Energy

Perkins' new project in Africa

The generator set for the school in Uganda behind metal bars for security.

The generator set fitted with a Perkins 1103 is providing vital backup power at the St Patrick School in Uganda. (Image source: Perkins)

Global power provider, Perkins, and generator set manufacturer, Jubaili Bros, have partnered in order to provide vital backup power for a children’s charity in Uganda

The two organisations have come together to support the St. Patrick School near Mbarara. The institution is supported by the Building Hope in Kids – Uganda charity, and educates more than 800 girls and boys up to Grade 7. The boarding school provides education and three healthy meals alongside two snacks per day. However, according to Perkins, conditions can be difficult with the main power often failing and no access to refrigeration.

Jubaili Bros collaborated with Perkins, which provided a Perkins 1103-33TG1 diesel engine, delivering 45kVA, for installation in a Jubaili Bros Jet generator set. The standby power solution will provide dependable backup power to the school’s five core buildings – the administration block, the auditorium and chapel, the dormitories, library and dining hall. In addition, the generator set will also provide much-needed power for the future installation of washing machines and 50 personal computers.

“St. Patrick School was thrilled to be the recipient of the new diesel generator set,” remarked Father Julius Turyatoranwa, founder of Building Hope in Kids – Uganda. “It’s vital for us that we have a way to provide backup power to the entire school during the periodic outages from the national electricity grid. It’s been a pleasure to work with Jubaili Bros in Uganda and Perkins Engines Company Limited. Their support has really meant a lot to Building Hope in Kids – Uganda.”

Jubaili Bros and Perkins are also committed to supporting the ongoing servicing and support for the equipment.

“We’re delighted to have been able to support such a worthwhile and important charitable project,” commented Dan Bentley, Perkins EAME sales director. “It’s been a wonderful collaboration with Jubaili Bros, as we came together to help over 800 children, and more going forward, to continue their studies in safe, light and warm living conditions.”

DEWA adds eight 132 kV substations in Dubai

Transmission substations with solar panels

DEWA announces eight new 132 kV substations in Dubai, boosting capacity by 1,200 MVA for US$370mn, enhancing energy reliability and supporting urban growth. (Image source: Adobe Stock)

HE Saeed Mohammed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority (DEWA), has announced the commissioning of eight new 132 kV transmission substations in the first half of 2024

These substations, with a total conversion capacity of 1,200 megavolt-amperes (MVA) and a combined cost of approximately US$370mn (AED 1.36 billion), are part of DEWA’s strategy to keep up with Dubai’s rapid development and urban growth. The projects also involved the installation of 89 kilometers of ground cables to further improve the efficiency of the 132 kV transmission network and address the rising electricity demand across the Emirate.

Dubai Energy Expansion

Al Tayer noted that some of these substations are designed to serve residential neighborhoods for Emirati citizens in Dubai, aligning with the integrated housing plan initiated by HH Sheikh Mohammed bin Rashid Al Maktoum, vice-president and prime minister of the UAE and Ruler of Dubai. This plan, launched by HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, chairman of the Executive Council of Dubai, aims to enhance living conditions in Emirati residential areas and boost social well-being.

“We continue our relentless efforts to achieve the goals of the National Strategy for Wellbeing 2031, and Dubai Social Agenda 33 to provide the best living experience and residential services that are suitable for all. We also work to enhance the reliability and availability of the energy network in Dubai utilising the latest disruptive technologies of the Fourth Industrial Revolution, smart technologies, and innovative practices across all our services and operations. This has contributed to achieving 100% in the reliability and availability of the energy transmission system in Dubai since 2018 and DEWA achieving the best performance among utilities worldwide. The total cost of DEWA’s electricity transmission network projects under construction exceeds US$1.36bn (AED 5 billion),” Al Tayer added.

The new substations were commissioned in the areas of Al Thanya 3, Al Barsha South 4, Wadi Al Shabak, Nadd Hessa, International City Phase 2, Wadi Al Safa 5, and Umm Suqeim 3. Completing these substations involved over 8 million safe working hours and employed the latest global digital technologies for transmission substations. This effort is part of DEWA’s commitment to advancing digital transformation across its services and operations, ensuring high standards of availability, reliability, efficiency, and safety.

