Early this year, GE and Japan’s Sumitomo Corporation reached a public-private partnership (PPP) milestone by signing a 25-year Power Purchase Agreement (PPA) with the Sharjah Electricity and Water Authority (SEWA) to develop, build and operate a 1.8 gigawatt (GW) combined cycle power plant located in Hamriyah.
Equipped with GE’s HA technology, including the world’s largest and most efficient heavy-duty gas turbine, the flagship project is expected to be the most efficient power plant in the Middle East’s utilities sector upon completion and will enable SEWA to substantially improve the overall efficiency of its operations.
The project will consist of three combined cycle blocks, the first of which is expected to come online in 2021. A consortium of banks and JBIC will co-finance the Project for a total private-public co-financing amount of approximately $1 billion.
The new project in Sharjah is expected to boost the emirate’s electric power supply, but most importantly, it emphasizes the critical role of gas power in the wider energy mix, as the Middle East steps up investments on renewable energy including solar, wind and nuclear.
Saudi Arabia has for instance earmarked over $100 billion for renewable energy investments. But the Kingdom is at the same time furthering investments on new gas power projects, in recognition of gas’ essential role in narrowing the electricity demand-supply gap.
“We want the best of all possible power generation sources. We do not intend to play one against the other. To cope with the fast rising demand of electricity, we will need renewable energy to complement traditional sources of power generation including gas,” Khalid A. Al-Falih, Saudi Arabia’s outgoing minister of energy, industry and mineral resources told Utilities Middle East recently.
In Sharjah, where GE is helping to build the emirate’s new 1.8 GW gas power plant, power generation activities are dominated by gas turbines, which represent 83.2% of its available capacity. No target policies for the large-scale deployment of renewable energy exist in the emirate.
SEWA is looking to kick-start its own renewable energy programme that will address the immediate needs of the emirate, but at the same time pursue conventional power generation, which it considers necessary for a reliable energy mix.
“What our neighbours in the region are doing in terms of new solar projects, nuclear and clean coal plants is good in terms of boosting power capacity. We would like to pursue a strategy that will guarantee sustainable and uninterrupted power supply,” says H.E. Dr. Rashid Alleem, Chairman of SEWA.
According to a report from the Gas Exporting Countries Forum (GECF), the Middle East’s demand for electricity is expected to reach 2,419 terawatt hours (TWh) by 2040, double 2016 levels. This has prompted regional utilities to explore other sources of power, including renewable energy.
However, in an energy-hungry world marked by a spiralling demand for electricity, the intermittency of renewable power supplies can make it difficult to rely upon it as the sole source of electricity. The sun does not always shine down upon us through clear blue skies, winds do not always blow at stable speeds, rainfall patterns are not always reliable enough to ensure a planned, constant flow of hydropower and today’s energy storage solutions have yet to evolve to a level where they can plug in the gaps that may be caused by this intermittency.
“The world will have to depend upon a mix of conventional resources and renewable power to meet the need for dependable, affordable and sustainable energy over the foreseeable future. Traditional and alternative sources should be seen as complementary, not competing forces, to meet our electricity needs,” says Joseph Anis, President & CEO of GE Power in the Middle East, North Africa and South Asia.
“However, business as usual will not work. We need to develop solutions that are a better fit for our evolving reality. That means investments in technologies that are more efficient and flexible so they release fewer emissions, have lower life-cycle costs and are more flexible so they can ramp up and down faster to stabilise the grid in response to intermittent renewable energy. Hybrid technologies offer another viable solution.”
At GE, for example, this effort is reflected in its HA gas turbine technology, which is now available at 64% net combined cycle efficiency – higher than any other competing technology today. In fact, the gas turbine has already helped to deliver two world records for efficiency, one each in the 60 hertz and 50 hertz segments of the global power market.
“Capable of ramping up or down at up to 88 megawatts per minute while still meeting emissions requirements, the technology can support countries transitioning to greater supplies of renewable power in their energy mix by helping to balance grid instability,” says Joseph Anis.
This is the same technology that has just been adopted by SEWA for its upcoming 1.8 GW independent combined cycle power project located in Hamriyah, Sharjah.
The technology is also a good fit for developing countries looking to bring large amounts of power online to plug the energy deficit near dense population centres, without the requirement of large tracts of land that are often required for equivalent amounts of renewable energy. A prime example of that is Bangladesh, which has adopted the HA technology since 2014 to help bridge the large gap between demand and capacity.
Mixed technology integration is another means to address today’s energy needs. For example, Southern California Edison (SCE) and GE unveiled the world’s first battery-gas turbine hybrid system in Norwalk, California. The system helps balance variable energy supply and demand, including during evening hours when the sun sets and solar power production falls while electricity usage surges as people turn on lights and appliances.
At its core is a state-of-the-art control system which seamlessly blends output between the battery and the gas turbine. The energy storage capacity of the battery has been designed to provide enough time coverage to allow the gas turbine to start and reach its designated power output. Therefore, the system does not need to burn fuel and consume water in standby mode to dispatch power immediately when demand surges or renewable energy supplies decline.
More innovative solutions are also around the corner. Today, scientists are able to adapt power generation technologies such as gas turbines to burn clean resources such as hydrogen. In fact, GE has successfully utilised blended fuel with up to 95% hydrogen to generate electricity through its gas turbines.
“For now, securing our collective energy future means everyone must be on board to design a diversified, innovative global energy system that draws on different fuel sources and technologies,” says Joseph Anis.
Survival in this evolving energy landscape will mean changes in business strategy as well as scaling up innovations geared towards improved performance for gas turbines, and this is what GE has firmly set out to do.
“A lot of what we are investing in right now is around efficiency gains. We want to continue to be economically advantageous for the customers we serve and to support sustainability goals by ensuring lower fuel consumption for increased power output. Through efficiency gains, power density gains and flexibility gains, we are providing much-needed optionality for our customers at a time when grid systems and the problems they are trying to solve are becoming increasingly complex.”