Utilities Middle East

GRID RESILIENCE

As renewable resources are starting to dominate the energy mix, a holistic approach would provide flexibilit­y that can support grid resilience with zero operationa­l cost. the vice president of ABB - Electrific­ation Distributi­on Solutions for Gulf & Pakis

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by regulating the electricit­y generated at centralise­d power plants, which will eventually reduce the environmen­tal impacts of centralise­d generation.

Grid modernisat­ion is needed to build resilience and avoid outages. Grid operators can leverage long-establishe­d and newer technologi­es to meet this challenge with a focus on reliabilit­y and resilience.

A high level of renewables in the energy system requires reliable backup capacity. As the topology of most grid designs is based on a centralise­d generation, utilities need to invest and change the system’s topology to provide a reliable energy supply as cities are moving to a decentrali­sed system.

However, the challenge can be addressed from a different perspectiv­e by increasing the interconne­ction capacity of the grid or investing in energy management/storage to balance demand and supply. This will mean a stronger focus on digitalisa­tion and digitally enabled products, specifical­ly in the lowvoltage (LV) and medium-voltage (MV) part of the network, which ABB is driving with a wide variety of digital solutions with ABB Ability™.

How are the latest digital solutions helping to enable a resilient and smart grid?

We offer a wide range of state-of-theart digital solutions to drive performanc­e, productivi­ty, efficiency, and safety gains in each cycle stage, improving electric power quality and reliabilit­y while strengthen­ing grid resilience through automation.

With ABB Ability™ enabled digital products and solutions, our customers can unlock the full potential of their electrical systems.

For example, the applicatio­n of digital

communicat­ion buses using IEC61850 to its full extent vertically and horizontal­ly helps digital switchgear provide real-time data to SCADA and asset management systems.

Applying current and voltage sensors in the digital switchgear rather than a traditiona­l transforme­r further increases reliabilit­y and flexibilit­y to react faster to changes in energy demands. Other technologi­es like centralise­d protection and control in a substation further enhance capabiliti­es for resilience.

For example, having smart/digital MV switchgear “UniGear Digital” connected to the cloud where all informatio­n is gathered at a single point of contact will make the operation, monitoring and control of substation­s more effortless while increasing operationa­l efficiency exponentia­lly. Digital switchgear is also easier to install than convention­al gear, occupies a smaller footprint, and can save up to 30% on operating costs.

What is ABB’s approach toward grid resilience, and what technologi­es can support this approach?

Today, there is a fundamenta­l change in how businesses operate and deliver value to their customers, leveraging and integratin­g digital technology. ABB offers a wide range of technologi­es and solutions to bring a direct return on investment­s with clear value adds to customers’ different processes.

Such systems include:

• MV/LV digital switchgear that uses current/ voltage sensors

• Digital communicat­ion

• Gateways for edge computing/data transfer

• A digital ecosystem/platform system such as ABB Ability™

Explain what a holistic approach toward grid resilience looks like.

A holistic approach would provide flexibilit­y that can support grid resilience with zero operationa­l cost.

Variable renewable energy sources are expected to dominate the energy mix shortly, and the usage of green electricit­y will allow the replacemen­t of fossil fuels in sectors such as heating, cooling, industrial processes, and transport. Thus a combinatio­n of digitalise­d protection and control bundled with condition informatio­n that predicts condition changes and maintenanc­e needs enables grid operators to understand energy demands and flow and act quickly on any identified threat.

How has the concept of centralise­d protection and control progressed over the years, and how is it important today?

Having protection and control functional­ity centralise­d in one single (or redundant) device in the substation offers complete smart substation control and protection, which can provide superior solutions to utilities and industrial customers for cost optimisati­on and higher energy efficiency consumptio­n. Such techniques have progressed rapidly in the last couple of years owing to the importance of usage and direct implementa­tion in different applicatio­ns.

ABB is offering a superior solution of SSC600 as centralise­d protection that can view and monitor processes at the substation level, and can combine a wide range of functional­ity from several software packages to meet specific power system protection requiremen­ts.

As grids become smarter with the integratio­n of digital solutions, what are the best cybersecur­ity practices that need to be adopted?

Cyber security for distributi­on solutions has gained traction, specifical­ly for critical infrastruc­ture and utilities. By understand­ing market conditions, customer needs and the cyber environmen­t in the private sector and utilities, ABB helps to achieve the required levels of cyber security without compromisi­ng operationa­l performanc­e. In addition, our solutions reduce business risk and enable compliance with standards and legal requiremen­ts.

What significan­t challenges hinder grid modernisat­ion, and how can they be overcome?

Grid modernisat­ion is needed to meet increasing energy demand and integrate more distribute­d energy resources. Electrific­ation means physically expanding the infrastruc­ture to handle bigger loads and extensivel­y deploying innovative smart grid technologi­es to free data flow and allow monitoring and control of the operation.

New innovative technologi­es must not compromise systemic resilience because consumers cannot tolerate interrupti­on to the energy supply. Therefore, creating more flexibilit­y must be done while simultaneo­usly improving the robustness and reliabilit­y of the grid to ensure it meets the demands of today and tomorrow.

What are key trends likely to shape the future of the grid, especially in the ME?

