Page 13 - DMEA Week 17 2022

DMEA NEWS IN BRIEF DMEA

POLICY up momentum in the last five years. The contracts or advanced renewable tariffs have
lockdowns forced by the coronavirus spurred renewable technologies. FiTs are
Oman’s green energy plans pandemic and global slowdown before policies that speed up investment in renewable
energy and technologies.
this has quickened the transition. Perfect
will help diversify economy government policy decisions further spur OMAN DAILY OBSERVER
these moves.
The Sultanate of Oman’s push for alternate Industry data support the fast-track move
sources of energy such as solar and wind to renewable energy. In the first half of 2021, COMPANIES
dovetails into plans to diversify the country’s parties did not award contracts for oil or gas
economy and the move away from fossil fuels, power stations in the Middle East and Africa Petro Rabigh rights issue
the revenue driver of GCC economies. [MENA] region. In this period, concerned
Oman has ambitious alternative energy parties signed renewable energy contracts approved
plans over the next five years. The country’s worth around $2.8 billion.
utility buyer OPWPC has plans to set up The average value of contracts for oil or gas Saudi-listed Rabigh Refining and
‘MIS Solar IPP 2025’, the country’s fourth fuelled power stations in MENA was around Petrochemical Co. received Capital Market
solar photovoltaic [PV] based Independent $4.8 billion a year between 2017 and 2020. Authority approval for a rights issue valued at
Power Project [IPP] to boost power demand While thermal power plants contracts signed SR8 billion ($2.1 billion).
within the Main Interconnected System [MIS] in 2020 were around $6.2 billion, according to The offering price and size will be
that supplies to the upper northern half of the Power-Technology data. determined at the end of trading on the yet to
country. One of the major outcomes of the be announced extraordinary general meeting
This project will boost the 500MW Ibri policymakers’ resolve to cut greenhouse day, CMA said in a statement.
II IPP that opened in 2022 in Al Dhahirah gas emissions is either putting on hold or Last year, the company’s board proposed
Governorate. The government has plans for scrapping plans for new conventional power a capital reduction of 14 percent from SR8.76
the implementation of two more solar projects generation plants in MENA as well as Europe. billion to SR7.55 billion, followed by the
in Manah. These new projects would meet Cheaper cost of renewable energy has further capital increase of SR8 billion.
consumers’ increased demand for power over added speed to MENA region’s energy The decision by the firm, better known
the next five years. It also opens up prospects transition. as Petro Rabigh, comes as it seeks to raise
of sharing surplus energy. The outlook for renewable energy projects additional capital, strengthen equity, and cut
The Sultanate of Oman’s renewable energy in MENA remains optimistic. According to debt.
move fits well with the GCC’s plans of reviving Power-Technology group, renewable energy ARAB NEWS
the regional power grid. A revival of the businesses have planned projects worth
power grid plan seems worthwhile because of around $104 billion. From this figure, around ADNOC buys stake in
increasing costs of setting up plants and power $21.5 billion are at the contract tendering
transmission infrastructure. stage and are open for awarding this year. Borealis
GCC countries have saved $3 billion From the remaining planned projects worth
in three years since the launch of GCC $82.4 billion, around $4.1 billion projects are Abu Dhabi National Oil Co. is buying a
Interconnection Authority in 2019, according at an advanced stage. Most projects are in the 25% stake in Borealis AG from Mubadala
to Saudi Press Agency [SPA] report in January study stage, the report says. Investment Co., a move to expand the oil
this year. Cutting out the need to build new Although the renewable energy forecast company’s footprint in the chemicals sector
power plants has added to the cost savings. for MENA has an optimistic outlook, some and gain access to key markets in Europe and
It has lowered working and maintenance countries are slow in their transition because the Americas.
costs as well as reduced carbon emissions, the of rich reserves of conventional resources. On The acquisition is part of a wider UAE plan
report said. the positive side, 16 MENA countries have set to attract investment and technology and to
GCC countries’ transition from renewable energy targets. help build new industries and manufacturing.
hydrocarbons to green energy has picked Feed-in Tariffs (FiT) or standard offer State-owned oil producer Adnoc is expanding

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