International Power Summit Rome 2017

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1 International Power Summit Rome 2017 Rome: February 2017 By: Eng. S.Mohamad ALAYA Member of Generation and Panning Committee at Arab Union Of Electricity

2 Trends, Visions and challenges for the power sector in the Arab countries Providing an introduction to Arab Union of Electricity Evaluating a balanced mix of conventional and new and renewable energies in the power systems Highlighting investment needs for the Power Sector in the Arab World Outlining the interconnection infrastructure in the Mediterranean: A challenging environment for investments Exploring the challenges to the energy investments

3 Arab Union of Electricity in Brief Arab Union of Electricity was established as a not for profit organization in 1987 as a smart initiative of a group of Arab electrical Utilities and companies with the aim of strengthening ties between members to improve and develop power generation, transmission and distribution of electrical energy in the Arab world. The AUE is based in Amman, the Hashemite kingdom of Jordan. It consists of 19 countries which are: - Jordan, UAE, Bahrain, Tunisia, Algeria, Saudi Arabia, Sudan, Syria, Iraq, Sultanate of Oman, Palestine, Qatar, Kuwait, Lebanon, Libya, Egypt, Morocco, Mauritania and Yemen. The AUE aims at improving and developing the electricity sector in the Arab World, coordinating work fields between members and strengthening relations between them.

4 Aims and Responsibilities of AUE The Union aims at improving and developing the generation, transmission and distribution of electrical energy in the Arab World. The Union aims at developing, improving and coordinating the areas of interest of its members and strengthening the relationship among them in order to achieve the Union s main objectives

5 Aims and Responsibilities of AUE In order to achieve the aims stated above, the Union shall pursue the following : 1- It shall foster cooperation and coordination of the activities of its members in the various fields related to the development, improvement, and integration of the Electricity Industry. Furthermore, it shall cooperate with national, Arab and international bodies in this field 2- Obtain and develop advanced modern technologies which comply with the nature and present conditions of the Arab Electrical systems. 3- Exchange information systems, charts, technical and economical statistics related to the electrical sector. 4- Participate in Arab and international conferences, and cooperate with Arab and international specialized organizations. 5- Support and encourage manufacturing of equipment needed for generation, transmission, distribution, and consumption of electrical energy in the Arab world.

6 Aims and Responsibilities of AUE 6- Perform field surveys to provide information concerning the present conditions of the Arab Countries in the Electricity industry in cooperation with the specialized organizations and agencies. 7- Exchange experience in the field of conservation, administration, operation and maintenance in the electricity sector. It shall also develop the Arab human resources working in this field. 8- It shall publish proceedings, magazines and periodicals aiming at informing and promoting relationship between its members. 9- To pursue the interconnection of electrical networks in the Arab countries and accelerate the implementation of such interconnections. 10- To pursue the standardization of Arab electrical terms, symbols, standards and specifications. 11- To pursue the conservation of electrical energy in all fields of use, and to adopt the effective means to prevent waste of energy.

7 Committees of the AUE Committee of Interconnected Arab Networks Engineering and Generation Committee Human Resources Development Committee Distribution Committee Planning Committee Renewable Energy Committee

8 Engineering and Production Committee Duties and Responsibilities 1- Collaboration and coordination between members of the Union in the field of development and improvement of Power Electricity Production. 2- Training and Development of Human Resources working in Electricity Power production. 3- Follow up and collaborate with the Arab Organization for Standardization in order to Standardize the technical specifications of Power Plants. 4- Encouraging the exchange of information about cost and source of equipment. 5- Share the Regional Studies and economic feasibility for power electricity production in the Arab World. 6- Hold seminars and conferences related to the production of Electricity.

9 Arab countries enjoy natural resources Oil, Gas and RE

10 Arab countries enjoy natural resources Oil, Gas and RE

11 Installed capacity (MW) _ 2013 By Fuel Type Coal %0.9 Diesel 2.8% Hydro %4.6 Wind %0.5 Solar %0.1 others %4.8 Steam %24.9 Combined %26.7 Gas %34.5 Total installed Capacity: MW

12 Thermal, MW Renewable, MW Electricity Sources in Arab Countries 50, , , , , , , , , , , , , , , , , Thermal Capacities RE Inc Hydro Source: Arab Union of Electricity, 2014

13 Electricity Demand Forecast 2019 / Country Peak Load Generated Peak Load Generated Peak Load Generated MW Power,GWh MW Power,GWh MW Power,GWh 5,400 33,712 3,941 24,483 2,915 18,092 Jordan 30, ,084 25, ,061 20, ,928 UAE 8,773 42,967 5,571 27,401 3,200 16,295 Bahrain 5,510 27,820 4,430 21,920 3,500 17,650 Tunisia 28, ,520 19, ,103 12,348 63,371 Algeria 99, ,398 79, ,705 59, ,154 KSA 6,703 33,275 4,162 20,661 2,300 11,724 Sudan 17,400 89,920 12,450 67,200 9,000 50,229 Syria 28, ,000 23, ,000 16, ,000 Iraq 9,600 47,000 7,100 34,710 5,053 25,000 Oman 1,851 10,419 1,450 7,429 1,136 5,297 Palestine 10,942 60,000 9,634 52,369 6,752 36,016 Qatar 28, ,188 19,138 96,771 13,025 65,861 Kuwait 4,472 20,186 3,676 16,592 2,880 13,000 Lebanon 11,285 65,721 9,222 54,124 6,931 40,373 Libya 54, ,172 42, ,546 30, ,105 Egypt 10,284 61,920 7,696 46,053 5,617 33,621

