France’s EDF is in talks with the Ras Al Khaimah Municipality to set up a five-gigawatt pumped storage hydropower plant in the emirate, which would be the “biggest in the world”, a senior executive said.
The project, which will be capable of storing energy for up to 12 hours, is a “country-level" initiative aimed at balancing electricity supply in the UAE, where clean energy is playing an increasingly significant role in the energy mix, Luc Koechlin, chief executive of EDF Middle East, told The National on the sidelines of the RAK Energy Summit on Thursday.
“Most of the solar farm development is happening in Abu Dhabi and Dubai but for the storage and especially pumped storage, you need mountains,” Mr Koechlin said.
Connecting the power grids will help to effectively manage the energy generated from solar, nuclear and large-scale storage systems, he added.
A pumped storage plant harnesses the power of water to generate electricity. It has two reservoirs, one higher than the other. When there is excess electricity, often from solar or wind power, it is used to pump water up to the higher reservoir. This stored water becomes a reserve of energy.
Currently, the Fengning pumped storage power station in China’s Hebei province is the world’s largest, with a capacity of 3.6 gigawatts.
In 2017, Dubai Electricity and Water Authority (Dewa) awarded a Dh58 million ($15.79 million) consultancy contract for a pumped-storage hydroelectric power station at Hatta Dam to EDF.
The power station will have a production capacity of 250 megawatts, a storage capacity of 1,500 megawatt hours and a lifespan of up to 80 years. It was due to be completed late this year but will now be ready for use around the start of 2025.
Meanwhile, EDF Renewables was also part of a Masdar-led consortium that developed the third phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. The company holds a 20 per cent stake in Abu Dhabi's two-gigawatt Al Dhafra solar project, which was launched last year.
EDF is also interested in participating in any future nuclear power plant projects in the UAE, Mr Koechlin said. It participated in the tender for the Barakah nuclear plant in Abu Dhabi but the contract was ultimately awarded to South Korean utility Kepco. Barakah generates 40 terawatt-hours of electricity a year, providing up to 25 per cent of the UAE's electricity.
In terms of nuclear power, EDF is currently developing its own design for small modular reactors (SMRs), floated as a potential solution for energy generation in the Gulf region, particularly for applications such as desalination.
SMRs are more compact and can be built in factories, making them, in theory, more flexible and adaptable to different locations. However, existing SMR projects have been hamstrung construction delays and cost overruns.
“It's still a long way [off] because the challenge for SMR is to make it affordable and easily duplicable,” Mr Koechlin said. Unlike large reactors, where only a few people have the expertise, SMRs can be developed by a wider range of companies, which will allow for faster advancement, he added.
The SMR project pipeline reached 22 gigawatts in the first quarter of the year, an expansion of 65 per cent since 2021, according to Wood Mackenzie.
About 58 per cent of all planned or proposed SMR projects globally are being driven by five countries – the US, Poland, Canada, the UK and South Korea – the consultancy said in a report this year.
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Race 3
Produced: Salman Khan Films and Tips Films
Director: Remo D’Souza
Cast: Salman Khan, Anil Kapoor, Jacqueline Fernandez, Bobby Deol, Daisy Shah, Saqib Salem
Rating: 2.5 stars
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
