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Middle East

ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS

May 2010

• Vol 4. Issue 5

SEEKING SAVINGS Why pumps & valves need

to be energy efficient

FEEDING GROWTH

How feed-in tariffs would promote clean energy in the GCC

POWER SHAKE How H ow P Public ublic P Private rivate P Partnerships artnerships aare re p powering owering tthe he M Middle East

RENEWABLES: GREEN ENTERP ENTERPRISE PRISE IS STARTING TO O STIR Despite lacking government support, supp port, business is looking for fo opportunities BusinessPublication Publication An An ITPITP Business


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CONTENTS

May 2010 Issue 5

11

Renewables: here to stay

2 COMMENT Utilies are adapting to changing circumstances.

4 REGIONAL UPDATE A round-up of some of the biggest headlines in the region.

11 NEWS ANALYSIS Renewables refuse to leave the Middle East agenda.

14 FEED-IN TARIFFS How feed-in tariffs could provide the regulatory framework for cleaner energy across the region. Dr. Michael Krämer explains the benefits of feed-in-tariffs

Power play: its game on for PPPs.

14 18

18 PERFECT UNION Public private partnerships have played their part in meeting the region’s ballooning power and water needs.

24 PUMPS AND VALVES The industry is starting to recover from the downturn, but manufaturers need to satify demands for energy efficiency.

27 TRANSFORMERS A look at whats going on in the Middle Eastern market for transformers.

32 PEOPLE METER Klaus Kallenberg, general manager at Toray Membrane Europe, looks at trends in desalination.

Desalination focus with Toray Membrane

35 PROJECTS Ventures Middle East provides an in-depth appraisal of the project landscape in the Utilities industry.

38 TENDERS Business opportunities in the Middle East.

32 www.utilities-me.com

Pumps and valves: a market looking for innovation

24

40 SNAPSHOT A look at the power and transmission sector in Oman.

May 2010

Utilities Middle East 1


COMMENT Middle East

Middle East innovation Utilities in the Middle East are starting to adapt

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP Business Publishing Ltd CEO Walid Akawi Managing Director Neil Davies Managing Director Itp Business Karam Award Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Publishing Director Jason Bowman Business Development Manager, Saudi Arabia Rabih Naderi Editorial Group Editor Dan Canty Tel: +971 4 210 8255 email: daniel.canty@itp.com Editor Florian Neuhof Tel: +971 4 210 8845 email: florian.neuhof@itp.com Advertising Commercial Director Jude Slann Tel: +971 4 210 8693 email: judith.slann@itp.com Sales Manager Raed Kaedbey Tel: +971 4 210 8573 email: raed.kaedbey@itp.com Studio Group Art Editor Daniel Prescott Designer Angela Ravi Photography Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers Efraim Evidor, Thanos Lazopoulos, Staff Photographers Jovana Obradovic, Rajesh Raghav, Ruel Pableo, Lyubov Galushko, Isidora Bojovic Production & Distribution Group Production Manager Kyle Smith Deputy Production Manager Matthew Grant Production Coordinator Devaprakash Managing Picture Desk Patrick Littlejohn Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami

The sun is setting on old ways of thinking, as utility operators explore new options.

Circulation Head of Circulation & Database Gaurav Gulati

T

hings are afoot in the region’s power and water sector. New integrated water and power projects (IWPPs) are due to come online soon to meet ever increasing demand, while proving the success of the public private partnership model in the Middle East. Countries like Kuwait are gearing up for the adoption of smart grids, and alternative sources of energy are being explored and researched in Saudi Arabia, not previously known as a champion of clean energy. Abu Dhabi, another national oil giant, is seeking to cooperate with the US Department of Energy to promote green energies. Niche markets, such as that for transformers and pumps and valves, are emerging from what many perceived as a fairly mild recession, and are faced with new challenges as customers are looking for their products to be as energy efficient as possible. Increasing demand for power and water is the result of the progressing urbanisation and industrialisation of the region, and not simply of unrea-

lised efficiency gains and wasteful consumption patterns. And while environmental awareness in the Middle East surely leaves to be desired, addi tional energy needs stemming from new economic cities and industrial expansion are also encouraging, proving that the region is emerging from its traditional role as a supplier of raw materials. Whether through good intentions or not, governments are starting to give more consideration to renewable sources of energy, and are placing more importance on energy efficiency. “Utilities aren’t trying to conserve energy because they want to save the world, they have no choice,” comments a pump manufacturer. Nothing sparks innovation like necessity. As they are scrambling to meet future energy demand, utilities in the most oil-rich countries in the world are starting to think green.

Florian Neuhof, Editor Email: florian.neuhof@itp.com

To subscribe please visit www.itp.com/subscriptions 2 Utilities Middle East

● May 2010

Marketing Head of Marketing Daniel Fewtrell ITP Digital Director Peter Conmy ITP Group Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 210 8671

Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Atlas Printing Press LLC, Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

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REGIONAL UPDATE

Kuwait seeks nuclear option French companies are set to gain contracts to develop nuclear power plants France and Kuwait signed an agreement to develop joint nuclear energy projects in the Gulf country, giving French companies a foothold in the region only months after they lost out to Korean competitors in their bid to haul the UAE onto the nuclear stage. The agreement “to develop the peaceful use of nuclear energy” was signed in Paris by Kuwait’s Prime Minister, Sheikh Nasser Mohammed al-Ahmad al-Sabah, and French government officials, reported the AFP newswire. “This agreement will permit the development of cooperation between France and Kuwait in several areas of nuclear energy,” including electricity generation, a French government statement said. The French President Nicolas Sarkozy hopes the new accord will “result in industrial cooperation,” according to the presidential website. France hosted a gathering of 60 energy-hungry nations in Paris in

French President Sarkozy and Kuwaits Prime Minister Al-Sabah met in Paris to discuss the deal.

March, with Sarkozy urging international bodies to finance a new era of global nuclear power. France has the world’s second largest nuclear sector and generates around three quarters of its own electricity through nuclear

power, more than any other economy. It has also made the export of nuclear technology an economic priority. Engineering giants Areva and EDF are keen to market their European Pressurised Reactor, a

third-generation reactor design that the French firms consider the most advanced in the world. France recently lost out on a US$20 billion contract to supply four reactors to the UAE as South Korean Kepco clinched the deal.

Kuwait buys smart meters New research centre for Kuwait’s Ministry of Electricity and Water ordered 170.000 automatic water meters from Elster, a German manufacturer. The meters can be deployed in residences, government buildings and other facilities, and will help Kuwait monitor consumption and develop water management programs. As the meters are equipped with modern connectivity and interface systems, they can be linked up to future smart grid and advanced metering infrastructure projects. Designed to withstand tempera-

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ture ranges from above 90 degrees Celsius to below freezing, as well as violent sand and dust storms, the water meters can be deployed inside and outside of house walls and in sidewalks. “Elster specifically designed the water meters for Kuwait to withstand a number of extreme environmental conditions, commented Jerry Lauzze, executive vice president of Elster’s global water business. Elster’s local partner Al Khatla, will deliver the meters and accessories to the Ministry.

alternative energies in KSA Saudi Arabia is to set up a scientific centre for civilian nuclear and renewable energy in Riyada, in an effort to find new ways of meeting its rising demand for power and desalinated water. King Abdullah ordered the creation of the science complex, which will be headed by former trade minister Hashem Bin Abdullah Yamani, according to the state news agency SPA. The centre will be in charge of promoting research and sealing

future deals, and would also oversee activities related to the use of nuclear energy, said the news agency. It did not divulge any details regarding the timeframe of the project. Demand for power grew last year by more than 8 percent in the Gulf state and is expected to grow to more than 60.000MW by 2020. Saudi Arabia aims to boost installed power generation capacity to around 67.000 MW by 2020, up from the current 46.000 MW. www.utilities-me.com


REGIONAL UPDATE

SEC reports loss in Q1 KSA utility suffers from higher costs and weak demand

HIGHLIGHTS MASDAR AND DOE JOIN FORCES Masdar and the U.S. Department of Energy (DOE) signed a Memorandum of Understanding (MoU) to promote collaboration on clean and sustainable energy technologies. The agreement sets out to establish a framework for cooperation in three key areas – carbon capture and sequestration, water and bio-fuels, and building technology. The agreement also opens the door for scientific and technical exchanges and the joint research and development of clean energy technologies.

WATER SUSTAINABILITY CENTRE OPENS IN QATAR

SEC: Losses widen as costs rise and the Kingdom embarks on an ambitious project to expand its power infrastructure.

The Saudi Electricity Company’s (SEC) Q1 loss widened on a yearon-year basis as the state-owned company faced higher costs from buying power and lower seasonal demand. The net loss increased to US$208.5 million from US$205.5 million in the first quarter of 2009,

the Riyadh- based company said in a statement on the Saudi bourse website. Saudi Electricity’s loss widened because of “an increase in energy bought from independent producers to meet an increasing demand,” the utility provider said. The company was also burdened

with additional costs it started new projects. Saudi Arabia, wants to expand generating capacity as its population grows and industrial demand for energy rises. The Kingdom will spend US$80 billion to raise its capacity and expand its transmission network in the next decade.

Siemens to build substations in northern Emirates Siemens has been awarded two contracts by the Abu Dhabi’s Federal Electricity and Water Authority (Fewa) to built and modify substations in the north of the UAE. The orders were awarded via the local Al Jaber Group, and have a comwww.utilities-me.com

bined value of approximately US$22 million. The two orders include the supply and installation of seven medium voltage turnkey substations, as well as the extension and modification of 22 existing substations.

