Green Energy Solutions
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has called for solar panels to be installed on every roof in Dubai by 2030, as part of the Emirates vision to produce 75% of its energy from clean sources by 2050. To get there in time, the Dubai Clean Energy Strategy 2050 also calls for interim targets of 7% of solar power by 2020, and 25% by 2030.
As one of the first steps to facilitate this goal, created the Shams Dubai solar program in early 2015. This program allows customers to install solar panels on their property, and utilize the produced solar energy to reduce their monthly electricity bill. Any surplus electricity that can not be used immediately will be credited at the retail rate, further reducing the electricity bill in the next month.
Solar panels can be installed on the roof, parking shades or on the ground, depending on available space and orientation. The best locations are clear, unobstructed roofs, parking or other areas facing south, with no shading. North-facing surfaces can be utilized with mounting structures that tilt the panels so that they face south.
Everywhere is among the first solar companies in the UAE certified to carry out solar system installation under the Shams Dubai initiative.
The team has aggregated unique region specific experience in aggregating projects within the full value chain of the green energy spectrum, with a track record across all areas, from design through financing.
Integrated end to end green energy solution.
The Private Office has a portfolio of projects in both sides of supply and demand. The ability to complement the energy portfolio from both ends provide our partners and stakeholders assurances that market penetration can benefit from all the potential revenue streams.
Our activities range from the provision of ESCO services on a performance contracting base, all the way to scouting for innovation from economically viable green solutions, including geothermal, smart grids and battery storage.
Solar and beyond
Our experience in solar is not limited to PV but looking at the compendium of solar, including solar-thermal applications and CSP.
Integrating utility offerings to gain carbon credits
In addition to the energy model, weather EPC or through a Power Purchase Agreement (PPA) under Shams Dubai, additional revenues can be generated from the origination and sale of Carbon Credits or Renewable Energy Certificates. Despite global markets having suffered greatly in the past years, the UAE has a positive liquid record of successful transactions for both CERs and iRECs, some with recorded value far in excess of market expectations
The Mohammed bin Rashid Al Maktoum Solar Park was announced in January 2012 in line with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to enhance the sustainable development of Dubai. It also supports the Dubai Clean Energy Strategy 2050 that aims to make Dubai a global centre of clean energy and green economy. The strategy also aims to provide 7% of Dubai’s energy from clean energy sources by 2020, 25% by 2030 and 75% by 2050.
the largest renewable-energy project on a single plot in the world with a planned production capacity of 5000 MW upon completion in 2030. The Solar Park includes:
The Solar Power Projects of 5000 MW by 2030
First Phase: 13MW launched on 22 October 2013
Second Phase: 200MW will be launched in April 2017
Third Phase: 800MW will be launched in stages, ending by 2020
Future Phases: up to 5000MW by 2030
Research & Development (R&D) Centre with a solar testing facility
Educational & Training Centres
Photovoltaic Reverse Osmosis Project (PVRO)
Interactive centre equipped with the latest technologies in renewable and clean energy
Further developing national skills in the field of energy
Promoting the competitive edge of businesses in Dubai, developing renewable energy technologies, and supporting the region’s energy industry
Spreading awareness on climate change and sustainable energy
Creating interactive presentations and organizing educational tours for visitors
Educating people about solar energy and organizing educational tours for visitors
Educating people about solar energy and the Solar Park, and highlighting Dubai’s leading role in the field of sustainability
OIL AND GAS
The team has a successful track record of transaction in the oil and gas industry, leveraging the regional portfolio and demand to foster trades in different areas and for different products.
Preferred regional provider
As a result of the UAE reach, we are able to facilitate fuel trading in large quantities for different products at very opportunistic rates. Given the unprecedented access to the regional and international providers, bulk trades are further enhanced by regional stability and the Private Office track record.
All types of petroleum products
The office provides access to a variety of petroleum products, from fuel to additives and oil, meeting the requirements of every exigency.
The UAE is a major oil producer and exporter. In 2016, the country produced an average of nearly 3.7 million barrels per day of petroleum and other liquids, the seventh-highest total in the world.
