New base 08 august 2019 energy news issue 1265 by khaled al awadi

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NewBase Energy News 08 August 2019 - Issue No. 1266 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Adnoc acquires 10% stake in Dutch oil storage terminal
operator VTTI
WAM + The national
Abu Dhabi National Oil Company acquired a 10 per cent equity stake in Dutch storage terminal
operator VTTI, a deal that will enhance its market access to Asia, Africa and Europe. State-
owned Adnoc said it would also secure additional storage capabilities at Fujairah, the world's
second-largest bunkering hub. The value of the transaction was not disclosed.
VTTI, in which Australia’s IFM Investors and Dutch commodity trader Vitol are stakeholders with
45 per cent interest each, owns 15 hydrocarbons storage terminals in 14 countries. IFM Investors
is invested in the company through its IFM Global Infrastructure Fund, while Vitol’s participation is
through its vehicle, Vitol Investment Partnership II.
VTTI has a collective storage capacity of 60 million barrels in Malaysia, Belgium, Croatia, South
Africa, the Netherlands, Virgin Islands, Nigeria, Panama, Pakistan, the US, Argentina, Latvia, the
UAE, Kenya and Cyprus.
“This strategic investment opportunity in VTTI, alongside Vitol and IFM GIF will further
complement the development of Adnoc's integrated global trading platform while also delivering a
solid financial return,” said Dr Sultan Al Jaber, Adnoc Group chief executive and UAE Minister of
State.
"VTTI’s diverse portfolio of storage assets across key target markets such as Asia, Africa and
Europe, provides us with direct access to our customers around the world, a key building block to
accelerating Adnoc’s transformation into a more integrated and commercially-minded global
energy player,” he said.

In Fujairah, VTTI owns 1.6 million cubic metre capacity in storage with 52 tanks and 11 jetties. It
also operates an 80,000 barrel per day capacity refinery and a crude processing unit with similar
capacity. Crude, condensate, naphtha, gas oil, jet fuel, kerosene and fuel oil are among products
handled at VTTI’s Fujairah facility.
Adnoc is building the world’s largest single-site underground project for oil storage in Fujairah,
with a capacity to store up to 42 million bpd of crude. The state oil company already has 8 million
bpd storage capacity in Fujairah, and the planned underground cavern facility will allow greater
flexibility in supplying crude to market.
The investment in Fujairah through VTTI further strengthens the company’s “strategic position” in
the northern emirate besides accelerating its development as a hub for Adnoc’s operations, said
Dr Al Jaber. VTTI will continue to be led by an independent management under the leadership of
chief executive Rob Nijst.
Fujairah, which faces the Gulf of Oman and is located outside the congested Strait of Hormuz, is
an important storage facility for international and national oil companies. Storage capacity at the
Port of Fujairah is expected to increase by 75 per cent from the current 10.5 million cubic metres
by 2022, according to S&P Platts.
The deal is the second in the midstream segment for Adnoc, which earlier this year leased 40 per
cent of pipeline infrastructure to global asset managers BlackRock and KKR in a $4 billion
transaction.
The agreement marked the first time that leading international financial institutions were able to
make investments related to Adnoc's midstream assets through a competitive selection process.
The Singaporean sovereign wealth fund GIC joined as a co-investor last month, pushing the total
value of the deal to $5bn.
Last week, Adnoc completed partnership agreements with Italian and Austrian energy companies
Eni and OMV, under which they will take stakes of 20 and 15 per cent, respectively, in its refining
unit. It has also established a trading joint venture with the two partners.

