New base 984 special 08 january 2017 energy news

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase 08 January 2017 - Issue No. 984 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: 2017 Emirates Energy Award open for applications
The national - Nick Webster
Registration for the 2017 Emirates Energy Award, which seeks the best ideas from the public and
private sectors to reduce the UAE’s carbon footprint, is open.
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, is backing the awards for the
best green energy innovations, now in their third edition.
"EEA is one of the most important and prominent platforms for shaping the future of energy and
water sectors in Middle East and North Africa region," said Saeed Mohammed Al Tayer, vice
chairman of the Dubai Supreme Council of Energy and award president.
"It focuses on parameters to facilitate best practices in energy management and efficiency."This is
aligned with the UAE Vision 2021, Dubai Plan 2021, and the long-term national initiative launched
by Sheikh Mohammed to build a green economy in the UAE."
Applications will be received from now until March 1, 2017. They will be evaluated by the
committee from April to September. The final ceremony to honour he winners will take place on
October 22, to coincide with World Energy Day.

Saudis Said to Duel Rivals by Curbing Heavy Oil Over Light Crude
Bloomberg - Serene Cheong and Sharon Cho
Saudi Arabia is staying in the battle for market share by continuing to pump the type of oil that’s
similar to rival U.S. and African supply, while fulfilling its promise to cut output by focusing curbs
on other varieties.
The nation plans to idle some fields producing the Arab Medium and Arab Heavy grades to meet
its output reduction target, according to people with knowledge of the matter, who asked not to be
identified because the information is confidential. That would help the world’s top exporter
concentrate more on selling more-profitable crudes such as Arab Light and Extra Light, adding to
growing global supplies of similar-quality oil and pitting it against other producers.
A majority of the output cuts that are part of a historic deal between OPEC and some other
producers aimed at curbing a global glut are set to come from the Middle East. That’s made the
region’s crude pricier relative to other supply priced off U.S. West Texas Intermediate and
Europe’s Brent markers. While Saudi Arabia has pledged to pump less oil, it’s also trying not to
give up sales in Asia, the world’s biggest market, to competing supply from the Americas and
Africa.
The discount of Dubai oil shrank to the smallest in 15 months over Dated Brent this week, while
the Middle East benchmark turned costlier than U.S. marker WTI last month, data compiled from
PVM Oil Associates show.
Saudi Arabian Oil Co. has informed some Asian refiners of a new round of export cuts in informal
discussions ahead of official monthly crude allocations. The company, known as Saudi Aramco,
has told customers of possible measures leading up to the cuts, with each scenario signaling
reductions are unlikely to be more than 10 percent of contracted volumes for some buyers, said
the people.

The cutbacks in February to Asia will still be smaller than other regions such as the U.S. and
Europe because it remains Saudi Arabia’s most valued market, one of the people said. Last
month, sales to parts of Southeast Asia and South Asia including India were reduced while buyers
in North Asia were largely spared.
The Asia Pacific region will use 33.87 million barrels a day of oil in 2017, accounting for more than
a third of global consumption, data from the International Energy Agency show. That’s an increase
from estimated demand of 33.03 million barrels a day in 2016. In the Americas and Europe, oil
use is seen staying flat this year, according to the Paris-based IEA.
New Norm
Refiners, including China’s independent processors, will try to make crude purchases that take
advantage of relatively cheap lighter varieties of oil as the spread between Brent and Dubai
remains narrow, industry consultant Energy Aspects Ltd. said in a note e-mailed Friday. Narrower
light-heavy differentials will be the “new norm,” according to the report.
The Brent-Dubai exchange of futures for swaps, a measure of the difference in prices between the
two benchmarks, was at $1.68 a barrel on Wednesday, according to PVM data. It was at $4.55 in
January 2016. While U.S. WTI crude traded 81 cents above the Dubai marker a day before
OPEC’s decision to curb output, the Middle East benchmark was 45 cents higher on Jan. 5,
according to Bloomberg calculations based on data from PVM.
Saudi Energy Minister Khalid al-Falih said last month that he didn’t expect a big supply response
from American shale producers in 2017. But Goldman Sachs Group Inc. says the kingdom is
wrong, and forecasts an increase of 800,000 barrels a day in U.S. annual production growth at a
price of $55 a barrel for West Texas Intermediate crude.

