“We shall walk together on this path of life, for all things are part of the universe and are connected each to the other to form one whole unity.”
– Maria Montessori
HAWAII - RENEWABLE ENERGY - UNITED ARAB EMIRATES - GLOBAL SUSTAINABILITY
1. HAWAIIAN ELECTRIC
PROPOSES FIRST INCREASE IN OAHU BASE RATES IN 6 YEARS
Investment of $900M in grid upgrades for reliability and renewable energy since 2011
New benchmarks proposed for customer service performance, reliability, and rooftop-
solar interconnection
Integration of more renewable energy
WE ARE NOT ALONE
UNITED ARAB EMIRATES (UAE)
“Best-known as a hydrocarbon-exporter, the country has emerged as a
significant investor in renewable energy globally and a political advocate
for these technologies.”
EDISON ELECTRIC INSTITUTE (EEI)
“Today, a profound transformation is underway across the United States
as the way energy is produced and used is changing due to changes in
technology, policy and customer expectations.”
SUSTAINABLE FERC PROJECT (PROJECT)
“[F]uel prices, technology shifts, the economy, increasing use of demand-
side management, and other changes have shaped the power sector far
more significantly than environmental standards.”
“The grid does face reliability challenges due to aging infrastructure, lack
of investment, and greater climate extremes. Transitioning to a lower
carbon electric system is an opportunity both to reduce air pollution and
to build a more reliable, modern energy system based on flexible
generating technologies, smart grid technologies, and more efficient
energy use.”
The social progress, order, security and peace of each country
are necessarily connected with the social progress, order, security and peace
of all other countries.
– Pope John XIII
2. HAWAIIAN ELECTRIC PROPOSES FIRST INCREASE IN OAHU BASE RATES IN 6 YEARS
https://www.hawaiianelectric.com/hawaiian-electric-proposes-first-increase-in-oahu-base-rates-in-6-years
Web Accessed: December 17, 2016
Company cites spending $900M in grid upgrades for reliability, renewable energy
Benchmarks proposed for customer service performance and other key areas
HONOLULU, Dec. 16, 2016 - Hawaiian Electric today proposed the first increase of Oahu base
rates in nearly six years to help pay for operating costs, including system upgrades to increase
reliability, improve customer service and integrate more renewable energy.
The request is for a 6.9 percent increase in revenues, or $106 million.
If approved, a typical Oahu residential customer using 500 kilowatt hours a month would see
an increase of $8.71 a month to $141.03, based on December 2016 bills. Thanks to lower fuel
prices and cost containment efforts, bills reflecting the new rates, if the full amount were
approved today, would still be lower than the average bill in 2015.
After review by the Public Utilities Commission, any change would likely not take effect until
the second half of 2017 at the earliest. The rate filing is part of a required periodic regulatory
review.
As part of the filing, Hawaiian Electric is proposing new benchmarks to measure its
performance and link certain revenues to goals in key areas, including customer service,
reliability, and communication for the rooftop-solar interconnection process.
Since 2011, Hawaiian Electric spent more than $900 million replacing and upgrading equipment
to improve the efficiency and resilience of the Oahu power grid. That work includes the
replacement of 6,800 poles and 4,800 transformers, implementation of advanced cybersecurity
measures, and proactive clearing of trees and other vegetation from around poles and power
lines, resulting in fewer and briefer outages during storms.
During the same period, the number of approved private rooftop solar systems on Oahu has
risen from 5,000 to nearly 54,000. Hawaiian Electric increased resources to expedite the review,
inspection, and approval of systems so they can be safely connected to the grid and has been
nationally recognized for research and technical advances aimed at bringing more renewable
energy online.
Many of the grid improvements are aimed at accelerating Hawaiian Electric's switch from fossil
fuel generation to a portfolio of renewable energy resources, with the goal of reaching 100
percent renewable electricity by 2045.
3. Hawaiian Electric has also spent more than $25 million over the past six years improving
customer service by increasing staff and investing in new technology, creating paperless billing,
providing more online options and significantly reducing call-waiting times.
The percentage of customer calls answered within 30 seconds went from 24 percent in 2012 to a
forecasted 80 percent in 2016. In surveys of customers who called to stop, start or change electric
service in 2015, 93 percent said they were satisfied with the experience.
