trading partners.

S03 MEE 2013 Day 1_Layout 1 26/02/2013 12:39


Country pavilion profiles

BSD GmbH develops and sells tools,equipment and technical solutions forthose who work on electrical systems,specialising in live working up to 36 kV andarc protection personal protectiveequipment (PPE).

As one of the biggest supplier for high-class arc protection face shields inGermany and Switzerland, the companywants to expand the number of itsinternational partners.

Lutz Gruschka, director of sales andmarketing at the company, said, “It is knownthat employers in the Middle East are veryopen to innovative products with a highlevel of quality and competitive prices.”

The most important BSD products forforeign markets are arc protection PPE forworking on electrical installations. The mostinnovative product is the electrician faceshield BSD ErgoS and the arc protectionhoods. These are unique high protectionface shields (Box-Test: arc protection class 2,ATPV: up to 14 cal/cm²) with a clear visor.

Thomas Jordan, director of research anddevelopment at the company, commented,“Face shields of the BSD ErgoS familyprovide not only protection against thermalhazards on an electric arc; they increase thepersonal safety at the work place becauseof their clear not tinted visor.”

BSD GmbHSheikh Saeed Hall 2,Stand F13

Weihe GmbH has a 30-year history in theindustrial sector and is an OEM supplier tomajor companies such as MTU, Deutz,Cummins and Volvo and most gensetmanufacturers in Europe.

The company specialises in exhaustsystems, exhaust after-treatment, pipingand special insulations, and engineering(including FEA analysis and flow andtemperature simulations).

Among the new products that Weihewill be showcased at this year’s exhibitionis the company’s efficiency system forengines, hydraulic systems and gearboxes, designed to reduce operationcosts. The system takes a part of the oilstream and cleans it by removing solid,liquid and gaseous contaminants down toone micron.

Axel Weihe, managing director of thecompany, said, “Due to the fact that WeiheGmbH designs and constructs completesystems by in-house engineering and in-house production, cost savings are on theone hand a huge benefit that you will getby working together with Weihe.

“On the other hand you will also savetime because Weihe will deal with thewhole process from engineering andconstruction to production and delivery.

“Weihe would like to extend the businessto an international level in the UAE. In thefuture we would like to open a branch inthe UAE,” Weihe added.

Weihe GmbHSheikh Saeed Hall 1,Stand D17

Helmut Mauell GmbH specialises in processcontrol systems, power distribution control,station control and remote control systems,control room technology, security solutionsand automation equipment.

The company will be showcasing its newSmart RTU ME 4012 PA-N small telecontrolsystem, which links new hardwarecomponents to the existing softwarefunctionality used in modern utilitycompanies’ transport and distribution systems.

Helmet Mauell will also be showcasing its‘intelligent distribution substations’ (iNES)solution, developed in association withMainova AG, SAG GmbH and the Universityof Wuppertal.

iNES measures the load flow in a grid andthen intelligently controls power distributionon the basis of these measurements.

An additional focal point will be the MEmultiView X omnium visualisation system,which captures diverse sources of applications,desktops, cameras and graphics signals via anIP network independent of any spatiallimitations. Distributed processing ensures ahigh degree of efficiency and independent andcomprehensive management of any displayarrangement in a control room.

Uwe Kimmeskamp, head of marketing at thecompany, noted, “Products ‘Made in Germany’stand for high quality and have a goodreputation in the UAE.”

Helmut MauellGmbHSheikh Saeed Hall 2,Stand G19

KNIPEX Tools Middle East FZE is a 130-year-old German brand specialising inpliers. The company produces more than1,400 different types of pliers, with60,000 manufactured daily at its factoryin Wuppertal.

Active in the Middle East for almost fourdecades, KNIPEX offers a large range ofVDE tools, with a large market share in theAmericas and the Far East. The companyis now keen to penetrate the power andelectricity sector in the Middle East.

Eckhard Schirm, general manager of thecompany, said, “In April 2012, we openedour own regional office in JAFZA to takecare of the Middle East, Levant, Africa andthe markets in the Indian sub-continent.We have professionals based here inDubai to quickly react and providesolutions to the needs of the market.”

