Saudi renewables developer Acwa Power has signed an agreement with South Africa’s Central Energy Fund to co-invest in a 100MW concentrated solar power (CSP) project in the country’s North Cape province.
The Redstone project will move into construction phase later this year and will feature energy storage technology, allowing energy utilisation even after dark. The facility is expected to dispatch around 480,000 megawatt hours (MWh) per year, Acwa Power said in a statement on Friday.
“With capital and operating cost of CSP plants with molten salt storage solution reducing at the same time as demand for cost competitive renewable energy increases in South Africa, our Redstone CSP plant will be able to deliver stable cost competitive electricity supply to more than 210,000 South African homes during peak demand periods which are during the night,” said Acwa Power chief executive Paddy Padmanathan.
The investment will be the first in South Africa for Acwa Power, which has primarily invested in the Middle East and North Africa region, as well as renewables schemes in Jordan. The announcement follows a pledge by Saudi Arabia to invest around $10 billion in the African nation following the visit of President Cyril Ramaphosa to Jeddah on Thursday.
South Africa, which derives much of its power-generation requirements from burning coal is also dependent on oil to meet its energy needs. The biggest supplier of crude to the African nation is Saudi Arabia, which meets around 47 per cent of its requirement. It also relies on imports from Oman, Iraq and the UAE, which accounts for 4.5 per cent of the global crude production.
The UAE also announced plans for $10bn worth of investments into Africa's second biggest economy, official news agency Wam said, without giving further details. President Ramaphosa visited Abu Dhabi on Friday as part of his Middle East tour.
The African nation is looking to change its energy mix and its the fund, in which Acwa Power will become an investor, is a key to that strategy. The fund comprises a consortium of companies dedicated to finding solutions to meet energy requirements of South Africa as well as other countries in the sub-Saharan African region. It is pursuing development of hydrocarbons, biomass, wind as well as the other renewable resources in the region to achieve its objective. The fund also manages the development of oil and gas assets on behalf of the South African government.
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Saudi Arabia’s sovereign wealth fund increases stake in Acwa Power
Saudi Arabia pledges around $10bn investments in South Africa
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Acwa Power's joint investment in South Africa’s Redstone will see the CSP plant developed using a central salt receiver technology with 12 hours of thermal storage that will allow the facility to generate power during peak-demand periods. The central tower solution for the project, which has also been deployed in Acwa Power’s other CSP project in Shaikh Mohammed bin Rashid Solar Park in Dubai is expected to generate cost efficiencies by more than doubling MWh output of electrical energy per rated megawatt capacity.
Salt-based solutions have become a more popular and relatively inexpensive method to store energy in comparison with other solutions such as photovoltaic or wind-based schemes linked to utility-scale batteries.
Acwa Power chairman Mohammad Abunayyan said the Riyadh-based developer was looking to “explore more opportunities” in South Africa to increase production capacity and lower costs.
Saudi Arabia earlier this month increased its stake in Acwa Power through its sovereign wealth fund, Public Investment Fund, as the world’s largest crude exporter prioritises renewable energy development to free up more barrels to sell in the global oil markets.
Saudi Arabia is expected to tender over 4GW of solar and wind projects as it continues to diversify its economy away from oil. The kingdom last year established a renewables department within the energy ministry, which has largely overseen hydrocarbons, and is expected to tender around $7bn worth of solar and wind schemes this year. Acwa Power has taken a leading role in the alternative power generation sector in Saudi Arabia as well. A consortium led by the company was chosen to develop Saudi Arabia’s first-ever solar plant, a $302 million facility at Sakaka, being developed on independent power producer model.
The developer is also bidding for the kingdom’s first wind project, a 400MW scheme in the northern Dumat Al Jandal region.
Our Time Has Come
Alyssa Ayres, Oxford University Press
Results
6.30pm Al Maktoum Challenge Round-3 Group 1 (PA) US$100,000 (Dirt) 2,000m, Winner Bandar, Fernando Jara (jockey), Majed Al Jahouri (trainer).
7.05pm Meydan Classic Listed (TB) $175,000 (Turf) 1,600m, Winner Well Of Wisdom, William Buick, Charlie Appleby.
7.40pm Handicap (TB) $135,000 (T) 2,000m, Winner Star Safari, Mickael Barzalona, Charlie Appleby.
8.15pm Handicap (TB) $135,000 (D) 1,600m, Winner Moqarrar, Fabrice Veron, Erwan Charpy.
8.50pm Nad Al Sheba Trophy Group 2 (TB) $300,000 (T) 2,810m, Winner Secret Advisor, William Buick, Charlie Appleby.
9.25pm Curlin Stakes Listed (TB) $175,000 (D) 2,000m, Winner Parsimony, William Buick, Doug O’Neill.
10pm Handicap (TB) $135,000 (T) 2,000m, Winner Simsir, Ronan Whelan, Michael Halford.
10.35pm Handicap (TB) $175,000 (T) 1,400m, Winner Velorum, Mickael Barzalona, Charlie Appleby.
Match info
Uefa Champions League Group C
Liverpool v Napoli, midnight
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The five pillars of Islam
Elvis
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Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
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.”
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
