Dii Desert Energy

The next phase: “Solar energy beyond large and ultra

competitive tenders and for different applications”

EU GCC Clean Energy Net, Kuwait, 2nd December 2018

2

Desertec Industrial Initiative (Dii) was launched in 2009 as a‘not-for-profit’ entity in Germany for exploring the

potential of renewables in the desert areas of Northern

Africa and the Middle East, improving market conditions

and examining the synergies to be captured through

connecting the European and MENA power markets.

©Dii Desert Energy

3

Dii VisionIncreased competitiveness of renewables shall swiftly lead to economic growth and secure near 100% renewable based power supply without emission or waste.

Our Mission: No Emissions!Towards a fully emission free power supply in MENAT Encourage and support the deployment of utility-scale renewable energy projects and integrating them in the expanding interconnected power systems for greater local and regional benefits.

Dii StrategyConnecting the international industry active in the MENAT region with authorities and institutions. Focus on practical country specific issues of renewable energy projects and grid integration in the region and interconnections across countries leading to tangible and profitable projects and other benefits to the market.

©Dii Desert Energy

Evolutionof Desert Energy inthe MediterraneanD

ev

elo

pm

en

t p

ha

ses

2004 2009 2015Great Idea!

Pre-phase

It works!Conceptphase

First Harvest!Implementationphases

Acceleration!Scale Up phase

▪ Studies on the Desertec

vision byDLR (Deutsche

Luft- und

Raumfahrtzentrum) and

TREC (Trans-

Mediterranean

renewable energy

Cooperation Studies)

▪ Lauching a brilliant

and historic idea!

▪ Mobilising the industry:

Foundationof DiiGmbH

(Munich) in2009

▪ System, country and technology

studies (Desert Power 2050,Desert

Power: Getting Started) by Dii

supported by Dii’s industrial,

research and political network

(e.g. Fraunhofer, CESI,Sonelgaz)

▪ Local adoption of idea

▪ Preparation of servicesfor

implementation phase

▪ Being active locally Dii

presence in Dubai

▪ Identifying and solving

practical hurdles of

wind/solar/grid projects

▪ Integration of renewables

into interconnected grids

▪ Extension of international

industry network ‘Dii

Desert Energy’ and

partnerships

▪ Marketacceleration

towards fully

renewable energy

supply in MENA

▪ Full Market integration

throughout MENA and

connected markets.

Increase of Desert

Power share in energy

mix eventually up to

100%

4© Dii DesertEnergy

Speeding up RE after a period of relative ‘lethargy’

Note: 1) Dii Database holds data on grid-connected RE projects with a capacity above 1MW; MENAT hereby includes Mauritania, Morocco, Algeria, Tunisia, Libya, Egypt, Jordan, Palestine, Syria, Iraq,

Kuwait, Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Oman , Yemen, and Turkey; 2) Not included are projects that have only been announced and projects with unfinished tenders; Status 2015 ,

Source:Dii

Removal of barriers => Acceleration of renewable energy capacity build-up

Build-up of RE capacity in MENAT1

10

0

10

20

30

40

50

60

70C

apac

ity

(GW

)

Year

G ROWTH OF RE IN MENAT

Capacity (GW)2010 2013 2015 2017 2020 - 2022

50-70 GWof Solar & Windcapacity is targeted by MENATcountries

4.5 GW of PV, CSP and

Wind powerare in

operation2013

8.2 GW of PV, CSP and Wind power in

operation2015

13.3 GW of PV, CSPand Wind power in

operation2017

Dii Identified 880 Renewables Projects(Dii Project Database)

©Dii Desert Energy 6

Cost

comparison

of RE and

Fossil

© Dii MENAT

PV / Wind have become competitive:

Aggressive price drops PV and Wind (e.g.

PV from 5.85$ct/KWh in 2015 to

1.918$ct/KWh in 2018!)

Gradual reduction of fossil subsidies

Battery mass production

Ambitious Renewable Energy Targets in

most countries in MENAT

Chinese manufacturers diving into the RE

industry have further led to lower costs

Competitive bidding procedures

0

10

20

30

40

50

60

70

Generation costs ($/MWh)

Global cost comparison of power generation technologies

CSP

PVOn-Shore

Wind

Clean coal

Conv. CCGT

*Based on recently awarded power plant contracts, not considering emission effects 7

Fast Declining Costs of Renewables

New energy world, new Requirements!

