meim vro knowledge sharing renewable energy landscape in ...€¦ · concentrated solar power (csp)...

Prepared for the Ministry of Energy, Industry & Minerals (MEIM) in Saudi Arabia

MEIM VRO Knowledge Sharing –

Renewable Energy Landscape

in Saudi Arabia

March 2018

2

The objective of the Renewable Energy knowledge sharing session is to

increase awareness of this critical sector and its contribution to the economy

Source: MEIM VRO, Arthur D. Little analysis

Knowledge Sharing Session Structure

Renewable Energy Sector

OverviewBasics, key definitions, value chain

Renewable Energy Global /

Regional TrendsMajor trends driving the renewable landscape

globally

Renewable Energy Landscape in

Saudi ArabiaAmbition, targets, initiatives, quick wins, key

considerations, success factors

Q&As / Panel DiscussionRecap of key messages, required support

MEIM VRO

Knowledge Sharing Session15

minutes

20minutes

25minutes

30minutes

3

The ability to achieve CO2 reduction will be the main driver influencing

the renewables industry in the future

Source: WEO 2015, IEA

Why Renewable Energy?

According to latest

predictions, CO2 emissions

are continuing to show

increase

Desire for air pollution

reduction in cities likely

resulting in more use of

renewables

– Major problem in areas

of Asia

– An increasing concern in

Europe and other parts

of the world

Possible future change in

emphasis in the US

Desire to reduce CO2 emissions

Mtoe

2025

4

30

currentPPA in

KSA0

50

100

150

200

250

300

119

Micro-

turbine

Solar

thermal

197

Gas

peaking

235

PV

rooftop

residential

240

CCGT Geo-

thermal

147

127

PV

rooftop

industrial

150

Nuclear

155

6784

PV utility Wind

66

Fuel cell

181

Coal

96

Biomas

Furthermore, the economics of renewable energy compared to fossil fuel

has become extremely attractive

LCOE benchmark1)

Why Renewable Energy?

Source: Lazard’s Levelized Costs of Energy Analysis

1) Benchmark of LCOE in the US

2) The LCOE is the net present value of the unit-cost of electricity over the lifetime of a generating asset

USD

/MW

h

Utility scale Solar PV and Wind power are competitive with fossil fuel based power

generation without any subsidies today

35

149

50 52

82 83 85105

95

65

115129

179

∑ (CAPEX + OPEX + Fuel expenditures)

∑ (Electricity generation)LCOE2) =

5

Several sources of renewable energy are available today at utility scale –

Solar photovoltaic and wind is most suitable

Renewable resources

Renewable Sources

Note: 1) Big data analytics is an attempt to forecast renewable electricity production on the basis of weather variable (see big data & analytics for more details);

Source: Arthur D. Little analysis

Renewable energy relies on intermittent and unpredictable1sources, therefore a major role could be played by

energy storage and generation location diversification. Both trends are an attempt to compensate peak production

with downtime (e.g. night time, cloud areas)

Geothermal

Biomass

Marine

Renewable

energy

sources

Hydropower

Wind

Concentrated

Solar Power

(CSP)

Solar

Photovoltaic

(PV)

6

From a KSA perspective, Solar PV, Solar CSP and Wind deployment are a

no regret move

Solar PV

Solar CSP

Wind

Marine

Nuclear

Low hanging

fruits

Government

Led

Long

term

Biomass

Geothermal

Commercial Potential

Eco

no

mic

Po

ten

tial

Hydro

No

potential

Renewable Energy – Technology Potential in KSA


7

Solar Photovoltaic (PV), uses a semi-conductor material, to generate

electricity through direct conversion of sunlight

Solar Photovoltaic (PV)

Renewable Energy - PV Technology Basics

Source: IEA – 2014, Arthur D. Little Analysis

Description

PV cells, made from semi-conductor material are the basic building blocks of a PV system that directly

converts solar energy into electricity

PV module, in combination with other components (e.g. inverters, batteries etc.) form a PV system

Applications

Intermittent source of energy (no sunshine at night or during cloudy weather), hence not reliable

To ensure uninterrupted power supply, additional equipment is required e.g. storage

Limitations(vis-à-vis CSP)

TechnologyThin-film (Cd-

Te)

Emerging (CPV,

OPV etc.)

