1. Off-Grid Power:
The Lowest Hanging Fruit for Implementing Solar Power
in the MENA Region
MENASOL Webinar, March 2013
Daniel Zywietz
Managing Director, Ambata Capital Middle East &
Deputy Chairman, Clean Energy Business Council (CEBC)

2. There are several GW of micro-grids around the
world, most of which currently run on diesel fuel…
Global Microgrid Capacity by Market Segment: 4Q 2012
Total >3,000 MW
Source: Pike Research
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 1

3. Solar is rapidly getting more competitive…
Diesel PV
($ / liter)
Price of Diesel and PV Modules (EUR / Wp)
1.20 3.50
1.00 3.00
2.50
0.80
2.00
0.60
1.50
0.40
1.00
0.20 0.50
0.00 0.00
Diesel PV Modules
Source: Indexmundi, Solarserver
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 2

4. …and today, PV is cheaper than diesel generators…
Cost Cost of Electricity Generation ($ / kWh)
($ / kWh)
0.70
PV
0.60
0.50
Telecom
(Diesel, 10 kW load)
0.40
Construction Site
0.30
(Diesel, 200 kW load)
0.20
Mining
(Diesel, 1 MW load)
0.10
0.00
2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012
Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
Notes: Diesel at work market price; WACC 10%, 15 years project lifetime, Opex of 1.5% of Capex.
Source: Indexmundi, BSW Solar.
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 3

5. …so why hasn’t PV taken over the off-grid market?
Published Off-grid PV Projects in GCC Countries
Project Owner / Client Size (kW) Country Online Year
UAE GHQ Armed Forces (Signal Corps) PV plant UAE Armed Forces 10 UAE 2008
FIFA 2020 Model Stadium Qatar Olympics Committee 95 Qatar 2010
Guard Rooms PV EAD Installed Diesel 2010
72 UAE
Ranger Camp PV and Cooling EAD Generator UAE
55 Capacity2010
in
Middle East Off-grid PV
Al Khatim PV Desalination Plant EAD 25 UAE 2010
the UAE:
Green Guardhouse PV
Market 2008 - 2012: EAD 11 UAE 2010
Solar Pumping in Botteyna Desert
3 - 5 MW
EAD - Qasar Al Sarab PV Desalination
Private Owner
EAD several
11
1,500
UAE
UAE
2010
2011
Marawah Island PV EAD 490 UAE 2011
Umm-Al Zumul Off-grid PV
Subihiyah Oasis KOC Visitor Center
Private Owner
KOC
100
17
GW UAE
Kuwait
2011
2011
Sahel Worker Camp PV CCC 52 UAE 2012
Qusahwira Camp PV NPCC 370 UAE 2012
Total 2.8 MW
Source: Enerwhere, March 2013
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 4

6. Currently five major hurdles hold back solar
development in the off-grid market
1 Diesel Subsidies
2 High Upfront CAPEX
3 Load Management & Storage
4 Temporary Nature of Off-grid Power Needs
5 Market Perception
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 5

7. 1 Diesel Subsidies
Many countries still subsidize diesel…
Diesel Price Regional Diesel Prices
($ / liter)
2.50
2.00
1.50
1.00
World market price (Dec 2012)
0.50
0.00
Eurasia
Africa
Source: Indexmundi
Middle East
… but Dubai & Jordan now pay full price
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 6

8. 2 High Upfront CAPEX
Power generation not seen as core business, so solar
is low on the investment priority list
System CAPEX Capex of Diesel Generators and PV
($ / kWh) Solar / Diesel Ratio
4,500 18
4,000
3,500 PV is 6 – 18 times 15
3,000
2,500
more expensive 12
2,000 upfront! 9
1,500 6
1,000
3
500
0 0
10 50 100 200 400 800
Plant size (kW)
Diesel Generator Solar PV Index
Solar / Diesel Ratio
Source: Enerwhere, September 2012
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 7

9. 3 Load Management & Storage
Matching production to load curves is a challenge
kW Annual LoadCurve - Construction Site Office (Abu Dhabi)
Annual Load Curve – Construction Site Office
250
200
150
100
50
0
Jan Jan Jan Feb Feb Mar Mar Apr Apr MayMay Jun Jun Jul Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec Dec
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 8

10. 3 Load Management & Storage
Without significant storage, solar penetration is
limited to ~20-25% of total energy production
Production & Load Curve – Construction Site Office
kW
Notes: System incorporates 1 hour of battery storage
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 9

11. 3 Load Management & Storage
However, batteries are still too expensive for most
applications and complicate the system design
Cost Electricity Cost Comparison of Battery Integration
($ / kWh)
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Diesel PV PV +
Generator Battery
Notes: Construction site with 100 kW peak load. Diesel of $1.00 / liter; PV system cost $2.5 / Wp; Battery cost $120 / kWh.
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 10

12. 4 High Cost & Limitations of Storage (Batteries)
In many off-grid applications the temporary power
need is shorter than the payback period
Temporary Power Need and Payback Durations of Industries
Telecom
Security
Mining Temporary
Power Need
Construc- Payback
tion
Oil & Gas
Events
Temporary Power
Need (Years)
0.5 1 1.5 2 3 4 5 6 7+
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 11

13. However, solar-hybrid systems are competitive in
many markets today…
Diesel Price Cost Effectiveness of Solar-Diesel Hybrid Systems (2012)
($ / Liter)
2.50
Antalya,
Turkey
2.00
Bamako, Dodoma,
1.50 Mali Tanzania Windhoek,
Djibouti Namibia
Niamey,
Niger Breakeven:
Amman
1.00 Addis Ababa, Mining
Dubai Ethiopia Construction
0.50 Abu Dhabi Telecom
Doha Riyadh
0.00
1700 1800 1900 2000 2100 2200 2300 2400 2500 2600
Insolation - GHI (kWh /year/m2) Eurasia
Africa
Source: Solargis, Indexmundi. Middle East
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 13

14. …and we are working to overcome the practical
hurdles to rolling out (hybrid) solar to these markets
Containerized solar generator units
Turbogenerator Systems
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 14

15. Conclusions
PV is competitive today in the GW-scale off-grid market
BUT
Practical hurdles (load matching, transportability, diesel
integration, customer perceptions, etc.) need to be solved to
truly open up the market
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 15

16. Clean Energy Business Council (CEBC) / Ambata
MENA Clean Energy Projects Map
Please contribute: www.cleanenergybusinesscouncil.com
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 16

17. Thank you!
Q&A
Ambata / Enerwhere
March 2013
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18. Interested in:
off-grid power?
investing in off-grid solar?
developing a local market?
setting up local manufacturing?
Contact us: info@enerwhere.com
Ambata / Enerwhere
March 2013
MENASOL Webinar, March 2013 18