NOMAC

2nd Annual Power & Desalination Summit – Riyadh

Case Study: Private Sector Participation in the

Solar Power O&M Industry

Riyadh – March 18, 2013


• NOMAC is an ACWA Power subsidiary established in 2005.

• NOMAC is dedicated to the safe and efficient operation of power and desalinization

plants in order to deliver exceptional performance and outstanding results.

• Currently NOMAC has full operational responsibility for seven mega projects: Rabigh

IPP, Shuaibah IWPP, Shuaibah Expansion IWP, Shuqaiq IWPP, Qurayyah IPP, Barka 1

IWPP and participates in the Marafiq Jubail IWPP.

• Additionally, NOMAC is fully responsible for the operation and maintenance of two,

barge-mounted, self-supporting desalination plants, which are currently located at

Yanbu, Saudi Arabia.

• NOMAC also provides for the turnkey operation of renewable projects and is currently

operating a 60 MW photovoltaic utility scale generation facility

• In total, NOMAC is responsible for the operation of a portfolio of 10,137 MW of power

generation and 2.2 million cubic meters per day of desalinated water production.

NOMAC – An Independent Arabian O&M Company


Consistent portfolio growth NOMAC formed in time with

the launch of KSA’s privatisation program for

water & power sector

2005

Successfully bid for O&M of Shuaibah IWPP

in just the first 6 months of opérations

2006

Succesfull offers for for O&M of Marafiq IWPP followed by

Shuqaiq IWPP

2007

Bowarege achieves PCOD

Shuaibah Expansion IWP is added to the

O&M portfolio

2008

Successfully bid for O&M of Rabigh IPP

2009

Signed O&M agreement for 3927 MW -Qurayyah IPP

2011

NOMAC Oman assumes

operation of Barka 1 IWPP

2010

SunE NOMAC starts solar operation in

Bulgaria

2012


NOMAC Today A formidable competitor in the Power and Water O&M Sector

Project Name

Project Cost

(in MUSD)

Contracted Power

(in MW)

Contracted

Water (in 000’

m3/day)

Contract Type PCOD

Shuaibah IWPP 2,450 900 880 20 YR 1Q 2010

Shuqaiq IWPP 1,831 850 212 20 YR 2Q 2011

Marafiq Jubail

IWPP 3,359 2,744 800 20 YR 4Q 2010

Shuaibah

Expansion IWP 233 - 150 20 YR 4Q 2009

Rabigh IPP 2,506 1,204 - 20 YR 2Q 2013

Bowarege 99 - 52 3 YR 2Q 2008

Barka 1 IWPP 415 442 91 15 YR 1Q 2003

Qurayyah IPP 2,846 3,927 - 20 YR 2Q 2014

Karadzhalovo IPP 180 60 - 20 YR 2Q 2014

Total 13,919 10,127 2,216


2004 2017-2018

A Saudi Arabian Company Expanding Overseas


Our approach to renewable energy is no different to that for fossil fuel based production

• Relentless focus on achieving the lowest cost at that given time

Using Photo Voltaic Technology:

• We own and operate a 60MW PV plant in Bulgaria ;and

• Have submitted a tender for a 100MW PV at Makkah

Using Concentrated Solar Power (CSP ) technology:

• We are in financing in South Africa on a 50MW plant (SolAfrica)

• We are in financing in Morocco of a 160MW plant (Ouarzazate)

Our Involvement in Renewable Energy The KSA solar opportunity constitutes a very large capacity commitment

• 44,000 MW in 20 years

• 18,000 MW photovoltaic

• 26,000 MW concentrated solar

Introduction of solar generation will permanently transform existing assumptions regarding the

future composition of the generation fleet in the KSA

• Participation of thermal generators is likely to flatten-out and remain constant in medium and

long term


Karadzhalovo PV IPP

• The Solar PV Plant located in Karadzhalovo, Bulgaria is

rated at a capacity of 60MWp and expected to produce

81,000 MWh per annum

• It has been operating since March 2012 and dispatching

electricity to the Bulgarian power grid vide an off-take

arrangement for a 20 year term on a Feed in Tariff

framework with the state-owned Natsionalna

Elektricheska Kompania

• The plant operation and maintenance activities by

NOMAC and Sun Edison with equal shares of ownership.