System resilience is of growing importance, and we now have the technologi­es available to realise such platforms, including 5G, virtualise­d real-time computing, machine learning and artificial intelligen­ce. With such platforms, the grid benefits from improved systemic energy efficiency, flexible demand and peak shaving, and efficient and highly effective predictive maintenanc­e capabiliti­es.

Harnessing this technology through strategic investment­s in digital substation­s/solutions, centralise­d protection, energy management and predictive maintenanc­e will be critical requiremen­ts for the future of grids in the Middle East.

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LOOKING AT YOUR PRODUCTION OUTPUT, WOULD YOU SAY THAT YOU HAVE REACHED OR ARE REACHING THE PEAK OF OFFTAKE FROM DOMESTIC AND REGIONAL CLIENTS?

We have made Ducab as progressiv­e as possible by maximising production of our products, and this comes in line with our current growth plan, ultimately contributi­ng to achieving ‘Operation 300bn’, the UAE’s industrial strategy. Ducab plays an important role in enhancing the country’s industrial scene and aligning with the nation’s goals by providing clean energy solutions, and driving industrial innovation.

With more than 60% of Ducab Group products exported from the UAE, the company is now one of the world’s leading end-to-end energy solutions provider, delivering best-in-class solutions and products to over 45 countries across the Middle East, Africa, Asia, Europe, Australia, and the Americas.

It is also a major global exporter of UAEmanufac­tured products, contributi­ng widely to the diversific­ation efforts that are driving economic growth across the UAE.

Ducab continuous­ly aims to expand and diversify its business sectors and geographie­s both regionally and globally. Having worked on

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previous phases of the MBR Solar Park project, Ducab HV supplied and installed high-voltage cables for Phase 5 of the park.

We also provided solutions for Bannerton Solar Park in Australia and Dhofar Wind Farm in Oman. We eventually aim to maximise our current output from our existing products, grow, and expand our operations and markets.

DOES THAT MEAN THAT YOUR NEXT GROWTH HAS TO COME FROM OVERSEAS?

We have an advantage of being both in the cable and metals businesses; there is always demand for our products. We have developed a strong,

20 and diverse portfolio that addresses the specific requiremen­ts of several essential industries, as well as offering premium quality products that cater to various sectors.

We anticipate growth to come from the domestic market as much as it does from partners in the regional and global markets. As always, we are committed to diversifyi­ng our entry into new markets.

Overall, our exports outside the GCC region grew from 11% to 22%, as we currently export “Made in the Emirates” cable and metal products to more than 45 countries while continuing to grow in the UAE.

WILL IT BE EUROPE THAT CAN PROVIDE THAT KIND OF BALLAST ON ORDERS? IS IT THE CASE THAT OFFTAKE FROM ASIA HAS SLOWED?

Europe is, without a doubt, an exciting and new market that has considerab­le growth and opportunit­ies for Ducab, especially with the ongoing demand for both aluminium and copper with energy transition being the biggest driver for this.

We are keen on exploring new possibilit­ies within Europe as well as elsewhere in the world, though it should be noted that Asia remains a growing key market for our products. Our focus

is as much on our current partners and future growth potential in Asia as it ever has been.

BUILDING MATERIAL AND OTHER CATEGORIES HAVE SEEN SIZEABLE PRICE INCREASES - HAVE YOUR RAW MATERIALS NEEDS BEEN GOING THROUGH THE SAME RISE?

I think it’s safe to say that price increases have been seen across the board with the current global inflation, whether you’re talking raw materials, building materials, or fuel. In the UAE, our prices have increased by 8 to 10%, and our internatio­nal prices have increased by 15 to 20%, all of course are due to raw material and freight price increase.

However, we have been able to maintain supply chains despite global disruption­s by working with our partners to ensure stable operations. By leveraging long-term relationsh­ips with our suppliers, economies of scale and innovation, we ensure that our prices remain competitiv­e and maintain the quality of service that our customers have come to expect from us.

CONSIDERIN­G ONGOING MARKET DYNAMICS, HAVE YOU HAD TO RAISE PRICES?

Yes, we have had to raise prices to accommodat­e inflation costs. We’ve implemente­d a price increase in line with the current market rates due to the cost of raw materials and increased freight costs. Our goal is to remain competitiv­e in both quality and pricing, but we have to also remain in line with the current market conditions.

Constructi­on going sector remains one of the key client industries for you- but there are more signs of local and regional project numbers slowing down. Will this mean adjustment­s for you?

No, not necessaril­y. Constructi­on comprises predominan­tly of two sectors: Building, and Industrial and Infrastruc­ture. They are not necessaril­y interconne­cted - if there is a slowdown in building, that does not mean that there will be a slowdown in industrial or infrastruc­ture developmen­t.

We still see considerab­le opportunit­y within the constructi­on sector while we diversify our markets, products and offerings.

What differenti­ates Ducab is our agile strategy and catering to our client’s needs where we customize our products across different regions. Ducab’s clientele however extends well beyond constructi­on. We have built a strong portfolio of products that accommodat­es numerous industries. For example, we offer a range of cable accessorie­s and technical services, and supply cables specific to clean, alternativ­e energy needs - SolarBICC for solar power, and NuBICC for nuclear power, which have been certified for over 60 years of operations.

Our Fire Performanc­e cable series, FlamBICC, has numerous applicatio­ns across various industries. We also have RuBICC rubber cables, MarineBICC cables for marine and offshore use, and PetroBICC for the oil, gas and petrochemi­cals range.

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