Oman: injection to fuel Masirah Oil’s Block 50 operations
Oman Observer - Conrad Prabhu
Masirah Oil Limited (MOL), the operator and 100 per cent owner of Block 50 offshore Oman’s east
coast, has received a fresh capital injection that it says will aid Oman its drilling activities and other
operations centring on this hugely promising concession.
The cash infusion of $8 million came from Rex Oman, an indirect wholly owned unit of Singapore-
based Rex International Holdings, following a subscription of new shares of Masirah Oil (MOL).
“The Capital Injection was necessary to
allow (Masirah Oil Limited) to pursue its
drilling activities and continue its operations
in Oman, as well as for general working
capital requirements; and was fully satisfied
in cash by Rex Oman,” said Rex
International Holdings in a statement.
“The Board considers the Capital Injection
to be in the interest of and beneficial to the
Group as (Masirah Oil) is the operator and
holds 100 per cent ownership in the close
to 17,000 sq km Block 50 Oman
concession, which has been identified as
one of the Group’s main focus going
forward. The Board is of the view that
Masirah Oil has high potential for growth,
as the discovery made in the concession in
early 2014 was the first offshore discovery
east of Oman, after 30 years of exploration
activity in the area,” it added.
The move comes as Masirah Oil prepares to drill another exploration well in Block 50. Dubbed
Karamah-1, the well is the second of a multi-well programme and will be drilled from the Aban VII
jack-up rig.
It follows the successful drilling of the first exploratory well Manarah-1 nearly a year ago, which
confirmed the presence of a source rock and a working petroleum system in the concession.
During a 48-hour test, light oil flowed to the surface at the rate of 3,000 stock tank barrels per day,
the company said.
Masirah Oil is also looking for investors to participate in the exploration and development of the
Block as part of a farm-out.
As a result of the latest capital injection, Rex Oman has increased its direct interest to 85.15 per
cent of the enlarged issued and paid-up share capital of Masirah Oil. The balance is held by Lime
Petroleum (1.45 per cent), Petroci Holdings (8.39 per cent) and Schroder & Co Banque SA (5 per
cent).
Majority shareholder Rex International Holdings, which is a Singapore-listed oil and gas company,
also holds a 65 per cent indirect interest in Lime Petroleum. Consequently, its effective interest in
MOL has increased from approximately 78.68 per cent to 86.09 per cent.

Indonesia: Lion Energy and Renco spud Amanah Timur-1 well
in North Sumatra Basin.. Source: Lion Energy
Lion Energy has announced the spud of the exciting Amanah Timur-1 (AMT-1) exploration well,
located in the South Block A PSC in the prolific North Sumatra Basin. The well is currently
preparing to set 9 5/8” casing at approx. 78m prior to drilling ahead in 8 ½” hole. AMT-1 is
expected to take no more
than 10 days to drill to total
depth of approx. 57 0m KB
and evaluate the section. A
further 10 days is
estimated for the likely test
program. Lion has a 40.7%
interest in the well and will
keep the market informed
on material events through
the drilling and testing
program.
The well-defined Amanah
Timur Prospect being
tested by the well is
situated within a highly-
productive hydrocarbon
trend and is covered by
recently acquired seismic
data. The well targets Keutapang sandstone reservoirs which have delivered over 600mmbbl oil,
2.2tcf gas and 50mmbbl condensate in near proximity. Gross recoverable Prospective Resources
are estimated to be 2.0 - 4.8 - 10.7 mmboe (P90 - P50 - P10).
The well has an estimated cost of US$1.3 mil (US$0.53 mil net to Lion). This well cost includes
provision for up to three production tests. Multiple sandstone reservoirs are being targeted
including a shallow objective which had oil production in pre 1930 wells that are in close proximity.
• Amanah Timur-1 well spudded on the evening of 3 January 2017, preparing to set 9 5/8”
casing at 78.5m KB
• Low-risk well with Prospective Resources of up to 9 mmbbl oil (gross recoverable)
• Shallow sandstone objective oil productive in pre-1930 wells
• Close to oil and gas infrastructure with potential to deliver near-term cash flow
Lion’s CEO, Kim Morrison, noted:
'The drilling of Amanah Timur represents a key milestone for Lion. We have led the technical effort
on this prospect which represents a highly attractive opportunity with near term cash flow
potential.'