14 Renewable 7% Diesel 1% Haydro 5% Others 3% Steam Nuclear 0,4% Steam 32% Gas Tur. C C Nuclear Diesel Renewable C C 37% Gas Tur. 15% Haydro Others

15 Features of Electricity Market in the Arab Countries: Fossil-fuel subsidies were around $490 billion in 2014, but would have been $610 billion without reforms that have been enacted since Recent changes prove that fossil-fuel subsidy reform is possible: low oil prices give net importers the room to reform, and reinforce the need for exporters to do so, (IEA, World Energy Outlook, 2015). Middle east and North Africa countries account for about two-thirds of total fossil-fuel subsidies, (IEA, World Energy Outlook, 2015). Despite different countries have implemented energy subsidy reforms in both electricity sector and prices of oil products; i.e. Egypt, Jordan, Morocco, Tunisia, Sudan, Yemen, Saudi Arabia, Oman, Kuwait, and Qatar, but energy prices still heavily subsidized.

16 Features of Electricity Market in the Arab Countries: Region characterizes with high energy demand ranges from 3 8%, (IRENA, 2015). With regard to energy-dependency, there is a huge variety between Arab States. In other words, Palestine, Jordan, Lebanon, Morocco, and Tunisia, on average, import more than 90% of their energy needs. In terms of energy generated per capita, there is a huge difference, ranges from 273 kwh to 16,840 kwh, (AUE, 2014). Fossil fuel is the main source of electricity; i.e. 95%, meanwhile renewable shares with 5%.

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18 Features of Renewable Energy in the Arab Countries: Share of private sector investments in RE in the region increases day by day. Leader states in this filed are Morocco, UAE, Jordan, and Egypt. Much of the investment is currently performed through foreign loans, with partial share of national loans. Shortage of electricity access in some countries is a unique opportunity to deploy RE in micro-scale. In this regard, Lebanon successfully leveraged private funds for the development of small-scale renewable energy projects through its innovative national financial mechanism.

19 EU Electricity Markets Italy EIJLLPST Interco nnectio n Turkey Spain Under C o nsid eratio n Lebanon S yria Palestine Jordan Iraq Iran Libya E g ypt M orocco Algeria Tunisia Maghreb Interconnection K uw ait B ahrain Mauritania Under C o nsid eratio n K S A Q atar 400 kv 220 kv 150 kv 90 kv 66 kv Existing Not operational/island operation Under-consideration,-study,-construction Sudan Yemen Djibouti Somalia C om oros G CC Interconnection U AE O m a n

20 Diversification of energy resources in the Arab world from oil and natural gas + RE Variation in daily, seasonal and annual demand for energy among the Arab States. Variation in peak loads times in the Arab States.

21 Reduce the investment in electric power generation sector, due to the spinning reserve in electric power plants of each country. Benefit from the variation in peak times and time differences, which would allow increase of the potential capacity exchange between interconnected grids. Increase efficiency and reliability of electric power systems to provide support in emergencies. Use of electric interconnection grids to construct informationtransmitting networks between the interconnected countries.

22 Eight Country Grid Interconnection

23 The Maghreb Countries Interconnection

24 Gulf Cooperation (GCC) Power Grid Interconnection

25 Countries Involved 1-Libya- Egypt 2-Tunisia- Libya No. of Circuits Investment s needed (MUSD) Technology Voltage Date projects expected to enter into service Single Circuit (BtB) a.c. 500/400 kv. Single Circuit a.c kv Saudi- Jordan 4-Saudi- Yemen 5-Iraq- Kuwait 6-Egypt- Jordan Double Circuit Double Circuit Double Circuit Reinforcement (Second Circuit) (BtB) a.c. (BtB) a.c. a.c. a.c. 400 kv kv kv kv Syria- Jordan Reinforcement (Second Circuit) a.c. 400 kv. 2022

26 Total cost of generation Generation cost expected savings $127 Billion Disbudded as follows 7 Billion Capital investment re-infored electrical Interconnection Peferred Scenario Present value (PV) of saving is $ 35 Billion $ 120 Billion operational costs Plus an additional $ 11 Billion in Reduction of emissions of harmful gases

27 Fullyintegrated Pan-Arab Market Ultimate Pan-Arab Market Design Expand Regional Market Function Transition Market Existing Regional Markets Focus: Fullyinterconn. and synchroniz ed Pan- Arab electricity network Focus: Full wholesale competition supported by multiple markets Focus: Unbundle TSOs and introduce wholesale comp. Focus: Identify and expand trade opportunities Focus: GCC, EIJLLPST (8 countries) and Maghreb

28 Policy and Regulatory Frameworks Integration Projects Arab-Regional and Internat. Coop Data Bases and Information Systems Events

29 With All Compliments of Arab Union of Electricity

30 Thank you For more information Please contact us at: Eng.S.Mohamad ALAYA Mobile: Beirut, Fleuve 22 Street, EDL Building, 10 th floor or v