KNIPEX last year launched more than 10new types of pliers at the Cologne Fair,with one of the new pliers, the TWIN-FORCE, winning several awards sincethen. These and other new products willbe showcased at the exhibition.

“We are confident in making Knipex thenumber one pliers brand in the MiddleEast,” Schirm added.

KNIPEX ToolsMiddle East FZESheikh Saeed Hall 1,Stand C18

Located in Hall 1 of the Dubai International Exhibition and Conference Centre, the Germany Pavilion willbe showcasing a selection of power solutions from the country during Middle East Electricity. As a GERMAN BASED GROUP, we are a leading

designer, manufacturer and supplier of cables, wires and accessories for all industrial applications. We have subsidiary companies in Europe, USA, Africa and in the Far East.We would like to expand our business in the Middle East and seeking for a

Regional Sales Manager

who can build up and manage a HELUKABEL representation office (preferably in the UAE).

The ideal candidate have the following profile:

- Qualification in electromechanical engineering- Project Business experienced- Several years of sales experience in cable business- Conducting technical seminars- Good communication skills and cost – conscious- Able to travel throughout the Middle East in order to build up a customer base.

We offer a complete training package at ourheadquarters in Germany. If you are interested in working for an expansive GERMAN company please respond by e-mail to:

or apply directly on the Middle East Electricity Fair Stand- No. S1C10.

[email protected]

®HELUKABEL GmbH

Dieselstr. 8-12 71282 HemmingenGermany

. Headquarters. . www.helukabel.de

S03 MEE 2013 Day 1_Layout 1 26/02/2013 12:39

Real gross domestic product (GDP)amongst the region’s oil exportingnations grew by 6.6 per cent last year,

up from 3.9 per cent in 2011, according tothe International Monetary Fund (IMF). Thiscontrasted with anaemic growth ratesamong oil importers in the Middle East andNorth Africa (MENA) region, averaging just2.1 per cent.

The combination of four factors haveunderpinned buoyant growth, namely thehydrocarbons sector, expansionary fiscalpolicy with significant ‘multiplier effects’ onthe non-oil private sector, growingdomestic consumption and supportivebank lending to private businesses. Theprospects for 2013, however, depend onglobal developments and geopolitical

conditions, as well as brisk growth inemerging market’s energy demand and oilprice trends.

GDP growth among MENA oil exportersis forecast to return to 2011 growth ratesof almost four per cent during 2013.Economic growth in the six-member GulfCooperation Council (GCC) bloc –endowed with one-third of the globe’s

proved oil reserves, the equivalent of495bn barrels - is expected to slow from7.5 per cent in 2011 to 3.7 per cent thisyear, largely due to a tapering off of oilproduction, especially in Saudi Arabia,Kuwait and Qatar. Concurrently, oil GDPgrowth may turn negative in 2013, afterrising by 2.6 and 1.3 per cent respectivelyover the previous two years, based onestimates from the IMF.

In Iran, crude production fell heavily thanksto stringent US sanctions, plus the EU oilembargo, which took effect in July 2012 andpushed the country into a technicalrecession. Meanwhile, Libya staged animpressive post-conflict recovery, with 2012output reaching almost 1.5mn barrels perday (bpd), up steeply from 500,000 bpd in2011. But expanding production beyond itspre-crisis capacity of 1.8m bpd requiresmajor investments in new fielddevelopment, reservoir management,drilling, and enhanced oil recovery (EOR)techniques, pressure maintenance


Feature

Oil exporters to weather difficult financial conditions

Despite a generally sluggish global environment, theoil exporters – led by Iraq, Kuwait, Libya, Qatar andSaudi Arabia – experienced continued economicgrowth in 2012 and the outlook for 2013 is alsopositive, writes Moin Siddiqi.