Crystalline

Silicon

Power Plants

Utility scale

electricity generation

Solar Vehicles

Vehicle powered by

solar energy

Stand Alone

Independent from

utility grid

Building Systems

Installed on buildings

http://en.wikipedia.org/wiki/File:Juwi_PV_Field.jpg

http://en.wikipedia.org/wiki/File:TicketParkingMeter.jpg

8

LCoE of Solar PV have declined sharply in the last five years and are

expected to continue driven by falling prices of PV modules and inverters

Solar PV LCoE Components

Renewable Energy - PV Technology Basics

Solar PV LCoE Trend

Source: Lazard Estimates, Arthur D. Little analysis

86

104

149

270

72

91101

148

226

5767

80

3643

65

0

50

100

150

200

250

300

202520152013 2020

LC

oE

($

/MW

h)

2014

-65%

-4%

20122010 2011

166

Module Prices: Module prices reduced significantly in the last

two years and will continue to do so however not as steeply:

– Driven by over supply in the Si modules market driven by

Chinese manufacturers

– The learning curve of Solar PV predicts a further reductions of nearly 40% in the estimate period

BoS and Inverter: BoS systems have become more efficient

but there is further scope for price reduction

– Emerging technologies in energy storage will drive the efficiency

of BoS systems higher and the corresponding costs per kWh lower

Capital Costs: Financial costs have the highest sensitivity with

the LCoE

– Access to cheaper capital will increase driven by standardization and de-risking of Solar PV technologies

– Governments will incentivize Solar PV installations further through subsidies

9

Concentrated Solar Power (CSP) generates electricity by using sun’s

energy to drive heat engines

Concentrated Solar Power (CSP)

Renewable Energy – CSP Technology Basics

Source: IEA – 2014, Arthur D. Little analysis

Description

Reflectors concentrate the sun’s energy to a receiver which transfers the heat to a heat transfer fluid (in

most of the systems) which in turn is used to generate steam to produce electricity

Most solar thermal plants include energy storage that stores excess heat for future usage

Applications

More expensive than Solar PV

Complex technology which is still evolving

Limitations(vis-à-vis PV)

TechnologyLinear Fresnel

ReflectorParabolic Trough

Power Plants

Utility scale

electricity generation

Industrial

Heavy industry -

chemicals, wood …

Desalination

Salts and impurities

removal

Residential

Water heating and

hot air production

Central TowerParabolic Dish

10

6972

124

169

213

8696

116

146101105112

0

50

100

150

200

250

300

$/MWh

20402035203020252015 2020

Solar CSP LCoE ComponentsSolar CSP with Storage LCoE Outlook

Future decline in LCoE will be driven by technology improvements which

will reduce component costs & improve efficiencies of CSP power plants

LC

oE

($/M

Wh

)

1%

84%

11%5%

Personnel

Fixed Costs

Consumables

Other O&M

Drivers of LCoE Reduction

100

45%-60%

Economies

of Scale

New totalEfficiency

Improvement

21%-33%

10%-15%

Component

Cost

Current

Total

18%-22%

Renewable Energy – CSP Technology Basics

11

Wind technology is one of the oldest and most mature technology within

the RE sector

Wind Technology Overview

Renewable Energy - Wind Technology Basics

Source: IEA Technology Roadmap, Arthur D. Little analysis

Sizes and ApplicationsComponents of Wind Turbine System

RotorBlade

Rotor Hub

Nacelle

Enclosing

Tower

Drive-Train– Low Speed Shaft

– Gearbox

– Generator

– Power Electronics

Balance of Station– Foundation– SCADA systems– Collection systems– Etc.

