meed-logo

line1 line2 line3
SIGN IN / REGISTER

Decarbonising the global energy grid

3 May 2024

As the effort to tackle the climate crisis continues, global demand for renewable energy has been increasing. Unfortunately, the windiest and sunniest parts of the world are not necessarily where the need for energy is highest. This is where transmission plays a big role, linking energy generation to energy use as a product of global interconnection, and diversifying production from renewable sources to create a steadier supply of clean power. 

Transporting energy across vast distances is not easy though. From the regulatory complexities of navigating cross-border infrastructure projects to the high costs of financing and the need for long-term planning and advanced technical capabilities, the challenges involved in successfully deploying long-distance transmission projects are varied. Overcoming these challenges is not a single party affair, but requires close collaboration across government, industry and non-governmental organisations. 

We conducted a study with nearly 600 industry experts from across the world who highlighted the pressing need for co-ordinated global action to rapidly develop grid infrastructure. Integrating renewable energy into existing grids was cited by participants as one of the most significant barriers to achieving net-zero objectives, alongside supply chain vulnerabilities and ability to access the required capital.

Multiple challenges

From a technical standpoint, there are multiple considerations when implementing cross-border interconnections. Regions can operate using different technical parameters, such as different voltages or frequencies. Even within the same country, interregional variations can create bottlenecks. Adopting regional or international grid codes could mitigate these issues.

Further challenges emerge when we take trading into account. This is where regulation can act as an enabler, facilitating the flow of electricity between countries. The European Union’s efforts to co-ordinate the design of its member state’s energy markets enables an increasingly smooth transmission of energy across the continent. Alongside this, existing infrastructure is outdated, requiring significant upfront investment to upgrade. Clarity on regulatory requirements and more transparency around plans for grid buildout, derisk funding for capital-intensive mega projects.

Coordinated action is vital for the transfer of energy across borders and access to renewable sources of energy

Positive benefits

Despite these challenges, the upside must be stressed. Integrating power systems across borders has many positive societal benefits, decreasing costs and hence energy bills through economies of scale, increasing energy security and lowering the environmental impact of operations. On the latter more specifically, larger power systems are able to integrate higher shares of variable renewables. Globally, the sun is always shining and the wind blowing somewhere. 

A common element, therefore, emerges: the need for increased cross-border co‑ordination. Whether it is bilateral, multi-lateral or unified, different models of inter-jurisdictional arrangements are needed for large-scale projects to support global energy interconnections. Our Xlinks project, which is using high-voltage direct current (HVDC) for transmission, is a standout example. 

Such projects represent what is needed more in the world, the combination of infrastructure and renewable power across borders, bringing together the public and private sectors for energy security, supply and affordability in an environmentally friendly way. Transporting clean energy using HDVC cables is a crucial step in powering a net-zero and equitable future, and more of this is needed to aid the transition to lower-carbon and prosperous economies. 

Political, technical and market hurdles can be overcome through collaboration and partnerships. Leveraging the collective expertise and resources of governments, regulators and the private sector can help ensure interconnections are developed quickly enough to support the energy transition. Grid buildout takes time. We have the resources required to meet ambitions, but stopping now is not viable. We must continue planning, building and maintaining large-scale infrastructure projects to meet the rising demand.

Coordinated action is vital for the transfer of energy across borders and access to renewable sources of energy. This was the message from Cop28 and the UAE Consensus: to help progress and secure a cleaner, brighter future for us all, we must break down barriers and come together. 

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11736994/main.gif

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Chinese and Saudi partners set up Hithium Manat

    17 October 2024

    Register for MEED's 14-day trial access 

    Chinese energy storage solutions firm Hithium Energy Storage Technology Company (Hithium) and the local Nabilah AlTunisi have formed a joint venture that will manufacture battery energy storage systems (bess) in Saudi Arabia.

    The joint venture is called Hithium Manat. The planned manufacturing facility has an annual production capacity target of 5 gigawatt-hours (GWh), according to an official statement.

    Hithium launched energy storage solutions designed for the region's harsh environment during a solar and storage conference held in Riyadh.

    According to Hithium, "These systems feature advanced sandstorm protection and robust high and low-temperature designs, supporting ultra-long discharge cycles of 12+ hours."

    It added that the new product line is "customised to meet the unique demands of the Middle East and Africa region".

    Nabilah AlTunisi is the founder and owner of Hithium Manat's local partner.