MACRO-FINANCIAL INDICATORS ON THE MIDDLE EAST & NORTH AFRICA OIL-EXPORTERS

Nominal GDP Real GDP Non-Oil GDP Fiscal Balance Breakeven Total Exports Total Imports Current Account Breakeven Official Reserves

US$ bn Annual % chg Annual % chg % of GDP Oil price $/bbl * US$ bn US$ bn US$ bn Oil price $/bbl ** US$ bn /

2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013

ALGERIA 206.5 214.4 2.6 3.4 5.0 4.8 -3.9 -1.3 117.9 99.5 76.0 75.5 61.0 59.0 12.9 13.1 74.4 71.6 196.4 211.4

BAHRAIN 26.5 27.7 2.0 2.8 1.9 1.9 -3.9 -3.6 118.2 111.4 22.9 23.3 14.8 14.6 2.6 2.9 70.4 66.0 5.0 5.3

IRAN 483.8 514.8 -0.9 0.8 1.1 1.3 -2.9 -3.9 134.0 150.0 101.9 93.1 85.5 86.3 16.5 6.9 80.0 92.0 89.2 84.6

IRAQ 130.6 154.3 10.2 14.7 5.5 5.5 -1.9 3.7 112.0 94.1 93.6 113.9 85.6 99.8 0.3 9.3 89.5 83.8 67.7 73.6

KUWAIT 174.6 175.2 6.3 1.9 5.1 5.3 30.2 26.4 49.0 56.4 124.2 120.2 43.1 46.8 77.0 68.7 23.9 33.4 26.2 28.5

LIBYA 85.1 97.6 122.0 16.7 30.0 25.0 19.4 7.7 88.5 98.8 58.6 60.4 38.0 47.8 18.6 10.0 77.0 88.0 121.4 125.4

OMAN 80.0 82.9 5.0 3.9 5.9 5.5 7.1 5.8 81.3 83.3 52.5 53.7 31.7 35.3 11.2 8.3 80.3 87.3 15.1 16.6

QATAR 184.6 190.9 6.3 4.9 9.0 9.0 9.6 8.5 40.4 68.0 119.1 119.0 49.4 53.2 54.6 51.1 54.3 58.0 28.7 32.0

SAUDI ARABIA657.0 682.6 6.0 4.2 6.5 5.6 16.6 11.2 74.4 85.2 409.4 404.2 217.5 228.7 171.3 155.1 57.2 61.2 699.3 848.2

UAE 361.9 374.9 4.0 2.6 3.3 3.5 7.5 7.5 79.0 77.5 312.7 330.0 267.0 279.1 33.6 37.9 72.4 67.3 40.8 43.6

YEMEN 36.4 41.3 -1.9 4.1 -1.6 3.0 -5.7 -6.0 237.0 10.1 10.9 13.2 12.6 -1.0 -1.7 218.0 4.1 3.6

Total 2,427.0 2,556.7 6.5 3.8 4.8 4.7 6.1 4.4 1,381.0 1,404.1 9.6.7 963.2 397.6 361.8 1,293.9 1,472.8

* The oil price at which the fiscal balance is zero. ** The oil price at which the current account balance is zero. / Excludes overseas assets of sovereign wealth funds in Kuwait, Qatar and the UAE.Sources: Data provided by National authorities and IMF estimates and projections.

S04 MEE 2013 Day 1 Version1_Layout 1 26/02/2013 12:41


Feature

technology and stream injecting, as well astransformers/ transmission equipment.Libyan officials estimated that the civil warleft between 10-15 per cent of related oilinfrastructure damaged.

In non-oil sectors, public-privateinvestments coupled with sustained lowinterest rates in the Gulf are expected tounderpin economic growth at a healthypace of five per cent in 2013, despite tepidgrowth in Bahrain and Iran due to politicalunrest and declining foreign directinvestment (FDI) inflows. However, non-oilGDP growth rates are unlikely to matchthose observed before 2008, reflectingdifficult global trading conditions.Moreover, increased sovereign riskpremiums could hike borrowing costs forsome oil exporters, notably Iran and Libya.

Downside risksThe price of oil is expected to remainabove US$100 per barrel; concurrently,the oil exporters’ combined currentaccount surplus for 2013 is anticipated tobe about US$362bn, albeit below itshistoric high of US$419bn in 2011. Theresultant balance of payments surplus –equivalent to 14 per cent of 2013’s GDP –

is projected to increase gross officialreserves by a further US$179bn after netfinancial outflows to sovereign wealthfunds (SWFs) and other destinations.