UAE: Adnoc Distribution eyes Indian lubricant market & Expansions
The National - Jennifer Gnana
Fuel retailer will also upgrade 100 stations in the UAE and launch a loyalty programme in the third
quarter. Adnoc Distribution will look to achieve cost reductions of $50m or more in 2019,
says chief operating officer Mohamed Al Hashimi.
Adnoc Distribution, the UAE’s largest fuel retailer, will progress plans
to enter the Indian lubricants market in the third quarter of 2019 as it
looks to increase corporate sales volumes.
The company will also roll out 100 refurbished convenience stores in
the UAE by the end of the next quarter and plans to realise cost
savings of around $50 million (Dh183.6m) by year-end, its chief
operating officer said.
"We might have some announcements this year, in terms of at least by the end of Q3, we’d be
able to give on the lubricants side,” Mohamed Al Hashimi told The National in Abu Dhabi. "We’re
assessing all those options and we continue to find and search for that one pathway into the
Indian market,” he added.
Lubricants have become a new market segment for UAE fuel retailers such as Adnoc Distribution
and Emirates National Oil Company, which have looked abroad to diversify away from saturated
home markets by tapping into high-growth demand centres such as India. Mr Al Hashimi said the
company saw the market as a way of globalising the Adnoc brand in lubricants and base oil.
"It doesn’t take a massive amount of capital to take the base oils or lubes to market,” he said. "So
these shelf spaces are quite saturated, otherwise the Adnoc brand is well known, but the further
and further you go from the UAE, the strength of the brand starts to weaken and that’s a huge
factor in expanding shelf space aggressively,” he added.
Adnoc Distribution, which floated 10 per cent of its shares in 2017, reported a 2.2 per cent year-
on-year rise in second quarter net income on Sunday. Net profit rose to Dh595m for the three-
month period ending June, the company said in a regulatory filing to the Abu Dhabi Securities
Exchange, where its shares trade.
Overall fuel volumes, meanwhile, declined for the first half by 1.7 per cent year-on-year, which the
company said was due to a 3.5 per cent fall in fuel retail volumes, increased competition and
longer public holidays in the second quarter. Revenue also declined by 5.2 per cent to reach
Dh5.5 billion in the second quarter from the same period last year.
For the second half, Adnoc Distribution plans to open 20 to 30 new stations in the UAE and
expects higher volumes and an improved sales outlook. "We’re not giving any specific outlook but
volumes, revenues, we do expect to see correction, so the slight decline, we expect to see a
reversal of that in the second half of 2019,” said Mr Al Hashimi.
Around 100 stores across the UAE will be upgraded as part of a revitalisation programme, with
new product offerings and a new loyalty programme that will be launched in the next quarter.
“The best-in-class players in this industry take about 35 to 40 per cent of their bottom line from
non-fuel retail. You’re a major retail player at that point, you’re not just a gas station, so build and
they will come. Refurbish, revitalise and then you can expect an upside, that’s our major renewed
focus,” said Mr Al Hashmi.
Adnoc Distribution, which reduced its distribution and administrative expenses by 16.3 per cent in
the second quarter, will continue to pare down costs for the remainder of the year.

UK risks losing out to Europe in home battery boom, report warns
TheGardian - Jillian Ambrose
The UK risks being left behind in Europe’s home battery boom because of a controversial tax hike
on solar-battery systems, according to a report.
The energy consultancy Wood Mackenzie has predicted that Europe’s home battery capacity
could climb fivefold in the next five years as more households plug their rooftop solar panels into
battery packs.
The analysts expect that by 2024, annual home battery installations across Europe could total
more than 500MW, the equivalent of building a new gas-fired power plant every year.
The report said the battery boom had already taken hold in Germany and would accelerate across
Italy and Spain as battery power became more economic.
However, the UK is likely to lag behind its European neighbours due to its “unfavourable” policy
frameworks and a VAT increase for solar-battery packs this October.
Rory McCarthy, a senior researcher at Wood Mackenzie, said Germany’s lead had made Europe
the largest residential storage market globally.
“Off the back of Germany’s success, residential storage is beginning to proliferate into other
European countries, particularly where market structures, prevailing power prices and
disappearing feed-in tariffs create a favourable early stage deployment landscape,” he said.
“The economics of storage have been challenging in the past, however we are in the midst of an
economic tipping point.”

The UK’s laggard status comes after the government vowed to put energy storage at the heart of
its plans for a cheap and clean energy system, which included a £246m pledge to develop battery
technology.
Greg Clark, the former business secretary, said the falling cost of energy storage meant it had a
role to play in making renewable energy “abundant”. It will be more difficult for households to
access the potential of low-cost renewable energy after the VAT hike on solar batteries installed
from October.
The UK has blamed EU rules for the VAT change, a claim disputed by Molly Scott Cato, a Green
MEP for South West England.
“There is appetite from [UK] utilities and technology providers but the market has no incentives so
is lagging behind thus far,” said the report. “The recent VAT increase from 5% to 20% confirmed
to begin in October 2019 is not an effective way to kickstart a market with challenging economics.”