The power supply project is scheduled for completion within 12 months. The seven substations for the 33/11kV voltage levels will comprise more than 350 medium voltage panels and around 150 panels for control and protection.

A research and development centre promoting the sustainable use of water has officially opened in Doha, Qatar. The Global Water Sustainability Center (GWSC) is a joint project by ConocoPhillips and GE Power & Water. The center, located at the Qatar Science and Technology Park (QSTP), will primarily research and develop water solutions primarily for the petroleum and petrochemical sectors, but will also focus on municipalities and agriculture.

QATAR HOSTS POWER-GEN CONFERENCE The ninth Power-Gen Middle East conference and exhibition will be held in Doha, Qatar, between 4-6 October. It is the first time the annual conference on power generation, transmission and distribution and the water industry in the region will be held in Qatar.

May 2010

Utilities Middle East 5


REGIONAL UPDATE

KSA: More energy from crude Saudi Arabia’s total feedstock use will rise from 1.5 million barrel of oil equivalent (b9oe/d) last year to 2.5 million boe/d in 2020, Salah al-Awaji, the kingdom’s deputy electricity minister, told Reuters on the sidelines of an Asian power conference. His estimate is based on spiraling domestic power demand. The Saudi Electricity Company (SEC) expects that increased demand will require an expansion of power generating capacity from 46,000MW now to 67,000MW by 2020. “The redirection of less efficient and more polluting crude to its power plants might work as an interim solution but will eat into its spare production capacity cushion when global demand starts rebounding seriously,” comments Global Insight Middle East analyst Ciszuk.

The scarcity of natural gas is the underlying reason for the over-reliance on crude, says Ciszuk. “A failure to find significant new gas reserves and a need to utilise more gas as feedstock for the petrochemical industry, which is being expanded as part of the kingdom’s job-creating industrialisation programme, leaves it little option” The Kingdom’s policy of subsidising power is aggrevating the problem. “Power demand—fuelled by highly subsidised utility prices— continues to spiral, while more and more power plants have to be converted back to oil use after the country’s power generation feedstock mix was almost virtually purged of crude a decade ago,” says Ciszuk.

Getty Images

Rapidly rising demand for power leaves Saudi Arabia little choice, says analyst

Saudi Arabia will increase its dependence on crude.

Qatar to spend over US$1bn on upgrading power network The Qatar General Electricity and Water Corporation has handed out contracts worth US$1.17bn as part of its bid to meet future demand for electricity in the Gulf state, the Qatar News Agency reported. The contracts include the setting up of 18 new substations, the upgrade of 11 others, and the construction of a 400kV substation to

support the GCC power interconnection project. In addition, Phase Nine of the Qatar Electricity Transmission Network project will become reality with the construction of 220km of new cables and more than 85km new overhead lines. Substation contracts have been awarded to Siemens Consortium

Getty Images

Qatar is expecting power consumption in Doha to increase.

US$1.7 billion QGEWC has dished out almost $2 billion worth of upgrade contracts so far this year. Source: QGEWC 6 Utilities Middle East

May2010

Germany, India, Qatar and Hyosung Corporation, Korea while the cables project deals have been won by Mitsubishi, Japan and Siemens Ltd, India. The overhead line project was awarded to NCC, Saudi Arabia, while the telecom package was awarded to Areva, France.

The upgrade comes on the back of increasing pressures on the network. In 2009, Electricity demand 14 percent from a 2008, while demand for water rose eight percent. The Gulf state faces a potential power shortage of around 300 to 350MW from late 2012. www.arabianbusiness.com


REGIONAL UPDATE

Mulk takes solar leap Sharjah company to profit from Indian feed–in tariffs Mulk Holdings, a Sharjah-based company that produces glass and aluminum facades, is to branch out into solar technology by supplying solar troughs to a joint venture in India. Mulk Renewable Energy, a subsidiary, will hold a 25% equity stake Phase I of the plant, which is to be built in Banglore. Indian company Aditya Solar Power Industries will hold the majority stake. The plant will have an initial net power capacity of 40 MW once the first stage has been completed in 2012, rising to 200 megawatts by 2013. Mulk Renewable Energy is set to profit through the joint venture by

receiving generous feed-in tariffs from the Indian government. A lack of similar government policies in the Middle Eastern countries means that renewable energy faces much greater hurdles in the region. “No businessman can go and invest in a solar plant and compete with coal, so the governments here need to offer more,” commented Mulk chairman Nawab Shaji Ul Mulk. According to a company spokesperson, Mulk will be the first company in the UAE to produce solar panels. Their solar troughs are produced in Sharjah using aluminum, rather than the customary glass mirrors, which the company says

A prototype of Mulk’s solar trough

provide extra durability and weight reductions. The contracts for the delivery of the solar panels and the joint venture were signed on April 7 by Ul Mulk and Aditya boss R. T. Mukunda at Mulk’s headquarters in the Sharjah Hamriyah free zone.

HIGHLIGHTS OMAN THINKS SOLAR Oman is close to commissioning a solar-powered desalination plant from an Indian Research Centre, according to the Indian Express website. The Omani Centre for Investment Promotion and Export Development is in discussion with the Bhavnagar-based Central Salt and Marine Chemical Research Institute (CSMCRI) to set up a plant with a production capacity of 6.000 litres per hour, an investment of over US0 $850.000. The proposed plant in Oman will use solar photovoltaic panels for the treatment of water through patented CSMCRI membranes.

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Utilities Middle East 7


WEB HIGHLIGHTS

EDITORS PICK

ONLINE ANALYSIS

Japanese teach UAE a sustainability lesson

Most popular headlines 1. Fujairah II to be online within Q2 2. Dolphin Energy: Pipeline on track despite delays

3. Saudi Electricity reports loss in Q1 4. Qatar to host Power-Gen conference A wastewater recycling plant designed to become a benchmark for the more sustainable use of water was inaugurated in the northern emirate of Ras Al Khaima.

ONLINE NEWS

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New solar technology for Saudi desalination plant

What’s stopping your firm from engaging in Iran?

An energy efficient desalination plant to be built in Al Khafji City in Saudi Arabia will use new solar technology.

Fear of further sanctions

Research boost for solar in Qatar Chevron and GreenGulf commit to joint reseearch on how to adapt solar to local conditions.

Demand for transformers is still ‘slow and patchy’ Demand for electricity transformers is still not back to pre-crisis levels, with the recovery slow and patchy across the Middle East. www.utilities-me.com

5. Research boost for solar in Qatar

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Utilities Middle East 9


NEWS ANALYSIS

Renewables refuse to leave the agenda Renewables remain a hot topic. While many remain pessimistic about the lack of government enthusiasm, green enterprise is starting to stir in the region in spite of lacking regulatory support

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And Saudi Arabia’s deputy energy minister Saleh Alawaji only last month admitted that the kingdom is looking to raise the amount of fossil fuels used for electricity generation to 2.5 million barrels of oil equivalent per day by 2020, up by 1 million barrels per day from current levels.

LACKING ENTHUSIASM While renewable energy initiatives and targets have been set in sev-

“It is the GGC states least affected by the global downturn that are doing the most on the green front”

eral Arab countries, real political will is lacking, according to participants of a recent conference on the

subject. The environmental sceptics, it seems, still have the upper hand. “They keep saying we need

Getty Images

In the massive push to bring power infrastructure in line with growing demand, renewables are not much more than an afterthought to GCC governments. There are exceptions. Saudi Arabia, which is investing heavily to build new power plants, is one of the few countries to consider the solar alternative, and to invest in research and technology. The King Abdulaziz City for Science and Technology, Saudi Arabia’s national research group, aims to open the world’s largest solar-powered desalination plant by 2012 in the city of Al-Khafji. The pilot plant will supply 30.000 cubic meters of clean water per day to 100.000 people, and reduce operating costs by using newly developed membrane technology, which will be powered by ultrahigh concentrator photovoltaic technology, developed in conjunction with IBM. In addition, the King Abdullah University of Science and Technology is due to build a solar plant for research and development purposes. The Masdar project in Abu Dhabi is another government green initiative. A promising start by the oil-rich countries, one might think, yet those projects seem to pale into insignificance compared to the tens of billions that both governments are allocating to increase their electricity and freshwater generation capacities.

Green enterprise in the Middle East would profit from more government support.

May 2010

Utilities Middle East 11


NEWS ANALYSIS

more research,” May Jurdi, professor of environmental health at the American university in Beirut, told the Reuters newswire at the conference. “Why do we need additional diagnosis when the patient is dying?” Given this context, it is little wonder that the solar industry the Middle East is nascent at best. And one of the last things one would expect is an UAE company manufacturing glass and metal exteriors branching out into solar. Despite the political lethargy surrounding solar, or other green technologies, Sharjah-based Mulk Holdings have done precisely that. After researching and developing a range of solar panels over the last three years, the company now set to launch its new products. According to a spokesman, it is the first producer of solar panels

in the UAE. Yet tellingly, the company’s first order will not be delivered into the region. Instead, it has signed an agreement to supply a plant in India with solar troughs. Mulk will take a 25% equity stake in the first stage of the project, with a capacity of 40MW. The company is set to profit from India’s commitment to developing renewable energy capacities. According to Mulk, the new plant is set to receive a feed-in tariff of 15 rupees per MW, a price that is above that is above market levels.

