MENA to spend $283bn in power sector
20 new energy projects by 2020 will generate 8GW of additional power
It’s estimated that as much as US $283bn will be invested within the region’s power sector between 2014 and 2018, as per the finding of Kuwait Financial Centre.
The Gulf Cooperation Council (GCC) states are projected to invest more than US $300bn billion in some 20 energy projects by 2020, which will generate 8GW of additional power, according to Doha-based Gulf Organisation for Industrial Consulting (GOIC).
“More gas production (including unconventionals) is a necessity for regional and global markets. MENA gas export growth is virtually all driven by Qatar and Algeria. Neither will grow much after 2015 - Algerian exports are already declining, Oman, Egypt exports are also declining. (However), new importers are appearing such as Kuwait, Dubai, Bahrain and Fujairah,” said Robin Mills, head of Consulting at Dubai-based Manaar Energy Consulting.
Of the UAE’s current installed electricity generation capacity, almost 85 per cent of the power that’s generated is gas-based, while the other plants are oil-fired. Nearly all of Abu Dhabi and Dubai’s electricity comes from gas-based stations.
The UAE’s $20bn civil nuclear programme is on schedule with the country’s first nuclear reactor slated to start operations in 2017.
The UAE is currently working on plans to have four nuclear power reactors operational in Barakah by 2020, to generate 5.6 GWe of electricity. The first plant has been under construction since July 2012.