Characteristics

• Less predictable, more risky

requires:

• “Fail Fast” mentality

• More decentral and small

• More need for integration

• Capital-light approaches

• Creativity and ability to

connect across markets and

disciplines

• International Co-operation

among fast movers and

open-minded governments

Energy

Industry

©Dii Desert Energy 8

Grid Interconnections MENAT shall be Prepared for

Major RE Developments

©Dii Desert Energy 9

10

Diesel generators are a convenient but expensive & extremely dirty source of off-grid power

Credit: Caterpillar, Aggreko, Byrne, SES websites

11

OIL & GAS

MINING

MANUFACTURING

Enerwhere provides temporary power & cooling on a fully-financed basis

Power supply on a per kWh basis

POWER PURCHASE AGREEMENT (PPA)

Cooling supply on a per room per day basis

COOLING SUPPLY AGREEMENT (CSA)

OUR SERVICES APPLICATIONS

CAMPS CONSTRUCTION

HOSPITALITY

12

Enerwhere’s solar-hybrid systems reduce fuel consumption, cost and emissions

SOLAR-DIESEL HYBRID

Load

6am 12pm 6pm 12am12am

SolarDiesel

Solar system produces power during the day

Diesel generator continuously provides grid stability and backup

Share of power supplied from solar: 30-50%

SOLAR-BATTERY HYBRID

6am 12pm 6pm 12am12am

SolarBattery

discharging

Load

Battery charging

Solar system produces power during the day and charges batteries

Batteries provide power at night; Diesel generator used only rarely

Share of power supplied from solar: up to 100%

13

Our hybrid plants combine the low cost of solar PV with the reliability of conventional diesel generators

Overview of Enerwhere’s solar-diesel hybrid system

14

Enerwhere combines multiple technologies to deliver the lowest cost of temporary / off-grid power & cooling

Data loggers & remote monitoringHigh-efficiency A/C

Battery storageSolar PV

15

For a typical camp, Enerwhere can save 30-50% of diesel fuel / emissions, and offer 10-15% financial savings

Case Study: SSV labor camp, Sir Bani Yas island, Abu Dhabi

600 occupants Kitchen, Laundry, STP Operating 24/7/365

Solar-diesel hybrid plant:• 350 kWp solar• 2 MVA diesel generators (incl. backup)• Enerwhere hybrid manager

16

In winter, most camps can run on >95% solar during the day

0

50

100

150

200

250

300

350

4000

0:0

0

00

:50

01

:40

02

:30

03

:20

04

:10

05

:00

05

:50

06

:40

07

:30

08

:20

09

:10

10

:00

10

:50

11

:40

12

:30

13

:20

14

:10

15

:00

15

:50

16

:40

17

:30

18

:20

19

:10

20

:00

20

:50

21

:40

22

:30

23

:20

kVA

Solar output (kVA) Net DG load Load (kVA)

Load peak: 350 kVA (12:30)

Solar peak: 240 kVA (13:35)

Camps & Villages: Winter load curve

SSV camp, Sir Bani Yas island, Abu Dhabi, 15 February 2016

Daytime loads can be easily covered by

solar

17

In summer, demand from air-conditioning triples, reducing solar share but still providing substantial savings

0

100

200

300

400

500

600

700

800

900

10000

0:0

00

0:4

50

1:2

50

2:0

50

2:5

00

3:3

50

4:1

50

4:5

50

5:3

50

6:1

50

7:0

50

7:5

00

9:0

00

9:5

01

0:5

01

1:4

01

2:3

01

3:1

01

3:5

51

4:4

01

5:2

51

6:4

51

7:3

01

8:1

01

8:5

01

9:3

52

0:2

52

1:1

52

2:1

52

3:0

52

3:5

0

kVA

Solar output (kVA) Net DG load (kVA) Load (kVA)

Solar peak: 263 kVA (13:35)

Load peak: 889 kVA (15:08)

