smart grid gcc brochure
DESCRIPTION
ÂTRANSCRIPT
The current electricity grid was designed several decades ago, to manage the one-way flow of energy from
the generation facilities to the consumer and to fulfil basic electricity needs. In the last few years, the
electricity demand has risen considerably and is further expected to grow between 115% and 150% from
2010 to 2050. At the same time, countries are also under tremendous pressure to move to cleaner sources
of energy.
Smart Grids will play an important role in tackling some of these issues. Smart Grids are capable of better
interfacing the electricity demands of consumers and the generating capacities of producers through
increased availability of real time data and analytics. This allows the grid to optimize asset utilization and
increase system reliability, while minimizing financial and environmental costs.
Creating a smart grid is a formidable endeavour, with big challenges in the short term and benefits only
incurring over the long term. Given the significant opportunities and benefits, almost all the developed
countries around the globe are taking steps to push their grid to the next level.
Comparison of leading countries in smart meter penetration (Consolidated sources)
SMART GRID: THE ROAD TO SUCCESS FOR GCC COUNTRIES
INSIGHT
MARCH 2016
Smart Grid landscape of GCC countries
The GCC as a whole lags behind developed countries in smart grid implementation. UAE leads the GCC in
grid modernization, as well as deployment of smart technologies. Most GCC countries still need to upgrade
their T&D grid infrastructure before using smart technologies.
Comparison of GCC countries (World Bank & Consolidated sources)
Saudi Arabia
Saudi Electricity Company (SEC) is currently undertaking a large program to add T&D capacity, while also
modernizing the grid. The smart grid implementation roadmap for the country defines four main steps
over 8 years:
Phase 1 (Year 0): Creation of a smart grid planning governance framework involving all stakeholders
Phase 2 (Year 1): Smart meter trial, finalizing project schedule for the complete rollout
Phase 3 (Year 2-3): Pilots of DSM, HAN, and in-home display technologies and trials of TOU tariffs
Phase 4 (Year 4-8): Full-scale smart meter and smart grid rollouts using learnings from previous pilots
Consumer smart meters have been successfully piloted. With a clear roadmap, and well-defined smart grid
governance, Saudi Arabia is well-poised to launch a large scale consumer smart meter rollout. Large,
modern urban areas like Riyadh, Jeddah and Dammam are good starting points for this rollout.
A project to connect smart meters to transformers within the T&D grid of the Kingdom is ongoing. Further
grid upgradation or modernization projects will enable large scale renewable projects, while adding to
efficiency and reliability gains.
United Arab Emirates
UAE has set ambitious smart grid programs defining general guidelines and targets with an estimated
investment of around AED 52bn. Dubai and Abu Dhabi have tailored their own smart grid roadmaps around
the general direction set by the UAE Supreme Council of Energy, which is as follows:
Enable residents and property-owners to generate their own electricity by installing solar panels
Transform existing electricity and water meters into smart meters, which will provide regular updates
to customers on how much they consume each month.
Construct electric vehicle charging stations
UAE leads the GCC in consumer smart meter rollout. Abu Dhabi has almost finished its rollout with more
than 600,000 smart meters installed. Dubai has just started installing smart meters, with only 100,000
installed. Dubai has recently entered into a partnership with KEPCO (S. Korea) for sharing expertise on
energy storage, HAN, and smart buildings.
Qatar
Qatar has a large power surplus and a relatively robust grid. It is undergoing grid modernization and further
capacity addition in anticipation of high demand in the 2022 World Cup. The first phase of smart meter
rollouts has also been started and is expected to be completed by 2016. This will enable it to deploy
additional consumer-facing smart technologies. Qatar has a conservative target of 2% power generation
through renewables by 2020. Plans for an independent electricity regulator have recently been made,
which will be key to implementing a successful smart grid roadmap.
Oman
It is imperative that Oman focuses on further grid modernization to increase grid efficiency and reliability.
This investment is justified for Oman since a reasonable reduction of network losses to 7% is the equivalent
of creating 350MW of new generation capacity. Currently the Electricity Holding Company is still creating
its smart meter plan. Muscat Distribution Company and DPC should be the first focus for rolling out smart
meters. Most of the supporting infrastructure is already present in urban areas, which makes it cheaper to
rollout smart meters. These smart meters will also allow power companies to make additional revenue on
value added services to consumers, which can help fund further smart grid initiatives.
Kuwait and Bahrain
Kuwait and Bahrain are both undertaking long term projects to add generation capacity and modernize
their transmission system, with Kuwait also implementing asset management systems to improve
distribution asset performance. Similar to Oman, Kuwait also has very high network losses which can be
minimized through investments in the grid. Kuwait has also launched smart meter testing in many facilities
before implementing them on a larger scale. Bahrain is in the initial stages of smart meter implementation.
It is also upgrading its IT infrastructure to support the roadmap of smart grid and smart energy.
Challenges and Actions
To summarize, although significant investments are needed in smart grids, the long-term return on
investment is very high. Countries can typically break-even on their investments in about 8-12 years,
primarily through reduced operating costs and improved quality of services & losses. Apart from these
direct benefits, there are other indirect benefits such as environmental benefits and increased oil availability
for exports. Overall, it is imperative that GCC countries invest in smart grids as they will benefit
tremendously in the long term through both direct tangible benefits and some indirect benefits.
Copyright © 2016 Sia Partners. Any use of this material without specific permission of Sia Partners is strictly prohibited.
Contact
Abu Dhabi | Amsterdam | Brussels | Casablanca | Charlotte | Doha | Dubai | Hong Kong | London | Lyon
Milan | Montreal | New York | Paris| Riyadh | Rome | Singapore | Tokyo
For more information visit: www.sia-partners.com. Follow us on Twitter @SiaPartners
Pierre-Louis Brenac
Managing Partner, Middle East + 971 56 179 8074 [email protected]
Vikram Sundarraj
Manager, Middle East + 971 56 464 9026 | +966 053 381 4896 [email protected]