According to the Oil & Gas Journal estimates as of January 2017, the UAE holds the seventh-largest proved reserves of oil in the world at 97.8 billion barrels (Table 1),13 with most of the reserves located in Abu Dhabi (approximately 96% of the UAE’s total). The other six Emirates account for just 4% of the UAE’s crude oil reserves, led by Dubai with approximately 2 billion barrels.14 The UAE holds approximately 6% of the world’s proved oil reserves.15
Recent exploration in the UAE has not yielded any significant discoveries of crude oil. What the UAE lacks in new discoveries, it makes up for with an emphasis on EOR techniques designed to extend the lifespan of the Emirates’ existing oil fields. By improving the recovery rates at the existing fields, such techniques helped the UAE to nearly double the proved reserves in Abu Dhabi over the past decade. The UAE has several crude oil streams, including the Murban—a light and sweet (low sulfur) crude oil that is the country’s primary export stream. In July 2014, Abu Dhabi began offering a new crude oil stream called Das, which is a blend of two existing streams—the Umm Shaif and Lower Zakum crude oil streams.
Top 10 countries for proved oil reserves, January 2017 Country Billion barrels Venezuela 300.9 Saudi Arabia 266.5 Canada 169.7 Iran 158.4 Iraq 142.5 Kuwait 101.5 United Arab Emirates 97.8 Russia 80.0 Libya 48.4 Nigeria 35.3
Exploration and Production
The UAE was the fourth-largest producer of petroleum and other liquids among OPEC members in 2015. The country has an ambitious target of increasing crude oil production to 3.5 million b/d by 2020, despite lower oil prices.
The UAE produced 3.7 million barrels per day (b/d) of petroleum and other liquids in 2016, of which 2.9 million b/d was crude oil and the remainder was non-crude liquids (condensate, natural gas plant liquids, and refinery processing gain). The UAE has the fourth-highest petroleum production in OPEC behind Saudi Arabia, Iraq, and Iran (Figure 1). The UAE plans to increase crude oil production to 3.5 million b/d in 2020,17 but with limited prospects for major discoveries, production increases in the UAE will come almost exclusively by using EOR techniques in Abu Dhabi’s existing oil fields. One potential source of output growth is the Zakum petroleum system. ZADCO—owned jointly by ADNOC (60%), ExxonMobil, (28%) and the Japan Oil Development Company (12%)—manages production from UAE’s Upper Zakum field, which currently produces about 670,000 b/d.18 In July 2012, ZADCO awarded an $800 million engineering, procurement, and construction contract to Abu Dhabi’s National Petroleum Construction Company—along with the French firm, Technip to expand oil production at the Upper Zakum field to 750,000 b/d by 2018 and to 1 million b/d by 2024.19 To meet this target, ZADCO shareholders have employed an artificial island concept with extended-reach drilling (ERD) and maximum reservoir contact (MRC) technology.20 Production from the Lower Zakum field—operated by the Abu Dhabi Marine Operating Company (ADMA-OPCO)—should also increase to 425,000 b/d from the 345,000 b/d it currently produces.
Imports, exports, and Consumption
The UAE has one of the highest rates of per capita petroleum consumption in the world.
The UAE is both a major exporter and a consumer of petroleum liquids. The U.S. Energy Information Administration (EIA) estimates that the UAE exported more than 2.5 million b/d of crude oil in 2016, with most of it going to markets in Asia (Table 2). In addition to being a major global petroleum exporter, the UAE domestic market relies heavily on petroleum product imports to meet energy demand. Most of the UAE’s petroleum imports are residual fuel oil, with limited imports of motor gasoline and diesel fuel.
UAE crude oil exports by region, 2016 Region Share Asia 96% Africa 2% Other 2%
The UAE has a well-developed domestic pipeline network that links oil fields with processing plants and export terminals. The newest export pipeline, the Abu Dhabi Crude Oil Pipeline (ADCOP), runs 236 miles from Habshan to Fujairah and began operations in June 2012. This pipeline gives the UAE a direct link from the rich fields of its western desert to the Gulf of Oman and from there to global markets. With a capacity of 1.5 million b/d—and a potential capacity of 1.8 million b/d—this pipeline allows the UAE to export a significant portion of its daily production without passing through the Strait of Hormuz. The Strait of Hormuz is the world’s busiest energy chokepoint (*link to Chokepoints CAB*), accounting for 30% of all seaborne-traded oil.