Camps & Villages: Summer load curve

SSV camp, Sir Bani Yas island, Abu Dhabi, 22 July 2016

18

Key benefits of Enerwhere’s solar-hybrid power plants over conventional diesel generators

CLEANER & CHEAPER

Diesel fuel & emission savings of up to 50%

ZERO CAPEX

Fully-financed equipment – no upfront investment from users

TRANSPORTABLE

Fully-containerized for rapid setup & deployment

MODULAR & SCALABLE

25 kW to multi-MW based on a simple “IKEA” principle

PLUG & PLAY

Preconfigured systems for extremely simple on-site installation

RELIABLE 24/7

Through hybridization diesel-generator or battery backup

19

Agenda

Introduction

Off-grid / Utility Business

On-grid / Solar EPC Business

Team & References

20

Enerwhere is a certified solar contractor under DEWA’s Shams Dubai Initiative

Enerwhere installs & maintains the system

Enerwhere guarantees performance Client takes weather risk

Turnkey EPC + O&M

Enerwhere installs & maintains the system during 15-25 year contract

Enerwhere takes weather risk, client only pays for delivered energy

Power Purchase Agreement (PPA)

Manufacturing Warehousing & Logistics

Schools Universities

OUR SERVICES APPLICATIONS

21

Enerwhere’s solar systems offer attractive savings for clients

Illustrative case study for 1 MWp solar rooftop power plant

Type of project : solar rooftop power plant

Solar Capacity: 1,056 kWp

Duration of implementation: Approx. 6 months

Total contract value: ~$1 mln.

Customer benefit: Savings of $200,000 per year (<5 year payback, afterwards free electricity for another 20 years).

22

Track record in Construction, Oil & Gas, Industrial & Islands

Saadiyat Accommodation VillageStaff accommodation5 MVA solar-diesel hybrid plant for an8,000 man labor camp in Abu Dhabi.

Sir Bani Yas Staff VillageStaff accommodation2.2 MVA solar-diesel hybrid plant for a 8,000 manlabor camp on Sir Bani Yas Island, Abu Dhabi.

Sir Bani Yas Senior VillageStaff accommodation1.2 MVA solar-diesel hybrid plantpowering the executive staff camp on SirBani Yas Island, Abu Dhabi.

Buhasa Labor CampStaff accommodation2 MVA solar-diesel hybrid system forKhansaheb camp in the Western regionof Abu Dhabi.

Remote Police & Fire StationStaff accommodation200 kVA solar-diesel hybrid plant for theremote police & fire station on Sir BaniYas Island, Abu Dhabi.

Europe Island Site Office & Worker CampStaff accommodation125kVA solar-diesel hybrid plant for asite office and labor camp on The WorldIslands, Dubai.

23

Track record in Construction, Oil & Gas, Industrial & Islands

Germany Island Visitor CenterConstruction site25 kVA / 48 kWh solar-battery hybridsystem for a construction site on TheWorld Islands, Dubai.

DUGAS/ ENOC Ind. Construction SiteConstruction site175 kVA solar-diesel hybrid system for DUGASindustrial construction site in Jebel Ali port.

Mudon Construction SiteConstruction site320 kVA solar-diesel hybrid system forShapoorji construction site office at Mudon.

Multiplex-Ssangyong ICD Brookfield Place Construction site40 kWp solar-biodiesel-battery hybrid system powering Multiplex-Ssangyong site office in DIFC, Dubai, UAE.

Remraam Const. Site Office & Tower CraneConstruction site350 kVA power supply for a constructionsite office, steel workshop & tower cranein Dubai.

Suhail Al Mazroui Habshan CampStaff accommodation3 MVA Solar-Diesel hybrid system powering a labor camp in Habshan, Abu Dhabi, UAE.

24

Century Mechanical Systems Factory Industry1.5 MVA solar-diesel hybrid system powering CMS’s factory in Al Hamra, Ras al Khaimah, UAE.

Prominent Printing PressIndustry 300 kWp on-grid solar steel roof for industrial printing press company in DIP, Dubai, UAE.

MasterbakerIndustry 1,056 kWp on-grid rooftop plant in National Industries Park (Technopark), Dubai, UAE.

