DUBAI ENERGY GUIDE. Fueling Dubai s Energy Ambitions

Transcription

1 DUBAI 2019 GUIDE Fueling Dubai s Energy Ambitions

2 CONTENTS OVERVIEW FUTURE GROWTH GOVERNMENT SUPPORT WHY DUBAI? 14 TRADE EVENTS Report dated December

3 OVERVIEW 1 A traditional global centre for the oil and gas trade, Dubai is home to a wealth of companies servicing the ever evolving energy industry. The future-forward city is fast becoming an agenda-setter for the international green economy, as part of its commitment to derive 75% of its energy needs from clean sources by Dubai s diversifying energy mix has made it home to government-owned oil and gas company Emirates National Oil Company (ENOC), major multinationals BP, China Petroleum Engineering & Construction Company (CPECC), Halliburton, Schlumberger and others, as well as to some of the world s biggest renewable energy facilities, such as the US$13.6 billion Sheikh Mohammed Bin Rashid Al Maktoum Solar Park, set to become the world s single-largest solar photovoltaic park. 3

4 OVERVIEW The city is also fast becoming home to some of the world s biggest renewable energy facilities such as the US$13.6 billion Sheikh Mohammed Bin Rashid Al Maktoum Solar Park, set to become the world s single-largest solar photovoltaic park as the emirate has declared its intent to derive 75% of its energy needs from clean sources by Dubai s commitment to renewable energy sources has given birth to a fast growing green economy with a large number of Energy Services Companies (ESCOs) already offering automation systems and real-time information management systems to make buildings, homes and even electric vehicles more energy efficient. The government has developed a regulatory framework intended to support the ESCO market, comprising an accreditation scheme. SHEIKH MOHAMMED BIN RASHID AL MAKTOUM SOLAR PARK $13.6B development 75% of energy needs from clean sources by

5 OVERVIEW DEMAND ON THE RISE As Dubai s population is expected to increase 32% over the coming years from 2.5million in 2017 to 3.3million by 2021 and 5.2 million by 2030, demand for energy within the emirate will continue to rise exponentially. And while automotives, electricity generation and water production will be the main drivers for increased demand in Dubai, the need for energy in the wider GCC and MENA regions, home to 480 million people, will be spurred by a favourable economic outlook forecast to expand by as much as 3% annually till DUBAI S RISING POPULATION WILL INCREASE DEMAND FOR 5.2M M M 2017 DEMAND Looking eastwards at the fast growing powerhouse of the 1.3 billion people market is India. As Dubai s second largest trading partner, its fast growing middle class is increasingly entering the automotive market as first time car buyers and as a result, oil product demand in this market will see a dramatic rise in the coming years. 5

6 FUTURE GROWTH 2 SOLAR PANELS will be mandatory requirement for all buildings by 2030 The renewable energy sector is bursting with opportunities for entrepreneurs and investors. There is a strong case for solar energy in a region with eight to 11 hours of average sunshine per day. Moreover, solar panels will be made a mandatory requirement for all buildings in the UAE by A prime example of innovative companies leveraging opportunities is Dubai-headquartered Phanes Group, which has officially started construction work on the DP World Solar Project in Dubai. Once phase one is complete, its 88,000 rooftop solar panels will make it the largest rooftop solar project in the Middle East, producing enough clean power for 3,000 homes. The company has also used the city as a springboard to launch into Africa whose theoretical solar energy reserves are estimated at 60,000,000 TWh/year, which accounts for almost 40% of the global total. Other players include Taka Solutions which has completed major energy-saving projects at some iconic Dubai locations including Dubai International Financial Centre and Palm Jumeirah. Demand-side management strategies like the retrofitting of buildings with LED lightbulbs and other energy-saving devices, and the use of district cooling solutions to provide water-based air conditioning systems to communities is also expected to draw the interest of green energy corporates and start-ups from the region and elsewhere. 6

7 FUTURE GROWTH The government is also investing US$2.7 billion over the next three years for the development of 113 electricity substations in an effort to increase energy production capacity, which in 2016, stood at 10,000MW with a peak load of 7,982MW. A further US$1.15 billion has been allocated to support electricity, water and renewable energy infrastructure projects for the needs of Expo 2020 Dubai. Dubai Electricity & Water Authority (DEWA) will also build a pumped storage hydroelectric power station that will make use of the water stored in the Hatta Dam. Once completed in five years, it will be the first of its kind in the region with a capacity of 250MW and a lifespan of years. UAE INVESTING IN ELECTRICITY 113 electricity substations over next 3 years $2.7B Investment to increase energy capacity which stood at 10,000MW in % of outdoor lights will be replaced with more efficient fixtures by 2030 Also, about 30,000 of the city s 120,000 buildings are being modified into energy-efficient structures while 75 per cent of outdoor lights will be replaced with more efficient fixtures by

8 GOVERNMENT SUPPORT 3 To accelerate the green economy transition, the government recently approved the $27 billion Dubai Green Fund which will support various projects including solar power and those related to the retrofitting of buildings. Dubai has taken a visionary approach towards developing sustainably and led the way in promoting renewable energy sources. Innovation is a key focus area, building on strategies set forth in the Dubai Plan $27B Dubai Green Fund The UAE Vision 2021 and the Dubai Plan 2021 is to create a clean, healthy and sustainable environment, and help Dubai attain a green economy. 8