Several factors could underpin a benigngrowth scenario for the region’s oilexporters. The most immediate risk is asharp recession in Europe, coupled with afinancial slowdown in East Asia (notablyChina) and the US, thus leading todepleted energy usage and lower crudeprices. Although most countries haveaccumulated large official reserves towithstand short-term price volatility, a 10per cent fall in oil prices would reduceexporters’ combined current accountsurplus by about US$150bn.

Analysts at the IMF warn that “stepped-up spending has increased thevulnerability to oil price declines in caseof further deterioration in the globaleconomy”. Swelling oil revenues havefuelled an investment boom in the Gulfand oil-producing North Africa and atcurrent projected oil prices and levels ofproduction, revenue gains should morethan offset higher levels of publicspending in these countries.

Strong regional consumptionThe MENA region is, of course, both amajor consumer and producer of naturalgas. Although the region possesses two-fifths of global proved gas reserves, mostof the natural gas produced in this regionis also consumed there. Regional gasusage is predicted to grow by three percent per year on average during 2011–17.Middle East gas production growth is,however, slowing. Any increase in outputis now directed largely towards meetingincremental domestic demand – mainly inAlgeria, Egypt, Qatar, and Saudi Arabia,but not towards generating additionalexports revenues – in terms of piped gasor liquefied natural gas (LNG) and otherderivative products.

While crude oil export volumes in 2012were about the same level as in 2007,natural gas exports have surged markedly,chiefly in Qatar. On aggregate for MENAhydrocarbon exporters, natural gas exportvolumes comprise about one-fifth ofhydrocarbon exports, but exceed crude oilexport volumes in Algeria, Qatar andYemen. Despite declining gas prices insome international markets, MENAhydrocarbon exporters have benefitedfrom selling gas at long-term contractedvalues indexed to oil prices.

About one-third of global retail gasconsumption is priced on a spot basis,

whilst one-fifth is indexed to crude oil, 40per cent is subject to direct priceregulation, and the remainder is soldlocally at subsidised prices. Wholesalecontracts on Asian and European markets,which are critical for many MENA gasexporters, are mostly indexed to crudeprices. Consequently, gas exporters havebenefited from strong oil prices.Furthermore, the long-term nature ofsome of these contracts insulates gasprices from short-term oil price volatility,though very large or sustained falls incrude prices could also trigger declines ingas prices.

Challenges“Looking ahead, the main issue facingMiddle East oil exporters is how to takeadvantage of their current positiveposition to strengthen their resilienceagainst oil price declines and diversifytheir economies to boost private-sectorjob creation,” said Masood Ahmed,director of the IMF’s Middle East andCentral Asia Department. “Fiscal policycould gradually shift to bolstering nationalsavings, and countries could ease the paceof government spending, especially onexpenditures that are hard to reverse, likepublic-sector hiring.”

Over the next decade, both oil and non-oil countries face daunting challenges ofcreating 40mn jobs for their youth with anestimated 10.7mn new entrants projectedto join the labour market.

With nearly one in five people betweenthe ages of 15 and 24, the region has oneof the youngest populations in the world.Caroline Freund, MENA chief economist,noted that the employment responsemust be well above average to employboth current and future jobseekers.

Policymakers are increasingly relyingupon the private sector to address chronicjoblessness. Qatari Economic/FinanceMinister Youself Kamal explained: “We seethe private sector as the main driver forfuture growth and the key to realising theregion’s potential for robust and sustainedjob creation, technological innovation,and regional economic integration thatare urgently needed.” But for this tohappen, the region needs to foster anenabling environment that promotes bothcompetition and innovation.

Excluding Saudi Arabia and the UAE,almost all MENA oil exporters rankexceptionally low in the World Bank’s ‘Easeof Doing Business’ ratings. For example, ofthe 185 countries surveyed during 2012,Iraq, Algeria and Iran were ranked 165, 152

and 145 respectively. Regulators urgentlyneed to simplify procedures for businessstart-ups, registering property, accesspermits, enforcing contracts and hiringworkers. The oil exporters should alsoreduce restrictions on international tradein services, which hinders competitionand access to basic services, particularly inIran where local firms provide costly andpoor services, like telecoms and financials,to the general public.