MEIIndustry 205 kWp on-grid rooftop plant powering the metal forming factory in DIP, Dubai, UAE.

Multiplex’ Parson’s HQ Construction site 500 kVA solar hybrid system for Multiplex’ Parson’s HQ construction site, Abu Dhabi, UAE.

Al Shola YardIndustry188 kWp on-grid solar rooftop installation in Dubai

Track record in Construction, Oil & Gas, Industrial & Islands

25

Al Dhafra Concrete Recycling Plant Crushing plant 3 MVA Solar-Diesel hybrid system powering a concrete crushing plant in Al Dhafra, Abu Dhabi, UAE.

ADWEA CISC BuildingOffice building75 kWp ground-mount and trackers in Abu Dhabi, UAE

Amana Head Quarters RooftopOffice building13 kWp rooftop plant - the 6th project to be connected under DEWA’s Shams Dubai rooftop program.

ElcomeOffice building 311 kWp on-grid rooftop plant powering the corporate office in DIP, Dubai, UAE.

Nurai IslandLuxury island resort9 MVA solar-diesel hybrid system spread over three locations on the island in Abu Dhabi.

Mai Dubai Water Bottling Plant & Ghaffat ReservoirIndustry 18 MWp solar rooftop plant in Dubai – the world’s 2nd largest solar rooftop plantUnder construction

Track record in Construction, Oil & Gas, Industrial & Islands

Advisory Board

33© Dii DesertEnergy

Chairman:Frank WoutersDirector of the EU GCC Clean Energy Technology Network

Members:

Members:Prof. Ad van Wijk, Professor, TU Delft, HollandDr. Ahmed Ali Al Ebrahim, CEO, GCCIA, Saudi ArabiaAntonio Iliceto, Energy and Power Transmission Expert & former Terna representative in Dii, ItalyErnst Rauch, Head Climate & Public-Sector Business Development, Munich RE, GermanyFrank Beckers, Head of Project Finance & Advisory Corporate Finance, First Abu Dhabi Bank, UAEHaibin Wan, Deputy Director General of Development Bureau, GEIDCO, ChinaHarry Boyd-Carpenter, Director, Head of Power and Energy Utilities EBRD, UKJamila Matar, Director & Head of Energy Division League, Arab States, EgyptProf. Jochen Kreusel, Market Innovation Manager of Power Grids Division, ABB, GermanyKhalid Rashid Al Zayani, Chairman, Al Baraka Bank, BahrainMichelle Davies, Partner and International Head of Clean Energy and Sustainability, Eversheds, UKDr. Mohamed El Sobki, former NREA Chairman, EgyptObaid Amrane, Board Member, Masen MoroccoPaddy Padmanathan, CEO, ACWA Power, Saudi ArabiaReda El Chaar, Executive Chairman, Access, UAERory O’Neill, Executive Chairman, Europagrid, IrelandSami Al Angari, President, Al Gihaz, Saudi ArabiaSelahattin Hakman, Member of the Board of Garanti Koza, former Chairman Enerjisa, TurkeyWaleed Salman, Executive Director, DEWA, UAE* Bertrand Picard, Solar Impulse, CH (Invited)* Board Representative, Masdar, UAE (Invited)

Charter:

To advise management of Dii Desert Energy on mission, strategy, private / public sector

contacts and funding

Mission of Dii Desert Energy:

Creating the conditions in the regional power markets for moving towards an emission free

power system in MENA (and beyond)

Physical meetings of the Advisory Board:

1x per year at occasion of the annual Dii Desert Energy Leadership Summit

Communication

Upon need or request via Webinar/Mail

32

Cooperation Partners

‘Dii Desert Energy’

Maintaining a network of

associations, industrial

initiatives, development

banks &NGOs

27©Dii Desert Energy

10th Desert Energy Leadership Summit 2019For queries, contact Ms. Uma Dagdelen at uma@dii-desertenergy.org

Proposed Draft Picture Only

Joining theNetwork

29©Dii Desert Energy

• By invitationonly

• Commitment to the Region

• Share the vision and mission

• Agree to principles, objectives and code of conduct

• Enrollment through a fixed annual fee

Becoming a Partner of ‘Dii Desert Energy’

Thank YouForYourAttention!