Masdar moves forward

Masdar City is still under construction, the first buildings are scheduled to open in Q3 2010.

On target?
Demand for energy in the Emirate is estimated to stand at a whopping 20GW by 2020, says Hilal Al Zaabi, project manager for Shams I. Carter points out that power demand increased by 11 percent in 2009.

Including exports to the rest of the UAE, demand for power originating from Abu Dhabi’s power plants increased by 16 percent.

Such figures drive home the need for further development of renewable sources of energy, should the seven percent target be met. Some observers, however, point out that adjustments on the generation side will not be sufficient. Efforts will need to be made curb consumption, too.

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“It doesn’t make sense to put in 100MW of renewable power, and then, because consumption is increasing at a breakneck pace, go ahead and put in another 200-300MW of conventional power. That just skews the equation again,” says Bhargava.

Masdar City – The Vision remains the same
Masdar City, carbon neutral project located about 17 kilometres from downtown Abu Dhabi, hopes to become a free zone brimming with companies, researchers, and academics from across the globe, an international hub for companies and organisations focused on renewable energy and clean technologies.

The city will host the Masdar Institute of Science and Technology, which is collaborating with the Massachusetts Institute of Technology (MIT) to develop advanced energy solutions, sustainable technologies and policy.
Construction began in 2008, and the first buildings are scheduled to open in the third quarter of 2010.

Faced with delays resulting from the economic and financial turmoil of the recession, the project has been placed under review. Speaking at the launch of the Shams I projects, Masdar CEO Dr. Sultan Al Jaber fended off suggestions that a revised master plan will abandon the original size and ambitions of the project.

“Masdar City is an important component of Masdar. While the review is very much required, the vision remains the same, and we won’t scale back or scale down. But we are much smarter than when we started. There have been lessons learned and we want to capitalise on them.” Asked specifically whether the development will remain carbon neutral, he repeated that “the vision remains the same.”

Talking to Bloomberg at a conference at the end of June, Richard Reynolds, Masdar’s head of supply-chain management, said that the revised master plan would be announced in the following two to three weeks.

One of the issues being considered in the review is “how to make Masdar economically viable,” Reynolds told the newswire. The commencement of the Shams I is likely to give the project some added momentum.

“Masdar City has to be looked at as the launch vehicle for clean tech companies wanting to establish a presence in the region,” says Abhay Bhargava, industry manager at Frost & Sullivan.

“I think Masdar City should get a boost by Masdar itself being active in such a large renewables project in the region.”

Total involvement
The involvement of Total in renewable energy projects in the region is more proof of the company’s changed strategy.

“Total has recently increased its involvement in solar technologies, making it one of its favoured future energy bets, as well as working with Masdar as a way of enhancing its relations with Abu Dhabi, where it has significant oil and gas interests,” writes Sam Ciszuk, analyst at IHS Global Insight, in a research note.

“Its good to see Total in the picture, participating in a renewables project in the region, especially if you look at BP who have been withdrawing from renewable energy over the last year of so, both in region and globally,” adds Frost & Sullivan’s Abhay Bhargava.