Small (< 10 kW)Intermediate (10-250

kW)

Large Scale (660 kW – more than 2

MW

Domestic installations

Farm installations

Off-grid remote

applications

Rural power generators

Hybrid systems

Distributed power

Central Station Captive Wind Farms

Distributed Power

Community Winds

Offshore wind farms

12

Wind is the cheapest amongst all renewable energy sources – efficiency

improvements and cheap financing will further lower LCoE going forward

Comments

Renewable Energy - Wind Technology Basics

Wind Energy LCoE Projections

Source: IEA, GWEC, University of Melbourne, Bloomberg NEF, Industry experts, Arthur D. Little analysis

Turbine Sizes:

– Turbines are the largest component of capital costs for wind

generation. Going forward, turbine prices are expected to decline owing to the large scale demand arising from emerging

markets

– Turbine sizes will increase as per the trend and increase capacity factor thereby bringing down the LCoE of wind power

O&M Costs:

– O&M costs have declined significantly over the past few years and

will continue to decline particularly for onshore wind energy due to increased reliability of equipment and improved data-based

O&M strategies

Financing Costs:

– Investments in wind energy and access to cheap financing will

bring down the cost of capital for wind energy further pushing LCoE lower

88

99

92

545660

40

60

80

100

120

140

160

$/MWh

2015 2020 2025

13








Regional TrendsMajor trends driving the renewable landscape

globally





MEIM VRO


minutes

20minutes

25minutes

30minutes

14

Newly added renewable capacity is increasing constantly and subsequently

shifting from wind to solar, mainly driven by economics and govt. support

Source: REN21

1) Estimated

KSA Electricity Market Evolution

Global annually installed capacity [GW] Insights

161

37

+13%

Solar Energy

Wind Energy

Hydropower

Geothermal Energy

Bioenergy Renewable sources are getting more and more

interest as policymaker (45 to 176 in twelve years)

and are pushing for greener and more sustainable

economies

The new installed capacity is increasing 13% per year

reaching an additional capacity of 161 GW for the

year of 2016

In 2016 there was more renewable capacity added

than from fossil resources

Solar and wind are the most common sources of

energy:

– Wind has been most popular since late 1990s

– Solar gained market share since 2010

176173164144138

118109857568

4945

20052004 20082006 2007

581)

2009 201620152010 20132011 20142012

# Countries with

renewable policy

15

The growth in global wind and solar PV capacity dwarfs the growth of

other renewable technologies

Source: Irena Remap, Arthur D. Little analysis

External Perspective on Technology Trends

Global Wind Capacity (GW) Global PV Capacity (GW)

94

2016

467

304

14%

2030

…

2 000

2015

65

2013

350

32

415

2012

512014

183

30

2009

2007

222272

50

2008

26

33150

2010

120

2011

39

47

Additions

Capacity

2030

2016

26%

1 750

…

220

36

2012

71

3031

70

2010

13548

391623

8

37

2013

99172

291

2009

2014

2008

2015

2011

99 15

2007

6

Additions

Capacity

The market will continue to grow – and more and more countries will enter the market from outside

the OECD

16

The declining cost of renewables is making them more competitive

against fossil fuels – but there is more to be done

Source: IRENA 2016 and IEA for tidal

Note: All costs are in 2016 USD, Weighted Average cost of capital is 7,5 for OECD and China and 10% for the rest of the world


Cost of renewable energy

Some renewable energy technologies are already cost competitive compared to conventional energy

sources. Further cost reductions will enable additional business opportunities

LCOE for utility scale power (ranges and averages), 2010 and 2016 USD/MWh

2025?

