Report says Saudi Arabia accounts for the largest spend needs with $59bn, followed by the UAE
The GCC requires a combined $131 billion worth of investment in electricity generation, transmission and distribution over the next five years to cope with increasing demand from growing populations, expanding economies and climatic changes, according to a new report.
The report from Middle East Electricity (MEE), the annual international trade event for the power industry, revealed that despite the GCC’s current power-generating capacity of 157 gigawatts (GW), its six states will still require $81 billion investment for another 62GW of increased capacity and $50 billion for additional transmission and distribution.
Saudi Arabia accounts for the largest spend needs with $36 billion required for generation and $23 billion for transmission and distribution, followed by the UAE at $22 billion investment needed for generation and $13 billion for transmission and distribution, the report said.
It added that Kuwait requires the third largest investment with $8.4 billion needed for generation and $5.2 billion for transmission and distribution, followed by Oman at $6.8 billion and $4.2 billion respectively.
Qatar requires $5.5 billion and $3.4 billion respectively, with Bahrain needing the least investment level at $1.9 billion and $1.1 billion, it said.
The report, produced for the Middle East Electricity exhibition by Ventures Onsite, said much of the investment is likely to come from public-private partnerships (PPP) if a regulatory framework is introduced to incentivise independent power producers (IPP).
The Middle East Electricity exhibition will run at the Dubai World Trade Centre from March 6-8, attracting over 1,000 exhibitors from 66 countries and 24 country pavilions so far.