FEEDING ON ECONOMIC RECOVERY? As last month’s lead article pointed out, feed-in tariffs are an absolute must if governments in the Middle East are to take serious steps to develop green energy solutions for the region. These tariffs are an

effective subsidy for renewable energies, and are vital to attract investment into power plants and research, as Michael Krämer from Taylor Wessing explains in his article in this month’s edition of the magazine. Company chairman Nawab Shaji Al-Mulk could not agree more: “You need feed-in tariffs. It makes sense, because obviously solar is not competitive with coal, but coal is damaging. So the government needs to say ‘Ok, we will pay you more so you come in with clean energy.’” So is the future bright or bleak for renewables in the Middle East? Mulk is optimistic, and believes that the region would be further down the road of progress had it not been for the recession. “These things need a huge investment, we are talking about hundreds of

billions of dollars, so the governments need to be in a position to do that.” This is a good point. After all, it is the countries least affected by the global downturn that are doing the most on the green front. Saudi Arabia and Abu Dhabi, whose enormous oil-wealth has allowed them to keep their infrastructure projects running even in the darkest days of the crisis, are the ones who are doing the most in pushing the green agenda. It is to be hoped that investment in alternative energies go hand-inhand with economic recovery in the region. In an irony that must border on the surreal to environmentalists, it might in fact be hydrocarbon derived wealth that will do most to advance alternative energy in the Middle East.

Feed-in tariffs would encourage small-scale production.

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FEED-IN TARIFFS

Feeding growth Already in use in over sixty countries, feed-in tariffs are a cornerstone of renewable energy policies worldwide. Taylor Wessing’s Dr. Michael Krämer explains the concept and the necessity of feed-in tariffs

T

he Middle East is “going green”, at least if one was to believe what is being reported in the media these days. There is no doubt that reducing carbon emissions is a great thing. And with the abundance of sun freely available, particularly in the Gulf region, not making use of solar energy and other natural resources is a waste indeed. The main question is how the shift to supplying an entire country with green energy can be achieved

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most effectively. A centralized approach whereby utility companies gradually replace their conventional power plants with those that use renewable sources would most probably take decades, not least due to the sheer amount of investment required. A quicker and altogether more convenient approach is to involve everyone, you and I, in the process, on a voluntary basis (of course). Such a decentralized approach has the benefit of not placing the

significant investment burden on only a few shoulders and promises more energy being generated from renewable sources in a shorter amount of time.

RENEWABLES – WHERE WE STAND TODAY At present, the legal framework in the UAE does not really provide the impetus for private investments in the renewable energy field. If, for example, I wanted to install solar panels on the roof of

my house I would not be entitled to connect such an installation to the public grid. That means I would be forced to install panels with a capacity that guarantees satisfying 100% of my electricity needs at all times. This in turn means not only that the dimensions of my solar array would have to be huge (as would be the cost), but also that I would be facing rather hot summer nights without air condition due to the usual lack of sunshine during that time.

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FEED-IN TARIFFS

In short, without being able to connect to the public grid there is absolutely no reason for me to make a significant investment into renewable energy generation. The second problem is that, at least to date, the generation of any form of renewable energy is more expensive than electricity produced from fossil fuel. Instead of reducing my electricity bill, installing renewable energy sources merely adds to my cost and I have virtually no chance of ever recouping my investment. This means that only renewable energy enthusiasts will be willing to spend money on generating clean energy.

FEED-IN TARIFFS A PROBLEM SOLVER The above two issues can effectively be dealt with by introduc-

Dr. Michael Krämer believes feed-in tarrifs are viable in the Middle East.

ing so called feed-in tariffs. Under this system, individual producers of energy from renewable sources are being granted the right to feed the electricity they generate into the public grid and get paid fixed rates for any kilowatt hour (KWh) they produce, or feed into the grid. So how does this work in practice given that the utility companies will hardly be interested in purchasing electricity from individuals at rates which are higher than those at which the company could produce the same amount of energy itself? Simple. It works by putting a legal obligation on the utility company to purchase such energy. In turn the utility company will charge its entire customer base for whatever additional cost it incurs by purchasing such fed-in electricity. Hence, ultimately it is the con-

sumer who will pay the price. On the upside, however, we all benefit from a more environmentally friendly future. At present, feed-in tariff policies have been put in place in more than sixty countries around the globe, including Australia, Brazil, China, France, Germany, Singapore, South-Korea, South-Africa, as well as some states in the US.

GERMANY’S RENEWABLE ENERGY ACT: A BENCHMARK The German “Erneuerbare Energien Gesetz” (Renewable Energy Act) has so far proven to be the most successful policy framework available, and is often used as a benchmark against which other feed-in tariff policies are being considered. (see box) With such a legal framework in

THE ERNEUERBARE ENERGIEN GESETZ - THE KEY PRINCIPLES OF GERMANY’S BENCHMARK RENEWABLE ENERGY ACT •Individuals are given the right to feed any electricity they generate from renewable sources into the public grid and to be paid for any amount of electricity they make so available to the public. •In turn, grid operators are obliged to not only allow any such private source of renewable energy being connected to the public grid, but also to purchase any electricity so produced at pre-set rates. •Prices are guaranteed for a period of twenty years, which provides producers of renewable energy with a reliable means of recouping their investment. •The price payable to each individual producer of renewable energy is based on the typical cost of generation from a particular source of energy. This results in different prices being paid for energy from different sources (e.g. solar energy yielding higher prices than electricity generated by wind turbines). •The price of a KWh of renewable energy depends on the time of installation of the energy source. Higher prices are being paid for energy produced from sources which have been installed earlier (“tariff digression”).

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Utilities Middle East 15


place it suddenly becomes possible for me to install my own private wind turbine or solar array regardless of whether the amount of electricity generated actually fits my needs at any given time. If I am producing too much energy I can feed it back into the public grid, and if what I am producing is insufficient I can obtain the required balance from any power socket. At the same time I am gaining security for my investment. I know that every kilowatt of energy I am producing either saves or even earns me money. All of my “home grown” energy that I consume myself reduces my utility bill and any excess amount that I am feeding into the grid actually earns me money. This provides a sound basis for my calculations in terms of time required to recoup my investment. It also makes high volume investments (e.g. into complete tidal-wave or geothermal power plants, or offshore wind parks) much more interesting to, for example, institutional investors.

ATTRACTING PRIVATE INVESTMENT – BIG AND SMALL The introduction of feed-in tariff schemes has led to a sheer explosion in private investment into renewable energy production in most countries where these schemes are now available. Spain, for example, has seen a massive increase of solar energy being produced, both by individuals as well as companies via large solar farms. Denmark, on the other hand, has seen a large increase in the amount of wind turbines that have been installed. In Germany, the installation of solar panels on private roofs has become intensely popular whilst institutional investors finance the construction of massive offshore wind parks in the North and Baltic Seas. The fact that the prices being

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GETTY IMAGES

FEED-IN TARIFFS

Feed-in tariffs are promoting small scale renewable power generation world wide.

paid depend on the means by which a certain renewable energy has been produced further ensures that no discrimination of a particular energy source occurs. Hence, although wind energy may be cheaper to generate than solar energy, operators of wind turbines and solar arrays both have comparable chances of generating money with their investment. Such non-discrimination of certain energy sources has the positive effect that research is being undertaken in all directions instead of focusing on one partic-

ular means only. Together with the general support that the generation of renewable energy currently experiences in many countries, this leads to an innovation-friendly climate in countries where such a non-discriminative approach is being applied. This may well be one of the reasons why the technologies that are being developed in such countries count among the leading technologies that are currently available in the renewable energy field. It may thus be an incentive to follow a similar path here in the UAE.

“The introduction of feed-in tariff schemes has led to a sheer explosion in private investment into renewable energy production in most countries where these schemes are now available.” Dr. Michael Krämer, Taylor Wessing

It should be mentioned, in fairness, that there is also a downside to putting a feed-in tariff framework in place. As mentioned above, utility companies are being forced to purchase energy at preset prices, which, as yet, are not usually competitive. This will inevitably lead to higher electricity costs for all of us. In addition, the incentive to invest in renewable energy that is being provided by feed-in tariff schemes will constantly have to be monitored and adjusted if necessary. If generation of a particular form of renewable energy becomes too popular, a reduction in the price paid for such energy must be considered in order to avoid overall electricity costs getting too high. It might be a price worth paying. In Germany, for example, the average household now pays only about AED 20 a month more for their electricity than they did prior to the tariff being introduced. In the long term, this is likely to be AED 20 well invested.

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IWPP

Powering Ahead How ADWEA has led the way in PPPs for power and water projects in the Middle East

18 Utilities Middle East

â—?

