GCC is shifting to renewable energy through green projects

Efforts around the world to reduce carbon emissions are expected to increase demand for renewable energy, which is predicted to rise by 45 percent worldwide by 2040. According to the IRENA data from 2019, however, renewable energy sources account for only 0.6% of GCC's total electricity generation.

As countries in the Middle East work to boost the proportion of renewables in their energy mix, the region is well on its way to becoming one of the world's most important Renewable Energy hubs. The first semester of 2021 saw no contracts for oil-powered or gas-fueled power stations in the Middle East and North Africa region, as reported by Middle East Energy Transition. During the same time period, about USD $2.8 billion was spent on contracts for renewable energy projects in the area.

Since the GCC states realised the environmental effects of climate change and rising global temperatures, they have been investing extensively in cutting-edge renewable energy technologies. Consistent with the worldwide shift toward renewable energy sources, many large-scale projects have been implemented in the region. For example, in 2017, the United Arab Emirates (UAE) implanted the Mohammed bin Rashid Al Maktoum Solar Park, which has a capacity of around 1288 MW, and in 2019, the Kingdom of Saudi Arabia (KSA) completed the Sakaka project to generate 100 MW from Solar power.

More renewable energy projects are not only bringing GCC countries closer to their sustainability target, but are also providing a boost to their economies.

Al Dhafra Solar Project – Abu Dhabi, UAE

A 2 GW photovoltaic (PV) IPP project, the Al Dhafra Solar Project will be situated in the United Arab Emirates, roughly 35 km south of Abu Dhabi (UAE). Public-private partnerships (PPPs) allow the government-owned energy providers in Abu Dhabi, Abu Dhabi National Energy Company (TAQA) and Masdar, to own 60% of the project. The remaining 40% is held by EDF Renewables of France and Jinko Power of China. In July 2020, the aforementioned four companies formed a consortium with Emirates Water and Electricity Company (EWEC) to execute a power purchase agreement (PPA) for 30 years. The project is planned to be fully operational by the year 2022, and more than 4,000 people would be employed throughout the building phase. When fully functional, the plant is estimated to cut annual CO2 emissions by more than 2.4 million tonnes (equivalent to removing approximately 470,000 cars off the road). Solar photovoltaic (PV) modules based on crystalline, bifacial module technology, which captures sunlight from both sides to maximise yield, will be used for the panels to be placed. This effort is a component of the United Arab Emirates' Energy Strategy 2050, which has set a goal of doubling the share of renewables in the country's entire energy mix by that year. ​

"Abu Dhabi has exhibited a tremendous step-change in the way the Emirate generates power through an improved focus on sustainability and renewable technology," stated Jasim Husain Thabet, CEO and Managing Director of ADPower. The goal of Abu Dhabi is to have 50% of its energy needs met by renewable and clean energy sources by 2030, and the average carbon intensity of the generation system is expected to decrease by more than 70% from 2015 levels. We look forward to working with our partners to deliver the Al Dhafra Solar PV project, which will play a crucial role in realising these goals.

The CEO of EWEC, Othman Al Ali, has claimed that the Al Dhafra Solar PV project is a turning point in the company's ambitious and strategic move toward clean electricity generation in the Emirate. The cost-competitiveness of the proposals submitted is truly extraordinary, putting Abu Dhabi as one of the world’s most attractive locations for solar energy production and underscoring the economic benefits presently available through renewable technologies. It is critical to the growth of all sectors in the UAE economy that we are able to secure such competitive pricing on our energy projects. We plan to have the Power Purchase Agreement signed and the project completed by the end of the second quarter of 2022.

Noor Energy 1 – Dubai, UAE

With the completion of Noor Energy 1, the Mohammed Bin Rashid Al Maktoum Solar Park will have reached its fourth and final phase. The project has a total capacity of 950 MW and uses a combination of 700 MW of Concentrated Solar Power (CSP) and 250 MW of photovoltaics. The finished project, estimated to cost $3.9 billion, will be the largest CSP plant in the world. ACWA Power, a Saudi Arabian power generation firm, is leading the project's development alongside Shanghai Electric, the Industrial and Commercial Bank of China (ICBC), and Abengoa, a Spanish firm. In September 2017, DEWA, the Dubai Electricity and Water Authority, granted a consortium consisting of ACWA Power and Shanghai Electric a build-operate-transfer (BOT) contract for the CPS project. This agreement includes a 35-year PPA. The contract for the additional 250MW of PV capacity was signed in the month of November, 2018. Dubai's Clean Energy Strategy 2050 calls for 75% of the emirate's energy to come from renewable sources by the year 2050, and the Noor Energy 1 project will help get them there.

