All right. The video, we talked about the case study of Ghana and now we're going to move on to some countries that are show variations or very different structures. We'll start with the case study of Abu Dhabi and UAE to remind you or those you have traveled or familiar with that region of the world. UAE, United Arab Emirates, borders on Saudi Arabia and Oman to the south and southeast and across the state took our moves is Iran. The UAE consists of seven distinct Emirates which are you can think of as states, they're fairly independent, make their own governance decisions. But there's also an overall government that seeks kind of a common policy throughout the Emirates. As far as energy, we're going to focus on Abu Dhabi which is one of the seven Emirates within the UAE. But is the largest both geographically and economically and in population. From an energy perspective, the Abu Dhabi Emirate is connected to both Oman and Saudi Arabia through, actually looks like DC links know that and through DC Links. Peak demand has grown quite a bit in Abu Dhabi as well as new age generally because of growing population and very rapid economic growth. And you can see peak demand just about triple well is expected to triple between 2007 and 2024. So pretty rapid growth. Most electricity in Abu Dhabi is generated from natural gas. Abu Dhabi is close to finalizing construction on a very large nuclear power plant. In fact for separate units which as of 2020 we're getting close to completion. We're starting some initial testing. So those will probably come online fairly soon though, it's always dangerous to predict the future. But it appears that Abu Dhabi is moving forward with their new nuclear capacity as well. Abu Dhabi has also been quite progressive on installing renewables, particularly solar PV. Of course, they have great solar resource and they put in some very large and very low cost solar PV systems as well. Now, as far as electricity market structure, up until about 1997, electricity in Abu Dhabi was controlled for and provided by the government, as a government function. Similar government might provide water and sewer, government might provide certainly military, might provide retirement, vary by country, but in Abu Dhabi again, up until 1997, the government provided electricity, and there was very little role, at least directly for competition. That started changing about mid 1990s, and here's some of the major decisions what this graphic calls reform milestones, changes and made in Abu Dhabi about electricity Going back to 1996, the establishment of a privatization committee as we talked about before, beginning 1980s, 1990s globally. There was more and more just view that competition would be useful electricity, but it wasn't clear how exactly. So Abu Dhabi, like many other countries, started with a committee to figure this out. And in 1996, the committee was established in 1997. There were more committees established and decrees are essentially policy decisions, which culminated in the Law in 1998, which essentially, started to open up Abu Dhabi's electricity system to competition, this one on 1999, another law in 2018. So this is, I'd say a typical kind of pattern in many countries where competition restructuring was started to, was assessed or considered or analyzed in 1990s and started implementing in early 2000s. What does it actually look like in Abu Dhabi? Well, it gets a little complicated, but this is a snapshot of the market structure in 2018. It has changed a bit since then, but you'll get the concept, it's what's called a single buyer model. Notice right in middle of the graphic is something called ADWEC, Abu Dhabi water, electricity company. All electricity in Abu Dhabi is bought by ADWEC and sold by ADWEC. So they in some ways control or dominate the market, again this is 2018 things have changed a bit since then, but not a whole lot. Where do they get their electricity? So ADWEC buys it all, where do they get it? They get it from, what this graph calls IWPP's, independent water and power purchases, [LAUGH] independent water and power purchases, or companies basically, there are private organizations, private companies that have power plants. In most cases because of the way it works in Abu Dhabi, they're actually joint ventures between a government or government like agency called ADWEA and private companies. But notice the significant role played by the private sector, that private companies are heavily involved in the generation side. And the way ADWEC, the single buyer provides or accesses are contractually gets the electricity is PWPA. Is this case water electricity were kind of the same which are power and water purchase agreements. So ADWEC signs a contract with, say, a private company or joint venture private company that has government and private sector kind of ownership to provide electricity to ADWEC. ADWEC as a single buyer then sends out electricity through a transmission system which is Abu Dhabi transmission and dispatch company essentially distribute transmission distribution through a distribution company, Abu Dhabi distribution company. And both these transmission distribution companies are essentially government or government controlled, government regulated, there is right in that gray area, are they government agencies? Or they private companies that are strongly controlled, they're closer to government agencies. There's clearly no profit involved. They are heavily controlled and regulated by the government. They have some independence, but they're not profit seeking. So customers buy electricity from distribution companies, but the electricity all goes through the single buyer model. So that's how Abu Dhabi works. There are variations on this model, we'll talk about in just a minute in the next video.