The company has absorbed a significant amount of these increased costs in the years between
rate cases without passing them on to customers.
Hawaiian Electric rates are "decoupled" - a regulatory model that periodically adjusts rates to
remove the company's need to increase sales to recover a level of PUC-approved costs for
providing service to all customers. The company is required to submit full rate cases every three
years for an updated review by the PUC of the current costs of service.
__________________
HAWAIIAN ELECTRIC RATE HIKE PROPOSAL SEEKS 7% INCREASE
By Duane Shimogawa. Pacific Business News. December 16, 2016.
http://www.bizjournals.com/pacific/news/2016/12/16/hawaiian-electric-rate-hike-proposal-
seeks-7.html Web Accessed: December 17, 2016
Hawaiian Electric Co. is proposing to raise rates by nearly 7 percent, which would be the first
increase in base rates on Oahu in nearly six years, the utility said Friday.
Pacific Business News broke the story about the proposal from Hawaiian Electric Co., a
subsidiary of Hawaiian Electric Industries Inc. (NYSE: HE), to raise rates, which would help pay
for operating costs, including system upgrades to increase reliability, improve customer service
and integrate more renewable energy.
The request, which still needs Hawaii Public Utilities Commission approval, is for a 6.9 percent
increase in revenues, or $106 million.
If approved, a typical Oahu residential customer using 500 kilowatt hours a month would see
an increase on a monthly bill of $8.71 up to $141.03, based on December 2016 bills.
The utility said that thanks to lower fuel prices and cost containment efforts, bills reflecting the
new rates, if the full amount were approved today, would still be lower than the average bill in
2015.
4. Hawaiian Electric said any change in bills would likely not take effect until the second half of
2017 at the earliest, and that the rate filing is part of a required periodic regulatory review.
The state’s largest utility also is proposing new benchmarks to measure its performance and
link certain revenues to goals in key areas, including customer service, reliability and
communication for the rooftop solar interconnection process.
Since 2011, Hawaiian Electric has spent more than $900 million on upgrading the Oahu power
grid, including the replacement of 6,800 poles and 4,800 transformers. It also has approved
nearly 54,000 private rooftop solar systems.
Additionally, the utility said it has spent more than $25 million during the past six years
improving customer service by increasing staff and investing in new technology.
Hawaiian Electric said it has absorbed a significant amount of these increased costs in the years
between rate cases without passing them on to customers. The utility’s rates are “decoupled,” a
regulatory model that periodically adjusts rates to remove the company’s need to increase sales
to recover a level of PUC-approved costs for providing service to all customers. The company is
required to submit full rate cases every three years for an updated review by the PUC.
_____________________
HECO SEEKS 6.9 PERCENT RATE INCREASE FOR OAHU
By Kathryn Mykleseth. Honolulu Star Advertiser. December 16, 2016.
http://www.staradvertiser.com/2016/12/16/business/business-breaking/heco-seeks-6-9-percent-rate-increase-for-oahu/
Web Accessed: December 17, 2016
Hawaiian Electric Co. is seeking to raise rates for Oahu customers by 6.9 percent.
The state’s dominant electric utility submitted a filing for the increase today with the state
Public Utilities Commission. If approved, it would boost revenue for the company by $106
million and increase customers’ bills by $8.71 a month based on the December bills.
The bill for an Oahu household using 500 kilowatt-hours in December was $132.32.
HECO said the base rate increase would help improve customer service, pay for operating costs
and add more renewable energy resources to the electric grid. The utility said it has spent more
than $900 million replacing and upgrading equipment on Oahu.
HECO said due to lower fuel prices, if its proposed rate case is approved, the average bill still
would be lower than the bills customers saw last year.
5. The last rate case that HECO filed seeking an increase was in May 2010. HECO asked for a 6.6
percent increase at that time. The total amount requested was $113.5 million, according to
HECO. The PUC ended up approving a 3.4 percent increase in September 2012. That resulted in
a revenue increase of $58.1 million.
The PUC has to complete its review and issue its decision before nine months from the date that
HECO filed this latest application.
HECO’s base rate is only part of the rates customers see on their bills.
