Exploring the T&D Megatrends in the Middle East

By 2017 GCC countries are expected to add around 18,000 circuit kilometres of power transmission and distribution network.
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Abhay Bhargava, Industry Manager, Energy & Power Systems Practice, MENA at Frost & Sullivan explores the emerging trends you need to be aware of

Power Transmission and Distribution (T&D) infrastructure is a critical backbone for any nation’s sustainability and development. While GCC nations had achieved sufficiency in terms of network requirements around 2000, the aggressive industrialisation and rapid urbanisation witnessed by the Gulf States in the last five years has put a considerable further demand on T&D networks.

This has led to a move to not only enhance existing networks, but to also increase geographic reach. As a result, the Power T&D sector in the GCC is expected to witness rapid growth, with investments totalling c.$60 Billion in the next five years, to add 18,000 circuit km of network.

However, planned investments in Power T&D are expected to be impacted by certain Mega Trends, which will significantly influence this specific sector.

Here, in conjunction with Utilities Middle East, Frost and Sullivan expert Abhay Bhargava outlines the top five mega trends for the sector and impact of mega trends on the sector.

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1 Efficiency
Energy efficiency and “Innovating To Zero” will be the most significant Mega Trend. GCC nations are expected to aggressively increase their adoption of energy efficiency, and this “revolution” will impact the Power T&D network in several ways.

Firstly, losses on the T&D network are expected to be significantly reduced, through improved infrastructure and increased control.

Power consumption is expected to be reduced, owing to the advent of direct control devices coupled to smart metres and a smart grid infrastructure.

Peak shaving mechanisms are expected to become the rule rather than the exception, giving utilities greater control over demand fluctuations.

Over the next five years it can be expected that power services will witness a significant increase in demand, especially those aimed towards integration and increasing Remnant Life and overall Asset Integrity.

The sector will witness liberalisation, through emergence of Energy Service companies and the further privatisation of utilities and utility assets.

2 Urbanisation
Rapid urbanisation is another key Mega Trend, which will significantly impact the GCC nations, leading to the eventual development of Smart cities, Mega cities and even Mega corridors of cities – all expected to significantly impact the Power T&D sector.

These developments mean there will be a requirement for High Voltage networks to cater to the emerging corridors/megacities spread across vast tracts of land.

Smart cities will require a complete revamp of the existing distribution networks to cater to “smart” commercial, industrial and residential customers.

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