Saudi Arabia power rental market to grow 12.6%

While global economies are taking the hit from falling international oil prices, Saudi Arabia will continue to invest heavily in infrastructural projects that require reliable power supply.


 Sustained investments in new construction projects in Saudi Arabia is expected to drive the power rental market by 12.6 per cent during 2015-21, regardless of weakening international oil prices, according to 6W research.
Growth in the construction industry, emerging manufacturing sector, rising electricity demand and the need to provide power to off-grid areas are spurring the power rental market in Saudi Arabia. In Saudi Arabia, generators are either used for prime or standby purposes, completely depending upon the grid connectivity.
While investment growth will be affected over the next two to three years due to declining oil prices, Saudi Arabia will continue to rely on its vast cash reserves to undertake infrastructural development projects especially in areas such as public infrastructure, utilities, healthcare, and education.
“In Saudi Arabia, diesel generators have accounted for the majority share in the overall power rental market. Easy availability and inexpensive diesel have sparked growth in demand for rented diesel generators in the country,” Avishrant Mani, Senior Research Analyst, Research and Consulting, 6Wresearch.
“Government initiatives towards reducing carbon emissions are expected to boost the demand for these generators in the country. We also foresee a penetration of hybrid and gas powered generators.”
Utilities, oil and gas, construction and industrial applications remain the major revenue generating segments, and would remain key contributing segments for Saudi Arabia’s power rental market through the forecast period.
Some of the key companies in Saudi Arabia’s power rental market include- Aggreko, Enerco, Hertz, Byrne Investments, Peax, Altaaqa, Cummins Olayan Energy, RSS, SES and others.
Ravi Bhandari, Research Associate, Research and Consulting at 6Wresearch noted that Saudi Arabia’s ongoing initiatives in renewable energy resources to increase electricity generation were likely to have a slight impact on rented diesel generators in the forecast period but expects growth to be registered in oil and gas, construction sites and areas lacking transmission and distribution networks.


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