Dubai firm developing hybrid diesel and solar technology in Saudi Arabia

SES Smart Energy Solutions will develop what it says is the first on-field temporary hybrid plant that uses diesel and solar power in the kingdom.

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A Dubai-based power company is developing a hybrid diesel and solar power plant in Saudi Arabia amid declining fuel subsidies.

SES Smart Energy Solutions, based in Jebel Ali free zone, will develop what it says is the first on-field temporary hybrid plant that uses diesel and solar power in the kingdom.

“This will further enhance SES offering in the region, namely for remote sites where SES specialises in providing on demand short to medium-term energy solutions,” said Waleed Isaac, the firm’s managing director. The 14-megawatt plant will be completed this month under a five-year power purchasing agreement using technology supplied by the Italian firm Building Energy.

Demand for similar projects is expected to grow as the government cuts fuel subsidies.

Cornelius Matthes, Building Energy’s regional managing director, said Saudi Arabia had introduced a penalty for diesel power generation used above 270 litres per megawatt hour. Every litre used over the allotted amount is charged at market prices.

According to the kingdom’s electricity and cogeneration regulatory authority, diesel power costs users just under 70 US cents per million British thermal unit (Btu), compared to international prices at about $22. Any building that uses a diesel generator can add solar power to help save diesel fuel.

Massimo Teodori, Building Energy’s managing director of smart systems, said the hybrid diesel and solar technology could also be used to provide energy to rural areas without any initial investment required.

By partnering with SES, Building Energy is also hoping to gain a leg up on future projects in Dubai. “We are determined to help additional Mena countries, and we’re very bullish on Dubai,” said Mr Matthes. Building Energy expects to have its first project in the emirate by the end of the year.

“And in the mid-term, like five years, we hope to have several hundreds of megawatts of renewable energy projects throughout the Mena region,” he said.​

lgraves@thenational.ae

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