ACWA Power, Shanghai Electric sign EPC

contract for UAE CSP project

April 2018
Saudi Arabia’s ACWA Power and China’s Shanghai Electric have signed an EPC contract
for the 700MW fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, a
concentrated solar power (CSP) project in Dubai, UAE.

Dubai Electricity and Water Authority (DEWA) managing director and CEO Saeed
Mohammed Al Tayer was present at the signing of the contract in Shanghai, China.
Under the contract, Shanghai Electric will serve as the main contractor for the project.

The $13.6bn (AED50bn) Mohammed bin Rashid Al Maktoum Solar Park has a planned
capacity of 5,000MW by 2030.

Touted be the largest CSP investment project in the world, the power plant will be based on
the independent power producer (IPP) model.

The project will feature the world’s tallest solar tower, measuring 260m, with the world’s
largest thermal energy storage capacity.

The plant will provide clean energy to more than 270,000 residences in Dubai, reducing 1.4
million tonnes of carbon emissions a year.

The CSP project will use two technologies to generate clean energy. The 600MW parabolic
basin complex and the 100MW solar tower will cover 43km².

This project involves an investment of $3.9bn. It has achieved the world’s lowest Levelised
Cost of Electricity (LCOE) of $7.3 per kilowatt hour (kW/h) for concentrated solar power.

Al Tayer said: “I am pleased to be here today in Shanghai for the signing of the engineering,
procurement, and construction (EPC) contract for the 700MW fourth phase of the
Mohammed bin Rashid Al Maktoum Solar Park, the largest Concentrated Solar Power
(CSP) investment project in the world.

“We are here today to show the strong ties between our two great nations, which have been
formed because of our shared values and our trading and economic interests.

“Bilateral trade between the United Arab Emirates and the People’s Republic of China has
already exceeded $35bn dollars in the first nine months of 2017.”
MENAT to see massive roll out of solar
energy in 2018” – Enerray Q&A
Enerray talks to pv magazine about why it has set its sights on the MENAT region. In addition
to the many challenges its nascent solar industry presents, there are a host of opportunities ripe
for the picking.

JUNE 20, 2018 BECKY BEETZ AND EMILIANO BELLINI

Head of Sales & Business Development, Antonio Capua Banfo talks about what it is like
for an Italian company operating there, the challenges and opportunities present, the
advantages of certain technologies, and the differences between building PV projects
there, compared to Europe.

pv magazine: What attracted Enerray to the MENAT region?

 Antonio Capua Banfo: The energy sector in MENAT has been dominated by fossil
fuels in the past, but nowadays the region is undergoing an important shift towards solar
energy, due to the lower costs of PV systems and, at the same time, an increase in the
price of oil. Consequently, many Middle Eastern countries are putting in place ambitious
renewable energy programs, particularly due to the increasing rate of electrification and
energy demand.

The low prices for solar energy have led policy-makers, regulators and industry leaders
to take a number of steps to increase and accelerate the adoption of solar power
throughout the MENAT region. Most notably, countries that were late to adopt solar-
energy strategies and policies, have now put forward ambitious targets. Countries with
solar plans in place in terms of megawatts installed have substantially increased those
targets.

Finally, scaling up the size of solar projects has allowed nations to capture value across
the value chain. The low tariffs led to further solar-energy capacity announcements
across the region (e.g. Bahrain, Egypt, Jordan, Kuwait, Morocco, Oman, Qatar, Saudi
Arabia, Tunisia, UAE), and all these countries are targeting large-scale project
announcements in 2018 and early 2019. However, it isn’t just large commercial-scale
projects that are gaining momentum. Commercial and industrial rooftop solar started to
show growth trends across the MENAT region. Jordan, Oman, Saudi Arabia and the
UAE are at different stages of establishing or operating regulatory frameworks, and
pushing for meaningful megawatts of rooftop PV installations in 2018 and 2019.
 En
erray solar PV plant in Jordan
Image: Enerray

What are the challenges and opportunities in the Middle Eastern solar market
from your perspective? Which market is most interesting?