Gabon: VAALCO Energy announces successful workover of
Avouma 2-H well offshore Gabon.. Source: VAALCO
VAALCO Energy has announced that the Avouma 2-H well on the Avouma Platform offshore
Gabon is back on production after utilizing a hydraulic workover unit to replace a failed Electric
Submersible Pump (ESP) system.
The well is currently producing at a stabilized rate of 2,700 barrels of oil per day (BOPD) gross, or
730 BOPD net to VAALCO. With the addition of the two recent workover wells, total Company net
production is currently averaging 4,600 BOPD.
As previously announced, the ESP systems failed in both the South Tchibala 2-H and the Avouma
2-H wells on the Avouma Platform this past summer. Prior to temporarily shutting in the Avouma
2-H well after the ESP system failed, the well was producing approx. 2,400 gross BOPD or 650
BOPD net to VAALCO.
Following completion of workover operations on the South Tchibala 2-H, previously described in a
press release dated December 21st, workover operations on the Avouma 2-H were completed
and the well was put back on production. The entire operation was conducted safely and
efficiently with no injuries or threats to the environment.
All personnel and equipment utilized during the combined operations on the two wells have been
demobilized. The detailed inspection of the failed ESP components continues and it is expected
that the cause of the failures will be determined during the first quarter of 2017. Monitoring of ESP
operation and production optimization procedures continues for both wells.
Cary Bounds, VAALCO’s Chief Executive Officer commented:
'Following the successful workover of the South Tchibala 2-H well, we are pleased to have also
restored production from the Avouma 2-H well at a higher rate than when it went offline this past
summer. We have once again demonstrated our ability to safely and successfully conduct well
interventions utilizing a hydraulic workover unit. Our net production has risen to approximately
4,600 barrels of oil equivalent per day, our highest rate since early summer 2016. We are pleased
to begin 2017 with an attractive combination of strong production volumes and higher oil prices.'

Russia's Rosneftegaz closes Rosneft deal with Qatar, Glencore
Rosneft chief executive Igor Sechin called privatisation deal the largest in Russia's history
By Reuters
Russian state holding company Rosneftegaz on Wednesday closed a deal with the Qatar
Investment Authority (QIA) and commodities trader Glencore to sell a 19.5 percent stake in state-
owned oil major Rosneft, Rosneft said.
The privatisation deal, which Rosneft chief executive Igor Sechin called
the largest in Russia's history, was announced by Rosneft in a meeting
with President Vladimir Putin in December.
Its success suggests the lure of taking a share in one of the world's
biggest oil companies outweighs the risks associated with Western
sanctions imposed on Russia over the conflict in Ukraine.
"The technical procedures for closing (the deal) required the preparation and signing of more than
50 documents and agreements," Rosneft said in a statement. "All this reflects the unprecedented
complexity of the deal."
Italy's Intesa Sanpaolo said on Tuesday it would provide a loan for up to 5.2 billion euros ($5.4
billion) to help the QIA and Glencore purchase the stake.

Chinese solar industry targets booming Middle East market
Saudi Gazette
Chinese solar panel manufacturers are targeting the Middle East, North Africa, and South Asia
markets, with large-scale investment in renewable energy expected to drive a rapid increase in
demand for imported technology.
Local demand has underpinned the rise of China’s solar energy industry, but faced by a slowdown
in domestic solar energy projects and reduced subsidies, manufacturers are looking to increase
their already large export trade as the key to future growth. Emerging markets offer some of the
strongest opportunities, particularly in regions with high levels of solar intensity.
According to Analysis by Frost
and Sullivan for the World Future
Energy Summit (WFES) and
Solar Expo, to be held in Abu
Dhabi on Jan. 16-19, the Gulf
Cooperation Council (GCC)
countries will increase their
installed solar capacity 50-fold
between 2015 and 2025. Saudi
Arabia alone has announced
plans for an additional 9.5 GW of
renewable energy by 2030.
Outside the GCC, India is
targeting 175 GW by 2022,
including 100 GW of solar.
Planned projects exceed local
manufacturing capacity, creating
significant scope for partnerships
with global suppliers.
“When solar energy was seen as
experimental in the region, and
oil revenues were high, many
decision makers automatically
looked for Western partners,
particularly from Europe,” said Ms. Li Dan, Vice Executive Secretary-General, Chinese Renewable
Energy Industries Association. “Looking ahead, decisions will be based on purely commercial
factors. Chinese companies can provide the quality, the capacity, and the commercial viability to
put renewables at the center of the energy mix.”
Industry analysis predicts that installed electricity generation in the GCC will grow at a compound
rate of around 3.74 percent per year between 2015 and 2025, with around $85 billion invested in
generation, and $31 billion in transmission and distribution. While natural gas will remain the
mainstay of generation, liquid-fired generation using oil will be scaled down. Renewable energy,
including solar and wind, will both grow significantly.
That opportunity is driving a surge of Chinese interest in the 10th edition of WFES. As the Middle
East’s largest exhibition and conference for renewable energy, with a particular focus on the
business of renewables, the annual event consistently attracts buyers for renewable energy
projects from an area that stretches from Africa, across the Middle East, and into India.