Global: EIA cuts 2019 world oil demand growth forecast
EIA
The U.S. Energy Information Administration on Tuesday cut its 2019 world oil demand growth
forecast by 70,000 barrels per day to 1.00 million bpd. In its monthly forecast, the agency raised
its oil demand growth estimate for 2020 by 30,000 bpd to 1.43 million bpd.
Global liquid fuels
• Brent crude oil spot prices averaged $64 per barrel (b) in July, almost unchanged from
the average in June 2019 but $10/b lower than the price in July of last year. EIA
forecasts Brent spot prices will average $64/b in the second half of 2019 and $65/b in
2020. The forecast of stable crude oil prices is the result of EIA’s expectations of a
relatively balanced global oil market. EIA forecasts global oil inventories will increase by
0.1 million barrels per day (b/d) in 2019 and 0.3 million b/d in 2020

• EIA expects West Texas Intermediate (WTI) crude oil prices will average $5.50/b less
than Brent prices during the fourth quarter of 2019 and in 2020, narrowing from the
$6.60/b spread during July. The narrowing spread reflects EIA’s assumption that crude
oil pipeline transportation constraints from the Permian Basin to refineries and export
terminals on the U.S. Gulf Coast will ease in the coming months. In the July STEO, EIA
forecast the Brent-WTI spread to average $4.00/b in 2020. The updated differential
forecast reflects EIA’s revised assumptions about the marginal cost of moving crude oil
via pipeline from Cushing, Oklahoma, to the Gulf Coast.
• EIA estimates that U.S. crude oil production averaged 11.7 million b/d in July, down by
0.3 million b/d from the June level. The declines were mostly in the Federal Gulf of
Mexico (GOM), where operators shut platforms for several days in mid-July because of
Hurricane Barry. EIA estimates that GOM crude oil production fell by more than 0.3
million b/d in July. Those declines were partially offset by the Lower 48 States onshore
region, which is mostly tight oil production, where supply rose by more than 0.1 million
b/d. EIA expects monthly growth in Lower 48 onshore production to slow during the rest
of the forecast period, averaging 50,000 b/d per month from the fourth quarter of 2019
through the end of 2020, down from an average of 110,000 b/d per month from August
2018 through July 2019. EIA forecasts U.S. crude oil production will average 12.3
million b/d in 2019 and 13.3 million b/d in 2020, both of which would be record levels.
• U.S. regular gasoline retail prices averaged $2.74 gallon (gal) in July, up 2 cents/gal
from June but 11 cents/gal lower than the average in July of last year. EIA expects that
monthly average gasoline prices peaked for the year in May at an average of $2.86/gal
and will fall to an average of $2.64/gal in September. EIA expects regular gasoline retail
prices to average $2.62/gal in 2019 and $2.71/gal in 2020.

Natural gas
• The Henry Hub natural gas spot price averaged $2.37/million British thermal units
(MMBtu) in July, down 3 cents/MMBtu from June. However, by the end of the month,
spot prices had fallen below $2.30/MMBtu. Based on this price movement and EIA’s
forecast of continued strong growth in natural gas production, EIA lowered its Henry
Hub spot price forecast for the second half of 2019 to an average of $2.36/MMBtu. In
the July STEO, EIA expected prices to average $2.50/MMBtu during this period. EIA
expects natural gas prices in 2020 will increase to an average of $2.75/MMBtu. EIA’s
natural gas production models indicate that rising prices are required in the coming
quarters to bring supply into balance with rising domestic and export demand in 2020.
• EIA forecasts that U.S. dry natural gas production will average 91.0 billion cubic feet per
day (Bcf/d) in 2019, up 7.6 Bcf/d from 2018. EIA expects monthly average natural gas
production to grow in late 2019 and then decline slightly during the first quarter of 2020
as the lagged effect of low prices in the second half of 2019 reduces natural gas-
directed drilling. However, EIA forecasts that growth will resume in the second quarter
of 2020, and natural gas production in 2020 will average 92.5 Bcf/d.
• EIA estimates that natural gas inventories ended July at 2.7 trillion cubic feet (Tcf), 13%
higher than levels from a year earlier and 4% lower than the five-year (2014–18)
average. EIA forecasts that natural gas storage injections during the 2019 April-through-
October injection season will outpace the previous five-year average and that
inventories will rise to more than 3.7 Tcf at the end of October, which would be 16%
higher than October 2018 levels and slightly above to the five-year average.

