1. Renewable Energy Trends and Prospects for Fueling Growth

2. Lower investments in renewable energy and lower costs in 2016
2016 showed a drop in new investment in renewables to US$241.6 billion (cf to US$285.9 billion in 2015)
Investment in new renewables capacity was roughly double that in fossil fuel generation in 2016
Two main reasons for the fall in investment: lower costs of technologies and slowdown in China, Japan & emerging markets
New investment in solar in 2016 totaled $113.7 billion, while wind recorded $112.5 billion
Record installation of renewable power capacity worldwide in reaching 138.5GW
Renewable generation costs continue to fall, particularly in solar photovoltaics
Rapidly falling cost of batteries 35% decrease in 2015 from 2014
Proportion of global electricity coming from renewable sources rose from 10.3% in 2015 to 11.3% in 2016
Source: Frankfurt School-UNEP Centre/BNEF 2016 & Global Trends in Renewable Energy Investment 2016 & 2017,
(Frankfurt am Main)

3. Renewable generation costs continue to fall, particularly PV
Levelised Cost Of Electricity From Selected Renewable Energy Sources, Q to H2 2016, $ Per MWH
Source: Solar thermal is parabolic trough with storage, PV is crystalline silicon with no tracking; Bloomberg new energy finance

4. Solar technologies’ efficiency has doubled in the past 40 years
Best research-cell efficiencies

5. 2016 renewable energy investments showed a decrease from the all-time high in 2015
Renewable energy investment continues to be dominated by solar and wind, both by venture capital / private equity as well as overall investments
Venture Capital / Private Equity new investment in renewable energy by sector, 2016, $BN
Total global new investment in renewable energy by sector, 2016, and growth on 2015 (US$bn)
VC/PE new investment excludes PE buy-outs. Total values include estimates for undisclosed deals
New investment volume adjusts for re-invested equity. Total values
include estimates for undisclosed deals
Source: UNEP, Bloomberg new energy finance
Source: UNEP, Bloomberg new energy finance

6. Record-low PV tariffs in the MENA region
MENA scored lowest PV tariff rate globally
Record-low PV tariffs in the MENA region
Project
MWe capacity
Awarded tariff
Developer/s
Country
DEWA Phase 3
800
US$29.9/MWh
Masdar-led Consortium
UAE (Dubai)
ADWEA Sweihan
1,177
US$24.2/MWh (JinkoSolar & Marubeni )
Unidentified Asian consortium
UAE (Abu Dhabi)
DEWA Shuaa
260
US$56.1/MWh
ACWA Power
Mafraq
60.3
US$61.3/MWh
Jordan
Source: Research by new energy update (MESIA 2017)

7. Top MENA renewable projects/programs in 2017
Current MENA renewable energy projects in response to established ambitious targets
Renewable energy projects led by government-driven auctions continue to grow in the MENA region
Top MENA renewable projects/programs in 2017
Project title
MW capacity
Technology
Country
MASEN Noor Midelt
400 MW x 2
Hybrid CSP + PV
Morocco
DEWA CSP Phase I
200 MW
CSP
UAE
ADWEA Sweihan
350 PV
PEA — renewable energy
master plan
300
PV, Small-scale wind, Biogas
Palestine
MEMR — Round 3
200
Jordan
100
Wind
MOERE — Round 2
2,000
Solar
Egypt
Source: Research by new energy update (MESIA 2017)

8. A number of large rooftop solar plants have been announced in Dubai
Growth in small scale renewable energy projects in MENA
Deployment of Solar rooftop is growing in Jordan, Kuwait, Palestine, Pakistan, and the UAE
A number of large rooftop solar plants have been announced in Dubai
Aramex new 3MW for logistic facility 1
50 MW for Dubai Solar Schools 2
1.5 MW system in Jebel Ali Power Station 3
DP world to install the largest distributed system up to 40MW 4
Al Naboodah Automobiles to deploy 6.7 MW of solar power to new facility 5
Unilever Dubai factory with 2MW solar capacity 6
Source: MESIA solar outlook report 2017

9. LCOE of solar energy is now competitive among conventional energy sources
Large-scale solar PV is now a cost effective technology
LCOE of utility-scale electricity generation technologies in the GCC (US cents/kWh)
Source: Includes information applicable to the period (2014–15), derived from (Mills, 2015), (Channell et al., 2015), (MANAAR, 2014), (Scribbler, 2015),
(Utilities ME Staff, 2015)

10. Renewable energy growth
Driving factors for renewable energy growth in GCC
Global low solar prices
Financial institutions providing attractive interests rates
Increasing electricity rates
Renewable energy growth
Deployment targets
Energy storage cost reduction
Governmental regulations i.e., net metering

11. Current Emerging Global trends in green financing
Venture capital & private equity
3rd party ownership and securitisation
Direct ownership
New equity offerings, corporate structures and bonds
Yield Cos
Investment trusts and partnerships
Green bonds
PPA innovation
Corporate investment
Crowd funding
Aggregation

12. Venture capital & private equity investment in renewable energy persevered in a difficult year
Global VC/PE investment in renewables fared better than total investment in renewable energy
Renewable energy VC/PE investment fell 4% to $3.3 billion in 2016
Private equity expansion capital gained 17% to $2.2 billion
Solar attracted the largest investment. It captured more than two thirds of total investments
VC/PE new investment in renewable energy by stage, 2004–16 (US$bn)
Buy-outs are not included as new investments. Total values include estimates for undisclosed deals
Source: Bloomberg new energy finance, UNEP

13. MENA renewable energy financing programs
US$27 billion Dubai Green Fund
Green Deal Dubai, the MENA’s first cleantech crowdsourcing platform
Rise of Green Bonds
Morocco’s first green bond to help finance Noor PV 1 project;
NBAD green bonds to fund or refinance environmentally eligible projects
Local and regional commercial banks are becoming increasingly comfortable with funding solar projects
Emerging popularity of green sukuks, a subset of sukuk, which are focused on environmental assets, such as solar parks, biogas plants and energy-efficient buildings
IRENA Renewable energy market analysis – the GCC region 2016
According to IRENA, by 2020, MENA will see annual renewable energy investment of US$35 billion

14. Financial institutions proactive role in sustainable policies
Sustainable finance strategies
Integration of ESG policies into investment portfolios
Increase in UNPRI/equator principles signatory
Formation of green investment business units
Myriad green products and services 3 2 4
Financial institutions are increasingly proactive in implementing sustainable policies 1 5

15. Questions
Answers

16. THANK YOU
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