May 2010

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IWPP

T

he Middle East is engaged in a power struggle. Governments are racing to meet the skyrocketing demand for electricity and water of increasingly urban and industrialized societies, and are always in danger of falling behind. In 2009 alone, power consumption in Abu Dhabi rose 11 percent to 6.255MW, the emirate’s largest ever annual increase. In 2010, peak power demand is likely to reach around 7.600MW, predicts the Abu Dhabi Water and Electricity Company. Other countries are facing a similar mountain to climb. Saudi Arabia, the largest economy in the Middle East, is forecast to have power needs of 65.000MW in 2018. Last year is was unable to satisfy consumption levels, which at 41.200MW outstripped the kingdom’s power capacity. Abu Dhabi, on the other hand, is meeting its needs comfortably, with an installed capacity of around 10.000MW. To facilitate the development of the power and desalination sector, governments in the region turned to public private partnerships (PPPs) to finance Independent Water and Power Producers (IWPPs). Abu Dhabi is drawing power and water from eight IWPPs. The Fujairah II project, which is currently in commission and which will supply both the Northern Emirates and Abu Dhabi, will be the largest in the GCC. Across the region, power and desalination projects are the result of partnerships between the government and private companies. IWPPs in the Middle East differ from the common definition of a PPP. While the government will typically help out the private company involved in the project with direct or indirect subsidies, it will also hold a stake in the venture. The adaptation of the concept has

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varied, and different models have emerged. Oman endorsed the private ownership of its power infrastructure early on, and has gone further down the route of privatisation than any other country in the region, even allowing for 100 percent private ownership.

THE ADWEA MODEL But it is the model endorsed by the Abu Dhabi Water and Electricity Authority (ADWEA) that has gained most traction in the region. “The ADWEA model is regarded as the leading independent power plant model certainly in North Africa and the Middle East, and everyone’s been imitating it for a long time,” says Ranald Spiers, executive director at International Power, which owns 20 percent of Fabco, the Fujairah II holding company. ADWEA will take a 50 or 60 percent share in the IWPP holding company, while the remaining stake is divided up between private developers. These then tied into the project with power and water purchase agreements (PWPAs) of 20 to 25 years. For the companies, a large part of the attraction lies in the fact that ADWEA is a partner in the project. “We are comfortable with the model, because ADWEA is part of it,” says Michio Hayashibara, director at Marubeni Power Asset Management. Hayashibara is in charge of Marubeni’s operations in the gas and water sector in Abu Dhabi, where the company is involved in four of the IWPPs in the emirate, and owns the other 20 percent of Fabco. “Because ADWEA participates as a shareholder in the project company they are motivated to try and help ameliorate any negative impact if there are any problems,” explains Spiers. The government agency’s intervention to salvage the Shuweihat II

IWPP in 2009 illustrates this point. When GDF Suez, who had been awarded a 40 percent stake in the project, struggled with the financing, ADWEA extended the power purchasing agreement (PPA). Crucially, it also approached Marubeni and secured its participation by allotting it half of GDF Suez stake in the holding company. Because of the involvement of the Japanese company, the Japan Bank for International Cooperation (JBIC), an export credit agency (ECA) stepped in with a US$1.1 billion loan to get the project of the ground. While extending a helping hand when necessary, ADWEA does not like to get involved in the operational side of an IWPP. “As long as things go well, they leave the management to the shareholders,” says Hayashibara. “Even though they own a 60 percent majority share, all management decisions

depend on the executive managing director of the holding company.” In fact, interfering in the operating of the plant is not in the interest of a government agency. Financing aside, the main reason for private sector involvement in core infrastructure is for utilities to benefit from the efficiency gains that experienced operators bring to the table.

FINANCIALLY ROBUST As Shuweihat II shows, the financial crisis did put IWPPs in the Middle East to the test, a test that confirmed the solidity of the model. Nevertheless, the turmoil in the financial markets did put a brake in PPPs in the region. “It hasn’t stopped them altogether but it has slowed things. In Saudi Arabia it put a brake on the process,” says Marc Fèvre, senior associate at law firm Freshfields

“The ADWEA model is regarded as the leading model certainly in North Africa and the Middle East, and everyone’s been imitating it for a long time”

Ranald Spiers, executive director at International Power.

May 2010

Utilities Middle East 19


IWPP

Bruckhaus Deringer. A case in point was the Kingdom’s decision to not develop the Ras-al-Zour power and desalination plant on an IWPP basis, having lost patience with the inability of private companies to get the financing together. But while financiers have become more selective, power and water projects were still seen as high quality projects and safe investments, says Fèvre. “In the region as a whole, it meant that only the best projects got done. The projects with the best government support, with the best risk allocation, done in the sectors with most certainty to banks; principally power.” As far as the long-term success of the model is concerned, some argue that because of the crisis, PPPs have become even more interesting to governments, which have come to appreciate the value that private sector involvement can unlock. “Governments are now paying a lot more attention and efficiency in delivery in all infrastructure sectors, so they’re looking to the PPP models to deliver value for money,” says Michael Palmieri, corporate finance partner at KPMG.” And it seems poised, because of a focus on value for money, for even more growth when the economies are coming back, which they seem to be.” It is not only governments in the region who have spotted opportunity in crisis. Hayashibara is keen to stress Japan’s interest in devel-

“In Kuwait, the big problem is political risk as there is the constant struggle between the executive and parliament and there is no certainty about what’s going to happen to any particular projects”

Marc Fèvre, senior associate at Freshfields Bruckhaus Deringer.

oping ties with the oil rich countries in the Middle East. “The GCC countries are very important to Japan. One quarter of our oil exports come from Saudi Arabia, and one quarter comes from the UAE. We think that investment in the region, especially in the UAE, is very important to maintain good relationships.” JBIC’s loans to help finance IWPPs can be seen as goodwill gestures, while they also encourage utility providers to do business with Japanese firms. But ECAs are not unique to Japan. The success

Peak power demand in the UAE (MW) 2008

2009*

Abu Dhabi

5,616

6,255

Dubai

5,287

5,622

Sharjah

1,790

1,840

Other emirates

1,692

1,709

Source: Adwec*

20 Utilities Middle East

Estimated

May 2010

of the South Korea’s Korea Electricity Power Corporation (Kepco) in securing the contract to built four nuclear reactors in Abu Dhabi was in no small part due to the help of such financing arrangements. And it is not only Japanese companies that have profited from JBICs loans. As JBIC is able to borrow money at costs that are far lower than the market rates for many private companies, it is in turn able to provide funding to projects at attractive rates. What is more, by providing around half of the debt required, they have been instrumental in making project finance work for IWPPs after lending activity declined in the financial crisis, according to Spiers. “Throughout the last 12 months in terms of project finance, the ECAs have stepped up to the plate and been more active and have done a lot more than they have done in the past,” says Spiers. “If there had just been commercial banks, you would be struggling to

get the money together for a large deal. For in some ways the credit landscape has changed, a lot of banks have gone. Having an ECA act as an anchor lender, sometimes providing 50 to 60 percent of the project debt is very helpful” Despite taking a cautious view of infrastructure investments in the Middle East, banks are still fundamental in providing capital to IWPPs. While RBS has effectively pulled out of financing infrastructure in the region, it used to be one of the biggest players alongside HSBC, Standard Chartered and BNP Paribas. Local banks have also been active in lending, but most of the bigger projects have not been financed with their help. Broadening the investor base beyond banks and ECAs has been difficult, says Fèvre. “Other than developer investors, there hasn’t been that much secondary market activity in terms of being able to buy into assets.” While a few infrastructure investment funds have been set up, their activities have been limited. Part of the reason is that there are not enough projects that have been put into the market, thinks Favre. On the back of limited opportunity, the ADIC-UBS Infrastructure Investment fund, a joint venture between the Abu Dhabi Investment Company and the asset management arm of UBS, is now being wound up, having failed to make a single investment. Abu Dhabi’s TAQA is also heavily involved in investing in the Emirates IWPPs. It is, however, majority owned by the government though a 51 percent shareholding by ADWEA, and a 21 percent ownership by the government Farmer’s Fund, with only the remaining 28 percent floated on the stock exchange. In countries whose coffers are not swelled by oil and gas revenues, PPP are much more critical in terms of financing. Here, PPPs

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IWPP

are often used by development banks to get involved in infrastructure building. In Jordan, several PPPs are being supported by the World Bank, while Egypt is receiving support from the World Bank, the European Investment Bank, and the German development bank KfW. “In countries which need infrastructure but can’t afford it there is a strong development angle,” concludes Fèvre.

POWERING AHEAD? So far, governments have had few difficulities in attracting bidders for their projects, but there are a few misgivings. While government participation drives down risk levels, a large ADWEA stake translates into a fairly small portion of ownership

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by the private companies. “From a foreign bidder’s perspective, you are negotiating and implementing a very large contract, but you only might hold 20 percent of the equity in the project. So it is less material in terms of profit and net MW,” says Spiers. Oman has been causing some consternation amongst private companies in the past when the government delayed tenders and stalled projects. With no legal framework in place to boost investor confidence, countries rely on their track record, making Abu Dhabi a popular place to do business for developers. Some believe that implementing a PPP or concession laws could help countries without such a track record to boost their appeal to the private sector.

