GULF NEEDS USD109 BILLION FOR POWER GENERATION, TRANSMISSION AND DISTRIBUTION OVER NEXT FIVE YEARS

GMT2019-02-28 17:34:33(Beijing Time)

Middle East Electricity 2019 set for energising boost with new MENA Power Industry Outlook report pointing to importance of public-private partnerships in GCC’s emergence as power infrastructure investment leader

Dubai, UAE – October 2018: The GCC private sector and international investors will continue to play an increasingly important role in meeting the rising
demand for electricity across the Arab world, according to the newly-released MENA Power Industry Outlook 2019.

The report, prepared by Ventures Onsite for Middle East Electricity, the region’s leading event for the power industry, says a rapidly growing population, urbanisation, rising income levels and industrialisation are driving increased electricity demand throughout the GCC - a region that is expected to require power infrastructure investment totalling USD109 billion over the next five years.

According to the MENA Power Industry Outlook 2019, the GCC alone will require USD55 billion for an additional 43 GW of generating capacity and USD34 billion for transmission, with much of the funding for development coming from both public and private sector purses. “Investments in the GCC’s power sector will continue to remain a priority with the private sector increasingly playing a significant role,” says the report, pointing to a range of opportunities for public-private partnerships (PPP) to make inroads in the region’s power sector.

“The GCC region appears best suited for PPP opportunities considering the sustained lowered hydrocarbon prices,” continues the report, adding: “While a few countries are more advanced than others in the legislative process, supported by authorised institutions, the others seem to be focusing on exploring this project delivery model.”

The MENA Power Industry Outlook 2019 also reveals that much of the investment will be focused on diversification and conservation of electricity with a renewed emphasis on solar, renewables and smart grids, which continue to gain regionwide momentum.

“The GCC smart grid market, which is gaining prominence, is projected to grow to USD1.68 billion by 2026 due to the deployment of smart grid infrastructure by GCC governments. Energy storage systems are also becoming attractive in the GCC as it forms a crucial component in the development of smarter grids. The GCC countries’ grid inter-connectivity is expected to generate USD33 billion in investments, economic and energy savings over the next 25 years,” says the Outlook.