DUBAI 2019 ENERGY GUIDE Fueling Dubai’s Energy Ambitions
DUBAI
2019
ENERGYGUIDE
Fueling Dubai’s Energy
Ambitions
22Report dated December 2018
WHYDUBAI?
TRADE EVENTS
OVERVIEW FUTURE GROWTH
GOVERNMENT SUPPORT
03 06
08 11
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CONTENTS
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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-for-ward city is fast becoming an agenda-setter for the international green economy, as part of its commit-ment to derive 75% of its energy needs from clean sources by 2050.
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 re-newable 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.
1OVERVIEW
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The city is also fast becoming home to some of the world’s biggest renewable energy facilities such as the US$13.6 bil-lion Sheikh Mohammed Bin Rashid Al Maktoum Solar Park, set to become the world’s single-largest solar photovolta-ic park as the emirate has declared its intent to derive 75% of its energy needs from clean sources by 2050.
Dubai’s commitment to renewable en-ergy sources has given birth to a fast growing green economy with a large number of Energy Services Companies (ESCOs) already offering automation sys-tems and real-time information man-agement systems to make buildings, homes and even electric vehicles more energy efficient. The government has de-veloped a regulatory framework intend-ed to support the ESCO market, com-prising an accreditation scheme.
SHEIKH MOHAMMED BIN RASHID AL
MAKTOUM SOLAR PARK
OVERVIEWE
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75% of energy needs
from clean sources by 2050
$13.6Bdevelopment
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OVERVIEWE
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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 2020.
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.
2.5M 2017
3.3M 2021
5.2M 2030
ENERGY DEMAND ON THE RISE DUBAI’S RISING POPULATION WILL INCREASE DEMAND FOR ENERGY
ENER
GY
DEM
AND
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FUTURE GROWTH
The renewable energy sector is bursting with oppor-tunities 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, so-lar panels will be made a mandatory requirement for all buildings in the UAE by 2030. A prime exam-ple 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 larg-est rooftop solar project in the Middle East, produc-ing enough clean power for 3,000 homes. The com-pany 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 ac-counts for almost 40% of the global total. Other play-ers 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 corpo-rates and start-ups from the region and elsewhere.
2SOLAR PANELS
will be mandatory requirement for all buildings by 2030
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FUTURE GROWTHE
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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 2030.
75% of outdoor lights will be
replaced with more efficient fixtures by 2030
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 60-80 years.
$2.7B Investment
UAE INVESTING IN ELECTRICITY
to increase energy capacity which stood at
10,000MW in 2016
113 electricity substations
over next 3 years
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To accelerate the green economy transition, the government recently approved the $27 billion Du-bai Green Fund which will support various projects including solar power and those related to the ret-rofitting of buildings.
Dubai has taken a visionary approach towards de-veloping sustainably and led the way in promoting renewable energy sources. Innovation is a key fo-cus area, building on strategies set forth in the Dubai Plan 2021.
EN
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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.
$27B Dubai Green Fund
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Besides the Mohammed bin Rashid Al Mak-toum Solar Park, the government is also heavily investing in other energy-transfor-mational projects such as the Hassyan clean-coal 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 stand-ards, adopting the use of ultra-supercritical technology. To further diversify energy re-sources, the Dubai Electricity and Water Au-thority (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.
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GOVERNMENT SUPPORT
producing
250MW over 80 years
DEWA project to be completed in next 5 years
HYDROELECTRIC POWER
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The government has also launched a number of other initiatives including Shams Dubai, which encourages the installation of so-lar 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 Charg-er initiative a total of 200 charging stations will have been installed in key areas across the city by 2018. And under a multifaceted pro-gramme of its US$1.9 billion smart grid initiative, the city aims to reduce overall energy consumption by roughly 30% before 2030.
DEWA is investing more than US$22 billion by 2021 to meet the growing demand for elec-tricity and water. In total, in-vestments worth US$163 bil-lion are planned over the next three decades to reorganise Dubai’s energy sources for its water and power needs
$163Bworth of investments over next 3 decades to
reorganise Dubai’s enegy source
GOVERNMENT SUPPORT
557 buildings
24.3MW total capacity
in 2017
INITIATIVE FOR INSTALLATION OF ROOFTOP SOLAR
PANELS
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LOCATION & CONNECTIVITY• Dubai is a key connecting hub between the markets
of the East and West Ideally located to bridge the cru-cial 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 destina-tions across 10 countries from DWC.
•DXB passenger numbers are projected to reach 103.5 million by 2020 while passenger traffic across Du-bai’s two primary airports is forecasted to rise to 200 million by 2030.
• Home to the world largest manmade port – Jebel Ali – a premier gateway for over 90 weekly services connecting more than 140 ports worldwide. Expan-sions currently underway at the Port will bring total handling capacity to 22.1 million TEU by 2018.
• 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 2012-2017 period.
• 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 2020.
4WHYDUBAI?
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6,500 flights a week
DUBAI A KEY HUB
$34B non-oil trade value
with Africa
240 destinations
World largest man-
made port connecting
140 worldwide
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WHY DUBAI?
TALENT POOL
•Dubai is an incubator for exceptional home-grown talent and a magnet for the world’s most ambitious, sophis-ticated and forward-thinking scien-tists, 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 Con-sulting Group.
•The Dubai government is implement-ing talent attraction strategies de-signed to increase its intake of knowl-edge workers by 40% by 2021.
•Dubai is home to over 200 nationali-ties, 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 availa-bility 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.
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WHY DUBAI?
FOREIGN DIRECT INVESTMENT
• Dubai ranks among the top 10 international cities in attracting foreign investment esti-mated at US$7.4 billion in 2017, an increase of 7.1 per cent compared to 2016.
• 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 innova-tion and high productivity.
• Foreign direct investment has played an in-strumental role in realising these achieve-ments through its contribution to job crea-tion and technology diffusion.
• Dubai is ranked #1 in the world in terms of FDI technology transfer and #3 as loca-tion for AI & Robotics.
Top 10 international
cities
Foreigninvestment
$7.4Bin 2017
Increase7.1%
DUBAI
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The three-day Water, Energy, Technology, and Envi-ronment Exhibition (WETEX) will showcase latest de-velopments 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-to-attend seminars and talks led by industry experts, who will be discussing developments and the latest re-search on water, energy and the environment.
The event is held annually at theDubai World Trade Centre
WETEX
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TRADE EVENTS
“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.
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TRADE EVENTS
THE MIDDLE EAST ELECTRICITY SHOW
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 profession-als. The event hosted 1,500 exhibitors from 66 countries, supported by 23 dedicated national pa-vilions including Germany, the UK, Saudi Arabia, Turkey, and China. On display were latest technol-ogies, products, and services across five dedicat-ed sectors: power generation, transmission and distribution, lighting, solar and, for the first time, energy storage, and management.
The event is held annually at theDubai World Trade Centre
The Middle East Electricity Show is the
region’s leading platform for the power
industry
62,000 Industry
professionals