    "This strategic alliance will not only provide access to world-class energy storage technology but also generate local employment opportunities, stimulate technological innovation and actively contribute to realising the kingdom's Vision 2030 objectives," AlTunisi said.

    Battery energy storage market

    In August, National Grid Saudi Arabia, a subsidiary of state utility Saudi Electricity Company, awarded the engineering, procurement and construction (EPC) contracts for three energy storage systems to Riyadh-based investment group Algihaz Holding. The estimated $800m projects are located in Najran, Madaya and Khamis Mushait.

    National Grid also recently tendered contracts for the construction of five battery energy storage systems with a total combined capacity of 2,500MW across the kingdom.

    The planned facilities, each with a capacity of 500MW or roughly 2,000 megawatt-hours, are located in or within proximity of the following key cities and load centres:

    • Riyadh
    • Qaisumah
    • Dawadmi
    • Al-Jouf
    • Rabigh

    Every utility in the region is procuring or planning to procure bess capacity in light of growing intermittent renewable power in their grids. 

    The overall capacity of deployed bess globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, a GlobalData report issued in June said.

    The report cited Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

    Related read: Battery storage gains foothold

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12742375/main.jpg
    Jennifer Aguinaldo
  • Kahramaa invites Ras Laffan substation bids

    17 October 2024

    Qatar state utility General Electricity & Water Corporation (Kahramaa) has tendered a contract to upgrade the Ras Laffan C substation.

    The scope of work covers the upgrade of existing 220-kilovolt (kV) and 400kV substations and the addition of 220kV gas-insulated switchgear bays and an 800-megavolt amps transformer.

    Kahramaa issued the tender on 15 October and expects to receive bids by 28 November.

    The project bid bond is valued at QR1.5m ($410,000).

    Separately, Kahramaa invited firms to submit their proposals for a contract to supply and install power transmission and distribution equipment, including providing and connecting substation main earth and equipment earthing, commissioning fitted substations and pre-commissioning protection testing for 11kV switchgear panels.

    Kahramaa expects to receive bids for this contract, with a bid bond of QR3m, by 14 November.

    Kahramaa is expanding its power generation capacity. Negotiations are under way with the sole bidder led by Japan's Sumitomo Corporation for a contract to develop and operate Qatar’s Facility E independent water and power producer (IWPP) project.

    The Facility E IWPP scheme will have a power generation capacity of 2,300MW and a water desalination capacity of 100 million imperial gallons a day.

    Earlier this month, Qatar Electricity & Water Company announced plans to develop a 500MW peak power unit in Qatar's Ras Abu Fontas area.

    Construction is also under way for two solar farms with a total combined capacity of 875MW in Mesaieed and Ras Laffan.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12742343/main.jpg
    Jennifer Aguinaldo
  • Neom starts Tabuk highway prequalifications

    17 October 2024

     

    Saudi Arabian gigaproject developer Neom expects firms to submit their prequalification applications for a project to build a mountain road near Tabuk later this month.

    The 11.5-kilometre (km) Tabuk mountain road project comprises a 4km tunnel and 7.5km dualisation of an existing road, according to an industry source.

    Neom expects to receive statements of qualifications from interested engineering, procurement and construction contractors by 29 October.

    The tender proceedings for Neom's transport infrastructure projects are gathering momentum.

    Neom received expressions of interest for a contract to build a coastal highway and infrastructure project catering to the Magna development on the Gulf of Aqaba on 15 October.

    The project, called Magna Infrastructure Packages, is split into three. Package one is 13km, package two is 42km and package three is 41km. The packages cater to the development’s north, central and south areas.

    The design-and-build project covers utilities for water, power, mobility, sewer, buildings and highways, in addition to the coastal highway. The project is expected to be completed by 2027.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12738632/main.gif
    Jennifer Aguinaldo
  • Adnoc completes Fertiglobe stake acquisition

    16 October 2024

    Register for MEED's 14-day trial access 

    Abu Dhabi National Oil Company (Adnoc) has completed the transaction to acquire a majority stake in UAE-headquartered Fertiglobe, the largest nitrogen-based fertiliser producer in the Middle East and North Africa region.

    Adnoc has increased its shareholding in Fertiglobe to 86.2% through the acquisition of 50% + 1 share held by Netherlands-based OCI Global, which is backed by Egyptian billionaire Nassef Sawiris. The Abu Dhabi energy giant previously held a 36.2% stake in Fertiglobe.