As of the end of June 2024, the total number of transmission substations in Dubai has reached 382, including 27 400 kV substations and 355 132 kV substations. There are currently 31 132 kV transmission substations under construction, and DEWA is reviewing financial proposals for six new 132 kV substations. Over the next three years, DEWA plans to issue new tenders for the construction of more than 50 additional 132 kV transmission substations and extend 350 kilometers of ground transmission cables.

In addition, DEWA has awarded contracts for ten new 132 kV substations in various areas across Dubai, including Al Aweer 1, Umm Nahad 4, Al Manara, Umm Suqeim 2, Al Quoz Industrial 3, Hatta, Al Barsha South 3, Al Barsha 2, Wadi Al Safa 4, and Zabeel 2, with a total investment of approximately US$272mn (AED 1 billion). Contracts have also been awarded for extending 132 kV ground cables to connect these new substations to the main electricity transmission grid, totaling 25 kilometers and costing up to US$48mn (AED 176 million).

Global electricity demand to surge strongly

The IEA reports record global electricity demand growth driven by economic expansion, heatwaves, and tech adoption, with renewables set to surpass coal by 2025. (Image source: Adobe Stock)

According to a new report by the IEA, the world’s demand for electricity is rising at its fastest rate in years, driven by robust economic growth, intense heatwaves, and the increasing use of technologies that run on electricity such as EVs and heat pumps

The report, the IEA’s Electricity Mid-Year Update, forecasts global electricity demand to grow by around 4% in 2024, up from 2.5% in 2023. This would represent the highest annual growth rate since 2007, excluding the exceptional rebounds seen after the global financial crisis and the Covid-19 pandemic. The strong increase in global electricity consumption is set to continue into 2025, with growth around 4% again, according to the report.

Renewables surge ahead

Renewable sources of electricity are also set to expand rapidly this year and next, with their share of global electricity supply forecast to rise from 30% in 2023 to 35% in 2025. The amount of electricity generated by renewables worldwide in 2025 is forecast to surpass the amount generated by coal for the first time. Solar PV alone is expected to meet roughly half of the growth in global electricity demand between 2024 and 2025, with solar and wind combined meeting as much as three-quarters of the growth.

Despite the sharp increases in renewables, global power generation from coal is unlikely to decline this year due to the strong growth in demand, especially in China and India. As a result, carbon dioxide (CO2) emissions from the global power sector are plateauing, with a slight increase in 2024 followed by a decline in 2025. However, considerable uncertainties remain: Chinese hydropower production recovered strongly in the first half of 2024 from its 2023 low. If this upward trend continues in the second half of the year, it could curb coal-fired power generation and result in a slight decline in global power sector emissions in 2024.

Some of the world’s major economies are registering particularly strong increases in electricity consumption. Demand in India is expected to surge by a massive 8% this year, driven by strong economic activity and powerful heat waves. China is also set to see significant demand growth of more than 6%, due to robust activity in the services industries and various industrial sectors, including the manufacturing of clean energy technologies.

“Growth in global electricity demand this year and next is set to be among the fastest in the past two decades, highlighting the growing role of electricity in our economies as well as the impacts of severe heatwaves,” said Keisuke Sadamori, IEA director of Energy Markets and Security. “It’s encouraging to see clean energy’s share of the electricity mix continuing to rise, but this needs to happen at a much faster rate to meet international energy and climate goals. At the same time, it’s crucial to expand and reinforce grids to provide citizens with secure and reliable electricity supply – and to implement higher energy efficiency standards to reduce the impacts of increased cooling demand on power systems.”

With the rise of artificial intelligence (AI), the electricity demand of data centres is drawing increased attention, underscoring the need for more reliable data and better stocktaking measures. The report highlights the wide range of uncertainties concerning the electricity demand of data centres, including the pace of deployment, the diverse and expanding uses of AI, and the potential for energy efficiency improvements. Better collection of electricity consumption data from the data centre sector will be essential to correctly identify past developments and to better understand future trends.

Masdar's second green bond fuels renewable expansion

Masdar raises US$1bn through its second green bond issuance, advancing renewable projects in developing economies and aiming for 100GW by 2030. (Image source: Masdar)

Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy leader, has successfully raised US$1bn through its second green bond issuance under its Green Finance Framework

This comes a year after the company’s first issuance of US$750mn on the International Securities Market of the London Stock Exchange.