China will have among the strongest international representations at WFES 2017. Exhibiting
companies include Trina and JA Solar – the two largest photovoltaic panel manufacturers in the
world.
They are joined by other major names such as Jinko Solar, which was part of the consortium that
set a record-low price in bids for Abu Dhabi’s planned Sweihan solar power plant in September
2016, Suntech Power, and technology giant Huawei. Most Chinese exhibitors specialize in
photovoltaic solar energy, particularly solar panels, as well as associated technology such as
battery storage.
As falling oil revenues put pressure on budgets, the Chinese suppliers’ established reputation for
value, combined with their increasing reputation for quality and innovation, make them highly
competitive.
“We have seen very strong growth in the number of Chinese companies coming to WFES, with
the number of exhibitors now among the highest for any country, and their strength in the MENA
and South Asian markets is growing,” said Naji El Haddad, Group Event Director for Reed
Exhibitions, which organises WFES in partnership with Masdar.
“China has become a powerful force in the region’s accelerating renewable energy industry, with
several Chinese exhibitors at WFES ranked among the 10 largest solar manufacturers in the
world.”
First held in 2008, WFES aims to build the business case for renewable energy. Hosted by Abu
Dhabi’s renewable energy company, Masdar, as Part of Abu Dhabi Sustainability Week, the 2017
edition will be held at the Abu Dhabi National Exhibition Centre.

OPEC Oil Output Slides in December Amid Nigeria Disruptions
by Angelina Rascouet and Julian Lee
OPEC’s crude production fell by 310,000 barrels a day in December, as unplanned disruptions in
Nigeria reduced the group’s supply before deliberate cuts take effect this month.
Nigeria’s daily output dropped by 200,000 barrels to 1.45 million in December, ending three
months of gains as the African nation struggled to restore capacity after a year of militant attacks
on oil infrastructure. Saudi Arabia’s production fell by 50,000 barrels a day while Venezuela
declined by 40,000.
“Crude production in Nigeria in December was once again severely impacted, mostly due to a field
maintenance as well as a strike of port workers,” Amrita Sen, chief oil analyst at London-based
consultant Energy Aspects Ltd., said by e-mail.
The decline in December comes as OPEC, which controls around 40 percent of global supply, is
planning to curb output in a bid to boost oil prices. The organization reached a historic deal last
month with Russia and other non-members to cut global production by almost 1.8 million barrels a
day starting this month.
Brent crude, the global benchmark, advanced 52 percent last year, the biggest annual gain since
2009. Prices were down 0.3 percent at $56.31 a barrel as of 6:39 a.m. London.

