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2nd Annual Power & Desalination Summit Riyadh

Case Study: Private Sector Participation in the


Solar Power O&M Industry
Riyadh March 18, 2013

2nd Annual Power & Desalination Summit Riyadh

NOMAC An Independent Arabian O&M Company

NOMAC is an ACWA Power subsidiary established in 2005.


NOMAC is dedicated to the safe and efficient operation of power and desalinization
plants in order to deliver exceptional performance and outstanding results.
Currently NOMAC has full operational responsibility for seven mega projects: Rabigh
IPP, Shuaibah IWPP, Shuaibah Expansion IWP, Shuqaiq IWPP, Qurayyah IPP, Barka 1
IWPP and participates in the Marafiq Jubail IWPP.
Additionally, NOMAC is fully responsible for the operation and maintenance of two,
barge-mounted, self-supporting desalination plants, which are currently located at
Yanbu, Saudi Arabia.
NOMAC also provides for the turnkey operation of renewable projects and is currently
operating a 60 MW photovoltaic utility scale generation facility
In total, NOMAC is responsible for the operation of a portfolio of 10,137 MW of power
generation and 2.2 million cubic meters per day of desalinated water production.

2nd Annual Power & Desalination Summit Riyadh

Consistent portfolio growth


NOMAC formed in time with
the launch of KSAs
privatisation program for
water & power sector

Signed O&M agreement for


3927 MW -Qurayyah IPP

Succesfull offers
for for O&M of
Marafiq IWPP
followed by
Shuqaiq IWPP
2005

Bowarege achieves
PCOD

2007
2006
Shuaibah Expansion
IWP is added to the
O&M portfolio

Successfully bid for


O&M of Shuaibah IWPP
in just the first 6
months of oprations

2009

2011
2010

2008
Successfully bid for
O&M of Rabigh IPP

NOMAC Oman
assumes
operation of
Barka 1 IWPP

2012

SunE NOMAC starts


solar operation in
Bulgaria

2nd Annual Power & Desalination Summit Riyadh

NOMAC Today
A formidable competitor in the Power and Water O&M Sector
Project Cost
(in MUSD)

Contracted Power
(in MW)

Contracted
Water (in 000
m3/day)

Contract Type

PCOD

Shuaibah IWPP

2,450

900

880

20 YR

1Q 2010

Shuqaiq IWPP

1,831

850

212

20 YR

2Q 2011

Marafiq Jubail
IWPP

3,359

2,744

800

20 YR

4Q 2010

Shuaibah
Expansion IWP

233

150

20 YR

4Q 2009

Rabigh IPP

2,506

1,204

20 YR

2Q 2013

Bowarege

99

52

3 YR

2Q 2008

Barka 1 IWPP

415

442

91

15 YR

1Q 2003

Qurayyah IPP

2,846

3,927

20 YR

2Q 2014

180

60

20 YR

2Q 2014

13,919

10,127

2,216

Project Name

Karadzhalovo IPP
Total

2nd Annual Power & Desalination Summit Riyadh

A Saudi Arabian Company Expanding Overseas

2004

2017-2018

2nd Annual Power & Desalination Summit Riyadh

Our Involvement in Renewable Energy


The KSA solar opportunity constitutes a very large capacity commitment
44,000 MW in 20 years
18,000 MW photovoltaic
26,000 MW concentrated solar
Introduction of solar generation will permanently transform existing assumptions regarding the
future composition of the generation fleet in the KSA
Participation of thermal generators is likely to flatten-out and remain constant in medium and
long term
Our approach to renewable energy is no different to that for fossil fuel based production
Relentless focus on achieving the lowest cost at that given time
Using Photo Voltaic Technology:
We own and operate a 60MW PV plant in Bulgaria ;and
Have submitted a tender for a 100MW PV at Makkah
Using Concentrated Solar Power (CSP ) technology:
We are in financing in South Africa on a 50MW plant (SolAfrica)
We are in financing in Morocco of a 160MW plant (Ouarzazate)

2nd Annual Power & Desalination Summit Riyadh

Karadzhalovo PV IPP

The Solar PV Plant located in Karadzhalovo, Bulgaria is


rated at a capacity of 60MWp and expected to produce
81,000 MWh per annum
It has been operating since March 2012 and dispatching
electricity to the Bulgarian power grid vide an off-take
arrangement for a 20 year term on a Feed in Tariff
framework
with
the
state-owned
Natsionalna
Elektricheska Kompania
The plant operation and maintenance activities by
NOMAC and Sun Edison with equal shares of ownership.
The plant is expected to avoid approximately 48,600
tonnes of CO2 emissions per annum

Location

Karadzhalovo, Bulgaria

Offtaker

Natsionalna Elektricheska
Kompania (National Electric
Company)

Power

60 MWp

Configuration

Solar Photo-Voltaic (PV)