The rates customers pay change monthly, as rates include HECO’s base rate as well as
surcharges such as the Energy Cost Adjustment, the Purchased Power Adjustment, IRP Cost
Recovery, Revenue Balancing Account Adjustment, and the Renewable Energy Infrastructure
Program.
____________________
RENEWABLE ENERGY IN THE UNITED ARAB EMIRATES
NORTON ROSE FULBRIGHT. Publication | January 2011
http://www.nortonrosefulbright.com/knowledge/publications/33580/renewable-energy-in-the-united-arab-emirates
Web Accessed: December 17, 2016
Context
Outlook
Policy and regulatory framework
Estidama initiative
Dubai’s Green Building Code
Dubai Carbon Centre of Excellence
Conclusion
Context
The United Arab Emirates (UAE) comprises seven emirates (Abu Dhabi, Dubai, Sharjah, Ras al-
Khaimah, Fujairah, Umm Ul Quwain and Ajman). Abu Dhabi is the capital and the largest
emirate.
Currently, the UAE has the world’s largest per capita carbon footprint, due in part to the
amount of electricity required for desalination and air conditioning. In common with other oil
rich GCC nations, electricity production is subsidised and supplied to end users at less than the
cost of generation.
6. The UAE is at the forefront of the development of renewable energy in the MENA region, with
the establishment of The Abu Dhabi Future Energy Company (Masdar), the construction of the
world’s first carbon-neutral zero waste city, the annual World Future Energy Summit and the
relocation of IRENA’s headquarters to Masdar City.
Currently, there is little renewable energy produced in the UAE but this will change once the
Shams 1 solar project is operational (expected to be 2011). As well as solar, the UAE is looking
to nuclear as part of its drive to reduce its carbon footprint.
Outlook
The UAE has announced that it intends to produce 7 per cent of its electricity from renewable
sources by 2020.
Key drivers
Despite having the third largest oil reserves in the world, the UAE has probably the most
ambitious renewable energy programme, certainly in the GCC if not in the MENA region.
There are a number of motivations for this. One is the availability of natural gas. Wood
Mackenzie (a UK-based energy consultant) estimates that demand for natural gas will treble to
6 billion cubic feet a day by 2020 which means that, even with the supplies from the Dolphin
gas project, the UAE will struggle to meet demand.
Additionally, the UAE is keen to diversify its economy and sees the development and export of
green technology as means of doing this.
Major projects
Masdar City
The UAE’s flagship project is Masdar City, which aims to be the world’s first carbon-neutral city
by relying on solar, wind and other renewable energy resources. It is scheduled for completion
in 2016, with a projected cost of US$22 billion resulting in savings of US$2 billion in oil over 25
years. It is claimed that, when complete, it will use 70 per cent less electricity and 60 per cent
less water than a conventional city. The UAE intends that Masdar City will be a global clean
technology hub and it is already home to IRENA.
Other current projects include the Shams 1 solar project and a hydrogen power project.
7. Shams 1
The Shams 1 solar project is a planned concentrating solar power (CSP) station, to be located 120
kilometres from Abu Dhabi in Madinat Zayed. The IPP will generate 100 MW with plans to
increase capacity to 2000 MW in the future. It is estimated to cost US$600,000 million, and will
be developed by Masdar (which will hold a 60 per cent stake in the project) alongside Spain’s
Abengoa Solar and France’s Total S.A.
The plant will consist of 768 parabolic trough collectors stretching over an area of 2.5 square
kilometres, and will be developed under a 25-year build, own and operate (BOO) contract; it
will be operational by 2011. The plant is stated by Masdar to displace approximately 175,000
tonnes of CO² per year, which is the equivalent to the planting of 1.5 million trees.
An important feature of the Shams 1 solar project is the introduction of a “green payment” by
which the Abu Dhabi Ministry of Finance will compensate the Abu Dhabi Water and Electricity
Company (ADWEC) (the procurer of power under the project PPA), for the shortfall in revenue
stemming from subsidised electricity supply and the cost of production.
The Abu Dhabi Government anticipates that the production costs of renewable energy will
decrease, possibly to such a level that the green payment becomes redundant. Although Abu
Dhabi’s Regulation and Supervision Bureau (the RSB) has not revealed the financial details of
the green payment, it has said that the model will be applied to other renewable projects.