17

The world’s most competitive PV tenders are as low as 24.2 $/MWh, and

will be further enabled by the emergence of new technologies


PV Cost reduction by element

Global weighted average utility-scale solar PV LCOE, actual (2009-2015) and projected (2016-

2015). Unit 2015 USD /kWh

Source: IRENA/IEA

Note: Results use a 7.5% weighted average cost of capital. All other inputs are from IRENA. This estimates assumes that 200-300THh solar PV replaces coal power plants, which

operates at 35% efficiency and emit

Emerging PV Technologies

CPV

Concentrating Solar PV

OPV

Organic PV

Perovskite Solar cells

Advance inorganic thin

films

Nanotechnology

The most competitive tenders in the word :

KSA 23.4 USD/MWh (won by ACWA Power in 2018)

Abu Dhabi 24.2 USD/MWh

Chile 29.1 USD/MWh

UAE 29.9 USD/MWh

Mexico 35.5 USD/MWh

18

Communities, cities, regions and even countries have embarked on a 100%

renewable energy path, and the list is still growing



15%

Grand Rapids, USA

2020

20%

Hokkaido, Japan

2030

23%

xx%Current % of energy

supply from RE

City, Country

Target year to achieve 100%

electricity supply from RECountries committed to more

than 50% of total energy

supply from RE by 2050

100%

Dardesheim, Germany

2009

2%

Barcelona, Spain

2055

6%

Canberra, Australia

2025

31%

Vancouver, Canada

2050

Georgetown, USA

2017

100%

Aspen, USA

2015

93%

Costa Rica

2021

Aruba

2020

Skelleftea, Sweden

2020

82%

13%

Reunion Island

2030

8%

19

Advances in energy storage, considered the holy grail of the power

industry, will drive wide scale adoption of renewables across the world


The role of storage assets on different grid levels

20

While Pumped hydro and Underground storage technologies are quite

mature, others such as Li-Ion rush up the maturity curve rapidly

Source: IEA (2014 research report)


Thermochemical

Hydrogen

Synthetic natural gas

Adiabatic CAES

Superconducting magnetic

energy storage (SMES)

Supercapacitor

Flywheel (high speed)

Flow batteriesLithium-based batteries

Molten Salt Flywheel (low speed)

Ice Storage Sodium-Sulphur (NaS) batteries

Compressed air energy storage (CAES)

Residential hot water

heaters with storage

Cold water storage

Underground thermal energy

storage (UTES)

Pit storage

Pumped Storage

hydropower (PSH)

Research and development Demonstration and deployment Commercialization

Current Maturity Level

Cap

ital

req

uir

em

en

t x t

ech

no

logy r

isk

Electricity storage Thermal storage

Major Energy Storage Technologies – Maturity (2014 view & evolution)

21

Distributed

Own

■ New IPP licenses■ Production price■ Regulatory framework■ Carbon Cap■ Consumer trends■ Renewable energy mix

Several other trends coupled with renewables are emerging in the power

sector


Value Chain Overview and Impact

Value Chain Overview: Energy

Fossil

Nuclear

Renewable

Fossil

Nuclear

Renewable

Fossil

Renewable

IPP

Generation Transmission Distribution

Storage

End-user

Centralized

Distributed

Residential

Commercial

Industrial

Municipalities

Own

End-user

Centralized

Political / Regulatory

Economic

Social

Technological

Environmental

■ Smart home■ Smart Meter■ IoT & Smart

devices ■ Big data

■ Smart city

■ Storage technology

■ Vehicle to grid ■ Private storage (e.g.

powerwall)

■ Smart mgmt.■ ESCOs

Type

■ Energy efficiency■ Demand mgmt.■ Distributed gen

■ Regulatory framework■ Digitization / Information

security■ Demand mgmt.■ Smart grid

22

Utilities revenues decoupling

Consumer awareness

New buildings and appliance standards

Energy efficiency projects

Building retrofitting standards / incentives

Industry specific targets

Utilities standards

Energy efficiency is a hot topic among many countries as different

applications and incentive schemes are fueling its implementation

Source: NETL, Arthur D. Little analysis

Energy Efficiency

Energy Efficiency

…many efficiency improvements

cost between 2 and 6 times less

than electricity generation…

23

Energy efficiency is proving to be a very viable and financially attractive

substitute to building additional generation capacity

Negawatts?