2018 will see a massive roll-out of solar energy in the MENAT region. This will be
achieved through: a high number of tenders announced for large-scale solar; abundant
opportunities for distributed solar in the Commercial and Industrial (C&I) and rooftop
solar segment; further adoption of Electric Vehicles (EVs) and green mobility; first of a
kind opportunities for storage using different storage technologies; and potential new
regulatory frameworks for wheeling and energy management.

Today’s renewable energy industry in the MENAT region is, thus, experiencing rapid
growth, coupled with the many challenges that any new industry faces. Global economic
conditions, shifting priorities and local capacity limitations are impacting the success
rate of renewable energy deployment across the region, for instance. However, equally
evident is the fact that renewable energy is no longer the talk of the future, but in fact
the business of the present.

Governments have understood this shift, helped by Customer Oriented Processes

(COP) and other programs; and are consequently abolishing government support for
fossil and nuclear energies in their countries in favor of non-subsidized renewables. The
private sector is no longer hesitant to work in the challenging MENAT market, but is in
fact fully committed and on the ground, ready to provide the best technologies at the
most competitive prices; and with local involvement to meet the requirements of
governments and the markets across the region.

By being involved in development, or sometimes acting as co-investors, Enerray gets

involved in solar projects during the early stages. This serves to significantly boost our
Engineering Procurement and Construction (EPC) activities, and bring a competitive
advantage to the projects developed.

Enerray itself started out as a pure EPC contractor, but now we are moving to a mixed
business model, evaluating case by case the specific projects, and often acting as
developer and/or investor.

For a solar EPC, margins are very compressed, independently from the complexities of
every single market. With the current level of market competition, nearly the 100% of
key component price drop goes to the client. Of course, more projects can be realized
worldwide with a lower capital expenditure (CAPEX), so we would say that we do have
a positive indirect effect.

Utility-scale projects will probably become bigger and bigger, and contracts will be more
segmented. This implies high turnover, but also high risks, because an EPC has to work
with very low margins, facing many unexpected problems during the construction
phase. As for the distributed generation (DG) segment, we would say that margins are
not particularly high, but risks are also limited.

Fierce competition is increasingly lowering prices, so it can happen that companies,

which are not so well-structured will win tenders. However, a price will be paid in terms
of construction quality.

For us, the most interesting markets are Saudi Arabia, Turkey, Tunisia, Egypt, Jordan,
the UAE, Morocco, Oman, and Algeria.
 En
erray solar PV plant in Turkey
Image: Enerray

What are the main differences in building PV projects in the Middle East versus
Europe?

MENAT is new to the renewables industry, particularly compared to Europe, and there
are many differences between the two markets. The extreme environmental conditions
in the former are challenging, due to wind, erosion, high temperatures and a lack of
water both for the construction and operation phases, which influence the quality and
hours of manpower. For example, in the MENAT region, workers cannot work between
10 am and 3 pm during summer, due to high temperatures and humidity. As such, they
have to work at night to respect scheduled deadlines. Companies have to plan to
respect the particular climatic conditions of the desert area in which the PV systems will
be installed, including: designing for temperatures exceeding 50°C; components with
mechanical protection against dust; and working shifts in the cooler hours of the day.

The region has an abundance of renewable energy resources (solar radiation in

particular), and space: two important prerequisites for the successful development of
utility-scale facilities.

While Europe is lacking sites for the development of large-scale projects, it has
demonstrated how a well structured regulatory framework can support individual
investments in renewable energy, for example via rooftop installations. In comparison to
Europe, where legal frameworks are well established, feed-in tariffs fixed per period,
clear permitting processes, and competitive financing available, it is much more
complicated to develop projects in the MENAT region, which has very limited visibility
regarding tariffs. Also, while there have been breakthroughs in recent years in local
infrastructure for renewables, construction costs remain high.

The huge potential of the MENAT region will certainly be unlocked with the further
development of an enabling policy environment.

What are project costs like in the Middle East versus Europe?