Electricity, coal, renewables, and emissions
• EIA has expanded its forecasts for electricity supply in the United States and has
introduced new forecasts for wholesale electricity prices. A STEO Supplement provides
more information about the changes.
• Lower costs for natural gas drive EIA’s forecast that annual average wholesale electricity
prices will be lower in 2019 than last year in all areas of the United States. The forecast year-
over-year declines range from -0.2% in the Southwest Power Pool (SPP) to -28% in the
Electric Reliability Council of Texas (ERCOT) market.
• EIA expects the share of U.S. total utility-scale electricity generation from natural gas-
fired power plants will rise from 34% in 2018 to 37% in 2019 and then decline slightly in
2020. EIA forecasts that the share of U.S. generation from coal will average 24% in
2019 and in 2020, down from 28% in 2018. The forecast nuclear share of U.S.
generation remains at about 20% in 2019 and in 2020. Hydropower averages a 7%
share of total U.S. generation in the forecast for 2019 and 2020, similar to 2018. Wind,
solar, and other nonhydropower renewables together provided 10% of U.S. total utility-
scale generation in 2018. EIA expects they will provide 10% in 2019 and 12% in 2020.
• EIA expects electric power sector demand for coal to fall by 2% in 2020, compared with
an expected decline of 15% in 2019. However, planned coal plant retirements will
continue to put downward pressure on overall electricity demand for the fuel. Almost 13
gigawatts of coal-fired electricity generation capacity has retired this year or is
scheduled to retire by the end of 2020, accounting for 5% of the capacity existing at the
end of 2018.
• EIA forecasts that renewable fuels, including wind, solar, and hydropower, will
collectively produce 18% of U.S. electricity in 2019 and 19% in 2020. EIA expects that
annual generation from wind will surpass hydropower generation for the first time in

2019 to become the leading source of renewable electricity generation and maintain
that position in 2020.
• EIA is improving its regional-level trend analysis by inserting a generator-level
production cost model that simulates hourly generation at individual power plants. This
improves our insight into generation, especially from fast-growing renewable sources
like wind and solar.
• This additional granularity and the assumption that wind will return to more normal
levels in 2019, after a windy first half of 2018, results in an EIA forecast that electricity
generation from wind power will average 295 billion kilowatthours (kWh) in 2019 and
335 billion kWh in 2020, estimates that are 4% and 7% lower, respectively, than
forecast in the July STEO. In addition, the application of hourly dispatch that better
models solar incidence lowers the solar electric production forecast by 1.1% in 2019
and by 2.8% in 2020.
• EIA forecasts that, after rising by 2.7% in 2018, U.S. energy-related carbon dioxide
(CO2) emissions will decline by 2.3% in 2019 and by 0.5% in 2020. In 2019, EIA
forecasts that space cooling demand (as measured in cooling degree days) will be
lower than in 2018, when it was 13% higher than the previous 10-year (2008–17)
average. In addition, in 2019, EIA expects U.S. CO2 emissions to decline because the
forecast share of electricity generated from natural gas and renewables is increasing
while the forecast share generated from coal, which is a more carbon-intensive energy
source, is decreasing. EIA’s projected emissions decline is lower in 2020 than in 2019
because it forecasts that both heating and cooling requirements will be slightly lower
than normal. At the same time, the forecast coal share of generation will remain about
the same as in 2019 while the natural gas share declines. Although EIA forecasts that
generation from renewables will continue to increase in 2020, a forecast decrease in
nuclear power offsets 24% of the renewables’ gain.