Investments in human resources andbusiness eco-system, such as skills,vocational training, funding start-ups andsmall-medium sized enterprises (SMEs), inthe form of seed finance, and venturecapital, will help make the non-oileconomy more productive and vibrant.Improving the efficiency of banks, andexternal linkages for firms to expand andflourish will also be key. This can beachieved through strengthening businessincubation services and nurturing SMEs invalue-adding technology and innovativeindustries. The IMF stressed, “reforms ofthe labour markets, educational systems,the business environment, andgovernance, will help leverage the manyassets of the region to achieve highergrowth rates and employment over themedium and long term.”

The MENA is a region critical to globalenergy security for the foreseeable future.Vast hydrocarbon-related investmentswill flow into oil exporting countries,which in turn, should benefit the widerregional economy.

Table 2: Hydrocarbons Data on MENA Producers

Oil GDP growth Oil output * Proven Oil R/P Natgas output Proved R/P(Annual % chg) Mn bpd reserves / ratio# Bn cubic metres Bn cubic metres ratio#

2012 2013 2012 2013 End-2011 2011 2010 2011 End-2011 2011ALGERIA -1.6 0.7 1.27 1.28 12.2 19.3 80.4 78.0 159.1 57.7

IRAN -22.2 -6.5 2.81 2.63 151.2 95.8 146.2 151.8 1,168.6 100+

IRAQ 13.1 20.0 3.00 3.60 143.1 100+ 1.3 1.9 126.7 100+

KUWAIT 8.4 -3.4 2.90 2.80 101.5 97.0 11.7 13.0 63.0 100+

LIBYA 200.4 13.6 1.48 1.68 47.1 100+ 16.8 4.1 52.8 100+

OMAN 3.2 0.9 0.91 0.92 5.5 17.0 27.1 26.5 33.5 35.8

QATAR 2.9 -0.3 0.74 0.71 24.7 39.3 116.7 146.8 884.5 100+

SAUDI ARABIA 4.5 0.0 10.05 10.05 265.4 65.2 87.7 99.2 287.8 82.1

UAE 5.3 1.0 2.69 2.71 97.8 80.7 51.3 51.7 215.1 100+

YEMEN -4.8 14.0 0.18 0.23 2.7 32.0 6.2 9.4 16.9 50.7

Regional Total 1.3 -0.2 26.23 26.82 851.2 78.7 545.4 582.4 3,008.0 100+MENA (%) World 31.0 51.5 17.1 18.0 41.0 63.6

* Including condensates and natural gas liquid (NGL). / Billions of barrels.# Reserves-to-Production ratio (calculated in terms of years). // Trillion cubic feet.

Sources: IMF estimates and projections and BP statistics.

GDP growthamong MENA

oil exporters isforecast toreturn to 2011 rates



Exhibition Map/Conference

Middle East Electricity 2013Facility Overview

17 - 19 February 2013 | Dubai World Trade Centre

9.30am -10.50am Registration

10.50am – 11.10am Chairman's Opening Remarks

Keynote: The Future of Solar Energy in the Middle East

Jigar Shah, Partner, Inerjys

Solar Policy Update for the GCC and MENA Region11.10am – 11.25am The Importance of an Apt Legal Policy for the Establishment & Maintenance of a

Solar Market

Martin Mock, Managing Director, Belectric Middle East

11.25am – 11.40am The Existing Legal Policies for Renewables in the Gulf/MENA Region

Martin Preston, Partner, Norton Rose (Middle East)

11.40am – 11.55am The Do's and The Don'ts: Lessons Learnt

Cristiano Spillati, Regional Manager Middle East, SkyPower

11:55am – 12:10pm Exploring Current Policies: Which Policy would "Work" in the MENA Region?

Dr. Michael Krämer, Senior Associate, Taylor Wessing

12.10pm – 1.00pm Panel Discussion: The Legal and Policy Track for the Solar Industry

The aim of this panel discussion is to discuss how an incentive scheme for the UnitedArab Emirates (and/or other countries in the region) can be structured in order to serveas a proper basis for a solar market to develop. Incentive schemed have worked well insome countries and failed in others. There are lessons to be learned. Drawing from thisexperience, the aim of the panel discussion will be to shed some light on how anincentive scheme for the United Arab Emirates should be structured in order for it to‘work’ effectively.

