Gulf State investment in electricity will reach 131 billion USD in 5 years
In the next five years, Gulf State investment in electricity will reach 131 billion U.S. dollars
Recently, Dubai Middle East Electric Power released the Gulf Power Market Report and claimed that in the next five years, the demand for investment in the power generation, transmission and distribution in the Gulf will reach 131 billion U.S. dollars in order to meet the population growth, economic development and electricity demand arising from climate change.
Currently, the Gulf has an installed capacity of 157 GW, accounting for 43% of MENA's total installed capacity in the Middle East and North Africa. The report argues that the six Gulf nations need 81 billion U.S. dollars to add 62 GW of electricity and 50 billion U.S. dollars to power transmission and distribution to meet the growing demand for electricity.
Among them, Saudi Arabia is the largest market for electricity investment in the Gulf region, requiring about 36 billion U.S. dollars for generating electricity and 23 billion U.S. dollars for power transmission and distribution.
Followed by the United Arab Emirates, need 22 billion US dollars for power generation, 13 billion US dollars for power transmission and distribution construction.
Kuwait is the third-largest market for investment demand in the region, costing $ 8.4 billion for power generation and $ 5.2 billion for power transmission and distribution; Oman needs to invest $ 6.8 billion for power generation and $ 4.2 billion for power transmission and distribution respectively; Bahrain needs Invest 1.9 billion U.S. dollars for power generation and 1.1 billion U.S. dollars for power transmission and distribution.
According to the report, if regulators introduce incentives to stimulate independent power generators, then PPP will be the largest power source in the Gulf region.
For more than two decades, the PPP model has become the most attractive investment mechanism in the Gulf electricity market, helping governments to reduce financing difficulties, improve their ability to solve problems and provide more advanced technologies.