Overall, the Organization of Petroleum Exporting Countries -- excluding Indonesia which
suspended its membership on Nov. 30 -- pumped 33.1 million barrels a day in December,
according to a Bloomberg News survey of analysts, oil companies and ship-tracking data.
That compares with a November total of 33.41 million barrels a day for the 13 continuing
members of the group, or 34.14 million including Indonesia’s daily output of 730,000 barrels.
Under the terms of last month’s agreement, OPEC’s total output including Indonesia would fall to
32.5 million barrels a day. Compliance with that target will be judged against independent
estimates compiled by OPEC, which can vary from the Bloomberg News survey.
Nigeria Disruption
In Nigeria -- which along with Libya is exempt from making cuts because of conflict -- maintenance
on the Erha field and strike action by workers at Exxon Mobil Corp.’s operations in the country
disrupted both exports and production, Sen said. A year ago, the country was pumping almost 2
million barrels a day.
No cargoes of the Agbami crude grade were shipped in first half of December, while three out of
the four Erha cargoes originally scheduled to load were deferred, with two of those moved into
January, according to loading programs obtained by Bloomberg.
Iran, Kuwait and Angola each reduced output by 20,000 barrels a day while Algeria and Iraq
dropped by 10,000, the survey showed.
Libya pumped an extra 50,000 barrels a day last month as the Northern African nation reopened
two of its biggest oil fields and loaded the first cargo in two years from its largest export terminal.
2017

US: EIA’s AEO2017 projects the US to be a net energy exporter
in most cases Source: U.S. Energy Information Administration, Annual Energy Outlook 2017
EIA’s Annual Energy Outlook 2017 (AEO2017), released this morning presents updated
projections for U.S. energy markets. This AEO is the first to have projections through 2050 in the
AEO tables.
The United States becomes a net energy exporter in most AEO2017 cases as petroleum liquid
imports fall and natural gas exports rise. Exports are highest, and grow throughout the projection
period, in the High Oil and Gas Resource and Technology case, because favorable geology and
technological developments result in the production of oil and natural gas at lower costs.
The High Oil Price case provides favorable economic conditions for crude oil and natural gas
producers while restraining domestic consumption, enabling the most rapid transition to net
exporter status. In all cases but the High Oil and Gas Resource Technology case, which assumes
substantial improvements in production technology and more favorable resource availability, U.S.
energy production declines in the 2030s, which slows or reverses projected growth in net energy
exports.
The eight cases considered in AEO2017 incorporate different assumptions that reflect market,
technology, resource, and policy uncertainties that affect energy markets. Other key findings
include
Energy consumption is consistent across all AEO cases, bounded by the High and Low Economic
Growth cases. In the Reference case, total energy consumption increases 5% between 2016 and
2040. Because a significant portion of energy consumption is related to economic activity, energy
consumption is projected to increase by approximately 11% from 2016 to 2040 in the High
Economic Growth case and remain nearly flat in the Low Economic Growth Case. In all AEO
cases, the electric power sector remains the largest consumer of primary energy.
Energy production ranges from nearly flat in the Low Oil and Gas Resource and Technology case
to growth of nearly 50% over 2016–40 in the High Oil and Gas Resource and Technology

Case. Unlike energy consumption, which varies less across AEO cases, projections of energy
production vary widely.
Production growth is dependent on technology, resource, and market conditions. Total energy
production increases by more than 20% in the Reference case from 2016 through 2040, led by
increases in crude oil and natural gas production.
Energy related carbon dioxide emissions decline in most AEO cases, with the highest emissions
projected in the No Clean Power Plan case. All AEO2017 cases except the No Clean Power Plan
case assume the Clean Power Plan is implemented.
To better focus EIA’s resources on expanding its understanding of rapidly evolving energy
markets and to better represent new information in EIA’s models and publications, EIA has
adopted a two-year release cycle for the AEO.
Like AEO2015, AEO2017 is a shorter edition of the AEO. A full edition of the AEO,
including Issues in Focus articles, in-depth updates on changes in Legislation and Regulations,
and a larger set of side cases with browser tables and spreadsheets for all cases is produced
every second year.
In years between the full editions, a shorter edition provides a smaller number of cases
summarized in annotated presentation slides with the standard set of AEO browser tables and
spreadsheets containing the detailed modeling results.
EIA will continue to update and refine the market dynamics and technologies in future AEOs,
especially for the projections between 2040 and 2050. Projections from the AEO2017 Reference
and alternative cases are available on the Annual Energy Outlook website.
http://www.eia.gov/pressroom/presentations/sieminski_01052017.pdf