What is a negawattWhat are potential

applicationsWhy negawatt is useful

Negawatt is a theoretical unit that

indicates the amount of energy saved

rather then the amount of energy

produced

The energy is saved as a direct

consequence of energy conservation or

increased energy efficiency

Rise in electricity demand requires utilities

to increase their supply to cope with

demand and maintain a reserve margin to

avoid blackout

Increase in electricity supply capacity

comes at a cost for utilities, for consumers

and the environment

It is possible to maintain a sufficient

reserve without increasing the supply but

decreasing demand

It has been estimated that energy efficient

projects cost a fraction of building new

generation capacity (2-6x times cheaper)

Today

Supply

Demand

Scenario 2Scenario 1

Increase supply

Decrease Demand

Utilities can choose between investing

in increasing capacity or reducing

demand

Similarly to the IPP model, it is

economically viable to contract with

ESCOs a demand reduction target (pay

on the basis of delivered savings)

It is more efficient for utilities to invest

in demand reduction as:

– It is in line with demand reduction

policies

– Utilities will benefit from a cheaper

power ‘supply’

Source: WWF, Green Alliance, Arthur D. Little analysis

24

An economically viable solution applied by governments is to decouple

utilities revenues from the electricity sold by linking it to energy efficiency

Energy Efficiency Case Study

Decoupling utilities revenues: the California case

California is among the most efficient states in energy efficiency. In the past three decades it managed to keep electricity consumption per capita flat (vs a ~60% in other countries)

California implemented three major maneuvers:

better energy policies

shift away from energy-intensive businesses and

higher energy prices

As a result, every dollar invested by California’s utilities in efficiency measures has generated more than two dollars in savings for customers

It is a clear mandate to implement energy efficiency measures before increasing supply

3,000

4,000

5,000

6,000

7,000

8,000

1990 2010

0%

2000

California KWh per capita consumption

Source: US Department of Energy, Arthur D. Little analysis

25

These trends and other dependent trends are driving a paradigm shift in

the power industry

The Tension in the New situation of the Electric System

A smart electric system

The new value chain

Backbone utility services (back up

capacity, grid storage and smart

grids)

Market and customer oriented

services (energy efficiency, electric

mobility, storage beyond the meter,

smart home…)

Electricity will no longer only flow from generators to consumers, as consumers become prosumers

Generation will be located anywhere in the grid

Intermittency of renewables will require greater flexibility from generation and demand

Smart grids will facilitate the integration of distributed generation and demand response


Demand

management

GeneratorsWind

farm

Solar

panels

Smart

appliances

Disturbance in

the grid

Sensors

Storage

Processors

26








Regional TrendsMajor players, future trends, deep-dives on key

renewables relevant to the Kingdom





MEIM VRO


minutes

20minutes

25minutes

30minutes

27

KSA promotes the installation of renewables which could lead to increased balancing requirements

with higher costs

KSA is driving the implementation of more renewable electricity sources

by the national renewable energy program

Source: Arthur D. Little analysis, News source

1)The Renewable Energy Project Development Office

2) Includes ACWA power project - 08.02.2018


The National Renewable Energy Program

REPDO1) is leading the RE projects with 9.5GW

target generation capacity by 2023

(~10% of total capacity)

Concrete planned in two rounds:

– Solar PV: 920 MW2)

– Wind: 800 MW

Push for renewables will lead to a shift in the

average load profile

Duck curve at different solar capacity levels

Time of dayL

oad

Without solar capacity Different solar capacity levels

Illustrative

28

Latest tenders for solar projects show a significant drop in PPAs and will

lead to accelerated growth in renewables

Source: Arthur D. Little analysis, News articles


23.424.2

29.129.9

40.5

47.9

DEWA -

phase III

Rubí solar

PV project

-51%

Granja

Solar Park

First solar

auction

ACWA

- Sakaka

ADWEA -

Abu Dhabi

2016

Feb

2016

Mar

2016

May

2016

Aug

2016

Sept

(USD/MWh)