The Middle East has spaces that offer the possibility for bigger installations, compared
to Europe. Utility-scale solar plants allow for economies of scale (for instance a 50 MWp
solar plant has a minor MWp cost, compared to a 5 MWp solar plant). Regarding
installation, in the Middle East, manpower is cheaper than in Europe, so installation
costs are lower. Moreover, contrary to the Middle East, in Europe there is anti-dumping
regulation on imported PV panels, which increases their cost. The prices of power
purchase agreements (PPAs) are also very low in the Middle East, so even the costs of
a PV plant have to be aligned. In Europe, there are not such cheap PPAs, since
European materials are more expensive. However, operation and maintenance (O&M)
costs in the Middle East are more expensive than in Europe, not due to manpower, but
because the PV plants require more frequent maintenance, to respect the contracted
performance (for example, more panel cleanings).

Which modules and inverters perform better in MENAT?

The main difference between PV panels is efficiency. Efficiency is not, however, a

quality indicator, but rather a simple ratio between production and covered
area. Monocrystalline modules boasts the highest efficiency: it goes from 15 to 20%
efficiency and, to produce a power of 1 KWp, needs about six square meters. As a type
of solution, it is decidedly the most expensive one, among the traditional ones, and is
used when there are optimal irradiation conditions, and when we want to maximize the
exploitation of the available area.  In fact, it needs a smaller surface.

Polycrystalline modules have slightly lower efficiencies – around 13% – and needs a
slightly larger surface to produce 1 KWp of power: about eight square meters. The
polycrystalline module represents a good compromise between costs, covered area,
production and efficiency.

Finally, thin film modules have the lowest production efficiency: around 6%. This type
will need medium-sized surfaces to produce a KWp of PV power: up to about 20 square
meters (in the case of the use of amorphous silicon). Despite the lower efficiency which,
as aforementioned is not a sign of quality, but a ratio between production and surface,
this type of panel has a high diffusion on the market. In fact, it has the double advantage
of greater affordability – its production costs less – and it has a greater versatility of
use. It also integrates effectively on big roofs not well exposed to the sun’s rays, which
are not optimally oriented. Among the advantages of thin film there is also that of
“working” well with high temperatures.
Centralized inverters are generally used in large PV systems and we prefer them for
these kind of installations. Indeed in Egypt for our 116 MWp plant, and in Jordan for our
23 MWp plant, we have chosen this technology. The main benefits are the great power,
and low cost of installation and maintenance. Centralized inverters are simple to
use. They are suitable for uniform solar fields for orientation, inclination and shading
conditions. Instead, string inverters are more used in medium-sized PV plants up to
sizes of 5-10 MWp, since for utility-scale systems, too many components would need to
be installed.

How do you deal with O&M issues like dust and cleaning, particularly in areas
where access to water is limited?

The sandstorms dirty the PV modules frequently, so cleaning must be done up to 12

times a year. But the lack of water can be replaced with automatic cleaning brush
systems for ground mounted installations, or air compressed robots for solar rooftops
with up to 45° inclination.

What is it like securing financing for these projects?

Private investors and multilateral banks and funds. Investors need government
commitment for establishing feed-in tariffs and feed-in laws for the long term. Overall
investment returns have dropped dramatically over the last three years, in part due to
price competition. Every new tender in places like Dubai breaks a new record for tariffs.
This maturing of the market has happened far quicker than was the case in the U.S. and
Europe. The implications are significant for a wide range of stakeholders, especially for
investors, who need to lower their expectations.

How easy is it for an Italian company to enter such Middle Eastern markets, like
Egypt and Dubai?

People in the MENAT region know the quality and value of ‘Made in Italy’ products and
services, and they can appreciate an international consolidated track record in EPC and
O&M, which Enerray has acquired over 11 years. Indeed, despite the problems the
Italian PV market faced after the phase out of FITs in 2014, and the difficult access to
credit for customers, due to the economic crisis, we have managed to both expand our
global portfolio, and continue to operate in the Italian PV market.