NewBase 08 January 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Crude oil at Brent $57.10 and WTI $53.99, up slightly this week
as traders parse signs OPEC is cutting output
Oil traded higher on Friday as investors bought futures ahead of the weekend, but a strong U.S.
dollar limited gains, as did lingering doubts about whether all OPEC producers would cut output in
line with an agreement.
Trading was choppy, and market players cited end-of-week position-squaring and relatively low
volumes during the first trading week of the year.
Brent crude futures, the benchmark for international oil prices, were up 11 cents at $57 per barrel
at 2:35 p.m. ET (1935 GMT), having swung from a high of $57.47 to a low of $56.28.
In the United States, West Texas Intermediate (WTI) crude futures settled up 23 cents at $53.99 a
barrel, recovering from a session low of $53.32 and off a high of $54.32.
The contract rose about 0.5 percent on the week, marking the fourth straight weekly gain.
"There's a lot of volatility, or at least changes in direction," ABN Amro senior energy economist
Hans van Cleef said. "People think the long-term trend is up, but after a gain of a few dollars, they
take profit."
The dollar gained broadly against major currencies after the U.S. non-farm payrolls report showed
a slowing in hiring in December but an increase in wages, setting the economy up for further
interest rate increases from the Federal Reserve this year.
A stronger greenback makes oil more expensive for holders of other currencies.
Oil price special
coverage

Top crude exporter Saudi Arabia and fellow Gulf members Abu Dhabi and Kuwait showed signs
they were cutting production in line with an agreement by OPEC and other producers, yet market
watchers have doubts about overall compliance.
Saudi Arabia's state oil producer Saudi Aramco has started talks with customers globally on
possible cuts of 3 percent to 7 percent in February crude loadings.
A Kuwaiti oil official said that country had also reduced production in line with the deal, and there
are also reports of supply cuts from Abu Dhabi.
But there are still doubts about other producers' compliance.
"There will be some countries who will cheat...we expect zero compliance from Baghdad... And we
definitely do not expect the Kurds to join in, given that they are autonomous from the federal
government," Energy Aspects said in its 2017 oil market outlook, published this week.
Iraq Prime Minister Haider al-Abadi said this week the autonomous Kurdish region wasexporting
more than its allocated share of oil. Iraq is the Organization of the Petroleum Exporting Countries'
second-largest producer.
Iran has sold more than 13 million barrels of oil that it had long held on tankers at sea, capitalizing
on an OPEC output cut deal from which it is exempted to regain market share and court new
buyers, according to industry sources and data.
In the past three months, Tehran has sold almost half the oil it had held in floating storage, which
had tied up many of its tankers as it struggled to offload stocks in an oversupplied global market.
National Iranian Oil
Company (NIOC) is also
negotiating with the
Philippines over exporting
four million barrels of crude
per month to the country,
Iran's English-language
Press TV quoted a
statement published on
Friday by the NIOC as
saying.
Iran, OPEC's third-largest
oil producer, won special
terms from the group's
production cuts agreed on
Nov. 30 and may raise
output slightly.
Overall supply from OPEC
in December fell only
slightly to 34.18 million barrels per day (bpd) from a revised 34.38 million bpd in November,
according to a Reuters survey this week based on shipping data and information from industry
sources.
U.S. energy companies this week added oil rigs for a 10th week in a row, bringing the total count
up to 529, the most since December 2015, energy services firm Baker Hughes said on Friday.

NewBase Special Coverage
News Agencies News Release 08 Jan. 2017
Dubai solar: A step-by-step guide to the process of installing
solar panels
TheNational- LeAnne Graves
In our case study, the villa in Dubai consumed a total of 65,040 kilowatt-hours last year, which,
according to Dewa tariffs, would total Dh22,295.60 in charges. However, 12 solar panels were
added to the property; that saved the customer 10 per cent in electricity usage and 11.57 per cent
on the electricity bill.
The projection from this example assumed that Dewa would increase its rate by 15 per cent rate,
and even still showed that the villa would make a return on its investment in its ninth year. All
savings from the solar panels after that would be pure profit.
For a breakdown of the case study data, take a look at the graphic at the bottom of this story.
There are hurdles to overcome to installing solar panels in your home, from getting approval from
your developer to using a Dewa-approved contractor, but there’s no substitute for good research.

