The value of contracts concluded during the year in the field of electric power in the Middle East and North Africa region are estimated at more than $65 billion, reveals a study in energy research.
Mena Power 2016, the latest market intelligence report prepared by Meed Insight, confirms that the Gulf states accounted for 25 per cent of the value of the contracts, according to London-based Asharq Al-Awsat.
These contracts were concluded between September 2014 and September 2015, as 14 countries of the region need to generate 143.221 MW by 2020, adds the study.
According to the study, Saudi Arabia’s average demand for electrical power is expected to grow by 4.5 to five per cent a year until 2030, as a result of increased population and an industrial boom. The government, therefore, is planning to generate 47.711MW by 2024, through its projects, including those under construction.
Andrew Roscoe, power & water editor at MEED, says: “While several governments have taken steps to reform subsidies in an attempt to curb consumption in the wake of lower oil prices and rising subsidy bills, there can be no let-up in the drive to build new capacity to cope with the additional demand and restore reserve margins to at least 15 per cent.”
($1 = AED3.67, at the time of publishing)