SIF Nabih Cherradi 2020

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The Solar Paradigm in MENA

Region, focus on KSA

Dr. Nabih Cherradi


Desert Technologies Structure

DT expansion upstream in c-Si

system module cell wafer ingot

Current DT capabilities in c-Si


Power Generation mix profile

Famously endowed with fossil fuel reserves , some MENA countries are swimming in oil. …
….Without surprise, that the major power produced in the region comes from fossil fuel.
Growth over time,

GCC Electricity Consumption 2000-2020

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Electricity
consumption
total (Gwh) 207,292 234,564 264,440 307,133 353,647 383,181 427,519 478,047 529,102 589,732 661,859
% change
year on year 5.9 3.5 8 8.4 5.4 5.4 5.5 5.3 5.7 6
Electricity
consumption
per head
(Kwh) 6999.2 7,414.4 7,854.5 8,424.8 8,967.9 9,307.2 9,771.2 10,242 10,771 11,418 12,201
% change
year on year 2.4 -0.1 3.9 4.5 2.5 2.2 2.1 2.6 3.1 3.4
Source:Economist Intelligence Unit
The Economics of Necessity……

……. The economic benefits :

♣ Conserving oil for future creating higher economic value,

♣ Diversify domestic energy mix,

♣ Generating local value chains in manufacturing (economies of


scale), R&D, entrepreneurship,

♣ Labor impact when economy moves to higher wage equilibrium


for nationals and a knowledge-based economy,

♣ Ambitiously look into the future as possible exporter of energy


(from solar) as well as technology and know how,

♣ Creating local economy energy efficiencies – household & firm


level,

♣ Quality of life improvements – lower emission of greenhouse


gasses.
MENA sustainable energy plans
Market legislation

 At least 18 of the 21 MENA countries have some type of renewable energy promotion policy
in place.

 In order to attract developers, at the start, FITs have been adopted in at least 7 MENA countries.
Currently, all the new deals were under auction.

 However, of all the policies employed by national governments to promote renewable electricity, the most common

was public competitive bidding for fixed quantities of renewable energy and public financing,

including grants and subsidies.


MENA’s pipeline status
Continuous record solar PV prices
Saudi Arabia, alarming trends
Vision 2030 and the Birth of Saudi Solar Energy

Vision 2030 identifies renewable energy as one of the pillars of economic diversification away

from oil,non-oil industry, which Saudis call yellow oil, “an-naft al-asfar” or solar energy
Localization tragets
Questions of Today and Tomorrow

Innovation Finance

Local
Price
Content

Knowledge

Reliability Visibility

Regulation ????
Necessary parameters for Local industry to thrive

Market Local Content Export Business


Visibility Mechanisms Assistance sustainability

➢ Political is essential to establish a legal and financial framwork to govern actions and activities,

➢ Needs of high degree of interaction between the governements, agencies, industries and the
universities for more synergies,

➢ Encouraging local industries to produce and use renewable energy technologies.

➢ Governments owned utilities companies, control the Grid access and largely energy production
Challenges & Opportunities

Challenges Opportunities Examples


Policies should be favourable
towards C&I projects as well as Net metering Shams Dubai net metering
visibility

Grid electricity prices are below


Slowly phase out subsidies Kuwait
market rates

Allow time for manufacturers to


Local content requirements KSA is doing well addressing this issue
build local capacity

Invest more in R&D closer


Changing technologies in panels,
collaboration with Research KAUST (KSA), Masdar (UAE)
storage, EV, etc..
centres

Short-term:Import outside talent


shortage of human capital in solar Provide short-term and long-term
Long-term:Build capacity, provide internships
industry solutions
training for local population
Founding Visionary Inspiration

“….use of alternative sustainable and reliable


resources…reduces dependency on hydrocarbon
resources…and keep them as a source for income
for a longer period of time….”

His Highness King Abdallah Bin Abdelaziz al-Saoud


Kingdom of Saudi Arabia

“…. We must not rely on oil alone as the main


source of our national income.
We have to diversify the sources of our revenue
and construct economic projects that will ensure a
free, stable and dignified life for the people…”

His Highness Sheikh Zayed Bin Sultan al Nahyan


Founder of the United Arab Emirates
Desert Technologies
www.desert-technologies.com

SAUDI ARABIA OFFICE JORDANOFFICE CAIRO OFFICE


King Road Tower Office 157 Zahran Street Building No.6
2203, 22nd Floor 5th Circle, 11185 Road 9(b)
Jeddah, 21524 Amman, Jordan Maadi,11431
Kingdom of Saudi Arabia Tel. +962 7 8622 7722 Cairo, Egypt
Tel. +966 920 022246 Tel. +20 1 0988 8877
Fax. +966 126 929268

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