We have also installed over 80 MWp of turnkey PV rooftop systems for a total of over
180 plants. This experience will help us in MENAT, where our target is also rooftop
systems. We carefully install the PV plants, with particular attention to design.

Enerray is the direct result of an aware, forward-looking approach of the Maccaferri

Industrial Group, a corporation active in the most advanced industrial sectors since
1879, with a turnover of over €1.2 billion, 4,747 employees and 58 factories worldwide,
making it one of the most important economic players in Europe. In 2017, Enerray
celebrated 10 years of activity with excellent results: a € 130 million turnover despite the
challenging global economic scenario.

The key reasons for our success is a “win to win” logic when entering a new country,
such as collaborating with both other Italian, and local, players. For example, we
entered into a joint venture with a Saudi company, in order to enter the Middle Easter
market, and we operate in the Turkish market via a 50% joint venture (Tekno Ray Solar)
with local company Tekno.

Enerray also launched a partnership with European non-profit associations active in the
MENA region, in 2016, to increase brand awareness and business opportunities; to
facilitate the rapid deployment of utility-scale renewable energy projects in MENAT
desert areas; and to promote renewable energy in Southern-Mediterranean countries as
a cost-effective, sustainable, and reliable energy strategy to meet growing energy
demand.

To date, we have completed major PV installations in several MENA regions, including

33 MWp in Jordan and 130 MWp in Turkey. In the United Arab Emirates, we have a
dedicated branch office in Dubai, which has won a 1 MWp rooftop PV project in
Fujairah), Egypt (as developer, sponsor, EPC and O&M Contractor for 116 MWp in
Benban), and many others, like Tunisia and Morocco. And in Cameroon, we are
developing a 30 MWp ground-mounted PV plant.

En
neray’s CSP plant in Morocco
Image: Enerray

Please feel free to add in any other, relevant information.

There are current trends and new developments in the industry. The development of
technology never stops and the need to face new challenges has led Enerray to
develop other solar technologies such as: Concentrated Solar Power (CSP); and off-
grid solutions.

Regarding CSP, Enerray is working with some important European and local research
institutions (Enea, Iresen, Euronovia, Fraunhofer, Cic Energigune), to develop a 1.5
MWe plant in Morocco with an innovative Thermal Energy Storage System (TES). In
this case, there has been synergy with another company of the Maccaferri Industrial
Group, Exergy, that provided the system’s turbine. The plant has already been
constructed and will be activated soon.

Off-grid technology is also very important in bringing solar energy to those countries and
regions the power grid cannot reach. MENAT regions are very interesting for off-grid
solutions. The access to water is one of the most challenging issues when we are
talking about global development. Solar panels generate maximum power in full sun
conditions, which is typically when larger quantities of water are needed. This is
why “sun-synchronous” matching solar is an obvious economical choice, and
generate solar water pump, over engine driven generators for most places where there
is no electrical grid. Owners of solar water pump systems enjoy reliable water
supplies that require no fuel and very little maintenance.

Enerray, through Plug the Sun, can offer the above mentioned solutions in different
sizes.

Enerray operates in the global off-grid market through the company, Plug the Sun, a JV
between Enerray and the Honk Kong based 

Sterling and Wilson wins EPC

contract for solar PV plan at
Sweihan
Posted on 30th June 2017

India-based engineering firm Sterling and Wilson has won both the turnkey
engineering, procurement and construction (EPC) and operation and maintenance
contract for the world’s largest single location solar photovoltaic (PV) plant at
Sweihan in Abu Dhabi, UAE.

The plant is being jointly developed by Marubeni, a Japanese integrated trading and
investment giant, along with Jinko, a global leader in the solar industry, and Abu
Dhabi Water and Electricity Authority (Adwea).
Sterling and Wilson, one of the dominant global forces in the solar PV space, said
the project will deliver a capacity of 1177 MWp, easily surpassing the current largest
850 MWp single location plant in China.