Practical improvements would also be welcomed. A report by Freshfields Bruckhaus Deringer points to the fact that most countries in the region lack a central government unit coordinating PPP activities, and advises governments to follow Egypt’s example in setting up such a unit. Investors would profit from added cer-

tainty on the terms of transactions and a more transparent procurement process, the firm says. “If you have such a department, you usually end up with an official with key responsibilities,” adds Christian von Tschirschky, principal and head of Utilities for the MENA region at consultancy ATK Kearney. “Having a key coordinator

“Governments are now paying a lot more attention and efficiency in delivery in all infrastructure sectors, so they’re looking to the PPP models to deliver value for money” Michael Palmieri, corporate finance partner at KPMG

May 2010

Utilities Middle East 21


IWPP

THE FUJAIRAH II IWPP With a net generating capacity of 2000 MW and approximately 600 000 cubic meters of potable water a day the Fujairah II project will be the largest IWPP in the UAE. A consortium comprising ADEWA (60%), Marubeni (20%) and International Power (20%) own holding company Fujairah Asia Power Company (Fapco). Alstom and Sidem, a subsidiary of Veolia Water, have been awarded the engineering, procurement and construction (EPC) contract for Fujairah II . Marubeni and International Power are charged with operating and maintaining the IWPP in a 50:50 joint venture, under a 20 year PWPA. Power production rests on five Alstom GT26 gas turbines. These will be capable of dual fuel operation, burning natural gas, with the capability of operating on liquid fuel if the gas supply is interrupted. The GT26 has a rated output in open cycle application of 288.3 MW and an efficiency of 38.3 per cent. The desalination plant is made up of two sections, one based on Multiple Effect Distillation (MED) and the other on Reverse Osmosis (RO). The largest of these, the MED sec-

tion, takes steam from the combined-cycle power plant to generate potable water. The smaller section based on RO is driven not by steam but by power. This combination allows for the optimisation of steam and power output from the combined-cycle power plant in order to provide constant water production as power demand varies with the seasons. The total project costs of Fujairah II amount to US$2.7 billion. Of this, US$ 2.1 billion has been financed by long term debt, of which approximately half has been lent by JBIC. The equity amount worth US$565 million was financed by an equity bridge facility, according to International Power, which will have to be repaid by ADWEA, Marubeni and International Power in proportion to their equity stake in July. The plant is in the process of commissioning its gas turbines, and testing its desalination units. According to International Power managing director Ranald Spiers, Fujairah II will start becoming operational within Q2. The project has been built adjacent to the existing Fujairah I plant.

A 3D Model of the Fujairah II power and desalination plant

22 Utilities Middle East

May 2010

“The GCC countries are very important to Japan. We think that investment in the region, especially in the UAE, is very important to maintain good relationships” Michio Hayashibara, director at Marubeni

helps, especially as government institutions in the region are quite complex.” Governments in Kuwait, Iraq and Dubai, which have not yet adopted the IWPP model to address their power and water needs, will have to consider all those issues. Most observers see Kuwait some way off an IWPP. One problem for investors is the political system, says Fèvre. “In Kuwait, the big problem is political risk as there is the constant struggle between the executive and parliament and there is no certainty about what’s going to happen to any particular projects.” Security concerns mean that Iraq will also have to wait some time before IWPPs become a possibility. In Dubai, plans are underway to built the emirate’s first IWPP. The

proposed 1.500MW plant at Hassyan is expected to come online in 2013 or 2014. The project is at the advisory stage, observers believe that the procurement period may take longer due to Dubai’s inexperience in handling IWPPs. In light of the global financial meltdown and the impact is has had on the GCC, developers are cautious about committing. “Participating companies may have certain prerequisites they want to see, for example that power projects are backstopped by the government, and potentially further backstopped by national funds,” says one contractor. These concerns about financing utility projects in the region highlights one thing: public private partnerships in the Middle East are only as strong as the government that support them.

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PUMPS & VALVES

Striving for efficiency With the market still recovering from the delayed impact of the recession, manufacturers must look to product innovation to remain competitive, as end users are seeking to ensure energy efficiency Water is a precious resource in the Middle East, and is guaranteed to keep utilities providers spending on infrastructure for some time to come. As pumps and valves are an integral part of the systems delivering and making use of water, they are in demand, and the region has been a reprieve for suppliers struggling for business in other parts of the world. “The Middle East has fared the best compared to other markets mainly due to the fact that water in the Middle East is scarce and hence expensive”, says Imtiyaz Kudchikar from Lutz-Jesco, a pumps manufacturer. Market players say the global recession hit the region with a one year delay, but did not stay around for long. “Due to the good recovery of oil prices by mid-2009, the downturn in the region only lasted nine to ten months,’ says David Sonzogni of Emerson Leroy-Sumer, who manufacture electric motors used in pumps, and recently supplied the district cooling pump motors and circulation pump motors for the Burj Khalifa in Dubai. While oil prevented the crisis from entrenching itself in the region, commodity prices were also a major reason why projects were delayed, according to Sonzogni. “The big project owners, and the oil companies, thought that if they waited for six months, the price for concrete and steel would go down and they can get the job done at a discount.” But because projects which were close to completion were not

24 Utilities Middle East

May 2010

stopped due to the downturn, it took some time for these delays to make a dent in regional orders. “Since Emerson gets its orders at the advanced stage of an MEP contract, we have had very good sales in 2009,” says Sonzogni. On the flip side, this delayed effect meant that orders started to run dry in the fourth quarter of 2009, and are still not back to

“Energy efficiency is a big issue at the moment, and end users are putting a lot of pressure on us to come up with cost efficient products” Surith Nair, Aeon

A pump used in district cooling applications.

normal now. Things are about to change again, however, as a flurry of utility and oil and gas projects have been announced in the fourth quarter of 2009, with district cooling being one sector where the recovery is most palpable. As sales volumes slumped, suppliers tried to salvage some business by providing additional services to their customers. “In Dubai and Bahrain, were there wasn’t much growth in the last two quarters, we improved those installation we have installed and serviced the customer,” says Kudchikar. Crisis or no crisis, conserving energy is one issue that buyers of pumps and valves are becoming increasingly sensitive to. While the region may not suffer a shortage of crude output, utility providers are struggling to supply ever-expanding cities and industrial complexes. “DEWA and the others aren’t trying to conserve energy because they want to save the world, they have no choice,” comments one source. Private companies are similarly looking to make a saving. “Energy efficiency is a big issue at the moment, and end users are www.utilities-me.com


PUMPS & VALVES

putting a lot of pressure on us to come up with cost efficient products, which can be used for the long run,” says Surith Nair from AEON, a manufacturer of valves. Aeon is currently looking to develop a range of energy efficient products to cater for this demand. “Customers are looking for better insulation material, and higher efficiency pumps and valves,” says Sonzogni. Emerson Leroy-Sumer wants to capitalize on this trend by offering energy efficient motors to their customers in the region. As end users are looking to make savings on energy, are they equally keen to keep equipment costs down? Kudchikar believes so: “People are now going for cheap products, and we can’t compete with some Chinese and Italian manufacturers on price. Their products

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are now widely accepted here, customers accept a product life of only three to four years.” But others disagree. “End users know what they want. Quality is very much in their mind, I don’t think anyone can push in if they

don’t have the quality at hand,” says Nair. For him, one of the challenges his company is facing is complying with the cornucopia of different specifications that governments and the private sector require. “Every end user has own specifica-

tion to comply, and each market has their own requirements.” With all this to keep in mind, it is certainly not a time for manufacturers of pumps and valves to slash their research and development budget.

Pumps with Emerson Leroy-Sumer motors in the Sulaibiya water treatment plant in Kuwait.

May 2010

Utilities Middle East 25


TRANSFORMERS

Heading in the right direction The transformer market is set for growth, and local producers are looking to play their part in the success story An ABB transformer is on its way to a substation in Kuwait.

E

lectricity distribution is a subject even the least technically-minded residents of the GCC cannot hope to avoid, as power failures have plagued the region for years. Recently, one of the major steps taken towards securing a stable supply of energy has hit the headlines when the first stage of the GCC interconnection grid became operational. In the face of rapidly developing industrialisation and urbanisation of the Middle East, the need for an expansion of transmission and distribution networks is apparent.

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Generators, a vital component of these networks, are in demand. But it has not all been plain sailing for producers and service providers, as the global economic crisis slowed the pace of infrastructure projects across the region.

“The local utility companies prefer to buy locally if the quality is good enough” Andy Hedgecock, Omicron

A STORM IN A TEA CUP? While things are looking up, the pace of recovery differs. “Key challenges to our business in the region include relatively reduced market demands in some countries due to the effects of the global economic recession to meeting rapidly increasing demands in

other countries, “says Mohammad Megdad, business unit manager at ABB in Saudi Arabia. Nevertheless, for some the downturn has been little more than a storm in a tea cup. “There was a bit of a blip but generally in the Middle East things carried on

pretty much as normal,” say Andy Hedgecock, general manager at Omicron, a provider of diagnosis and evaluation services for transformers. “Counties have pretty healthy bank accounts because of the oil revenues, so the infrastructure plans slowed a little bit, in

May 2010

Utilities Middle East 27


TRANSFORMERS

Manu Domen, Brush Transformers Gulf

some ma markets in particular. Dubai has seen quite a dramatic slowdown. In contrast, Abu Dhabi went on quite normally.” n Yet even the wealthy Abu Dhabi Electricity AuthorWater and a been dragging its heels on ity has be projects, according to Manu new proj general manager at Brush Domen, g Transformers Gulf. “ADWEA has Transform not done much for the last year of so, and now suddenly they are

says Domen, “Prices for transformers have come down dramatically.”

