RIYADH — The global energy sector is witnessing an unprecedented transformation. The sharp decline in oil price over the past year, leading to rising budget deficits, has dented new infrastructure spending in several markets. These concerns dominate the current energy sector landscape that has fueled in-depth discussions on how to leverage alternate and renewable energy sources as part of a new energy mix. We see credible steps in diversifying the energy mix in Saudi Arabia already. The emphasis of the government on non-oil diversification and on strengthening the role of the private sector has opened up the opportunity for energy sector stakeholders to explore the potential of alternate energy. There are also concerted attempts, as entities such as Saudi Electricity Company demonstrate, to integrating the mix of different power solutions. The Waad Al Shamal combined cycle power plant of SEC, supported by GE with heavy-duty gas and steam turbines, for example, features solar innovation technology. The ‘Green Duba' Integrated Solar Combined Cycle Plant by SEC is another example of the efficient integration of a solar field with a combined cycle plant, as well as the use of condensate as gas turbine fuel. As a long-term partner of the Saudi Arabia, where GE has a presence for over 80 years, we have witnessed several oil-price cycles, and see the current economic landscape with great responsibility. We believe that it is important now, more than ever, to give back to the Kingdom and our partners through comprehensive solutions that support them to strengthen asset optimization, operational efficiency and productivity. This is relevant across the wider region. According to estimates, the population of the GCC is set to increase by 30 percent to 50 million people over the next decade. The region already witnesses energy and water stresses. In MENA, 12 nations – including all GCC countries - are certified as among the world's most water-scarce, with access to less than 1,000 cubic meters of renewable fresh water per person per year. Likewise, demand for electricity is increasing at an average 7 to 8 percent per year on average. It is therefore a strategic imperative, irrespective of the shifts in oil price movements, for the region to focus on aligning its energy sector with two top priorities: Strengthening the efficiency of existing assets and unlocking the true potential of renewable energy. We are supporting our partners in this through a three-pronged approach of digitization of assets, localization and innovation. In addition to delivering advanced turbine technology, we are working with our partners to usher in the new era of digital industrial applications. Powered by our Industrial Internet, which integrates heavy machinery with big data for maximizing productivity, we are introducing digital solutions that support our partners in strengthening asset use optimization, efficiency and productivity. Industrial Internet is indeed set to be a game changer by providing a predictive model that will anticipate outages and downtime, and address them remotely and proactively. In Saudi Arabia, we are setting up our first-of-its-kind Monitoring & Diagnostic Center for the energy sector that will offer our partners with high levels of predictive care and on-ground support. To define a new energy narrative, we will also need to see the collaborative efforts of all stakeholders. We must foster stronger industry-educational linkages that will drive cutting edge research and innovation. GE has already rolled out its Hot & Harsh research program at our Saudi GE Innovation & Technology Center to address efficiency-depleting factors such as temperature, dust, corrosion and fuel harshness. A new National Power Academy, to be developed by GE with Saudi Aramco, SEC and the King Fahad University of Petroleum & Minerals, will provide specialized vocational training on various areas including renewable energy, smart grids and energy efficiency. Through a focus on localized innovation and the greater engagement of our new generation of talents in the energy sector, we can build a new energy narrative that is not only sustainable but also diversified enough to counter cyclical oil price volatilities and meet the growing demand for power and water. In a changing landscape, we need innovative thinking and concrete action. Both are happening now in the region, particularly here in Saudi Arabia. *The writer is General Manager - Gas Power Systems, GE Power
