Power Generation

GCC faith in solar energy grows

Solar panels are set to become a more common sight in the region

Solar energy has received greater impetus in recent weeks in the Gulf region as authorities view renewables as a safe, clean and increasingly economical source to meet local power shortfalls.

In the UAE, following on the footsteps of the iconic Mohammed Bin Rashid Al Maktoum Solar Park in Dubai and building on the renewables tempo generated by Masdar City, Abu Dhabi’s 350 MW solar park project initiated by Adwea is making headway.

Adwea, the Abu Dhabi Water and Electricity Authority, is building the park in Sweihan, about an hour’s drive from the capital. It will be its first foray  into the solar sector and many companies are lining up to get a chunk of the project including regional firms such as Masdar and the Saudi company Acwa Power, states Wam, the UAE’s official news agency.

The winning developer or consortium gets to own up to 40 per cent of the project company while the remaining 60 per cent equity will be held directly or indirectly by Adwea.

The scope of work includes development, financing, construction, operation, maintenance and ownership of the greenfield renewable power generation plant together with associated infrastructure.

More than 90 firms had originally responded to Adwea’s request for an expression of interest and following a review process, the list got shrunk to 34. Of these, eight have been pre-qualified. The deadline for submitting proposals is September 19.

In neighbouring Oman, German investors plan to set up a mega solar power project in Duqm with generating capacity of 1 gigawatt. Duqm is the sultanate’s latest area of interest with the government planning large-scale development to boost manufacturing and logistics facilities and raise employment potential.

Eight companies have joined hands with the main promoter to develop the project, said Dr Wais Ahmadudin, CEO of Mittelpunkt Personal, according to a local news report.

He said the Germany-based investment groups will provide the required finance, technology and technically qualified professionals.

The Scholl Wais Beteiligungsgesellschaft Investment Trust, the main promoter, will arrange investment from other investment trusts in Germany. Grune Planet Energie Ineternazional is the local partner for developing the project in which both the German and Omani governments are interested.

The project will use solar panels made in Germany and take five years to complete. Its cost has not yet been estimated. 

Meanwhile, Oman, which had earlier announced plans to generate solar power from residential rooftops, has now extended the option to industrial and commercial buildings.

Top oil exporter Saudi Arabia said recently it plans to generate 9.5 GW of electricity from renewable energy by 2030 under its Vision 2030 reforms.

“Even though we have an impressive natural potential for solar and wind power, and our local energy consumption will increase threefold by 2030, we still lack a competitive renewable sector at present, according to a text of the vision on state news agency SPA.

“To build up the sector, we have set ourselves an initial target of generating 9.5 gigawatts of renewable energy.”