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Saudi Arabia looks to offset diesel with off-grid and hybrid solar solutions

Lucrative opportunities in Saudi Arabia’s off-grid, hybrid solar markets

: Thursday, September 04 - 2014 @ 12:35

Off-grid solar photovoltaic applications and hybrid solutions have already demonstrated their technical and economic feasibility in many parts of the world. These applications are even more relevant in Saudi Arabia because of the Kingdom’s superlative solar radiation, industrial penetration into remote areas, and the staggering volume of diesel imports.

Nearly a quarter of the Saudi energy grid is currently powered by diesel, which is used extensively as a fuel for transportation and electricity generation despite the high cost of importing it. At least $1bn is spent every month on diesel imports to the Kingdom, in addition to the cost and emissions from transporting the fuel to remote areas.

“In Saudi Arabia, there are weaknesses in electricity grid connection; the demand is huge and the load as well,” said Sabri Asfour, general manager of FAS Energy, a subsidiary of Saudi Arabia’s Fawaz Alhokair Group with 2,400 MW of GCC-based solar projects in the pipeline.

As a result, the idea of using PV-generated electricity to offset diesel usage – or to replace it altogether as energy storage costs decline – is becoming increasingly appealing for utilities and industrial corporations, especially those keen on eliminating the uncertainty of future energy costs.

“There are many business areas without electricity and they are waiting for their turn to be connected to the grid, but unfortunately, the queue is long. At FAS Energy, we build small, medium and large-scale hybrid power plants. It is well known that Saudi Arabia’s solar irradiation is the best in the region so we have to use it,” highlighted Asfour, who will be speaking at the second edition of the Desert Solar Saudi Arabia conference that will be held from 17-18 September.

Building on the success of the first Desert Solar Conference, the event is once again gathering stakeholders in the Saudi Arabian solar energy market, hosting more than 150 decision makers from across the industry. The distinguished panel of speakers includes executives from Air Liquide MENA, E.ON, King Abdullah University of Science & Technology (KAUST), Tokyo Electron Taiwan, as well as Solairedirect and First Solar. During the two-day conference, Asfour, alongside Thierry Lepercq, chairman of SolaireDirect and Raed Bkayrat, VP of Business Development at First Solar KSA, will be exploring solar-powered desalination solutions for the Kingdom and the business case for utility-scale solar power plants.

Meanwhile, Mohammed Almudaiheem, operation manager at Taqnia, and Salem Alsalem, renewable energy director at Al Gihaz Holding will discuss the requirements needed to drive the off-grid market in Saudi Arabia and the competitive off-grid and hybrid solar solutions for the country’s desert areas.

According to a report by K.A.CARE on Saudi Arabia’s solar energy deployment roadmap, locations such as border posts, highway family rests, remotely located mosques and small-sized villages all represent excellent potential for micro-generation through hybrid designs, including solar-powered desalination and cooling.

The daily electricity needs of such isolated areas are usually met via diesel generators that are transported periodically to these bases. Not only is the solution expensive and unreliable but the generators struggle to function during the hottest times of the day and often break down. The Nofa Equestrian Resort, located 85 km west of Riyadh, is already benefitting from the hybrid concept through its recently-commissioned 1 MW CPV plant, which is offsetting the resort’s 14 MW diesel generator. Most significantly, Saudi Aramco and Saudi Electricity Company are discussing plans to replace as much as 300 MW of diesel generation in off-grid locations with solar PV.

Companies like FAS Energy are now preparing to supply the local market with hybrid solutions, as Asfour noted, “We will start providing electricity to our own affiliates from our hybrid system, the solar GenSet and this will be very soon. We can build this kind of solution in shopping malls, farms, hotels, schools and universities, on rooftops, ground-mounted or in car parks.”

Solar energy, however, will not make the transition on its own, as Michael Sterner, professor of energy storage at the Technical University of Regensburg points out. “We need flexibility – flexible power generation, power networks, demand side management, and of course storage.”

At Desert Solar, Sterner will share his insights on the latest developments and cost reduction trends in PV energy storage and will present a case study from the German electricity market. The Desert Solar Conference is part of a week-long trade mission offering international solar executives and investors the opportunity to meet with a high-level delegation of Saudi solar stakeholders. The event will be held from 14-18 September, 2014 and is jointly organized by international solar conference organizer Solarplaza and the Saudi Arabia Solar Industry Association (SASIA).

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Thursday, September 4- 2014 @ 12:35 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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