The plant is expected to avoid approximately 48,600

tonnes of CO2 emissions per annum

Location Karadzhalovo, Bulgaria

Offtaker Natsionalna Elektricheska

Kompania (National Electric

Company)

Power 60 MWp

Configuration Solar Photo-Voltaic (PV)

Project Cost SAR 652 Mn, USD 174 Mn

Commercial

Operational Date

Q1 2012

Acquisition Date July 2012

ACWA Power

Share

42%

Contract Type &

Term

PPA-BOO 20 years

Operator SunE NOMAC


Ouarzazate CSP IPP 8

• The 160 MW Ouarzazate CSP Project is a greenfield

Independent Power Project (IPP) developed for the

Moroccan Agency for Solar Energy (MASEN) located

approximately 200 KM south of Marrakesh.

• On 19 November 2012, the Moroccan Agency for Solar

Energy (MASEN) and the consortium, led by ACWA

Power, signed the Power Purchase Agreement for the

value of USD 1 Billion, for the sale of the net electricity

output of the Ouarzazate CSP Independent Power

Project

• The project will be operated by NOMAC under a 25

year O&M agreement

Location Ouarzazate, Agadir district,

Morocco

Offtaker Moroccan Agency for Solar

Energy (“MASEN”)

Power 160 Mwe (and 3 hours of

Thermal Energy Storage)

Configuration Concentrated Solar Power

using parabolic troughs and

molten salt Thermal Energy

Storage

Project Cost SAR 3,083 Mn, USD 822

Mn

Commercial

Operational Date

Q2 2015 (forecast)

Contract Type &

Term

PPA-BOOT 25 years

Operator NOMAC, with EPC

Contractor oversight for the

first 3 years after

construction


Bokpoort CSP IPP

• The BOKPOORT CSP project in Northern Cape

Province, 600 km west of Johannesburg in the Republic

of South Africa is a CSP Greenfield Independent Power

Project

• The project will be equipped with the largest thermal

storage size ever adopted for a similar operational size

and is among the most efficient solar plants in the world

operating in this class of capacity and technology

yielding a record high generation in excess of 200

GWh/year to support the power grid of South Africa.

• On May 21 2012, A consortium led by ACWA Power

International (ACWA Power), was announced as

preferred bidder

• NOMAC will operate the CSP project under a 20 year

O&M Agreement

Location Northern Cape Province,

South Africa

Offtaker Eskom Holdings SOC Ltd

Power 50 MW (net)

Configuration CSP Parabolic trough with

approx. 9 hours storage.

Project Cost SAR 2,1303 Mn, USD 568

Mn

Commercial

Operational Date

Q3 2015 (forecast)

Contract Type &

Term

PPA-BOO 20 years

Operator NOMAC (vide a

management contract with

the O&M Co.)


Training of Saudi Arabian Solar power Operators

• Development of national work force ensures long term sustainability.

• NOMAC is a founder of the Higher institute for Water and Power Training in the KSA.

• Blessed by King Abdullah in January 2009.

• A non-profit, industry focused, high-tech institute.

• Training of Saudi Arabian staff starts 2 years ahead of PCOD date and continues on an

annual basis for the life of the project.

• NOMAC has started a 2 year associate

program certified by TVTC to graduate Saudi

Arabian photovoltaic and CSP operators

• Student recruited from the area and are fully

sponsored by NOMAC


Desal water demand (million cu M/Day)

5.5

7.0

9.0

11.0

0

2

4

6

8

10

12

2000 2010 2020 2030

Sector Size & Growth Prospects • Solar will constitute 35% of the installed capacity in the KSA

• Capacity expansion plans must be revised in order to properly asses system needs and

effectively target business opportunities

Power demand (GW)

21

43

85

120

0

20

40

60

80

100

120

140

2000 2010 2020 2030

Doubled

Will double


12

Technology Based on the photo electric effect,

using solar irradiation to generate a

direct current

Based on the conventional Rankin

steam cycle, thru heating a fluid by

concentrating direct solar irradiation and

then generating steam which is out thru

a conventional steam turbine

Differences As electrons are mainly produced,

storage via battery only.