With construction already under way, the plant, which is spread over a desert area
of 7.8 sq km, is scheduled to be fully integrated with the grid in a record timeline of
just 23 months. To top it all, the project was awarded at the lowest ever recorded bid
in the history of PV solar, stated the Mumbai-based Sterling and Wilson.

The Marubeni consortium had successfully bid a tariff of $2.42 cents per kilowatt
hour, marking the lowest cost ever for solar power, it stated.
This is a positive demonstration of the promising future of clean energy, reducing the dominance of
fossil-fuel-backed power plants.
Sterling and Wilson pointed out that the prestigious project would be playing a major
role in helping Abu Dhabi achieve its aim of sustainability and energy diversification,
through the use of clean energy/low carbon growth in accordance with the world’s
vision of long-term environmental stewardship.

The plant, once commissioned, would save around seven million tonnes of carbon
emissions every year, a number that would be a national landmark, it stated.

To put it in perspective, 1,177 MWp can power around 195,000 homes, thus
contributing to the welfare of the current as well as the future generations of the
people of the UAE, said a top official.

"We are fully geared and very excited to be a part of this important milestone in the
global solar market," said Bikesh Ogra, the president for renewable energy at
Sterling and Wilson.

"Owing to the favourable government policies, India is now the third largest market
for solar in the world, allowing Sterling and Wilson the opportunity to become the
leading solar EPC in the country. The company has created a global brand and has
now grown to be the world’s largest solar EPC player outside US and China," he
remarked.

Laying emphasis on the need to be competitive, Ogra said: "The strongest

contributor to this tariff is the capital expense driven by lower equipment cost and a
highly efficient system design. Our unique design offerings and state-of-the-art
robotics optimises the yield and performance of the plant."

Sterling and Wilson also has to its credit 1400 MW of best-performing solar power
plants in various geographies with a powerhouse of more than 3,000 qualified
engineers, project managers and designers.

As the acceleration of growth in the energy sector has increased worldwide, Sterling
and Wilson has ventured into the wind and energy storage sectors, covering the
 entire canvas in the renewable sector, said Ogra, according to Tradearabia news
report.

Backed by its robust resources in project management, project implementation and

project engineering, with projects completed in the Philippines and South Africa, and
a number of projects in Zambia, Niger and Morocco under construction, the
company is fully geared to deliver more than 3,000 MW every year, he added.

SoftBank and Saudi Arabia are creating world's biggest

solar power generation project
Tom DiChristopher | @tdichristopher
Published 11:55 PM ET Tue, 27 March 2018 Updated 12:09 PM ET Sat, 31 March
2018CNBC.com
 Saudi Arabia and Japan's SoftBank expanded their partnership on Tuesday, announcing the world's
biggest solar power generation project at a press conference in New York.
 The endeavor was estimated to cost $200 billion through 2030 to build out all 200 gigawatts of the
project.
 The 200 gigawatts of capacity will be spread throughout Saudi Arabia.
 The first two solar parks will be able to generate 7.2 gigawatts of power and are scheduled to begin
construction this year and start generating electricity in 2019.

Saudi Arabia and Japanese telecom giant-turned-tech investor SoftBank expanded their partnership this
week, announcing the world's biggest solar power generation project at a press conference in New York.

The project was projected to cost $200 billion through 2030. That's about how long it's anticipated it will
take to build out all 200 gigawatts of the project.

By comparison, there are roughly 70 gigawatts of solar capacity in operation, under construction or in
development in the United States, according to a list of large-scale projects kept by the Solar Energy
Industries Association.

The project is so large, it will support the creation of a domestic solar equipment manufacturing industry
in the kingdom, said SoftBank CEO Masayoshi Son.

The project remains in the early phases, and it is not yet guaranteed it will be built. Saudi Crown Prince
Mohammed bin Salman and Son signed a memorandum of understanding between Saudi Arabia's Public
Investment Fund and the SoftBank Vision Fund on Tuesday evening, which kick starts the process of
forming a new power generation company. The intention is to complete due diligence on the project by
the end of May.

"This kind of a project would never have been feasible without the big vision we shared with the crown
prince," Son told reporters.

