ME to add 66% power generation capacity by 2030
Power generation industry needs to allow for fuel diversity, and to become more affordable, reliable, highly efficient with lower emissions, and flexible enough to complement renewables
The Middle East will require additional power capacity of 267 gigawatts (GW) by 2030, an increase of 66 percent, according to engineering giant Siemens.
The German conglomerate, in its outlook for the energy landscape in the region, said growing demand will require and 66 GW of of power over the next 15 years.
Siemens’ report maps out the region’s current power generation scenario, upcoming challenges, allocation of energy sources and the role digitalisation will play in the future energy mix.
The report found that power generation industry needs to allow for fuel diversity, and to become more affordable, reliable, highly efficient with lower emissions, and flexible enough to complement renewables.
Siemens said that by 2030, the more efficient combined-cycle power plants (CCPPs) will dominate the market, as their share of thermal power generation reaches 65 percent.
“This trend will be underpinned by the growing importance of natural gas as the number 1 source of fuel for power generation,” the report said.
“Demand for gas is expected to grow by 4.3 percent annually until 2030. CCPPs can increase fuel efficiency in power plants by around 50 percent. Besides building new power plants, the region has a 45 GW potential for efficiency improvements by upgrading facilities which are older than 30 years.”
“The Middle East’s growing population increasingly requires reliable and efficient power supply,” said Dietmar Siersdorfer, CEO of Siemens Middle East and UAE.
“While the share of renewables in the region’s energy mix is set to increase, we also see natural gas as the main source of power generation by 2030, with energy efficient combined-cycle power plants leading in new capacity additions “We also see digitalization as an essential part of the future energy landscape, harnessing value out of data, improving productivity and creating new business opportunities.”
The Middle East will also see a growing mix between centralised and distributed power systems, while energy storage will gain importance as the share of renewables - solar and wind -increases and requires better integration into the grid.
The growing role of renewables in the Middle East is in line with regional countries’ emissions reduction targets and climate change action plans. Power generation from solar is gaining momentum, with around 16 GW of capacity additions expected by 2030.
Siemens said the highest demand for power in the region will be in the UAE, which holds 6 percent of global oil reserves.
“By 2030, the country’s (UAE) installed power generation capacity is expected to reach 60 GW, comprising of 44 GW from CCPPs, and the remaining 20 GW from simple-cycle power plants, renewables, nuclear and other,” said the report.
Siemens said its turbines account for 40 percent of the country’s power generation capacity. In Dubai, the company has been supplying the emirate with power solutions since 1992, including technology for the protection and automation of its power infrastructure for the digital age.
In neighbouring Qatar, Siemens’ solutions are responsible for transmitting and distributing over 60 percent of power generated in the country. The company is also building a total of three natural gas-fired CCPPs with a total capacity of 14.4 GW in Egypt. The power plants will increase current generation capacity by up to one third by 2020.