gcc lab: update & future perspective...competitive advantages americas powertech kinectrics...

GCC Lab: Update & Future PerspectiveBeirut

October 24, 2017

Omaintec– 2017 – Lebanon

Saudi Aramco: Public

GCC Lab’s International Partnership

Omaintec– 2017 – Lebanon

To Provide an Overview on Testing &

Certifications’ Business Opportunities

GCC Lab as a Successful Case

OBJECTIVE

Outlines

1 Strategic Drives

2 Competitive Advantages

3 Business Portfolio

4 Partnerships & Collaboration

5 Development Update

6 Remarks

GCC Cigre – 2017 – Muscat - Oman

All drivers are in support of a GCC electrical lab

Localization

incentives

for electrical

manufacturing

Focus on

efficiency and

adoption of new

technologies

Large

and growing

electricity demand

Favourable

GCC national

agendas

1 2

4 3

Strategic Drives

Localization

incentives

for electrical

manufacturing

Focus on

efficiency and

adoption of new

technologies

Large

and growing

electricity demand

Favourable

GCC national

agendas

1 2

4 3

Strategic Drives

GCC COMMON ECONOMIC DEVELOPMENT THEMES

Expanding the Productive Base

Building a Diversified Economy

Enhancing Market Efficiency

National agenda of GCC countries1

Saudi Arabia

QATAR

UAE

Bahrain

Kuwait

OMAN

Localization of Knowledge & Industry

Strategic Drives

Localization

incentives

for electrical

manufacturing

Focus on

efficiency and

adoption of new

technologies

Large

and growing

electricity demand

Favourable

GCC national

agendas

1 2

4 3

Strategic Drives


GCC Installed Power Generation CapacityGigawatts, 2016-2030

Source: Business Monitor International (BMI)

2

Strategic Drives

Localization

incentives

for electrical

manufacturing

Focus on

efficiency and

adoption of new

technologies

Large

and growing

electricity demand

Favourable

GCC national

agendas

1 2

4 3

Strategic Drives

Strategic Drives

GCC countries localization initiatives

KSA• Saudi Vision 2030: Localize Manufacturing to 75%,

renewables, industrial equipment manufacturing

• Emiratization Initiative: Employ its citizens in a meaningful

and efficient manner in the public and private sectors

• In-Country Value (ICV) program: Maximize capital spend in

Oman for a variety of manufacturing activities

• Qatar 2030 Vision: Natural resource management and

development of knowledge based economy

• Kuwaitization Law: Increase Kuwaiti’s percentage in the private

sector to enhance knowledge transfer and localization

• Bahrainization: Bring more Bahraini citizens into the workplace and

reduce reliance on expats

3

UAE

Oman

Qatar

Kuwait

Bahrain

Localization

incentives

for electrical

manufacturing

Focus on

efficiency and

adoption of new

technologies

Large

and growing

electricity demand

Favourable

GCC national

agendas

1 2

4 3

Strategic Drives

Renewables solar targets by countryUSD billion, Gigawatts

1.Assuming a 25-30% percent drop in solar CAPEX in the short term and excluding storage costSource: Saudi 2030 vision, Sun&Life, KACARE

46GW Capacity Over $50 billion of investments by 2032

UAE3.0B$ 2020

1.5 GW

Oman0.5B$ 2015

0.2 GW

Qatar1B$ 20180.5 GW

Kuwait0.5B$ 2014

0.2 GW

KSA~50B$1 2032

41 GW

4

Strategic Drives

All drivers are in support of a GCC electrical lab

Localization

incentives

for electrical

manufacturing

Focus on

efficiency and

adoption of new

technologies

Large

and growing

electricity demand

Favourable

GCC national

agendas

1 2

4 3

Strategic Drives

Outlines

1 Strategic Drives





6 Remarks

Competitive Advantages

1. 1st Mover in a Growing Market

2. Strategic Shareholders

3. International Partners

4. Strategic Location

5. Regional Focus on Quality & Certification


Americas

Powertech

Kinectrics

LAPEM CFE

DNV GL – KEMA

Manitoba Hydro

Cepel

Eaton Corporation

S&C Electric Co.

Europe

VEIKI – VNL ICMET Charles Parsons Schneider Volta Labs

CESI Tecnalia TDHVL PSW Siemens

CESI (2 labs) EGU ABB – NEFI Ormazabal

DNV GL – KEMA SEDIVER ABB AB EDP

DNV GL – KEMA LCOE – FFII ABB Brugg Cables

IPE STRI AB EDF

Industrial – HV and HP1 laboratories

HV HP

HP

HV HP

HV HPHV HP

HV HP

HV

HV HP

HV HP

HV HP

HV HP

HV HP

HV

HV

HV

HV

HV

HV

HP

HP

HV

HV

HV HP

HV

HV

HV HP

HV

HV HP

HV HP

Manufacturer or utility labs

Independent 3rd party labs

APAC

Central Power Research Institute

ERDA

HGK

KERI

Ausgrid (Lane Cove)

Xi’an HV Apparatus

Hitachi

Meidensha Corp

Mitsubishi

NGK Insulators

Nissin Electric

Toshiba

HV HP

HV HP

HV HP

HV HP

HV HP

HV HP

HP

HV HP

HV HP

HV HP

HV HP

HV HP

HV HP

HP

HV-High Voltage /HP–HighPowerSource: Project team

10 Shareholders (Market Leaders)

End Users 70 %

Manufacturers 10%

Neutral 20%

Right Mix


Key Highlights

LV, MV, HV & HP Services

Design & QA

Asset Management

Consultation & Training

Marketing Services

R&D Services

Exclusivity:

Middle East

North Africa

Turkey

GCC Power LabPartnership with CESI-Italy


Key Highlights

Testing of Solar Cells

DC Systems

Feasibility & bankability Studies

Smart Meters

Safety/Efficiency

Audits

Training & Certification

R&D

Exclusivity:

GCC Countries

Middle East

GCC Renewable & Safety LabPartnership with UL-USA


Key Highlights

Calibration Services

On-site Inspection

Testing & Certifications

Training

GCC Calibration Partnership with Motabaqah


1 Optimize Quality, Time & Cost

2 Create Knowledge Economy

3 Localize Manufacturing & Services

4 Create High-skilled Jobs

5 Promote Applied R&D

6 Retrofit Solutions for Obsolescence

GCC Lab Benefits to the GCC/MENA


27Saudi Aramco: Public

Key Highlights

• 136,000 SQM.