Sudair Solar Power Plant – Riyadh, Saudi Arabia

With a projected 1.5GW of total generation capacity, the Sudair Solar Power Plant will be the largest solar photovoltaic (PV) plant in Saudi Arabia and one of the largest in the world. The PV system will use bi-directional panels equipped with tracking technology, as well as a robotic cleaning system. In August of 2021, financial close was reached on the SAR3.4bn ($906m) project led by ACWA Power. Aramco's subsidiary, Saudi Aramco Power Company (SAPCO), along with ACWA (35% each), and Badeel (Water and Electricity Holding Company, bringing the total to 70%), are working together on this project. The Public Investments Fund owns a stake in Badeel (PIF). In April 2021, at the opening ceremony for Saudi Arabia's first utility-scale solar energy project, the 300MW Sakaka solar plant, the Sudair Solar project was announced. The Public Investment Fund's first renewable energy project is planned to generate enough power to supply 185,000 homes and prevent the annual release of almost 2.9 million tonnes of carbon dioxide. A preliminary commissioning of the project is anticipated for the second semester of 2022.

Manah I & II Projects – Manah, Oman

One gigawatt (GW) of solar power will be generated by the Manah I and II Solar Independent Power Projects (IPPs), which are scheduled to become live in the fourth quarter of 2023 and the first quarter of 2024, respectively. Due to the global pandemic and economic downturn, the project's implementation timeline had to be shifted, prompting the announcement. The project, which is being overseen by the Oman Power and Water Procurement Company (OPWP), is expected to cost over RO300 million ($780 million). The corporation received technical bids for the two projects in the beginning of 2021, and the original deadline for commercial offers was the 25th of May 2021. As of right now, OPWP has prequalified nine multinational consortia to take part in the competitive tender for the Manah Solar I and II schemes. Oman's Vision 2040 Implementation Follow-Up Unit released a statement saying, We expect that the Manah 1 and 2 solar projects will help Oman diversify its energy sources and meet its goal of producing 30% of its electricity from renewable sources by 2030. Manah I and II are anticipated to cut GHG emissions by about 680,000 tonnes.

Mohammed bin Rashid Solar Park

As part of its clean energy push, Dubai intends to meet 25% of its energy needs from renewable sources by 2030, and 75% of its needs by 2050. To lessen its dependency on natural gas and diversify its power sources, Dewa is constructing the largest solar energy park in the world. By 2030, the Mohammed bin Rashid Solar Park could attract up to Dh50 billion ($13.6bn) in investment and produce 5,000 Megawatts of power. To carry out the project's fifth phase, Shuaa Energy 3, a company in which Dewa owns 60% and a consortium including Acwa Power and Gulf Investment Corporation own the other 40%, is now in operation.

HE DEWA's managing director and chief executive officer Saeed Mohammed Al Tayer has stated that the Independent Power Producer (IPP) model being used to undertake projects in the Mohammed bin Rashid Al Maktoum Solar Park has attracted international investors and developers. Through this paradigm of public-private partnerships, he said, DEWA has attracted investments of roughly AED 40 billion. For five years in a row, DEWA's Levelised Cost of Energy (LCOE) for solar power was the lowest in the world, setting the bar for solar power pricing around the world.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has stated, "At DEWA, we work in accordance with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum to promote sustainability and innovation and transform into a sustainable green economy. In accordance with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy, this is accomplished by generating all of Dubai's electricity from renewable and sustainable sources by that year.

To realise this goal, our largest project to date has been the Mohammed bin Rashid Al Maktoum Solar Park, the world's largest solar park. By 2030, its capacity is expected to reach 5,000 MW. The solar park's current capacity, generated by photovoltaic solar panels, is 1,527 MW. In addition to future stages to achieve 5,000MW by 2030, DEWA is now executing projects with a combined capacity of 1,333MW using solar photovoltaic and Concentrated Solar Power (CSP). The percentage of clean energy capacity in Dubai's energy mix is estimated to rise to 14% by the end of 2022, said Al Tayer.