Gulf countries' electricity investment needs to reach US$131 billion in the next five years
Release time:
2018-06-11
Recently, the Middle East Dubai Power Exhibition released a report on the Gulf power market, saying that in the next five years, the investment needs of power generation, transmission and distribution in the Gulf region will reach 131 billion US dollars to meet the power demand caused by population growth, economic development and climate change.
Recently, the Middle East Dubai Power Exhibition released a report on the Gulf power market, saying that in the next five years, the investment needs of power generation, transmission and distribution in the Gulf region will reach 131 billion US dollars to meet the power demand caused by population growth, economic development and climate change.
The Gulf region currently has 157 GW of installed capacity, accounting for 43% of MENA's total installed capacity in the MENA region. According to the report, the six Gulf countries need US$81 billion for new 62 GW of electricity and US$50 billion for transmission and distribution construction to meet the growing demand for electricity.
Among them, Saudi Arabia is the largest electricity investment demand market in the Gulf region, which needs about 36 billion US dollars for power generation and 23 billion US dollars for transmission and distribution construction.
Next is the UAE, which needs $22 billion for power generation and $13 billion for transmission and distribution construction.
Kuwait is the third largest investment demand market in the region, requiring US$8.4 billion for power generation and US$5.2 billion for transmission and distribution; Oman needs to invest US$6.8 billion for power generation and US$4.2 billion for transmission and distribution; Bahrain needs Invest 1.9 billion US dollars in power generation and 1.1 billion US dollars in transmission and distribution construction.
The report argues that if regulators introduce incentives to stimulate independent power producers, the PPP will be the largest source of electricity investment in the Gulf.
Over the past 20 years, the PPP model has become the most attractive investment mechanism in the Gulf power market, helping the government to reduce financing difficulties, improve solution capabilities, and provide more advanced technology.
Related news