Choose product type and site location
First, homeowners need to contact the developer of their community to find out whether there are
any restrictions on changing physical properties of the home. For example, an owner with property
in The Springs would need to contact Emaar Properties.
You may think that you can install panels on the ground, out of sight. It is very important to avoid
total or partial shading of panels during the day as this will render the system ineffective. Look to
have mounted solar panels in a seamless configuration to enable easy access for cleaning. Flat
villa rooftops and parking garages are some of the most suitable areas.
Make sure the location is ventilated as the breeze will help increase panel efficiency, which means
a greater return on investment.
No two systems are alike and will not have the same power output. Solar installers should survey
each property and advise you on the best layout and installation method.
Budget
Solar panels typically only make up 40 per cent of the total cost of a system while other parts such
as inverters, mounting and wiring make up another 40 per cent. This leaves the design,
installation and various authority approvals.
Go to the Shams Dubai website and look through the list of registered consultants – 52 by mid--
December.
Get prices from numerous approved contractors and look up their previous experience. As it is
relatively easy to become a certified expert, homeowners should look for reputable companies
with proven experience in Dubai. It is important to note that contractors who are not Dewa-
approved will not be allowed to connect your system to the grid.
You can also gauge prices by going to Dubai’s newly launched Green Deal site which offers a
standardised approach.
Engineering and approval
Homeowners need to have the property’s construction drawings and site affection plan, which was
provided by the developer at the time of purchase.
This is used by the contractors/consultants to create new drawings to show the layout of the
panels and wiring for approval by the various authorities. Some contractors will go as far as
providing renderings to show how your system will look.
The contractor needs to obtain no-objection certificates from Dewa (electrical side of system) and
Dubai Municipality (mechanical/construction side of system) before any work can start. Usually the
homeowner is responsible for applying for community/developer approvals and access permits
using the same drawings/paperwork.
There are some companies that offer all-inclusive services but you should make sure to know
exactly what is included at the beginning.
Purchase, install and commission
If your contractor doesn’t sell the equipment, you may use panels from a variety of other sources
as long as the specifications match the requirements given by Dewa. Again, research the type of
panels to make sure that would be a good fit for what your needs.

Do not make a decision based solely on price but look at efficiency and any other reviews of the
product. Shams Dubai also includes a list of approved products and vendors.
The best route would definitely be to find a contractor that offers a turnkey installation, or a
solution that offers one rate for everything from installation, consulting to financing.
The total time from idea to implementation can be from as little as three months (Dubai Carbon) or
up to five months (Oryx Solar).
The actual installation of the system should take no longer than three days. Then there should be
three to four visits and inspections from Dewa and Dubai Municipality.
The rest is time it takes to seek the various stages of approval required. * Input provided by Dubai
Carbon and Oryx Solar
For example, Union Properties requires residents to gain no objection certificates and gate passes
for contractors before carrying out any modification or alteration works, and tenants need to
submit various papers including a connection agreement from Dewa, technical drawings and
method statements.
A spokesman for Nakheel said that it also requires owners to submit modification proposals before
doing any work, however, it said that "the installation of solar panels is both permitted and
encouraged in Nakheel communities".
One of Dubai’s biggest contracting companies, Al Jaber Engineering & Contracting (Alec), set up
a division last year targeting the solar panels market but its focus is on commercial and industrial
buildings.
Gipin Mani, the account manger for Alec Energy, said that Dewa’s introduction of net metering
had opened the door for all property owners to be able to capitalise on solar energy.
Net metering allows property owners to effectively "sell" excess power generated during the day to
Dewa, which gives credits that can be redeemed on future energy bills.
This means property owners no longer need expensive storage batteries to benefit from solar
generation.
Mr Mani said the length of the payback period for those installing solar panels varies because
Dewa charges homeowners and commercial users different rates based on energy usage levels.
However, even conservative energy users should see a payback for solar installations within eight
years, he said.
"It’s a very good initiative. A lot of people are interested in investing," he argued.
Mr Nami said that it generally takes about 10 square metres of roof space to generate 1kW of
power, so a typical three-bed villa with 100 to 200 sq m of roof space would be capable of
generating between 10 and 20kW of power.
Alec Energy typically targets projects capable of generating at least 500kW. It installs the systems
for free under lease deals lasting for 20 years. It then provides electricity at a discount to Dewa’s
regular rate but requires a minimum level of power use.
In October, the company agreed a deal with Al Nabooda Automobiles to install 25,000 solar
panels on the roofs and car parks of its body and paint shop. The panels will generate about
6.8MW, or about 70 per cent of the shop’s energy requirements.

