Power capacity needs to match demand, says report
GCC needs to invest US $37.1bn by 2014 to plug gap
The GCC still requires investments totalling US $37.1 billion to add another 24,734 MW of generation capacity to its grid by 2014 if it is to match the growing demand for power in the region.
That’s according to a report published by the Kuwait Financial Centre ‘Markaz’ asset management firm, which explains that population growth and increased immigration is leading to increased demand for modern and efficient infrastructure.
The report says the growing demand for power has meant that installed capacity increased from 46,579 MW in 2002 to 73,339 in 2007, at a rate of 10% a year. Saudi Arabia and the UAE together accounted for 72% of the region’s installed power generation base in 2007.
However, Saudi Arabia (56%) and Kuwait (13%) were the largest total consumers of electricity between 2002 and 2007.
The Markaz note also reported that countries with a strong macroecomic outlook, such as Qatar, would find it easier to complete required infrastructure work, but noted that others might need to find alternative means of financing mega projects, such as debt issuances and large loan syndicates.