Geothermal
Masdar City is proposing to build the Gulf’s first geothermal energy facility. The US$11 billion
project will be partially built by the Icelandic company Reykjavik Geothermal. The company
has also been awarded a US$1.6 million contract to export its geothermal know-how to Masdar
City. When complete, the geothermal project will be used to power the city’s 5 MW air
conditioning system.
Hydrogen Power Abu Dhabi (HPAD)
HPAD is a 60/40 joint venture between Masdar and BP to construct the world’s first
commercial-scale hydrogen-fuelled power plant utilising fossil fuel feedstock and CCS. The
project will require a total capital investment (excluding CO² transportation and storage) of
about AED 7 billion (US$2 billion). This project will take natural gas from the grid and convert
it to hydrogen and CO². The hydrogen power plant will generate approximately 400 MW of
low-carbon electricity, and could provide more than 5 per cent of all Abu Dhabi’s current power
generation.
8. Solar
MBM Holdings has recently announced the formation of MBM Solar Holding Inc., which will
build a solar-grade polysilicon plant in the UAE. The US$400 million project will be the first
upstream plant of its kind to be constructed in the UAE, and is the largest planned solar plant in
the region, anticipated to cover a total area of approximately 250,000 square metres. The
planned plant will have a total capacity of 2,500 tons per annum of high quality solar-grade
polysilicon product and is expected to start production in early 2012.
Dubai - Solar power plant
Dubai Water and Electricity Authority (DEWA) plans to build the first solar power plant in
Dubai with capacity ranging between 10 and 100 MW. This project is part of the UAE’s
sustainable development plan to meet future energy demand while preserving the
environment. Dubai’s solar plant will be UAE’s second solar power station - Masdar’s Shams 1
solar power station in Abu Dhabi being the first solar plant in the GCC region. In November
2010, a feasibility study was in progress and potential sites for the project were under
evaluation. The plant will use either photovoltaic or thermal solar technology. Construction is
scheduled to commence in 2011.
Nuclear
In early 2010, the UAE Foreign Minister, His Highness Sheikh Abudullah bin Zayed Al Nahyan,
at an address in Paris before the International Conference on Access to Civil Energy stated that:
“The United Arab Emirates' interest in developing nuclear energy is motivated by the need to
develop additional sources of electricity to meet future demand projections and to ensure the
continued rapid development of its economy. Analysis conducted by official UAE entities has
concluded that national annual peak demand for electricity is likely to triple by 2020, reflecting
a cumulative annual growth rate of roughly 9 per cent from 2007 onward. In evaluating
different options to meet this demand, nuclear energy emerged as a proven, environmentally
promising and commercially competitive option which could make a significant contribution to
the UAE's economy and future energy security.”
Accordingly, the UAE established a Nuclear Energy Program Implementation Organisation
which set up the Emirates Nuclear Energy Corporation (ENEC). ENEC is an Abu Dhabi public
entity, with the remit to evaluate and implement nuclear power plans within the UAE. It will
also act as a government investment arm by making strategic investments in the nuclear sector,
both domestically and internationally.
9. In 2009, the Federal Law Regarding the Peaceful Uses of Nuclear Energy was signed. It
provides for the development of a system of licensing and control of nuclear material, as well as
establishing the Federal Authority of Nuclear Regulation (FANR). FANR is an independent
entity charged with overseeing the regulation of the whole of the UAE’s nuclear energy sector
as well as appointing the regulator’s board.
In implementing the development of nuclear power in the region, the UAE Government plans
to “offer joint-venture arrangements to foreign investors for the construction and operation of
future nuclear power plants” similar to the existing IWPP structures, which are 60 per cent
government owned and 40 per cent owned by joint venture partners.
Last year ENEC announced the selection of a bid from a consortium led by the Korean company
KEPCO for the construction of four APR-1400 reactors.
Policy and regulatory framework
The UAE has announced that it aims to produce 7 per cent of electricity from renewable sources
by 2020. Furthermore, as outlined above the UAE is home to some of the region’s most high-
profile initiatives in the field of developing energy from renewable sources.