Project Cost

SAR 652 Mn, USD 174 Mn

Commercial
Operational Date

Q1 2012

Acquisition Date

July 2012

ACWA Power
Share

42%

Contract Type &


Term

PPA-BOO 20 years

Operator

SunE NOMAC

2nd Annual Power & Desalination Summit Riyadh

Ouarzazate CSP IPP

The 160 MW Ouarzazate CSP Project is a greenfield


Independent Power Project (IPP) developed for the
Moroccan Agency for Solar Energy (MASEN) located
approximately 200 KM south of Marrakesh.
On 19 November 2012, the Moroccan Agency for Solar
Energy (MASEN) and the consortium, led by ACWA
Power, signed the Power Purchase Agreement for the
value of USD 1 Billion, for the sale of the net electricity
output of the Ouarzazate CSP Independent Power
Project
The project will be operated by NOMAC under a 25
year O&M agreement

Location

Ouarzazate, Agadir district,


Morocco

Offtaker

Moroccan Agency for Solar


Energy (MASEN)

Power

160 Mwe (and 3 hours of


Thermal Energy Storage)

Configuration

Concentrated Solar Power


using parabolic troughs and
molten salt Thermal Energy
Storage

Project Cost

SAR 3,083 Mn, USD 822


Mn

Commercial
Operational Date

Q2 2015 (forecast)

Contract Type &


Term

PPA-BOOT 25 years

Operator

NOMAC,
with
EPC
Contractor oversight for the
first
3
years
after
construction

2nd Annual Power & Desalination Summit Riyadh

Bokpoort CSP IPP

The BOKPOORT CSP project in Northern Cape


Province, 600 km west of Johannesburg in the Republic
of South Africa is a CSP Greenfield Independent Power
Project
The project will be equipped with the largest thermal
storage size ever adopted for a similar operational size
and is among the most efficient solar plants in the world
operating in this class of capacity and technology
yielding a record high generation in excess of 200
GWh/year to support the power grid of South Africa.
On May 21 2012, A consortium led by ACWA Power
International (ACWA Power), was announced as
preferred bidder
NOMAC will operate the CSP project under a 20 year
O&M Agreement

Location

Northern Cape Province,


South Africa

Offtaker

Eskom Holdings SOC Ltd

Power

50 MW (net)

Configuration

CSP Parabolic trough with


approx. 9 hours storage.

Project Cost

SAR 2,1303 Mn, USD 568


Mn

Commercial
Operational Date

Q3 2015 (forecast)

Contract Type &


Term

PPA-BOO 20 years

Operator

NOMAC (vide a
management contract with
the O&M Co.)

2nd Annual Power & Desalination Summit Riyadh

Training of Saudi Arabian Solar power Operators


Development of national work force ensures long term sustainability.
NOMAC is a founder of the Higher institute for Water and Power Training in the KSA.

Blessed by King Abdullah in January 2009.


A non-profit, industry focused, high-tech institute.
Training of Saudi Arabian staff starts 2 years ahead of PCOD date and continues on an
annual basis for the life of the project.
NOMAC has started a 2 year associate
program certified by TVTC to graduate Saudi
Arabian photovoltaic and CSP operators
Student recruited from the area and are fully
sponsored by NOMAC

2nd Annual Power & Desalination Summit Riyadh

Sector Size & Growth Prospects


Solar will constitute 35% of the installed capacity in the KSA
Capacity expansion plans must be revised in order to properly asses system needs and
effectively target business opportunities
Power demand (GW)

Desal water demand (million cu M/Day)


12

140
120

Will double

120

100

10

9.0

85
80

11.0

Doubled

7.0
5.5

60
4

43
40
20

21

2
0

0
2000

2010

2020

2030

2000

2010

2020

2030

2nd Annual Power & Desalination Summit Riyadh

Solar Project Technology Options


Current commercially
concentrated solar

viable

technology

includes

12

photovoltaic

and

Technology

Based on the photo electric effect,


using solar irradiation to generate a
direct current

Based on the conventional Rankin


steam cycle, thru heating a fluid by
concentrating direct solar irradiation and
then generating steam which is out thru
a conventional steam turbine

Differences

As electrons are mainly produced,


storage via battery only.

As steam is mainly produced, storage


via media such as salt

2nd Annual Power & Desalination Summit Riyadh

Solar Project Technology Considerations


Photovoltaic (PV) technology is well demonstrated and provides simplicity of
operation
Utilization factors can reach 25%
30MW per square kilometer
Cost of PV panels continues to drop making project economics very competitive

Concentrated solar power (CSP) provides for energy storage capabilities to


allow targeting the peak after sunset
Utilization factor can reach 40% with large storage
40 MW per square kilometer
CSP present unique O&M requirements
Solar field management
High temperature oil collector systems
Salt storage systems
Maintenance requirements for steam
turbines, and balance of plant

2nd Annual Power & Desalination Summit Riyadh

PV installation, historical and forecast, 2007-2015


Historical

Forecast
51.5GW
44.3GW
35.7GW

28.7GW 30.4GW
18.2GW
6.6GW 7.7GW

2.8GW
2007
2008
2009
2010
2011
Western Europe
Eastern Europe
China
India
Source: Bloomberg New Energy Finance

2012
2013
Japan
Rest of World

2014
USA

2015

2nd Annual Power & Desalination Summit Riyadh

Global Solar PV Energy Trends

Source: K.A.CARE 4th Saudi Solar Forum 2012

2nd Annual Power & Desalination Summit Riyadh

Potential of PV in Saudi Arabia

It must be noted that PV makes


use of the Global Horizontal
Irradiation (GHI) defined as: the
total solar irradiance falling on a
horizontal plane on Earth (which
includes diffused and indirect
irradiation)

Saudi Arabia has one of the


highest potentials for PV in the
world.