DIVERSIFY OR DIE Limited sales volumes have forced producers to rebalance their business model. It is no coincidence that Omicron, who specialise in equipment diagnostics, are blasé about the downturn. Customers who are watching their pennies

“It is still very much a buyer’s market. Prices for transformers have come down dramatically”

starting up again.” st Overall, the market favours the customer, as producers are fighting for business. “Our order book is reasonable enough, but it is not as good as it was in 2007. We are still almost 30 percent off those levels,” says Suresh Madhav, regional manager M a manufacturer of at Tesar, T “It is still dry transformers. t very much a buyer’s market,” mu

28 Utilities Middle East

May 2010

are keen to avoid buying expensive new transformers, giving producers the opportunity to offset flagging sales volumes by focusing on the servicing and testing of transformers. “We are trying to diversify a little bit, and are now focusing more and more on servicing the industry, oil testing, analysing the life of a transformers, refurbishment, tab changes, all that kind of stuff,” says Domen. “ Such work can translate into big savings for customers. The main

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TRANSFORMERS

component inside a generator is a silicon steel core, which is encased in copper windings. As generators get older, the insulation material around the copper becomes brittle and breaks up. Replacing the insulation is sufficient to get a generator back into working order, and costs a fraction of the outlay required for a new machine.

AGE CONCERN An increasing focus on services is not only the result of utilities becoming more cost conscious, however. It is also a consequence of existing generators reaching the end of their lifespan. While this is less acute in the Middle East, where infrastructure is often more modern than in other parts of the world, the industry is paying more attention to the maintenance of existing networks. “With most electrical energy suppliers focusing increasingly on the reliability and efficiency of their supply systems and controlling their capital expenditures, a big focus is put on handling such aged transformers in their networks,” sums up Megdad.In the long run, of course, even the best-maintained generators will need to be replaced. This is the cause of some optimism for some market participants, who see a brisk trade ahead.

BUY LOCAL – SELL BIG Supplier manufacturing locally are keen to grow their business on the back of this rosy outlook by expanding their product range. Most of the power transformers, which can handle 220 or 440 kilowatt, are produced outside the Middle East, but this is changing, as some local producers are currently preparing for the production of power transformers. Proximity to the end user gives them a key advantage over their competitors from Europe, the US, or Asia. Not only are they able to offer substantially lower delivery times, but they are also able to show up at short notice should there be any problems with their product. Lead times, especially for the large power transformers, are a nuisance for customers everywhere. As generators are highly specialised machinery that cannot be mass produced, utilities are often forced to order two or three years in advance. The recession and the subsequent drop in demand brought down waiting times a little, “but you don’t build a transformer in few weeks,” comments Hedgecock. Brush Transformers is one company looking to get in on the

“Our order book is decent enough , but we are still almost 30 percent of 2007 sales levels”

Suresh Madhav, regional Manager at Tesar.

action. “We have our people here, if there is a problem we can just jump in the car and we’re there. Whereas if you have a transformer from Japan, lets say, you’ll wait for them and you’ll pay for them,” says Domen. Having been forced

THE COPPER PRICE: A THREAT TO MARGINS Copper is the key raw material needed to produce transformers, and price flutuations are threatening producer’s margins. Over the last two years, there have been huge price swings. (see chart) After peaking at around US$9000/ tonne in 2008, prices slumped to below US$3000/tonne in 2009, before surging back up to almost US$8000/tonne. “If you tender for transformer you have to assume a

30 Utilities Middle East

May 2010

copper price, says Manu Domen from Brush Transformers. “If that tender comes to an order, and the copper price went up, the difference in price will have to be taken care of by the producer, because here most utilities don’t allow for variations in the copper price.” Even if utilities in the Middle East do take copper price fluctuation into account, it is unlikely to be to the benefit of producers. “The price volatil-

ity during last few years has led several key utilities in the region to start applying price variation formulas to reduce the risk of manufacturers suddenly increasing prices. This helps utilities avoid paying higher margins,” says Mohammad Megdad from ABB.

to expand their business model to counter flagging demand, companies like Brush can now offer their regional clients a comprehensive service at short notice. There are further competitive advantages: Domen claims that producing locally is cheaper. And home advantage is not something confined to the football pitch. If the government built the country’s infrastructure while supporting the national economy, it will do so. “The local utility companies prefer to buy locally if they can if the quality is good enough,” says Hedgecock. The transformer market is not only benefiting from the ambitious targets governments are setting themselves for infrastructure growth, they are also part of the very development of industry of the region that this expansion is set to cater for.

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QUICK Q&A

PEOPLE METER Membrane Matters Klaus Kallenberg, general manager at Toray Membrane Europe is a veteran of the desalination industry who started doing business in the Middle East over twenty years ago A qualified chemical engineer, he became an entrepreneur in 1983 by starting membrane supplier Ropur as a joint venture with Mitsui in Switzerland. “Alongside Dow Filmtec, we became the leading membrane supplier in Europe by the late eighties, “ says Kallenberg. Ropur was doing business in the Middle East soon after, working on drinking water projects in Iraq in 1987, and penetrating the Saudi Market in 1989. In 1994, he became the sole owner of Ropur. He ran the independent company for the next ten years, before he realized that further growth necessitated the integration into a larger structure. Kallenberg sold Ropur to Toray Industries Japan, packed his bags, and relocated to Dubai, where he is now running the Toray’s Middle Eastern business. In the region, the company is still registered as Ropur, “there were some problems with the name registration process.”

Utilities Middle East caught up with Klaus Kallenberg on a sunny spring day at the Dubai Marina.

32 Utilities Middle East

May 2010

: Utilities: Mr Kallenberg, has business in the region recovered from the global economic downturn? The crisis is not over yet, that’s for sure. But it has bottomed out, and we are starting to see some green shoots. Even the UAE is showing signs of recovery, with very large RO projects coming up. Saudi Arabia is going strong, the infra-

from future growth there. Besides seawater reverse osmosis, there is a huge market for purifying brackish water, and a lot of potential in the wastewater sector. In a country like Saudi Arabia, which relies one hundred percent on desalination, there is naturally a huge interest in reusing wastewater. We can offer the whole spectrum of products for this process,

“We are seeing a trend towards hybrid integrated power and water plants, were both MSF-MED and RO membranes are used ” structure projects there were never stopped. Qatar, Kuwait, Oman are all investing in infrastructure, and we are of course getting business from the oil industry. : In which Middle Eastern markets do you see further growth? We are very well positioned in Saudi Arabia, and expect to benefit

and are already engaged in big projects in Saudi Arabia where we make use of the membrane bioreactor technology to turn wastewater into relatively highquality water for industrial and agricultural use. We then often use advanced reverse osmosis technology to filter out the salt that found its way into the water as part of the clarification process.

: You specialise in reverse osmosis (RO) membranes. Has this become the dominant method for desalination in the Middle East? No. The switch to RO desalination hasn’t happened yet. Most of the big plants currently operating and under construction will be fitted multi-stage flash (MSF) or multi-effect distillation (MED) thermal technology. We are of course hoping for this to change. Apart from the fact that MSF is very energy intensive, RO has the advantage that it provides flexibility. In an Integrated Water and Power plant (IWPP) relying on MSF or MED, the output of desalinated water is coupled to the power production, desalination cannot be done independently. So we are seeing a trend towards hybrid plants, for instance in Abu Dhabi, where both MSF-MED and RO membranes are used. : Researchers have developed a new, ef ficient and more fouling resistant desalination process based on nano technology, hailed by some as a breakthrough. Are you excited by this development?

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QUICK Q&A

This technology is still in the development stage, with the first products being tested now. It is too early to speak of a breakthrough yet, but it is something with big

potential. We are expecting better results in terms of fouling behaviour and salt retention, which makes this the process less energy intensive, and thus cheaper.

“In a country like Saudi Arabia, which relies one hundred percent on desalination, there is naturally a huge interest in reusing wastewater. ”

A reverse osmosis membrane filter.

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May 2010

Utilities Middle East 33


PROJECTS

UTILITIES PROJECT TRACKER Information is supplied by Ventures Middle East. Tel: +971 2 622 2455. URL: www.ventures-uk.com MIDDLE EAST

Project Title

Client

Consultant

Main Contractor

Value / Value Range (US$. Mn)

Project Status

Project Type

SAUDI

9023/9001 Underground Cables

Saudi Electricity Company (SEC)

Al Fanar Contracting

46

project under construction

Power Transmission

380kV Transmission Line North of Riyadh

Saudi Electricity Company (SEC)

KEC International / Al Sharif Group for Contracting & Development Trading

64

project under construction

Power Transmission

Huta-Hegerfeld & Huta-Marine Limited Company

53

project under construction

Desalination Plant

Doosan Heavy Industries & Const. Company / Saudi Berkefeld Filter (Witco)

245

project under construction

Desalination Plant

Desalination Plant & Drinking Emaar Economic Water Infrastructure City,Saudi Kuljian Engineering Corporation

Desalination Plant in Jeddah - Phase 3

Saline Water Conversion Corporation (SWCC)

115kV Underground Cables in Madina 2nd Industrial City

Saudi Electricity Company (SEC)

Siemens

35

project under construction

Power Transmission

132/13.8 kV 8122-Substation in Al Morooj

Saudi Electricity Company (SEC)

Al-Osais Group

50

project under construction

Substation

10J Substation & 101 Satellite Substation in Yanbu

Royal Commission for Jubail and Yanbu (RCJY)

Siemens

150

project under construction

Substation

Princess Noura Bin Abdulrahman University - High Voltage Substation

Ministry of Higher Education / Ministry of Finance

ABB Contracting Co. / Al Fanar Contracting

167

project under construction

Substation

Yanbu IWPP

The Power & Water Utilities Company for Jubail & Yanbu (Marafiq)/Saline Water Conversion Corporation (SWCC)

Mohammed A.Turki Mott MacDonald

Not Appointed

4000

project under design

Power and Desalination Plant

Qsai Dam at Jizan

Ministry of Water and Electricity,Saudi Arabia

Zuhair Fayez & Partners

Bin Jarallah Establishment for Trading & General Contracting (Bin Jarallah Group)

40

project under construction

Dam

380/110/13.8-kV Substation Expansion in Al Aziziyah Area

Saudi Electricity Company (SEC)

Siemens, Saudi

20

project under construction

Substation

Power Plant Expansion Duba

Saudi Electricity Company (SEC)

Najm Al Jazirah for Trading Contracting & Agriculture Co.