KSA

~33.5

Solar project bids in 2016/17 Implications

Technologies improve efficiency of solar PV

and increases the generation per unit

Solar PV can soon become significant source

of electricity keeping KSA price on a very

low level

On the 3rd of October KSA energy minister

announced first worldwide solar power

project bid (300MW). The 25-year PPA

contract was awarded to ACWA Power at a

new world record tariff of USD 23.4/MWh

2017

Oct

KSA

29

Furthermore, several players in the Kingdom have been involved in

smaller scale RE projects for more than a decade

Source: Renewable Energy Project Development Office;

KSA Renewable Energy Project Status

Current Renewable Energy Project Status

Project Technology Status Size Location

SEC – Duba Integrated Solar

Combined Cycle (ISCC) Power

Plant Phase I

CSP Execution 600 MW

(CSP:20-30 MW)

Duba

Saudi ARAMCO – KAPSARC PV Complete 3.5 MW Riyadh

KAPSARC II PV Complete 1.8 MW Riyadh

SEC – Farasan Island Solar Project PV Complete 500 kW Farasan Isl.

KAUST PV Complete 2 MW Thuwal

North Park PV Complete 10 MW Dhahran

Tabuk KJC CPV PV Execution 1 MW Tabuk

ACWA Power – Sakaka PV PV – 25 years PPA* Execution 300 MW Sakaka

REPDO – Midyan Wind Wind – 20 years PPA* RFQ 400 MW Tabul

*PPA: Power Purchase Agreements

30

ECRA has approved net metering scheme in 2017

and will come into force in the mid of 2018

PV systems up to 1MW will be covered by the

regulations

Maximum: 5MW of area‘s peak load

Net metering policies are more attractive in countries with high retail electricity prices

KSA is implementing a net metering scheme which will enable almost

everyone to build his own rooftop PV

Source: Arthur D. Little, News source

1)The Renewable Energy Project Development Office

KSA Solar Rooftop Scheme

Rooftop PV – Net metering

Lack imported from

the utility grid

Excess exported

to the utility grid

Private power

generation

Private power

consumption

Distribution

line

31

Desalination capacity is estimated to rise from 10 to 37 million m3/day by

2040 and this has impact on energy demand as well

Source: European PS Energy Conference, Arthur D. Little analysis

1) Required desalination capacity projection is based on the water stress and the water demand values in Saudi Arabia for an optimistic future scenario. The capacities are calculated

assuming a 100% utilization of the available renewable water resources

RE Applications in KSA – Desalination

Desalination capacities and total water demand in the KSA (2015 – 2040)

45

38

3228

2219

37

3228

22

1410

97

89

81

76

6965

0

20

40

60

80

100

2025

Tota

l w

ate

r dem

and &

desa

linat

ion c

apac

itie

s (in m

illio

n m

3/d

ay)

2040203520302015 2020

Total water demand

Installed desalination capacities

Required desalination capacities1

32

Desalination of sea water using renewable has gained widespread support

in several countries

Source: IRENA, World Nuclear


Desalination

It is the process of removing dissolved salts from water, thus producing fresh water from seawater or brackish water

Renewable Energy Nuclear Energy

Solar thermal Photo Voltaic Wind Geothermal

Heat or electricity is

the energy input

CSP plants can

provide energy for

medium to large

scale plants

Often equipped

with thermal

storage for round

the clock support

Electricity is the

input energy

Existing PV plants

are smaller in size

Applications

successful in remote

and island areas

Electricity or

mechanical energy is

the input energy

Medium sized plants

can be fired using

Wind energy

Hybrid electricity

generating and

desalination plants

are upcoming

Electricity or heat is

the input energy

Plant size can vary

from medium to

large based on

location

High costs and

unfavourable

conditions hurting

investments

Excess heat from nuclear

reactors is the energy source

Can provide energy for large

sized plants

Continuous and reliable supply

as compared to renewable

energy sources

Cost of desalination is very

competitive as compared to

fossil fuels

33

Within RE, Solar technology has the most feasible applications for

desalination in Saudi Arabia



Technology

Applications

Description

Solar desalination involves the use of solar energy to produce heat or electricity to power conventional

desalination plants

Solar desalination decreases the dependency on local fossil fuel resources and decreases the production of