In July 2009, Sultan Al Jaber, the Chief Executive Officer of Masdar, announced plans for Abu
Dhabi to launch its Energy Vision 2030. As part of Energy Vision 2030, Abu Dhabi has finalised
a new energy formula that will help develop an average price for the whole of its energy
portfolio.
Abu Dhabi benefits from low cost energy sources, and consequently renewable energy will be
comparatively expensive. Sultan Al Jaber has been reported as saying:
“For us, because we have low-cost energy sources, and renewable energy is going to
be expensive, we are going to inject it into one formula so that we have one price for
all energy production. Low cost energy sources will help bring the renewable
energy production cost down …. We are going to look at it with a holistic approach.
We are setting a new model on how renewable energy production is actually being
tackled and the cost of renewable energy production is being calculated.”
However, to date no further details regarding the model have been forthcoming.
Estidama initiative
Abu Dhabi launched the Estidama initiative which is stated to make the Emirate the
sustainability capital of the Middle East, by the implementation of a program for sustainable
buildings and communities.
10. The program was initiated by a group of government agencies and developers, including the
Abu Dhabi Urban Planning Council (UPC), Abu Dhabi Municipality (ADM) and Masdar.
The program forms part of Abu Dhabi’s Plan 2030. Plan 2030 is an Urban Structure Framework
Plan published by the UPC in September 2007 and is a high level framework governing the
future of Abu Dhabi’s urban development. It provides principles, policies and ‘conceptual
solutions to shape the growth of Abu Dhabi over the next quarter of a century’ (as opposed to
providing specifications for the development of any individual site).
As part of the Estidama a new Abu Dhabi building code, (the Code) has been launched. The
Code incorporates mandatory sustainable building principles. The Abu Dhabi Urban Planning
Council has also introduced a rating system against which new buildings will be assessed.
Dubai’s Green Building Code
Dubai’s much anticipated Green Building Code (the Green Code) was approved by the
government in 2010 and will be rolled out in phases. The Green Code, jointly developed by
DEWA and Dubai Municipality, sets out optional and mandatory regulations in order to make
buildings in Dubai compatible with environmental requirements which include a set of factors
such as site selection, efficient use of energy and water, indoor environmental quality, and
waste management. These regulations aim generally at reducing electrical energy consumption,
rationalising water consumption and the optimum use of renewable energy. All these factors
will contribute effectively in reducing gas emissions, reflecting positively on public health.
Dubai Carbon Centre of Excellence
The Dubai Carbon Center of Excellence (DCCE) was established under the directives of the
Supreme Council of Energy with a view to leveraging Dubai’s carbon potential through a clean
development mechanism in cooperation with the United Nations Development Programme
(UNDP) for both technology and competence transfer into the Emirate.
The DCCE was established as a public/private joint stock company with a paid up capital of
AED10 million. The DCCE’s founding shareholders include DEWA, Dubai Aluminum,
Estidama, ENOC, and Emirates Airlines.
The DCCE will have the task of focusing on carbon-project opportunities, but will
simultaneously act as the Dubai-based stimulant to develop a carbon efficient economy, whilst
developing carbon incentives for the Emirate’s key stakeholders.
11. The DCCE’s main objectives are to create the region’s leading knowledge repository on carbon
matters, establish a climate change fund to provide capital and incentives to attract global
leading technology companies, and create a portfolio of Dubai-based environmental credits and
advising emission reduction projects to meet the needs of Dubai institutions and achieve
carbon-neutrality.
The DCCE will be mainly responsible for the trading and sourcing of carbon credits, i.e. it will
act as a broker for its own book of credits and as broker of clients’ credits to DCCE’s network of
institutional buyers internationally, including Government funds, utilities and large
corporations in compliance markets. This will be vital for all local airlines traveling to Europe as
they will need to offset carbon levels that are imposed on their European routes; rather than
buying the carbon credits from the global trading market at significant margins, airlines can buy
these credits from the DCCE at attractive rates.
Conclusion
Despite the critical role of oil and gas for the UAE, the country has made groundbreaking
commitments in alternative energy. The UAE is taking steps to reduce carbon emissions
through major initiatives in both Abu Dhabi and Dubai.