    The remaining 13.8% of Fertiglobe’s shares trade on the Abu Dhabi Securities Exchange following the company's stock listing in October 2022.

    Adnoc announced the transaction to become the majority shareholder in Fertiglobe last December. Fertiglobe’s shares were priced at AED3.2 ($0.87) a share, valuing the deal at $3.62bn.

    Following the completion of the majority acquisition, “Fertiglobe’s current management team will stay in place”, including Ahmed El-Hoshy in his role as CEO, Adnoc said in a statement on 15 October.

    “Ahmed El-Hoshy spent 15 years growing OCI’s US and European business in ammonia and methanol via greenfields, brownfields and acquisitions, generating significant value for shareholders by leading recent divestments,” Adnoc said.

    Growing chemicals business

    Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, exporting to 53 countries with a collective market share of about 10% of global trade in these products.

    “The acquisition represents … the expansion of Adnoc’s low-carbon fuels business, and supports its goal to become a top-five global chemicals player,” Adnoc said.

    “Fertiglobe will become the platform for Adnoc’s growth in fertiliser and low-carbon ammonia,” Adnoc said in its statement.

    Adnoc added it will transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe “at cost and when ready for startup”, including its two projects in Abu Dhabi and other projects in its global portfolio. Adnoc has yet to specify the low-carbon ammonia and blue ammonia production projects.

    MEED understands that the first Abu Dhabi project in question is the blue ammonia facility in the Taziz Industrial Chemicals Zone in Ruwais. Fertiglobe has partnered with South Korea’s GS Energy Corporation and Japanese investment firm Mitsui & Company to build the complex, which will have a production capacity of 1 million tonnes a year (t/y).

    In February last year, the joint venture awarded Italian firm Tecnimont the main contract for executing the engineering, procurement and construction works on the Taziz blue ammonia project.

    The second Abu Dhabi blue ammonia project that Adnoc could be referring to in its statement is a proposed scheme for which it signed a joint feasibility study agreement with British energy producer BP in May 2022.

    Adnoc further said that the two projects in Abu Dhabi will add 2 million t/y of output potential, more than doubling Fertiglobe’s current commercial ammonia capacity of 1.6 million t/y and increasing its total sellable capacity to 8.6 million t/y of net ammonia and urea combined, in addition to other announced global projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12735570/main1542.jpg
    Indrajit Sen
  • Neom receives interest for Magna coastal highway

    16 October 2024

     

    Saudi Arabia’s gigaproject developer Neom has received interest from firms for the contract to build a coastal highway and infrastructure project linking Neom to the Magna development on the Gulf of Aqaba.

    The project, called Magna Infrastructure Packages, is split into three. 

    Package 1 is 13 kilometres, package 2 is 42km and package 3 is 41km.

    The packages cater to the development’s north, central and south areas.

    According to an industry source, the design-and-build project covers utilities for water, power, mobility, sewer, buildings and highways. It could cost between $250m and $500m.

    Local and international engineering, procurement and construction (EPC) contractors are understood to have submitted their expressions of interest to participate in the tender on 15 October.

    The coastal highway and infrastructure project is expected to be completed by 2027, the source said.

    Magna consists of 12 developments featuring 15 hotels that offer 1,600 hotel rooms, suites and apartments and over 2,500 residences.

    The development will span a 120km-long coastal strip with an average width of 3.5km. The total land area is about 430 square kilometres.

    The Magna infrastructure is divided into six districts, as follows:

    • District 1 – Northern Gateway: includes 13 bridges and underpasses with a length of 1.9km, 18 wadi culverts and five drainage culverts
    • District 2 – Romantic Bay and the Cube: includes two bridges and underpasses spanning 360 metres, 40 wadi culverts and 24 drainage culverts
    • District 3 – Wadi Tayyib: includes two bridges and underpasses, 26 wadi culverts and nine drainage culverts
    • District 4 – Jungle Club: includes three bridges and underpasses and 17 wadi culverts
    • District 5 – Magna: includes two bridges and underpasses, 14 wadi culverts and two drainage culverts
    • District 6 – Southern Gateway: includes three bridges and underpasses, 31 wadi culverts and one drainage culvert
    https://image.digitalinsightresearch.in/uploads/NewsArticle/12735899/main.jpg
    Jennifer Aguinaldo