Rising Qatar power demand needs major investment
Qatar's power sector will require $9bn during 2016-20 for generating capacity and transmission and distribution (T&D)
Qatar's power sector will require $9bn during 2016-20 for generating capacity and transmission and distribution (T&D) the Apicorp report outlined: "Our estimates suggest that Qatar will need to invest around $9bn to add 5.2GW (Giga watt) to meet rising demand in the medium term: $6bn in generation and $3bn in T&D.”
Qatar has not built extra capacity over the past five years because it already has adequate capacity of 8.8GW, however, the report said with increasing demand and peak load reaching a record 7.1GW in 2015, the country authorised two new projects that will add nearly 4.5GW in the medium term.
The $3bn Umm Al Haul power and desalination project with a capacity of 2.5GW will be built by K1 Energy and owned by Qatar Electricity and Water Company, K1 Energy, Qatar Petroleum and the Qatar Foundation.
In addition, with the 2GW Ras Lafan D independent water and power project, the planned investments should keep the country on line with the demand on its capacity.
The Gulf Cooperation Council (GCC) – which represents 47% or 148GW of the current Middle East and North Africa (Mena) power-generating capacity – will require a total of $137bn over the next five years for generation and T&D, the report said.
The region would require $85bn for the addition of 69GW of generating capacity and another $52bn for T&D over the next five years, it added.
Among the GCC countries, Saudi Arabia will require a total of $71bn in the power sector ($43bn for generation and $28bn for T&D); the UAE $34bn ($20bn and $14bn), Kuwait $12bn ($8bn and $4bn), Oman $8bn ($6bn and $2bn) and Bahrain $3bn ($2bn and $1bn).