9 GOVERNMENT SUPPORT Besides the Mohammed bin Rashid Al Maktoum Solar Park, the government is also heavily investing in other energy-transformational projects such as the Hassyan cleancoal power project with a capacity of 2400 MW. Due for completion in 2023, it will be the first project of its kind in the region, and is fully compliant with set international standards, adopting the use of ultra-supercritical technology. To further diversify energy resources, the Dubai Electricity and Water Authority (DEWA) is building a pumped storage hydroelectric power station which will make use of the water stored in the mountains next to Hatta Dam. The project will be completed in five years and will produce 250 MW over the next eight decades. HYDROELECTRIC POWER DEWA project to be completed in next 5 years producing 250MW over 80 years 9

10 GOVERNMENT SUPPORT The government has also launched a number of other initiatives including Shams Dubai, which encourages the installation of solar panels on rooftops and connects them to the electricity grid. Until the end of 2017, 557 buildings in Dubai had connected with a total capacity of 24.3MW. Under the electric vehicle Green Charger initiative a total of 200 charging stations will have been installed in key areas across the city by And under a multifaceted programme of its US$1.9 billion smart grid initiative, the city aims to reduce overall energy consumption by roughly 30% before INITIATIVE FOR INSTALLATION OF ROOFTOP SOLAR PANELS 557 buildings 24.3MW total capacity in 2017 DEWA is investing more than US$22 billion by 2021 to meet the growing demand for electricity and water. In total, investments worth US$163 billion are planned over the next three decades to reorganise Dubai s energy sources for its water and power needs $163B worth of investments over next 3 decades to reorganise Dubai s enegy source 1010

11 WHY DUBAI? 4 LOCATION & CONNECTIVITY Dubai is a key connecting hub between the markets of the East and West Ideally located to bridge the crucial time zone gap between the markets of the East and West to enable 24/7 services and connectivity. Easily accessible through two international airports Dubai International (DXB) and Dubai World Central (DWC) within a 4 hour flight of one-third of the world s population, and within 8 hours of two-thirds. 90 airlines operate 6,500 flights a week from DXB, to 240 destinations. 15 passenger carriers operate an average of 153 flights weekly to more than 30 international destinations across 10 countries from DWC. DUBAI A KEY HUB 6,500 flights a week 240 destinations DXB passenger numbers are projected to reach million by 2020 while passenger traffic across Dubai s two primary airports is forecasted to rise to 200 million by Home to the world largest manmade port Jebel Ali a premier gateway for over 90 weekly services connecting more than 140 ports worldwide. Expansions currently underway at the Port will bring total handling capacity to 22.1 million TEU by World largest manmade port connecting 140 worldwide With its diverse and mature consumer base, Dubai has a proven track record of being the launch-pad to test and expand operations across the wider Middle East, Africa and South Asia. Non-oil trade between Dubai and Africa is valued at US$34billion having amounted to US$192 billion over the period. $34B non-oil trade value with Africa Non-oil trade between Dubai and India reached US$27 billion in 2017, representing 7.6 per cent of Dubai s total non-oil foreign trade for the same year, and is projected to increase by 5% to US$30 billion by

12 WHY DUBAI? TALENT POOL Dubai is an incubator for exceptional home-grown talent and a magnet for the world s most ambitious, sophisticated and forward-thinking scientists, engineers, technologists and innovators who yearn for a rewarding, career-enhancing ecosystem to thrive, prosper and change the world. Dubai ranks 6th globally in a list with the most attractive cities for a global workforce according to Boston Consulting Group. The Dubai government is implementing talent attraction strategies designed to increase its intake of knowledge workers by 40% by Dubai is home to over 200 nationalities, bringing together one of the world s richest and most diverse pool of languages and skills to suit any business. The UAE ranks 4th globally in availability of skills and competencies in the talent pool and 5th worldwide in the Appeal index, which measures the extent to which a country taps into the overseas talent pool, according to the IMD World Talent Ranking

13 WHY DUBAI? FOREIGN DIRECT INVESTMENT DUBAI Dubai ranks among the top 10 international cities in attracting foreign investment estimated at US$7.4 billion in 2017, an increase of 7.1 per cent compared to Liberal and pro-investment policy decisions had gone a long way in setting Dubai on a path towards achieving comprehensive and sustainable development based on innovation and high productivity. Foreign direct investment has played an instrumental role in realising these achievements through its contribution to job creation and technology diffusion. Dubai is ranked #1 in the world in terms of FDI technology transfer and #3 as location for AI & Robotics. Top 10 international cities Foreign investment $7.4B in 2017 Increase 7.1% 1313

14 TRADE EVENTS 5 WETEX The three-day Water, Energy, Technology, and Environment Exhibition (WETEX) will showcase latest developments in conventional and renewable energy from around the world. The event will also give visitors the chance to network and make business deals with fellow industry professionals. It will include free-toattend seminars and talks led by industry experts, who will be discussing developments and the latest research on water, energy and the environment. The event is held annually at the Dubai World Trade Centre The exhibition is a realisation of the directives of our leadership to promote the sustainable development and the green economy of the UAE. - HE Saeed Mohammed Al Tayer, MD&CEO of DEWA and Founder and Chairman of WETEX. 1414

15 TRADE EVENTS The Middle East Electricity Show is the region s leading platform for the power industry THE MIDDLE EAST ELECTRICITY SHOW 62,000 Industry professionals The Middle East Electricity Show is the region s leading platform for the power industry to come together, share ideas, trade, and network at the highest level. Last year s edition was held in March 2018 under the theme Energising the Industry and drew more than 62,000 industry professionals. The event hosted 1,500 exhibitors from 66 countries, supported by 23 dedicated national pavilions including Germany, the UK, Saudi Arabia, Turkey, and China. On display were latest technologies, products, and services across five dedicated sectors: power generation, transmission and distribution, lighting, solar and, for the first time, energy storage, and management. The event is held annually at the Dubai World Trade Centre 1515

16 , Dubai, UAE 16