120

project under construction

Power Plant

King Abdullah Economic City (KAEC) - Power Grid Package

Emaar Middle East Properties

Siemens

400

project under construction

Substation

Not Appointed

2500

project under design

Power & Desalination Plant

Bin Jarallah Establishment for Trading & General Contracting (Bin Jarallah Group)

16

project under construction

Dam

Saudi Arabian Mining Power and Water Plant in Ras Company (Maaden) / Rio Al Zour Tinto Alcan New Dam in Abha

Ministry of Water and Electricity

Substations 9024 and 8183/8184

Saudi Electricity Company (SEC)

ABB Contracting Co.

120

project under construction

Substation

Interim Power Plant at Yanbu

The Power & Water Utilities Company for Jubail & Yanbu (Marafiq)

Not Appointed

300

EPC Bid

Power Plant

www.utilities-me.com

Zuhair Fayez & Partners

May 2010

Utilities Middle East 35


PROJECTS

Rabigh IPP - 380-KV Substation

Saudi Electricity Company (SEC); ACWA Power International; Korea Electric Power Corporation (Kepco);

ABB Contracting Co., Saudi Arabia

48

project under construction

Substation

Uqair Power Plant

Saudi Electricity Company (SEC)

Not Appointed

1500

project in concept stage

Power Plant

380 Substation at Al Dhahiyah - Stage2

Saudi Electricity Company (SEC)

Al Toukhi Company for Industry & Trading

70

project under construction

Substation

PP11 Power Plant in Riyadh

Saudi Electricity Company (SEC)

Not Appointed

2133

EPC Bid

Power Plant

Karan Gas Field Exploration - Utilities and Co-generation Package

Saudi Aramco

Petrofac, Saudi

500

project under construction

Co-generation Plant

Qurayyah - 2 Simple Cycle Power Plant

Saudi Electricity Company (SEC)

Arabian Bemco Contracting, Saudi Arabia; 1900 Doosan Heavy Industries & Const. Company, Saudi Arabia;

project under construction

Power Plant

Not Appointed

3000

EPC Bid

Power and Desalination Plant

Not Appointed

1800

EPC Bid

Water Distribution

Alstom Power / Sidem

3,000

project under construction

Power and Desalination Plant

Foster Wheeler, Saudi Arabia

UAE

Hassyan Complex - Station P - Phase 1 (P1)

Dubai Electricity and Water Authority (DEWA)

Mott MacDonald, Dubai

Hassyan Sea-Water Cooling System

Dubai Electricity and Water Authority (DEWA)

Fujairah 2 (F2) IWPP

ADWEA/ Marubeni Corporation/ International Power

Water Treatment Plant - Das Island

Abu Dhabi Marine Operating Company (AdmaOpco)

Metito Abu Dhabi LLC

21

project under construction

Water Treatment

Desalination Plant near Hamriyah Free Zone

Sharjah Electricity and Water Authority (SEWA)

Aqua Engineering, Techton Engineering & Construction

122

project under construction

Desalination Plant

General Utility Plant Expansion at Ruwais

Abu Dhabi Oil Refinery Company (Takreer)

Not Appointed

500

EPC Bid

Power Plant

Upgrade of Irrigation Networks and Pumping Stations

Department of Municipalities & Agriculture-Abu Dhabi

Not Appointed

10

EPC Bid

Pumping Station

Nuclear Power Plant in Abu Dhabi

Abu Dhabi Water and Electricity Authority / Emirates Nuclear Energy Corporation

Korean Electric Power Company / Hyundai Engineering & Construc41000 tion Company/Samsung C & T Corporation/ Doosan Heavy Industries

project under construction

Power Plant

Installation of 11kV Cables in Dubai

Dubai Electricity and Water Authority (DEWA)

Econ Contracting LLC

25

project under construction

Power Transmission

Two Desalination Plants in Ajman

Federal Electricity & Water Authority (FEWA)

Tecton Engineering & Construction; Aqua Engineering;

200

project under construction

Desalination Plant

11kV Overhead Transmission Line for Subiya Road

Ministry of Electricity & Water (MEW), Kuwait

National Contracting 11 Company (NCC), Kuwait

project under construction

Power Transmission

New Substations in Kuwait

Ministry of Electricity & Water (MEW), Kuwait

Not Appointed

30

EPC Bid

Substation

Water Storage Tanks in West Funaitees

Ministry of Electricity & Water (MEW), Kuwait

Not Appointed

500

EPC Bid

Water Distribution

Shuwaikh Desalination Plant

Ministry of Energy (Electricity & Water)

Doosan Heavy Industries & Construction Kuwait

320

project under construction

Desalination Plant

Fichtner

KUWAIT

36 Utilities Middle East

May 2010

www.utilities-me.com


TENDERS

Tender activity

To add a tender to our listing, email details to lutfi.qaraman@itp.com

Visit constructionweekonline.com for the latest tender information

UME provides free access to the latest publicly available tender listings from across the GCC countries. The tenders included are aggregated from a wide variety of public and private sector sources from across the region. When possible, tenders include the issuer, name and category of the tender, opening and closing dates, narratives, fees, bonds and contracts.

UPGRADING OF THE COMPLETE SCADA SYSTEM IN RQWTS LINES A & B Issuer: Saline Water Conversion Corporation Tender number: RQWTS-SCADA Title: Upgrading of the Complete SCADA System in RQWTS Lines A & B Description: The scope of work includes upgrading of the complete SCADA System, communication system & communication cable in RQWTS Lines A & B. Bond: N/A Tender fee: 5000.00 SAR Closes: May 2, 2010 Contact: www.swcc.gov.sa CONSTRUCTION WORKS OF RAS AL-ZOUR - HAFR AL-BATIN WATER TRANSMISSION SYSTEM Issuer: Saline Water Conversion Corporation Tender no: RHWTS-MSSP Title: Construction Works of Ras Al-Zour - Hafr Al-Batin Water Transmission System Description: The scope of work includes construction of Ras Al-Zour - Hafr Al-Batin water transmission system and the related works. Bond: N/A Tender fee: 100000.00 SAR Closes: May 3, 2010 Contact: www.swcc.gov.sa CONSTRUCTION OF NEW GENERATORS AT DIBBA POWER STATION IN MUSANDAM GOVERNORATE Issuer: Rural Areas Eletricity Compant S.A.O.C Tender number: 89/2010 Title: Construction of New Generators at Dibba Power Station in Musandam Governorate Description: The scope of work includes relocation of 1x4.6 MW DG set from Mudhairib Power Station to Dibba Power Station in Musandam Governorate. Bond: N/A Tender fee: 350.00 OMR Closes: May 3, 2010 Contact: www.tenderboard.gov.om OPERATION & MAINTENANCE OF NIZWA WATER SUPPLY SYSTEM Issuer: Public Authority for Electricity and Water Tender no: 88/2010

38 Utilities Middle East

May 2010

Title: Operation & Maintenance of Nizwa Water Supply System Description: The scope of work includes operation & maintenance of Nizwa Water Supply System in Oman. Bond: N/A Tender fee: 225.00 OMR Closes: May 3, 2010 Contact: www.tenderboard.gov.om CONSTRUCTION OF WATER SUPPLY SYSTEM TO HADF AND ALFAY TOWNS Issuer: Public Authority for Electricity and Water Tender number: 92/2010 Title: Construction of Water Supply System to Hadf and Alfay Towns Description: The scope of work includes construction of water supply system to Hadf and Alfay towns in Wilayat Mahdah. Bond: N/A Tender fee: 1000.00 OMR Closes: May 3, 2010 Contact: http://www.tenderboard.gov.om MAINTENANCE SERVICES FOR A/C IN SHOUIBA SOUTH IWPP Issuer: Central Tenders Committee Tender no: MEW/63/2009/2010 Title: Maintenance Services for A/C in Shouiba South IWPP Description: The scope of work includes maintenance services for A/C in Shouiba South Independent Water & Power Plant (IWPP). Bond: Applicable Tender fee: 170.00 KWD Closes: May 4, 2010 Contact: Central Tenders Committee - Ministry of Electricity & Water OPERATION & MAINTENANCE WORK OF ALL FIRE ALARM AND FIRE FIGHTING SERVICES IN STORAGE AREAS IN SHUWAIKH AREA Issuer: Central Tenders Committee Tender no: KPA/30/2009 Title: Operation & Maintenance Work of All Fire Alarm and Fire Fighting Services in Storage Areas in Shuwaikh Area