Zohal Renewable Energy, a company set up in May 2015 as a joint venture between Gargash
Group and Green Energy Systems, is one company that sees opportunities in the residential
market.
It has spent more than a year ensuring that all five of its engineers gained accreditation from
Dewa and has already installed panels at a mosque within Dubai Silicon Oasis as well as at a
labour camp for fisheries workers in Jebel Ali.
Muhammad Ansari, Zohal’s sales and marketing engineer, said that its first two residential
projects are in the design phase. It is calculating a more aggressive payback period than Alec –
six years – on the basis that "current electricity prices will increase" over time.
He said that installations cost about US$1.50 (Dh5.50) per watt produced but is more conservative
in his target of how much a typical villa roof can produce, given that many also have to
accommodate chiller units and other plant equipment.
"It is tough to accommodate more than 4 to 5 kW on a single villa," he said, unless the property
has been specifically designed to accommodate panels.
Mr Ansari said the high demand for power in the region and the weather conditions makes solar
an ideal power source but added that "the process to apply for a solar connection for domestic
users

Buying and installing solar panels may provide an attractive long-term return on investment but it
is unlikely to significantly increase the value of your home. David Godchaux, the chief executive
of Core Savills, said the "lack of awareness" surrounding sustainability issues in the UAE meant
that those who spend money on the technology generally don’t benefit from a boost in their
property’s value.
"It’s a vicious spiral," he said. "Because you don’t have awareness, people don’t understand that
they can resell at a premium. And because they don’t understand that they can resell at a
premium, they actually don’t, which makes new buyers think it’s not worth it."
He said that homeowners in the UAE who make improvements to other elements of their home,
such as upgrading kitchens or bathrooms, do generally benefit from an uplift in a property’s value.
"You typically make a profit in this country because a lot of people don’t want the hassle of
improving a home that is generally not delivered to a very high standard of finishes by the
developer to the homeowner.
"So if you improve it, you are typically able to triple the money you invested to improve it. That’s a
general rule of thumb. If you spend Dh10,000, you are able to get about Dh20,000 to 40,000
back."
Those who invest in solar panels may benefit handsomely from reduced electricity costs in the
long term, as Gipin Mani of Alec Energy says that a solar panel system typically returns about
three times its investment value over a 25- to 30-year lifespan. However, they are unlikely to make
anything more on it than the cost of insulation.

Dima Isshak, the head of research and consultancy at Chestertons Mena, said that part of the
problem is that many renters or homeowners do not properly grasp what proportion of their overall
housing costs goes on electricity bills.
Chestertons estimates that solar panel installations could reduce electricity bills by between 50
per cent and 60 per cent per month and that buyers should eventually recognise the value of them
in the long run.
Ms Isshak acknowledged that one of the potential barriers for solar panel take-up in the UAE
market is the higher-than-average number of investors as homeowners. Installing solar panels is
"just asking them to invest more money into their property" without the incentive of saving on fuel
bills, which are typically paid by the tenant.
Similarly, tenants lack the security of tenure to make the type of investment in a property that they
do not own when the payback periods are so long. "But if you’re an end-user and you own the
villa, you will get that payback over the course."
Holley Chant, a senior executive at KEO International Consultants, said that perceptions regarding
sustainability are changing and that developers run the risk of being stuck with obsolete assets in
the future if they don’t design sustainably today. She pointed to the adoption of Green Real Estate
Sustainability Benchmarks by the property developers in the US as evidence of the seriousness
with which the industry now takes this issue.
"I think it is really interesting and a prophecy of things to come, that people are doing sustainability
as a risk management so they don’t lose value in their real estate," she said.
She said that sustainable homes could be a differentiator in the future – particularly in Dubai,
where energy costs are higher than Abu Dhabi and where some experts are predicting the risk of
an oversupply of new homes in the future.
"When there is an abundant supply, people will start to look at what is going to cost less in terms
of operation. So if you’re a tenant, and someone says ‘your rent is the same as down the street
but your energy bill is going to be half’, which one are you going to rent?"

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were
spent drafting, & compiling gas transportation, operation & maintenance
agreements along with many MOUs for the local authorities. He has become a reference for many
of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally,
via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase January 2017 K. Al Awadi

New base 984 special 08 january 2017 energy news

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