The UAE has long been an important supplier of energy and is now becoming an increasingly
relevant consumer of energy as well. Whilst Abu Dhabi in particular leads the GCC countries in
relation to renewable energy initiatives, it does not benefit from a renewables regulatory
framework. Last year, Abu Dhabi announced plans to develop an energy policy that would
establish subsidies for renewable power, but it is still yet to materialise. Such subsidies for
electricity produced from renewable energy are well-established in European countries such as
Germany and Spain, and are referred to as feed-in tariffs. It is important to note that in those
jurisdictions the cost of funding such subsidies is borne by consumers. In comparison, grid
operators across the GCC are constrained by legislative obligations to purchase power for the
lowest price available from generators.
Accordingly, the implementation of a regulatory regime providing for a fixed feed-in tariff will
necessitate considerable time and cost in reviewing and amending energy legislation.
In addition, the introduction of a feed-in tariff runs other risks. If the electricity price is too low
then developers will not build renewables projects and the government is in danger of not
meeting its energy demands.
If on the other hand the tariff is too high, developers will overbuild, putting a strain on
government resources.
12. This raises particular issues for GCC countries, where electricity consumers have benefited from
long term heavily subsidised electricity prices, and accordingly transferring the burden to
consumers in the form of higher electricity prices is not politically feasible.
Nevertheless, Abu Dhabi does have an established track record in bringing projects - in
particular IWPPs - to market, with its power (and water) procurement model being recognised
as the most bankable model in the GCC region. A programme for the delivery of energy from
renewables sources based on the existing IWPP model used for the procurement of power and
water with an individually negotiated green tariff payable may constitute a sustainable and
appropriate strategy for a country wishing to development a significant (if not large-scale)
renewable energy programme.
______________________
CHALLENGES TO UAE SOLAR POWER REMAIN, BUT IT STILL MAKES SENSE
By Andrew Korn, Audit Partner and Power and Utilities Sector Leader for KPMG Lower Gulf,
Abu Dhabi. TheNational ǀ Business. May 5, 2016. http://www.thenational.ae/business/energy/challenges-
to-uae-solar-power-remain-but-it-still-makes-sense Web Accessed: December 17, 2016
In a country with the world’s seventh largest proven oil and natural gas reserves, and with
predictions that Abu Dhabi’s oil supplies can last beyond another 100 years, the UAE’s current
focus on renewable and sustainable power may seem puzzling at first glance.
But in such a fast-growing and energy-hungry country, planning for the future and looking for
alternatives make sense from a business and environmental perspective.
Numerous initiatives and policies have been introduced by government bodies in the UAE. The
country’s 2021 blueprint clearly outlines the need to develop long-term sustainable energy
sources as a major pillar for the future. It is evident that the country’s ambition is to be seen as a
nation that is responsible for developing global and regional best practices, an emerging
international role model in this area.
And in a country where there appears to be abundant potential for solar energy, steps are now
being undertaken by organisations such as Masdar to look at actively increasing the use of solar
power.
One of the challenges for large-scale solar in the UAE has been the effect of dust and sand that
can coat solar panels significantly, thereby reducing their effectiveness. However, continuing
investment and new technical advances are set to ensure that power available from solar should
become more efficient in the future.
13. A challenge for the alternative sector is to be cost-effective in terms of power outputs in a world
where oil prices are predicted to remain low for the foreseeable future.
One possible path for countries serious about creating a truly diverse and sustainable energy
production mix is to consider a subsidised investment model to realise large-scale renewable-
energy infrastructure projects. Conversely, the low price of oil makes it more challenging for
cost-intensive methods of fossil fuel extraction such as shale to be feasible – creating more of an
opportunity for alter-native production methods than before.
As solar photovoltaic (PV) cells become a viable option to conventional energy sources, the
UAE is emerging as a leader in increasing investments in clean energy and reducing carbon
emissions and greenhouse gases.
What is also clear here in the UAE is that there is a real commitment and determination to make
sure that clean energy production is possible and will work. It is the first country in the region
to set tangible renewable energy targets, and Dubai has recently increased its target for
renewable energy in the overall energy mix by 2030 to 25 per cent from 15 per cent.