Description: The scope of work includes operation & maintenance work of all fire alarm and fire fighting services in storage areas number (2, 4, 6, 7, 8 & 9) in Shuwaikh area. Bond: Applicable Tender fee: 30.00 KWD Closes: May 4, 2010 Contact: Central Tenders Committee - Kuwait Port Authority MANUFACTURE AND SUPPLY OF STEEL PIPES FOR RAS AL-ZOUR - HAFR AL-BATIN WATER TRANSMISSION SYSTEM Issuer: Saline Water Conversion Corporation Tender no: RHWTS-MSSP Title: Manufacture and Supply of Steel Pipes for Ras Al-Zour - Hafr Al-Batin Water Transmission System Description: The scope of work includes manufacture and supply of steel pipes for Ras AlZour - Hafr Al-Batin Water Transmission System. Bond: N/A Tender fee: 100000.00 SAR Closes:May 5, 2010 Contact: www.swcc.gov.sa 0.433/11-KV SECONDARY SUBSTATION IN KUWAIT Issuer: Central Tenders Committee Tender no: MEW/93/2009/2010 Title: 0.433/11-kV Secondary Substation in Kuwait Description: The scope of work includes construction of 0.433/11-kV secondary substation in Kuwait. Bond: Applicable Tender fee: 2500.00 KWD Closes: May 9, 2010 Contact: Central Tenders Committee - Ministry of Electricity and Water SUPPLY, INSTALLATION, TESTING AND COMMISSIONING OF 2 NOS. 132/11-KV SUBSTATIONS Issuer: Dubai Electricity & Water Authority (DEWA) Tender no: CE/0026/2010 Title: Supply, Installation, Testing and Commissioning of 2 Nos. 132/11-kV Substations www.utilities-me.com


TENDERS

Description: The scope of work includes supply, installation, testing and commissioning of 2 Nos. 132/11-kV substations and associated works. Bond: Applicable Tender fee: 5000.00 AED Closes: May 9, 2010 Contact: www.dewa.gov.ae CONSTRUCTION OF ADDITIONAL TANKER FILLING STATIONS IN ASH SHARQIYAH REGION Issuer: Public Authority for Electricity and Water Tender no: 105/2010 Title: Construction of Additional Tanker Filling Stations in Ash Sharqiyah Region Description: The scope of work includes construction of additional tanker filling stations in Ash Sharqiyah Region. Bond: N/A Tender fee: 1500.00 OMR Closes: May 17, 2010 Contact: www.tenderboard.gov.om UPGRADING SWAIHIRAH PRIMARY SUBSTATION Issuer: Majan Electricity Company (SAOC) Tender no: 111/2010 Title: Upgrading Swaihirah Primary Substation Description: The scope of work includes upgrading Swaihirah primary substation from 2x6 MVA to 2x20 MVA. The substation located in north Batinah region. Bond: N/A Tender fee: 473.00 OMR Closes: May 24, 2010 Contact: www.tenderboard.gov.om CONSTRUCTION OF AL-ZOUR NORTH IWPP Issuer: Central Tenders Committee Tender no: MEW/32/2008/2009 Title: Construction of Al-Zour North IWPP Description: The scope of work includes construction of Al-Zour North Independent Water & Power Plant (IWPP). Bond: Applicable Tender fee: 5000.00 KWD Closes: May 30, 2010 Contact: Central Tenders Committee - Ministry of Electricity & Water COMPLETE OVERHAULING, TESTING FOR LIFE EXTENSION OF TURBINE NO. 13 IN JEDDAH PLANT PH. 4 Issuer: Saline Water Conversion Corporation Tender no: JD/RM/415 Title: Complete Overhauling, Testing for Life Extension of Turbine No. 13 in Jeddah plant Ph. 4 Description: The scope of work includes overhauling and testing for life extension of Turbine No.13 in Jeddah Plant Ph. 4. Bond: N/A www.utilities-me.com

Tender fee: 500.00 SAR Closes: Jun 5, 2010 Contact: www.swcc.gov.sa RECONSTRUCTION AND REHABILITATION OF BOILER IN JEDDAH PLANT - 4 Issuer:Saline Water Conversion Corporation Tender no:JD/RC/568 Title: Reconstruction and Rehabilitation of Boiler in Jeddah Plant - 4 Description: The scope of work includes reconstruction and rehabilitation of boiler in Jeddah Plant - 4. Bond:N/A Tender fee:500.00 SAR Closes: Jun 6, 2010 Contact: www.swcc.gov.sa REHABILITATION OF 13 PUMPS IN JEDDAH SUBSTATION - PHASE 4 Issuer: Saline Water Conversion Corporation Tender no: JD/R/M/197 Title: Rehabilitation of 13 Pumps in Jeddah Substation - Phase 4 Description: The scope of work includes rehabilitation of 13 pumps in Jeddah Substation Phase 4. Bond: N/A Tender fee: 500.00 SAR Closes: Jun 8, 2010 Contact: www.swcc.gov.sa

KEY CONTRACT

CONSTRUCTION OF RAS AZ ZAWR POWER AND DESALINATION PLANT - PHASE 1 The Saudi Saline Water Conversion Corporation has issued a tender for the construction of Phase 1 of the Ras Az Zawr power and desalination plant. The contract covers two packages, package “P” for power plant & package “D” for desalination plant. The tender number is RZP-D and the fee is 200 000 SAR. The tender closes on May 9, 2010

OVERHAUL OF THE TURBINE AND GENERATOR IN AL KHOBAR SUBSTATION Issuer: Saline Water Conversion Corporation Tender no: KH/5314 Title: Overhaul of the Turbine and Generator in Al Khobar Substation Description: The scope of work includes the overhaul of the turbine and generator in Al Khobar Substation. Bond: N/A Tender fee: 500.00 SAR Closes: Jun 9, 2010 Contact: www.swcc.gov.sa REPLACEMENT OF 153.5-MVA TRANSFORMERS AT JUBAIL-2 PLANTS Issuer: Saline Water Conversion Corporation Tender no: JB/R/E/317 Title: Replacement of 153.5-MVA Transformers at Jubail-2 Plants Description: The scope of work includes replacement of 153.5-MVA transformers at Jubail-2 Plants. Bond: N/A Tender fee: 500.00 SAR Closes: Jun 16, 2010 Contact: www.swcc.gov.sa REPLACEMENT OF 169-MVA TRANSFORMER AT JUBAIL-2 PLANT Issuer: Saline Water Conversion Corporation Tender no: JB/R/E/301 Title: Replacement of 169-MVA Transformer at Jubail-2 Plant Description: The scope of work includes replacement of 169-MVA transformer for Unit No.61 & 62 at Jubail-2 Plant Bond: N/A Tender fee: 500.00 SAR Closes: Jun 19, 2010 Contact: www.swcc.gov.sa LIVE LINE WASHING OF OHTL INSULATORS AND OUTDOOR GANTRY INSULATORS Issuer: Central Tenders Committee Tender no: MEW/113/2009/2010 Title: Live Line Washing of OHTL Insulators and Outdoor Gantry Insulators Description: The scope of work includes live line washing of 400, 300, 132 and 33-kv Over-Head Transmission Line (OHTL) insulators and outdoor gantry insulators. Bond: Applicable Tender fee: 2500.00 KWD Closes: Jun 20, 2010 Contact: Central Tenders Committee - Ministry of Electricity and Water

Contact: www.swcc.gov.sa

May 2010

Utilities Middle East 39


SNAPSHOT: OMAN

Meeting Oman's power drive Abhay Bhargava and Amritap Ghosh from Frost & Sullivan’s Energy & Power Systems team provide a snapshot of the power sector in Oman SECTOR OVERVIEW The Oman electricity and water sector has undergone extensive restructuring since 2004, when the so-called “Sector Law’ paved the way for further privatisation of the market, and led to the establishment of an independent regulator. Power and water plants are typically privately owned, with the provision that a 35 percent share of the project is floated on the stock exchange after four years. The program has allowed the government to successfully set up five power projects generating almost 2.400mw of power and about 360 million litres of water a day. Oman is in the process of launching three more power projects to add additional capacity of 2.000mw and 270 million litres a day.

TRANSMISSION To accommodate an estimated annual growth in system demand of almost 12 percent between 2009 and 2013, a total of 64 transmission projects are planned over a three year period. The Oman Electricity and Transmission Company (OETC) is active in extending the 220kV transmission system to lessen the risk of overload and reduce power losses. The company aims to use 220kV as

the main transmission voltage, and use 132kV for sub-transmission. Transmission at 400kV for long distance bulk power is also being considered. Plans are in place to privatise up to 65% of the transmission and distribution sector currently owned by the government body Transco. OETC wants to increase the number of 220/132kV grid stations before the summer peak of 2013, while 132/33kV grid station capacity is expected to increase by 14 percent in the same period. OETC is introducing direct voltage transformation on the transmission system from 220kV to 33kV, and from 132kV to 11kV in the next five years. The OETC is also planning to complete a 220kV double circuit ring around northern Oman by the end of 2014. Oman has the smallest market for industrial transformers up to 30 MVA in the GCC. There are two domestic suppliers in Oman: Voltamp Transformers and Al Jizzi Transformers. Transformers above 10 MVA are currently being imported by Indian and European supplier.

Getty Images

5.000mw Total power generation in Oman in 2009 Source: Freshfields Bruckhaus Deringer

Oman's transmission systems will be expanded and upgraded in coming years.

40 Utilities Middle East

May 2010

www.utilities-me.com


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Utilities Middle East - May 2010  

Utilities Middle East - May 2010 - ITP Business

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