Already the world’s second-largest bunkering port, the export terminal in Fujairah will expand its storage capabilities significantly over the coming years. Plans to expand the terminal include several new private tank storage units, with an anticipated capacity of 88 million barrels by 2020. The Fujairah port also opened the country’s first very large crude carrier (VLCC) in September 2016, bringing total port loading and unloading capacity to 2 million b/d.21 Refining and storage capacity are growing as a result of ongoing expansion projects, and Fujairah is quickly becoming a critical node in a well-developed refining and export network.
Refining The UAE has four refining facilities, the largest of which is the Ruwais facility. A major expansion at the Ruwais refinery in 2015 doubled the facility’s capacity from 400,000 b/d to 817,000 b/d, bringing total refining capacity in the UAE to 1.1 million b/d (Table 3).22 In addition, the UAE has tentative plans to invest in a new 200,000 b/d Fujairah refining complex, although the project timeline remains uncertain.23
The UAE and neighboring Oman plan to build a jointly-operated refinery in the Duqum special economic zone that would have a capacity of 230,000 bbl/d by 2018. DSCE also signed a memorandum of understanding (MOU) with China Sonangol to build a refinery in Dubai, but capacity and schedules have not been released.
The UAE plans to boost domestic natural gas production over the next several years to help meet growing internal demand. Much of the growth could come from the country’s large sour (high-sulfur) gas deposits.
The UAE holds the seventh-largest proved reserves of natural gas in the world, at slightly more than 215 trillion cubic feet (Tcf) (Table 4). Despite its large endowment, the UAE became a net importer of natural gas in 2008. This phenomenon is a result of two things: (1) the UAE reinjected approximately 26% of gross natural gas production in 201524 into its oil fields as part of EOR techniques and (2) the country’s rapidly-expanding electricity grid—already strained by the swift economic and demographic growth of recent decades—relies on electricity from natural gas—fired facilities.
Top 10 natural gas reserve holders in the world, January 2017 Country Trillion cubic feet Russia 1,688 Iran 1,183 Qatar 858 United States 324 Saudi Arabia 303 Turkmenistan 265 United Arab Emirates 215 Venezuela 201 Nigeria 187 China 183
To help meet the growing demand for natural gas, the UAE boosted imports from neighboring Qatar via the Dolphin Gas Project’s pipeline over the past several years. The pipeline runs from Qatar to Oman via the UAE and is one of the principal points of entry for the UAE’s natural gas imports. In addition to the imports from Qatar, Dubai (an importer) and Abu Dhabi (an exporter), both engage in liquefied natural gas (LNG) trade.25
Natural gas consumption in the UAE reached a record high of more than 6.7 Bcf per day 2015.35 Solid economic growth and the resulting energy demand over the past few years are straining the country’s natural gas supplies. The UAE uses a large amount of natural gas in its extensive EOR operations and to operate its many power plants and desalinization plants. Meeting domestic demand will require large import volumes for the foreseeable future. Advances in EOR techniques and carbon capture and storage (CCS) could free up additional volumes for domestic consumption.
The UAE is planning to add nuclear, renewable, and coal-fired electricity generating capacity to accommodate rising demand, but the country currently relies primarily on natural gas.
Rapid economic and demographic growth over the past decade pushed the UAE’s electricity grid to its limits. Installed generation capacity continues to rise, reaching 28.6 gigawatts (GW) in 2015. The UAE generated over 87% of its electricity in 2015 using natural gas-fired generation.37 Electricity consumption in the UAE reached nearly 112,000 gigawatthours (GWh) in 2014, placing the UAE among the highest electricity consumers per capita in the world.
The UAE’s State of Energy 2016 Report states that electricity peak demand has almost doubled over the past 10 years.
Electricity sectors in all Emirates, with the exception of Abu Dhabi, are regulated by state agencies, and Abu Dhabi plans to further privatize its distribution sector. In Abu Dhabi, independent power producers (IPPs) and independent water and power producers (IWPPs) are joint ventures between the Abu Dhabi Water and Electricity Authority (ADWEA) holding companies and private investors, which hold 60% and 40%, respectively. All IWPPs sell water and electricity to the single state-owned buyer, Abu Dhabi Water & Electricity Company (ADWEC), under 20-year power and water purchase agreements.
The UAE plans to increase its power generation capacity by around 21 GW by 2030 through various projects. These projects, both planned and under development, are comprised of 26.8% nuclear, 24.3% coal-fired, and 22.5% gas-fired. Solar capacity is expected to contribute 26.1% of the total additional generation capacity.