Moderator: Dr. Michael Krämer, Senior Associate, Taylor Wessing

Panelists:Nimer AbuAli, Executive Manager – Clean Tech, Ernst & Young Abu Dhabi


Cristiano Spillati, Regional Manager Middle East, SkyPower

Martin Mock, Managing Director, Belectric Middle East

Martin Preston, Partner, Norton Rose (Middle East)

1.00pm - 2.30pm Lunch and Networking Opportunities

Solar Standards for the GCC and MENA Region2.30pm – 2.45pm Performance, Reliability, Testing & Certification of Solar Planels

This presentation will focus on the latest developments in performance, reliability,testing and certification of solar panels, best practices and provide recommendationsfor moving forward to enable the countries of the Middle East to attract investments inthe solar energy field.

Rajnikath Umakanthan, Business Development Manager, Underwriters Laboratory (UL)

2.45pm – 3.00pm Developing Solutions for the Environmental Challenges to Deploying PV Plants inDesert Areas

This presentation will focus on the latest developments in research and development,unique climate and environmental conditions for testing of solar panels, best practicesand provide recommendations for moving forward to enable the countries of theMiddle East to attract investments in the solar energy field.

Dr. Raed Bkayrat, Manager Technology and Advancement Group (TAAG), KAUST

3.00pm – 3.15pm Standards, Conformity Assessment & Certification Schemes for Solar Panels

This presentation will focus on the latest developments in standards, conformity assessmentand certification schemes for solar panels, best practices and provide recommendations formoving forward to enable the countries of the Middle East to attract investments in the solarenergy field.

Abdulaziz Saleh Al-Showair, Senior Standards Researcher, GCC Standardisation Organisa-tion (GSO)

3.15pm - 3.30pm Metrology & Calibration for Solar Systems

This presentation will focus on the latest developments in Metrology and calibrationfor solar systems, best practices and provide recommendations for moving forward toenable the countries of the Middle East to attract investments in the solar energy field.

Dr. Tamis Ali Khalid Al Hammadi, Director of Laboratories, Deputy Director of Dammambranch, Saudi Standards, Metrology & Quality Organisation (SASO)

3.30pm - 4.30pm Panel Discussion: MENA Solar Energy Quality Infrastructure

This panel will discuss the components of QI: Metrology, Standardisation, Testing andQuality Management including Certification and Accreditation as they pertain to theemerging solar energy industry in the Middle East. These components are essential toproduction and trade, and for the ME countries to enter the global market. Subjectmatter experts have been invited to participate on this panel and address eachcomponent. Panelists will discuss the latest developments in their fields, best practices,and provide recommendations for moving forward to enable the countries of the ME toattract investments in the solar energy field.

Moderator: Khaled Masri, Managing Director, Standards Associates

Panelists:Rajnikath Umakanthan, Business Development Manager, Underwriters Laboratory (UL)

Dr. Raed Bkayrat, Manager Technology and Advancement Group (TAAG), KAUST

Dr. Tamis Ali Khalid Al Hammadi, Director of Laboratories, Deputy Director of Dammambranch, Saudi Standards, Metrology & Quality Organisation (SASO)


Abdulaziz Saleh Al-Showair, Senior Standards Researcher, GCC StandardisationOrganisation (GSO)

12.10pm – 1.00pm Close of Conference

SUNDAY 17TH FEBRUARY



Photo Gallery

The MEEGalleryAs day one of Middle East Electricity2013 gets underway, we take a lookback at some of the images from lastyear's successful exhibition andawards evening.

Above: His Excellency Dr. RashidAhmed Bin Fahad, UAE Minister ofEnvironment and Water, opening lastyear's MEE.

Right: Guests at the Middle East Elec-tricity Awards 2012 Gala Dinner awaitthe names of the winning nominees.

Bottom Left: Exhibitor stands at lastyear's event.

Bottom Right: Exhibitors and visitorsat MEE 2012 meet with His ExcellencyDr. Rashid Ahmed Bin Fahad during hiswalkthrough of the show.


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Middle East Electricity 2013 Day 1

Documents

Transcript of Middle East Electricity 2013 Day 1