"The kingdom has great sunshine, great size of available land, great engineers, great laborers," he said.
"But most importantly it has the greatest vision."

Expanding into renewable energy is a key part of Saudi Arabia's Vision 2030, a plan spearheaded by
Prince Mohammed to diversify the nation's oil-dependent economy.

The 200 gigawatts of capacity announced Tuesday will be spread throughout the kingdom. The first two
solar parks will be able to generate 7.2 gigawatts of power and are scheduled to begin construction this
year and start generating electricity in 2019.

The cost of the two parks will be about $5 billion, with $1 billion coming from Softbank's Vision Fund and
$4 billion from project financing.

Son said revenues from early stage solar parks will help fund the construction of future projects in the
kingdom. Each park will have a 25-year power purchase agreement, a long-term contract to supply
electric power to customers, which is common in the solar energy industry.

The first parks will not include battery storage, but the new Saudi electricity generation company will
begin adding that feature to solar farms within two to three years, according to Son.

The estimated $200 billion project cost includes building the solar parks, integrating battery technology
and constructing a massive new facility that will vertically integrate solar equipment manufacturing,
according to Son. The venture also plans to build centers for research and development and education
and training, he said.
The growth of the solar industry is expected to create 100,000 jobs and increase Saudi gross domestic
product by $12 billion. It is also expected to save the kingdom $40 billion by obviating the need to burn
domestically produced oil to generate power.

The announcement happened during the New York leg of Prince Mohammed's trip across the United
States. The 32-year-old king-in-waiting and a Saudi delegation are cementing ties with the Trump
administration and lining up American investors as the kingdom embarks upon an ambitious plan to
diversify its economy.

Earlier on Tuesday, the Saudi-U.S. CEO Forum gathered American and Saudi business leaders in New
York, where the kingdom announced about three dozen memorandums of understanding with U.S.
firms, which are often the first step in establishing business ventures.

Saudi Arabia's Public Investment Fund is the largest investor in Softbank's $100 billion Vision Fund. The
kingdom's sovereign wealth fund has reportedly committed $45 billion to the massive technology
investment vehicle, which counts Uber, Nvidia and WeWork among its largest investments.

The fund, which was at $93 billion, reached its target after raising $7 billion from U.S. corporates and
managers of the Vision Fund in the last few months, according to a source familiar with the fund. The
fund is now closed.

28 Companies Respond To Oman’s

500MW Solar RFQ
The Oman Power and Water Procurement Company (OPWP) has
received 28 proposals in response to a request for qualifications (RfQ)
for a 500-MW solar project
 he Oman Power and Water Procurement Company (OPWP) has received 28 proposals
in response to a request for qualifications (RfQ) for a 500-MW solar project, the company
has revealed.

The competitive process was launched at the end of December 2017 with the aim to select a
developer for a 500-MW solar complex in Ibri. The deadline for accepting proposals was
February 22.

After shortlisting bidders, the state-owned utility will proceed with the tender for the solar
independent power project (IPP), the investment in which is estimated at USD 500 million
(EUR 405.6m).

According to OPWP, the high number of accepted applications reflects “the continued
interest and trust in the Oman power sector.”

Among the applicants ready to take part in the bidding is a consortium between Masdar and a
unit of French oil and gas group Total SA (EPA:FP), a tie-up between EDF Energies
Nouvelles and Korea Electric Power Corp (KRX:015760), Japan’s Marubeni Corp
(TYO:8002), Mitsui & Co (TYO:8031), Sumitomo Corp (TYO:8053), TBEA Xinjiang
SunOasis and Oman National Engineering & Investment Co, Hanwha Energy Corp and
Hanwha Q Cells Corp (NASDAQ:HQCL), and several other companies and consortia. The
full list of applicants can be seen on OPWP's website.

OPWP previously said the project is to be awarded late in 2018 and it will be developed
under the build-own-operate (BOO) model. The solar power plant is set to be up and running
in early 2021, according to Renewablesow.com.

 NEWS