PV is highly economical across


North Africa, South Africa and
Turkey.

2nd Annual Power & Desalination Summit Riyadh

Potential of CSP in Saudi Arabia

CSP only makes use of the Direct


Normal Irradiation which is: is the
solar irradiance measured at a
given location on Earth with a
surface element perpendicular to
the Sun's rays, excluding diffuse
insolation (the solar radiation that
is scattered or reflected by
atmospheric components in the
sky)

A DNI
higher
KWh/m2/year

High dust and humidity in the GCC


region implies CSP is most
economical in limited areas of the
GCC specifically North West Saudi
Arabia

than

2,400

2nd Annual Power & Desalination Summit Riyadh

Annual Peak Load in the KSA - 2012


MW
2,500 MW used for less than 100 hours/ year!!!

50 % of maximum load

25,000 MW

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Solar and Load Curve Patters - Makkah


Daily Load Curve for Makkah 2012 Load Pattern
Solar PV can fill 300 MW peak block

3100
3000

Production time - CSP

Production time - PV

2900
2800
2700
2600
2500
2400

0:30
1:00
1:30
2:00
2:30
3:00
3:30
4:00
4:30
5:00
5:30
6:00
6:30
7:00
7:30
8:00
8:30
9:00
9:30
10:00
10:30
11:00
11:30
12:00
12:30
13:00
13:30
14:00
14:30
15:00
15:30
16:00
16:30
17:00
17:30
18:00
18:30
19:00
19:30
20:00
20:30
21:00
21:30
22:00
22:30
23:00
23:30

2300

2nd Annual Power & Desalination Summit Riyadh

First Utility Scale Solar Power in Saudi Arabia


On 5th January, 2013, the First Utility Scale Solar Power IPP Tender
in the Kingdom of Saudi Arabia was submitted
The IPP tender 100 MW PV to the Municipality of Makkah
ACWA Power/NOMAC proposal: at 12 US cents/KWh
4500

1.6

4000

1.4

3500

2500
2000
1500
1000

Million Barrel / year

Barrel / day

3000

1.2
1
0.8
0.6
0.4

500

0.2

2nd Annual Power & Desalination Summit Riyadh

Solar Project O&M Considerations


Over the life of the solar plant the O&M constitutes 30% of the cost
Our experience is that on the first project itself >40% of the EPC value and up to
90% of the O&M can be delivered more cost effectively from local content
Challenging availability requirementsPV asset owners require 99%
performance versus expected electricity generation at inverter level
Robust Information Technology and Data Analysis capabilities are fundamental
and provide clear competitive advantages
Performance monitoring and reporting system
Remote on-line data gathering, analysis and diagnostics provides for immediate
identification of availability or efficiency losses on individual panel strings
Immediate dispatch of local maintenance crews

Challenges include panel cleaning frequency and water consumption


Fully automated robotic cleaners and pressured water solutions provide alternatives
for dry and dusty locations

2nd Annual Power & Desalination Summit Riyadh

O&M Services Scope as Part of Turnkey Contract


O&M contractor assumes responsibility for all aspects of the operation and maintenance
of the facility:

Labor and third party contractors


Chemicals
All consumables including CSP high temperature fluid and salt
PV Spares including PV modules, inverters and transformers

CSP spares such a mirrors, collectors, steam turbine parts


Cleaning robots and equipment
Preventive and predictive maintenance
Corrective maintenance

Major overhauls
Services
Training
Environmental Health and safety

Plant performance reviews and optimization


Compliance with the local requirements for localization and training

2nd Annual Power & Desalination Summit Riyadh

Renewable Projects and Desalinization Options


Concentrated solar is well suited to be paired with desalinization

2nd Annual Power & Desalination Summit Riyadh

The Way Forward Solar Desalinztion


Concentrated solar is well suited to be paired with desalinization on an
integrated basis
Solar boiler
Thermal desalination

Improving RO efficiencies and likelihood for decreasing membrane costs


provide compelling case for solar powered RO projects
Maximize solar plant utilization factor by choosing optimum sites based on solar
intensity
Deliver power to RO site using transmission lines
Water tanks may serve as energy storage devices under certain scenarios

Optimum solution is the one which delivers the lowest power and water tariff to
the off taker
Introduction of solar power results in a parading shift in the power and water
generation industry in the KSA

Thank You
for Your
Attention
25

Julio Torre Gutierrez


Chief Executive Officer
torregutierrez@nomac.com

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