MENA region requires $250bn power investment
Report claims massive cash injection needed by 2017 to meet demand
A report by the Arab Petroleum Investment Corporation, released ahead of the Middle East Electricity 2013 event, has found that the Middle East and North Africa region needs to invest US $250 billion into its power sector by 2017 to meet projected demand.
The report –titled MENA Energy Investment Outlook: Capturing the Full Scope and Scale of the Power Sector – states that power capacity in the region is set to increase by 7.8% per year. This translates to a capacity increment of 124 GW.
“A young, urbanising and fast growing population combined with the massive diversification and industrial expansion plans across the MENA region has led to a spurt in the demand for power,” said Middle East exhibition director Anita Mathews.
“Some MENA countries have been struggling to keep up with the escalating demand amid political turmoil in parts of the region. By catching up with power demand being perceived as socially, economically and politically desirable, however, we see a concerted private and public sector effort to ramp up investment in power-related industries.”
The total capital investment required covers generation, transmission and distribution, and comprises over 200 planned energy projects in the region – valued at between $100 million and $20 billion.
Middle East Electricity 2013 – the largest energy event in the Middle East – takes place from 17 -19 February 2013 at the Dubai International Exhibition and Convention Centre.