• 20 years lease.

• Right to rent to JV

• Waived liquidated damages.

• Site Preparation

GCC Lab Land AllocationModon–Dammam 3

Site

– Area of 140,000 m2

– Adjacent to EIC

Road

– Abqaiq Highway

– GCC highway

Air & Seaports

– KFIA- Dammam

– King Abdul-Aziz Seaport

Rail

– Abqaiq Railway Station

– Rail connection to Dammam 3

1

2

7

8

3

4

6

5

Outlines

1 Strategic Drives





6 Remarks

30Saudi Aramco: Public

iii. Accelerate

business growth

i. Develop

internal capabilities

iv. Establish

partnerships

ii. Build

infrastructure

Long-term strategic objectives

Vision

Mission

Short-term strategic priorities

1

2

3

4

Business goals

5

I. Provide world

class TIC services

in the power sector

II. Attain financial

sustainability

III. Advance local

innovation &

knowledge Economy

IV. Develop local

workforce

Achieve global leadership in testing, inspection, certification and innovation for the power Industry

Advance safety, efficiency and innovation in the GCC power sector by profitably delivering

world class services and solutions enabled by highly skilled people, efficient workflows and

state of the art operating facilities

2017

• US$ 1 million revenues

• Preferred TIC1 services vendor with SEC and Saudi Aramco

• 2 major Saudi customers acquisition

2018


• 1st non-KSA GCC customer

2019


• 2nd non-KSA GCC customer

2017

• Efficient operating model deployment

• Support functions and enablers implementation

• HR plan execution for Calibration & Testing labs

2018

• HR plan execution for Renewables & Smart Grid lab

2019

• HR plan execution for Industrial lab (Phase 1)

2017

• JV partnership for Renewables & Smart Grid lab

• JV partnership for Industrial labs

• R&D strategy development

2018

• Partnership for Appliances & Electronics lab

• Partnership to provide training to GCC Lab personnel

2019

• Strategic partnership with international R&D organization

2017

• 4 fully operational Calibration & Testing labs

• Asset company establishment

• Fully fledged IT capabilities & systems

• Operational Renewables & Smart Grid lab Phase 1

2018

• Fully operational Renewables & Smart Grid lab

2019

• Fully operational Industrial labs (Phase 1)

1. Testing, Inspection and CertificationSource: Project team

GCC Lab- Strategic Objectives



Operating Model

Operating Model that facilitates agility for specialized & competitive growth.

Calibration & Testing

Industrial (Power Lab) OpCo

Renewables & Smart Grid

Eq

uity

Div

ide

nd

s

Dividends

Asset leasing

contract

Leasing payments

Equity EquityFunding and Services

Holding Company (Corporate)

Industrial Asset Company

Dividends Profits

JV JVProfit center

Debtfunding

Debt capital

Interests and debt

repayments


Outlines

1 Strategic Drives





6 Remarks



Key Highlights

Assessment Studies

R&D

Test Fields

Standards Development

Workshops

GCC Lab CollaborationsCollaboration with KACARE



Key Highlights

Standards Development

R&D

Testing & Certifications

Consultations

GCC Lab CollaborationsCollaboration with KACST



Courses’ Topics:

Electrical Safety (Arc Flash)

Equipment Testing & Certifications

Calibration

Solar Field O&M

Protection Systems

Training Collaborations

SCE

IEEE

CIGREE

SEC/Aramco

Bahrain

GCC Lab CollaborationsCollaboration for Training


Outlines

1 Strategic Drives





6 Remarks


GCC Lab Business Development

2016 2017 20192018 2020

4. Q3 2017:

Calibration, Training Services

3. Q4 2016:

Partner(s) Identified

1. Q1 2016:

Company Business Plan Created

5. Q4 2017:

Renewables/ Smart Grid Lab

7. 2018

LV-MV Labs

6. Q4 2017:

Industrial Lab EPC Initiated

8. 2019

Inspection/ Audit Services

2. Q2-Q4 2016:

Partner SelectionProcess

9. 2020

Industrial Lab Full Operations

Implementation Timeline


Outlines

1 Strategic Drives





6 Remarks



GCC Lab Business Development

Operationalize Calibration Labs

2017 Ongoing Activities

Partnership Deals with Partners

Consultation Services

Develop Strategic SLAs with Major Customers

Participate in Developing PV Standards

Provide Training & Inspection Svs



• Synergy with Visions of GCC & MENA Countries

• Enable Manufacturing & Knowledge Economy

• Mitigate Challenges (Safety, Quality, Reliability & Cost)

• Create Centers of Excellence (Asset Management, Spare Parts, Retrofit Condition Assessment)

• Influence Technical Specifications (Life-Cycle Control, Climate)

• R&D and Innovation (Conventional, New Technologies)

• Collaboration with ALL

Remarks


THANKS

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