The issuance consists of two tranches of US$500mn each, with tenors of five and ten years and coupons of 4.875% and 5.25% respectively. There was strong demand from regional and international investors, with the order book reaching US$4.6bn, an oversubscription of 4.6 times. The final allocation split was approximately 70% to international investors and 30% to MENA investors.

Empowering green futures

The US$1bn proceeds from the issuance will fund Masdar’s equity commitments on new greenfield projects, many in developing economies, as the company aims for a target portfolio capacity of 100GW by 2030.

Masdar’s 2023 Green Finance Report, highlighting the delivery of its commitments under the Green Finance Framework, which has the highest possible rating from Moody’s of SQS-1, detailed the allocation and impact of its debut green bond. The proceeds have funded projects in emerging markets and the Global South with a total nominal capacity of 3.7 GW and are expected to mitigate 5.4 million tonnes of GHG emissions annually when fully operational.

Besides the green bond program, Masdar is acquiring operational companies in mature markets, injecting capital and expertise, significantly contributing to the global renewable energy capacity.

Mohamed Jameel Al Ramahi, CEO of Masdar, stated, “Following the successful launch of our first green bond in 2023, our second green bond issuance for US$1bn underscores investor confidence in Masdar’s financial robustness and its sustainability credentials. The funds will be pivotal in advancing our ambitious portfolio of renewable energy projects, further cementing our role as a key player in supporting an equitable energy transition by increasing energy access in emerging markets and the Global South.”

Mazin Khan, chief financial officer of Masdar, added, “As we have committed under our Green Finance Framework, we are raising green bonds and other green finance instruments to invest in new dark green projects. This is an important component of our investor relations story, but it is also a commitment that we are transparently fulfilling through the publication of our audited annual allocation and impact reporting. Few companies as strongly rated as Masdar offer investors bonds that can make such a positive impact across the ESG spectrum. Even fewer companies can tell investors exactly where every dollar of their money is going and its impact.”

Aligned with Masdar’s corporate credit ratings, this second issuance was rated AA- by Fitch and A2 by Moody’s. Fitch recently upgraded Masdar's credit rating to 'AA-', with a stable outlook, recognising the company’s financial strength and shareholder support, evidenced by their significant contributions to fund Masdar's growth ambitions.

The joint lead managers and bookrunners for the issuance were First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis, and MUFG.

Envision Energy drives Middle East wind power

Envision Energy partners with Saudi PIF and Vision Industries to advance wind power in the Middle East, supporting sustainability goals. (Image source: Envision Energy)

Envision Energy, recognised as the "Green Giant" among the "2024 TIME100 Most Influential Companies," has announced a strategic joint venture (JV) with Saudi Arabia's Public Investment Fund (PIF) and Vision Industries

This venture aims to accelerate wind power growth across the Middle East, supporting the region's transition to a cleaner, more sustainable future.

Under the agreement, Envision Energy will hold the majority share in the JV, with PIF and Vision Industries holding the remainder. The focus will be on manufacturing and assembling wind turbines and components like blades, nacelles, and hubs. This initiative aligns with Saudi Arabia's ambitious goal to localize 75% of renewable energy components by 2030, as part of the National Renewable Energy Program led by the Saudi Ministry of Energy.

PIF, as one of the world's largest sovereign wealth funds, plays a pivotal role in Saudi Arabia's energy transformation strategy, investing in various renewable energy initiatives including wind power, photovoltaics, hydrogen, and energy storage. Vision Industries, known for its investment in green energy projects and local supply chains, brings valuable expertise to the JV.

Envision Energy was chosen for its leadership in green power technologies, including smart wind power, energy storage systems, and green hydrogen solutions. The company has been a top player in global wind power order intake for consecutive years, contributing significantly to the worldwide energy transition.

This partnership underscores international cooperation and a shared vision for advancing clean energy transitions globally. The ceremony announcing the JV was attended by key figures including H.E. Yasir Othman Al-Rumayyan, Governor of PIF, Lei Zhang, chairman of Envision, and board members of Vision Industries, highlighting the commitment to sustainable development and Saudi Arabia's Vision 2030 objectives.