$109bn needed for GCC power gen­er­a­tion

The MENA Power In­dus­try Out­look 2019 re­veals that much of the in­vest­ment will be fo­cused on di­ver­si­fi­ca­tion and con­ser­va­tion of elec­tric­ity

Utilities Middle East - - NEWS -

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 in­dus­tri­al­iza­tion are driv­ing in­creased elec­tric­ity de­mand through­out the GCC - a re­gion that is ex­pected to re­quire power in­fra­struc­ture in­vest­ment to­talling $109bn over the next five years.

Ac­cord­ing to the MENA Power In­dus­try Out­look 2019, the GCC alone will re­quire $55bn for an ad­di­tional 43GW of gen­er­at­ing ca­pac­ity and $34bn 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.”

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