The renewable energy sector has gained significant attention in the UAE.

The UAE is planning

to shift its gears towards clean energy, renewable energy to meet all energy demand. They
deploy MBR solar park projects. The UAE MBR solar park project has multiple phases of
development. It will produce 5,000 MW at a cost of 50 billion AED. This kind of massive
project goes through bidding and supply chain challenges. A few supply chain challenges and
their elements are listed, and we are projecting a few tangible solutions for these challenges with
the help of AINERgy.

1. Inventory holding cost: Many parameters affect the inventory cost, such as seasonal
energy generation fluctuation, project-based needs, price fluctuations, rapid changes in
technology such as batteries, magnets, and machines, regulatory changes, raw material
price fluctuations for solar and wind energy, and environmental sustainability issues.
2. Non-optimal distribution center locations pose high transportation costs and delays, a
centralized location for sourcing, and a barrier to market expansion.
3. Long transportation lead time and low truck utilization: Most of the suppliers are
from China, so the lead time is high. Also, many times trucks are not utilized at full
capacity as there are multiple suppliers for many components, so finding an optimized
solution is difficult.
4. Production planning and service issue: The production of solar panels is dependent
upon the above parameters, and hence it is difficult to project the production plan. Also,
many times there is damage to solar panels, and it is difficult to get panels in a short time
due to supply chain issues.

All the challenges above have a cumulative effect on the parameters mentioned below.

Wind: 7 elements identified as having the highest probability and impact of supply disruption: 4
are relevant across off-shore and onshore (rare earths, copper, power converters, blades),
and 3 are only offshore (base foundations, installation vessels, subsea cables).

Solar: 6 elements identified as having the highest probability and impact of supply disruption:
Copper/Wires & Cables, Aluminum/Mounting Systems & Frames, Solar Glass, PV Module
Manufacturing, Power Converters

Range of risk drivers: most common are geopolitical (e.g., dependency on China for ~95% of
global permanent magnet manufacturing leaves exposure to future conflicts), industry risk (e.g.,
emerging undersupply), and ESG risk (e.g., growing opposition to rare earth use in the wind
industry).

ALNergy can provide solution to few problems with practical domain knowledge expertise,
mathematical models and computation power. AI Nergy can gives solution to help to reduce
inventory cost, short lead time or reduce long lead time effect at best level, low truck utilization
and production planning.
Solutions:
1. Reduce Inventory holding cost:
Demand forecasting: AI will process historical data and market demand to give accurate
inventory to hold. Optimization will help to reduce excess inventory. It can give alarms once
resources reach reorder point or safety stock levels.
2. Reduce transportation lead time: AI will optimize shortest path and route and it will
reduce fuel consumption and delivery reliability. Various parameters affect the lead time
and AI will assign weitage to various parameters. AI will analyze these parameters to get
maximum benefit out of maximum weighted parameters. AI will use real time
monitoring with help of IoT devices. It will ensure that proactive issue resolution and
adjustment. After utilizing all these technique transportation cost and time will come
down by 10-25%.
3. Optimizing Distribution Centers: Few locations will be suggested by AI so shortest path,
less fuel consumption and maximum reliability will be maintained. Distribution Centers
should be allocated according to supplier and solar and wind parks. It will reduce
handling and retrieval time. Automated warehouse will increase speed of delivering the
goods. Our assumption says it can reduce 20-30% of network complexity.
4. Environmental problem: we can reduce environmental impact reducing less carbon
emission through optimizing the transportation system and full truck capacity. According
to our assumption it can go upto 30% less carbon emissions. It will sustainable and
resilient solution.
5. Service and Production: production will be well planned due network and transport
optimization. Service components can reach facility with proper forecasting methods of
repairable parts. AI will find out bottle necks of process and it will also future failures so
we will be well prepared.
References

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