NewBase 08 August 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil slumps 5% to 7-month low on trade tensions, surprise U.S. stock build
Reuters + Bloomberg + Newbase
Oil prices tumbled up to 5% on Wednesday to a fresh seven-month low, extending recent heavy
losses following an unexpected build in U.S. crude stockpiles and fears of lower crude demand
due to deepening U.S.-China trade tensions.
Brent crude futures LCOc1 were down $2.38, or 4%, at $56.56 a barrel by 10:36 a.m. CDT (1536
GMT), setting a fresh seven-month low. Prices have lost more than 20% since hitting their 2019
peak in April.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $2.66, or 5%, at $50.97.
Oil extended losses after government data showed U.S. crude stockpiles rose last week by 2.4
million barrels. Analysts had expected a decrease of 2.8 million barrels. At 438.9 million barrels,
U.S. crude oil inventories are about 2% above the five-year average for this time of year.
Oil price special
coverage

Gasoline inventories rose by 4.4 million barrels, with U.S. Gulf Coast gasoline stocks hitting the
highest on record for this time of year, the U.S. Energy Information Administration (EIA) data
showed.
After seven weeks of consecutive crude drawdowns, “there was a thought that today’s report
would turn oil’s fortunes around,” said John Kilduff, partner at Again Capital LLC in New York.
“That support got taken out of the market.”
Brent has plunged more than 12% after U.S. President Donald Trump said last week that he
would slap a 10% tariff on a further $300 billion in Chinese imports from Sept. 1, sending global
equity markets into a tailspin.
“The market continues to trade lower on concerns about demand growth and the idea that
economic growth can be impacted by the trade war,” said Gene McGillian, vice president of
market research at Tradition Energy in Stamford Connecticut.
“The market isn’t concerned about anything other than how demand is going to play out through
the rest of the year,” he said. The EIA earlier this week reduced its forecast U.S. demand for
crude and liquid fuels, expecting it to rise 210,000 barrels per day (bpd) this year - 40,000 bpd
lower than its forecast last month.
The agency also cut its forecast for global crude and liquids consumption by 0.1% for both 2019
and 2020. Meanwhile, U.S. crude production was set to rise 1.28 million bpd to 12.27 million bpd
this year. “People saw those numbers and it put a negative vibe in the market,” said Robert
Yawger, director of energy futures at Mizuho in New York.
Trump on Tuesday dismissed fears that the trade row with China could be drawn out further. His
comments failed to prevent shares in Asia from falling for an eighth straight session while
London's FTSE 100 .FTSE gained 0.4%.
But demand for safe-haven assets such as government debt underscored lingering anxiety over
recession risks. Tensions in the Middle East remain high after Iran seized a number of tankers in
recent weeks in the Strait of Hormuz, a major chokepoint for oil shipments.
Saudi Energy Minister Khalid al-Falih and U.S. Energy Secretary Rick Perry on Tuesday
expressed mutual concern over threats targeting freedom of maritime traffic in the Gulf.

NewBase Special Coverage
News Agencies News Release 03 August 2019
Three priorities for energy technology innovation partnerships
IEA - By Jean-Baptiste Le Marois, Energy Innovation Analyst, and Claire Hilton, Energy Partnerships Analyst.
Governments around the world are setting increasingly ambitious climate targets while at the
same time pursuing challenging national policy goals such as affordable and sustainable energy
for all. In many cases, achieving these goals will require technologies that either do not yet exist,
or are not yet ready for market, meaning innovation will be critical. Technology innovation can be
a game changer across all sectors, including power generation, industry, buildings and transport.
Yet it is unlikely that any
single country will be
able to solve all of its
energy and climate
problems alone.
International
collaboration can help
countries accelerate
innovation processes by
identifying common
priorities and
challenges, tackling
pressing innovation
gaps, sharing best
practices to improve
performance, reducing
costs and reaching broad deployment of clean energy technologies. Given this massive potential,
the fundamental question is not if countries should collaborate, but rather who should collaborate
and how they can do so efficiently.
As part of the IEA’s efforts to support global energy transitions, we are working to help
governments identify relevant collaborative partnership opportunities, engage with international
partners and optimise possible synergies among existing initiatives.
Our recent Energy Technology Innovation Partnerships report is a key step along this path,
providing an overview of the global landscape of multilateral efforts relevant to energy technology
innovation, and examining four selected collaborative partnerships. There are three key
takeaways that highlight the challenges and potential of these efforts.
1- Enhancing collaboration among existing multilateral initiatives
International collaboration in the field of energy technology innovation is not new – many countries
already participate in numerous multilateral initiatives, some of which have been active for
decades, such as The Technology Collaboration Programme by IEA (TCP) which was established
in 1974. Today, 38 independent Technology Collaborations operate under the TCP, made up of
over 6,000 experts from nearly 300 public and private organisations based in 55 countries, who
work together on topics ranging from renewable energy and smart grids to hydrogen and nuclear
fusion.