As steam is mainly produced, storage

via media such as salt

Solar Project Technology Options

• Current commercially viable technology includes photovoltaic and

concentrated solar


Solar Project Technology Considerations

• Photovoltaic (PV) technology is well demonstrated and provides simplicity of

operation

• Utilization factors can reach 25%

• 30MW per square kilometer

• Cost of PV panels continues to drop making project economics very competitive

• Concentrated solar power (CSP) provides for energy storage capabilities to

allow targeting the peak after sunset

• Utilization factor can reach 40% with large storage

• 40 MW per square kilometer

• CSP present unique O&M requirements

• Solar field management

• High temperature oil collector systems

• Salt storage systems

• Maintenance requirements for steam

turbines, and balance of plant


PV installation, historical and forecast, 2007-2015

Source: Bloomberg New Energy Finance

2.8GW6.6GW

7.7GW

18.2GW

28.7GW 30.4GW

35.7GW

44.3GW

51.5GW

2007 2008 2009 2010 2011 2012 2013 2014 2015Western Europe Eastern Europe Japan USA

China India Rest of World

Historical Forecast


Global Solar PV Energy Trends

Source: K.A.CARE – 4th Saudi Solar Forum 2012


• It must be noted that PV makes

use of the Global Horizontal

Irradiation (GHI) defined as: the

total solar irradiance falling on a

horizontal plane on Earth (which

includes diffused and indirect

irradiation)

• Saudi Arabia has one of the

highest potentials for PV in the

world.

• PV is highly economical across

North Africa, South Africa and

Turkey.

Potential of PV in Saudi Arabia


• CSP only makes use of the Direct

Normal Irradiation which is: is the

solar irradiance measured at a

given location on Earth with a

surface element perpendicular to

the Sun's rays, excluding diffuse

insolation (the solar radiation that

is scattered or reflected by

atmospheric components in the

sky)

• A DNI higher than 2,400

KWh/m2/year

• High dust and humidity in the GCC

region implies CSP is most

economical in limited areas of the

GCC specifically North West Saudi

Arabia

Potential of CSP in Saudi Arabia


25,000 MW 50 % of maximum load

2,500 MW used for less than 100 hours/ year!!!

Annual Peak Load in the KSA - 2012

MW


2300

2400

2500

2600

2700

2800

2900

3000

3100

0:3

0

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Production time - CSP Production time - PV

• Daily Load Curve for Makkah – 2012 Load Pattern • Solar PV can fill 300 MW peak block

Solar and Load Curve Patters - Makkah


0

500

1000

1500

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2500

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3500

4000

4500

First Utility Scale Solar Power in Saudi Arabia

0

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Ba

rre

l /

da

y

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ion

Ba

rre

l /

ye

ar

On 5th January, 2013, the First Utility Scale Solar Power IPP Tender

in the Kingdom of Saudi Arabia was submitted

The IPP tender – 100 MW PV to the Municipality of Makkah

ACWA Power/NOMAC proposal: at 12 US cents/KWh


• Over the life of the solar plant the O&M constitutes 30% of the cost

• Our experience is that on the first project itself >40% of the EPC value and up to

90% of the O&M can be delivered more cost effectively from local content

• Challenging availability requirements…PV asset owners require 99%

performance versus expected electricity generation at inverter level

• Robust Information Technology and Data Analysis capabilities are fundamental

and provide clear competitive advantages • Performance monitoring and reporting system

• Remote on-line data gathering, analysis and diagnostics provides for immediate

identification of availability or efficiency losses on individual panel strings

• Immediate dispatch of local maintenance crews

• Challenges include panel cleaning frequency and water consumption • Fully automated robotic cleaners and pressured water solutions provide alternatives

for dry and dusty locations

Solar Project O&M Considerations


O&M Services Scope as Part of Turnkey Contract • O&M contractor assumes responsibility for all aspects of the operation and maintenance

of the facility:

• Labor and third party contractors

• Chemicals

• All consumables including CSP high temperature fluid and salt

• PV Spares including PV modules, inverters and transformers

• CSP spares such a mirrors, collectors, steam turbine parts

• Cleaning robots and equipment

• Preventive and predictive maintenance

• Corrective maintenance

• Major overhauls

• Services

• Training

• Environmental Health and safety

• Plant performance reviews and optimization

• Compliance with the local requirements for localization and training


Renewable Projects and Desalinization Options • Concentrated solar is well suited to be paired with desalinization


The Way Forward – Solar Desalinztion

• Concentrated solar is well suited to be paired with desalinization on an

integrated basis • Solar boiler

• Thermal desalination

• Improving RO efficiencies and likelihood for decreasing membrane costs

provide compelling case for solar powered RO projects • Maximize solar plant utilization factor by choosing optimum sites based on solar

intensity

• Deliver power to RO site using transmission lines

• Water tanks may serve as energy storage devices under certain scenarios

• Optimum solution is the one which delivers the lowest power and water tariff to

the off taker

• Introduction of solar power results in a parading shift in the power and water

generation industry in the KSA

Thank You

for Your

Attention 25

Julio Torre Gutierrez

Chief Executive Officer

[email protected]

NOMAC

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