GHG

The ability of solar desalination technology to support almost all of the desalination techniques has made

them the best renewable energy alternate to fossil fuels

Concentrated Solar

Power (CSP)

Electric

Concentrated Solar

Power (CSP)

Thermal

Photovoltaic (PV)

Electric

Reverse Osmosis (RO)

Electrical power supply for RO

plants (Membrane Desalination)

Multi-Effect-Distillation (MED)

Electric or Heat supply for MED

plants (Thermal Desalination)

Multi-Stage-Flashing (MSF)

Electric or Heat supply for MSF

Plants (Thermal Desalination)

34

Usage of renewable energy sources for cooling purposes have received

tremendous impetus mainly in Solar energy domain


RE Applications in KSA – Cooling

Cooling

Cooling services are provided to multiple residential or commercial buildings from one or more centralized sources.

Water is cooled to 50 to 80C and delivered through underground insulated pipes to the individual buildings for air-

conditioning use. The warmer water is sent back to the central plant for re-cycling and re-chilling.

The plants can be either Central (operated by the service provider) or Captive (Operated by end user)

Solar Geothermal

Solar energy is converted to thermal or

electric

Solar thermal is still in the pilot and

demo projects while Solar electric is in

advanced stages of commercialization

Solar thermal is most preferred for

Central plants while Solar electric can be

used for both Central and Captive plants

Mechanism involved is surface

conductive heat transfer, using the

naturally renewable temperature of the

earth's crust as a heat source in the

winter, and as a heat sink in the summer

Requires minor electricity for Solvent

circulation pump

Considered most effective HVAC

technology in locations with geothermal

potential

Biomass

Biomass combustion in a tri-generation

system (Combined Heat, Power and

Cooling) is the energy source.

Components are

– Biomass boiler – Heat

– Organic Rankine cycle – Power

– Absorption chiller - Cooling

Central plants have shown economic

feasibilityHighest potential in KSA and

detailed in this chapter*

35

Solar energy can be used to create a cooling effect either by utilising the

thermal energy directly or by converting it into electricity

RE Applications in KSA – Cooling


Technology

Description

Solar Cooling utilizes the thermal energy or electricity generated from the sun ’s radiation

CSP technology can support both thermal and electric cooling whereas PV supports only electric

The ability of PV to be used for both compressor and absorption based cooling system has helped it emerge

as the major technology

Concentrated Solar

Power (CSP)

Electric

Concentrated Solar

Power (CSP)

Thermal

Photovoltaic (PV)

Electric

Applications

Residential PV Cooling Commercial Thermal Cooling

36

Concluding Reflections

Renewables is mainstream and cost competitive with fossil fuel and its progress is irreversible

Costs trends will continue to show decline, though rising interest rates across the world will

impact soft costs

Costs of energy storage, the holy grail for renewable power, is declining rapidly, though

comparisons with solar PV modules may be exaggerated

Timing of KSA’s entry into the renewable space is impeccable and it has potential to add

significant capacity of renewables (solar and wind primarily) into its energy mix for economic

reasons

Renewable energy generates more local job per MW of deployment than fossil fuel

Several energy efficiency (Negawatts) measures are even cheaper than adding more power

generation capacity and KSA has a tremendous opportunity on this front

Last, but not the least, it does not only make economic sense, but also leaves a positive legacy

for generations to come

Conclusion

“Who says it can’t be done?”

Arthur D. Little Middle East FZ-LLC

P.O. Box 112687

Dubai, United Arab Emirates

Adnan Merhaba

Principal, ADL Energy & Utilities

Practice

+971 55 559 4325

[email protected]

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