Governments have launched several new partnerships over the last decade, such as the Clean
Energy Ministerial (CEM) in 2009 and Mission Innovation (MI) in 2015, which both aim to
accelerate international efforts to address climate change. The 27 members of CEM collaborate to
promote the deployment of clean energy technologies through over 20 initiatives and campaigns.
Similarly, MI counts 25 members who have pledged to double clean energy RD&D spending and
co-lead activities under eight key innovation challenges, such as clean energy materials and
affordable heating and cooling in buildings. Participation in Technology Collaborations, MI and
CEM present a great degree of overlap, as countries tend to join the full suite of collaborative
partnerships. In fact, 13 countries and the European Commission participate each in more than 20
Technology Collaborations, CEM and MI: the United States, Japan, Korea, Canada, China,
Germany, Australia, France, Sweden, Finland, Italy, Norway and the United Kingdom. This “core”
group of decision makers is in a strong position to pursue further synergies across partnerships.
There are also many relevant regional partnerships that are making valuable contributions to
energy technology innovation, such as the European Technology and Innovation Platforms (EU-
ETIPs), which bring together EU governments and companies to identify research priorities and
relevant energy innovation strategies.
Other examples of regional partnerships include mechanisms under the African Union and other
African regional partnerships; the Asia-Pacific Economic Cooperation and the Association of
Southeast Asian Nations; various partnerships in the Middle East; and the Latin American Energy
Organisation and the Organisation of American States. Many other partnerships focus on specific
themes of interest, such as the Biofuture Platform, a group of 20 countries seeking to advance
sustainable bioenergy and facilitated by the IEA.
As the global landscape of multilateral activities relevant to energy technology innovation
becomes increasingly diverse and complex, it can be challenging for policy makers to identify
which partnerships to engage with. In fact, despite the central role of innovation in energy
transitions and the potential of international collaboration, there is limited information available on
the full landscape of multilateral initiatives and how they interact.
Examining a selection of collaborative partnerships reveals that numerous initiatives focus on the
same technology areas. Our own examination shows that in eight technology areas, at least three
of the four selected partnerships have active initiatives: heating and cooling; carbon capture,

utilisation and storage (CCUS); nuclear; bioenergy and biofuels; wind; solar; smart grids; and
hydrogen.
The overlap becomes even more apparent when including other global, regional and thematic
partnerships: for example, Technology Collaborations, MI, EU-ETIPs, the Biofuture Platform and
the Global Bioenergy Partnership all focus on bioenergy. More generally, recent trends suggest
that partnerships are increasingly centring on low-carbon energy sources and cross-cutting
themes including systems integration.

In eight technology areas, at least three of the four selected partnerships conduct collaborative
activities. Decision makers may focus on these areas to pursue further synergies across
partnerships.
Focusing on the same technologies across different partnerships may induce risks of duplication,
thereby diluting policy maker attention and creating fundraising or political support challenges.
That said, in some instances, activities may well address different aspects of the same technology
area, justifying the overlap. Yet even in those cases, stakeholders have acknowledged that the
perception of duplication may be enough to trigger a degree of competition between multilateral
efforts. Policy makers would therefore benefit from identifying possible synergies between
mechanisms to avoid replication of efforts while at the same time maximising complementarity.
Enhanced cross-mechanism collaboration may increase the impact of ongoing activities. For
instance, co-locating stakeholder dialogue, events and roundtables may mobilise more actors and
bring varied and valuable perspectives, attract attention from policy makers and enhance
networking opportunities.
Co-branding technology policy and market analyses may reveal new findings thanks to the
combined experience, knowledge and networks of the initiatives involved. Collaboration between
early-stage activities executing RD&D and initiatives providing competitive funding or grant
opportunities may facilitate the development of energy technologies and their demonstration in
real-life conditions or in strategic markets.
However, innovation stakeholders have also reported challenges in engaging with other
collaborative mechanisms, in part because of a lack of systematic co-ordination processes. As a
result, the number of interactions between existing partnerships, whether at the political or working
level, remains low relative to the number of ongoing activities.
Despite these challenges, there are some initiatives that are already effectively collaborating
across partnerships. For example, last year the co-leads of collaborative activities on smart grids
under the International Smart Grid Action Network (ISGAN) (both a TCP and a CEM Initiative),
identified a strategic opportunity to work more closely with the relevant Innovation Challenge
under MI and formalised this co-operation.