The UAE Vision 2021 National Agenda highlighted how sustainable development is essen-tial
for social and economic progress, by focusing on improving air quality, preserving water
resources, decreasing solid waste and implementing a green growth plan. In practical terms this
means there will be a requirement for skilled people, for increasingly locally driven innovation
and for expertise that will enhance and strengthen the energy business in the country at all
levels.
Sustainability drivers include energy efficiency, compliance with regulatory and corporate
social responsibility policies, waste and water management, and emissions reductions.
These measures are already showing results. The 2015 KPMG Lower Gulf Sustainability Report
showed that many companies in the UAE are already aligning their strategy with the
sustainability agenda outlined in UAE Vision 2021.
Abu Dhabi is also home to the International Renewable Energy Agency (Irena) and Masdar
City, while Dubai has the Moh-ammed bin Rashid Al Maktoum Solar Park.
One of the country’s high-profile solar power initiatives is the Masdar-sponsored Solar Impulse,
the flying laboratory that showcased 12 years’ worth of R&D on clean technologies. Solar
Impulse generated tremendous global attention last year when it started the first round-the-
world flight from Abu Dhabi to demonstrate how clean energies can go a long way to
contribute to a green and sustainable global economy.
14. Dubai Electricity and Water Authority (Dewa), which serves more than 725,000 customers in
Dubai, has earmarked sustainability as one of its key focus areas and is using its extensive
infrastructure and network to complement federal development plans for a sustainable UAE
economy.
So it seems that there is a strong and positive environment for the continued and stronger
development of solar power resources. The cost of solar panels and associated technology have
fallen significantly in recent years and they are expected to continue to become more affordable.
There are still some challenges to overcome, specifically storing power generated during the
daytime. R&D initiatives to address battery storage are gaining mom-entum, but it will take
some time before solar PV and battery storage can compete with conventional power.
With more than 300 days of abundant sunshine every year in the UAE and improved
technology and storage options, increasing solar power’s share of the energy mix should be
attain-able. Oil and gas that is not burnt to generate electri-city in the meantime can be sold or
converted into value-added products to increase the national income.
Since clean energy sources also minimise adverse health effects, the benefits of switching to
these sources extend beyond sustainable environmental development by reducing the long-
term social costs of the government and helping global economies as a whole.
____________________
RENEWABLE ENERGY PROSPECTS: UNITED ARAB EMIRATES
Best-known as a hydrocarbon-exporter, the country has emerged as a significant investor in
renewable energy globally and a political advocate for these technologies.
THE BIG PICTURE
A major rethinking of the UAE national and emirate-level energy strategies is due: as of 2014,
renewable energy is cost-competitive in the country for the first time and possibly even the
cheapest source of new power supply. Based on current incremental energy prices, the UAE
could achieve at least 10% use of renewable energy in its energy mix by 2030 (and 25% in its
power generation mix) with estimated net savings for the economy of USD 1.9 billion annually.
This is before considering health and environmental benefits or the potential to export
hydrocarbons liberated from domestic consumption. The country’s pioneering push into
renewables – based on longer-term, ‘patient capital’ goals like economic diversification,
sustainability, and job creation – can now be justified by short-term economics.
15. GOVERNMENT ACTION
The new business case for renewables, however, will not be realised without policy reform and
stakeholder awareness. The federal and emirate-level governments will need to clarify their
respective responsibilities for project initiation and implementation, regulate the integration of
renewable energy technologies where needed, and set timelines. To date, many governing
institutions have now been empowered to take a holistic view of the energy sector (comparing
different supply options), or to introduce a deployment programme and schedule that could
incentivise local industry development and further bring down costs. The Dubai Supreme
Council of Energy provides a valuable domestic model, bringing the emirate’s key producers
and consumers to the table for policy formulation. The UAE’s new federal energy policy
taskforce also represents a crucial, initial action to facilitate policy and investment coordination
across the seven emirates, which are largely sovereign in their energy policy.
