$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
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.”