2- Focus on emerging markets
Participation in collaborative partnerships continues to grow and diversify every year. IEA
Members and Association countries currently account for the broadest participation in Technology
Collaborations, CEM and MI, as illustrated by the “core” group of top-collaborators mentioned
above.
While a strong central core of support is invaluable, an important trend for global innovation
ecosystems is the increasing participation of emerging economies, such as China (currently a
member of 23 Technology Collaborations), India (11), Mexico (10), South Africa (8) and Brazil (5).
Emerging market countries also tend to participate in regional partnerships, which allow
governments that are not necessarily members of global efforts to benefit from international co-
operation. The transition from regional to global collaboration is an encouraging trend for key
emerging market countries, with which the IEA seeks to deepen engagement as part of the Clean
Energy Transitions Programme (CETP).
Partnerships have made it clear that emerging economies are a top priority. As part of a survey
conducted in 2019 by the IEA Secretariat, India was identified as a key prospective partner by 14
Technology Collaborations; Brazil by 12; Chile and China by 8; Mexico and Indonesia by 7. If
prospective membership materialised, China would consolidate its high participation by holding
membership in over 30 Technology Collaborations; India would join the “core” group of top-
collaborative countries; and both Mexico and Brazil would be involved in over 15 Technology
Collaborations.

3- Strengthening public-private cooperation
In addition to public agencies, private-sector actors play a critical role in RD&D and in ensuring
key technologies reach markets. Examining both public and private contributions can help
governments better understand the broader innovation ecosystem, engage with companies to
leverage corporate expertise, influence and capital; and strategically allocate public funds in those
energy sectors that remain underfunded or face financing access challenges.
While there is substantial interest from collaborative partnerships to deepen engagement with
private-sector actors, this engagement is, at least for now, relatively uncommon. Among the four
partnerships analysed in the report, only EU-ETIPs are co-led by industry stakeholders while
some 80% of participants in Technology Collaborations are public bodies. For now, membership
in MI and CEM is restricted to national governments, although engagement of private sector is
actively sought and governments may designate in-country private sector experts to represent
national interests in certain initiatives.

Different factors may be preventing companies from seeking engagement with government-led
multilateral initiatives, including a lack of awareness of such programmes, differing working
cultures between public and private actors, diverging priorities and little incentive to share
information, and burdensome administrative procedures. On the other side, some stakeholders
within collaborative partnerships remain
reluctant to engage with industry, fearing the
influence of corporate interests on their
strategic decisions, work programmes or
outputs. These reasonable concerns need to
be overcome for effective public-private co-
operation to take place.
Thankfully, we are seeing some positive
developments. For instance, over 100 private-
sector companies are now participating in the
technical work of CEM activities, resulting from
both CEM stakeholders reaching out to
companies, and vice versa. In collaboration
with the IEA, CEM also leads an Investment
and Finance Initiative (CEM-IF) to help policy
makers mobilise investments and financing,
particularly from private sources, for clean
energy deployment. Policy makers,
collaborative partnerships and energy
innovation stakeholders may benefit from
further research on private-sector participation,
building on these encouraging cases, to find
ways to best leverage corporate capabilities.
Ways forward
As we continue to enhance our efforts related to technology innovation to support global energy
transitions, the IEA encourages broad international collaboration to tackle pressing innovation
gaps, share best practices and accelerate the deployment of clean energy technologies.
Enhancing collaboration between existing initiatives, engaging with emerging markets and
leveraging corporate capabilities, are three areas of promising focus for policy makers looking
forward.
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation, operation & maintenance agreements along with many MOUs for the
local authorities. He has become a reference for many of the Oil & Gas Conferences held in the
UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE

New base 08 august 2019 energy news issue 1265 by khaled al awadi

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New base 08 august 2019 energy news issue 1265 by khaled al awadi