Source: Masdar Institute/IRENA (2015), Renewable Energy Prospects: United Arab
Emirates, REmap 2030 analysis. IRENA, Abu Dhabi. www.irena.org/remap.
http://www.irena.org/remap/irena_remap_uae_report_2015.pdf Web Accessed: December 17, 2016
_____________________
February 11, 2015 Technical Conference on Environmental Regulations and Electric Reliability,
Wholesale Electricity Markets, and Energy Infrastructure. FERC Docket No. AD15-4- 000.
https://www.ferc.gov/CalendarFiles/20150213081431-Moore,%20Sustainable%20FERC%20Project.pdf
Web Accessed: December 17, 2016
[W]e [Sustainable FERC Project (Project)1] emphasize that fuel prices, technology shifts, the
economy, increasing use of demand-side management, and other changes have shaped the
power sector far more significantly than environmental standards.
The grid does face reliability challenges due to aging infrastructure, lack of investment, and
greater climate extremes. Transitioning to a lower carbon electric system is an opportunity both
to reduce air pollution and to build a more reliable, modern energy system based on flexible
generating technologies, smart grid technologies, and more efficient energy use.
1 Footnote, Supplied. “The Sustainable FERC Project is a coalition of environmental and other public
interest organizations throughout the United States. The Project and its partner organizations engage in
Commission proceedings involving transmission grid planning, operations and markets. The Project and
its coalition members also are active stakeholders in RTOs, ISOs, and other FERC jurisdictional entities
throughout the country. See www.sustainableFERC.org for more information.”
16. As the grid continues to evolve, grid planners must fully account for demand-side resources
(energy efficiency, demand response, PV solar, combined heat and power, electric vehicles, and
other storage) in load forecasting, modeling, and in the development of solutions to identified
grid needs.
Fundamental to the CPP [Clean Power Plan] is its compliance flexibility. It allows states and
generators to meet the targets using a wide range of resource choices, including state clean
energy and energy efficiency standards, shared regional compliance strategies, multi-year
averaging, and other options.
Grid regions have tariff rules in place – such as regional planning processes and cost allocation
for regional and interregional transmission facilities – that are responding to these and future
system needs. According to the Edison Electric Institute’s survey of utility transmission projects,
total transmission investment is estimated to have reached a level of $17.5 billion (real $2012) in
2013 and is projected at approximately $60.6 billion through 2024. According to the report:
These transmission investments provide an array of benefits which include:
providing reliable electricity service to customers, relieving congestion,
facilitating wholesale market competition, supporting a diverse and changing
generation portfolio and mitigating damage and limiting customer outages in
extreme weather. New transmission investments also deploy advanced
monitoring systems and other new technologies designed to ensure a more
flexible and resilient grid. At the same time, all transmission projects are
integrated into local systems in order to maintain the paramount objective of
providing reliable electricity service to customers.
[Citations Omitted. Clarification Supplied]
______
June 29, 2016 Technical Conference on Implementation Issues Under the Public Utility
Regulatory Policies Act of 1978. FERC Docket No. Docket No. AD16-16-000.
https://www.ferc.gov/CalendarFiles/20160616092747-Brogan,%20NorthWestern%20Energy%20-%20EEI.pdf
Web Accessed: December 17, 2016
Today, a profound transformation is underway across the United States as the way energy is
produced and used is changing due to changes in technology, policy and customer
expectations.
17. [W]e [Edison Electric Institute (EEI)2] would also encourage FERC to continue to look for
opportunities to increase communication and dialogue with state commissions so they better
understand the flexibility that FERC sees in its regulations around avoided cost issues. This
could include further discussion and clarity around the options available to state commission to
address the problems with the long term contracts that result in above market purchase,
increased customer costs, and enable the continued use of old, inefficient facilities; a discussion
or even reconfirmation of the state commission’s ability to permit zero dollar capacity payments
if capacity is not needed in the utilities service territory; and/or, the encouragement of the use of
requests for proposal (RFPs) or more competitive bidding type processes to ensure that the
avoided costs are truly reflected in the contract prices. [Citations Omitted, Clarification Supplied]
Even with our differences
There’s a place we’re all connected
Each of us can find each other’s light
There’s so much to be thankful for
– Josh Groban
2 Footnote, Supplied. “EEI is the association of U.S. shareholder-owned electric companies.
EEI’s members comprise approximately 70% of the U.S. electric power industry, provide
electricity for 220 million Americans, operate in all 50 states and the District of Columbia, and
directly employ more than 500,000 workers.” [Emphasis Supplied]