Sascha Gaede, the director of sales at Solon, explains the intricacies of the company’s solar panels, which at present are sent mainly to Europe. Pawan Singh / The National
Sascha Gaede, the director of sales at Solon, explains the intricacies of the company’s solar panels, which at present are sent mainly to Europe. Pawan Singh / The National
Sascha Gaede, the director of sales at Solon, explains the intricacies of the company’s solar panels, which at present are sent mainly to Europe. Pawan Singh / The National
Sascha Gaede, the director of sales at Solon, explains the intricacies of the company’s solar panels, which at present are sent mainly to Europe. Pawan Singh / The National

Fujairah solar power company predicts bright future for industry


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FUJAIRAH // Staff at the Solon solar module plant in Fujairah are convinced their work could be the key to a bright future for solar power in the country.

The plant’s products are aimed at homes and businesses that want to install rooftop panels to take advantage of the abundant solar resources.

Situated in the Fujairah Free Zone, the plant is a year old and is the only manufacturer of high-quality solar modules in the country.

Early next year, the plant plans to double its production of solar panels with a joint capacity that can produce 150 megawatts (MW) of energy a year.

At present, the modules are sold abroad, mostly in Germany and Italy, but when the plant’s two new production lines open management has hopes the additional panels would be used in local projects.

“This could be the engine of change for the UAE,” said Sascha Gaede, the director of global sales at Solon, as he pointed across the large hall where the new equipment has been installed and was being tested.

The company is already fielding inquiries from UAE-based establishments looking to fit solar rooftop installations.

“We can start in the beginning of the year,” Mr Gaede said. “It is a question of demand.”

Each solar panel consists of 60 solar cells – devices that convert sunlight into energy. The company has a facility to produce solar cells but about 80 per cent of the cells it uses are imported.

At only 200 microns (0.2 millimetres) thick, the cells are as fragile as potato crisps and it takes just the gentlest of pressure to break them. Layers of special plastic foil and glass cover the cells to protect them.

Mr Gaede said the production process was like making a sandwich. “You have various layers put together, which you then bake into an oven,” he said.

The reality, however, is far more complicated.

The process starts at a laboratory, where the materials needed to produce solar panels are first tested against quality parameters.

The layers of the solar module are arranged starting with the glass, which is brushed, washed and dried before a layer of foil and a label with a unique bar code are put on top.

The bar code allows the manufacturer to later track down information, such as when and where a solar module has been produced, as well as how it performed in tests done right after it was finished.

In the net phase of production, robotic arms arrange individual solar cells into rows or, as the operators said, strings of 10.

The strings are placed on top of each piece of glass so that, typically it takes six rows of strings to create a module, measuring one metre by 1.64 metres.

Each solar module is baked in a furnace at 140°C to ensure all the different layers stick together into a coherent whole. An aluminium frame is then attached to complete each module.

Solon, which has experience in building large-scale solar plants, arrived in the country last year through a merger in which a UAE-based manufacturer, Microsol, acquired its assets.

The German company had been struggling financially and filed for insolvency in 2011. The deal allowed Microsol to increase its production capacity and achieve what Mr Gaede referred to as “German quality with the low labour costs of the UAE”.

vtodorova@thenational.ae

MANDOOB
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While you're here
THREE
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The story of Edge

Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.

It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.

Edge has an annual revenue of $5 billion and employs more than 12,000 people.

Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab

 

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

COMPANY%20PROFILE
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Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Superliminal%20
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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

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Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

War 2

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Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

Elvis
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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.”

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Rating: 4/5

How to become a Boglehead

Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.

•   Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.

•   Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.

•   Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.

•   Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.

•   Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.

•   Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.

•   Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.

•   Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.

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Director: James Gray

Stars: Brad Pitt, Tommy Lee Jones

Five out of five stars