The Middle East and North African (MENA) countries are expected to pump nearly $250bn into power projects over the next five years to expand generation capacity and meet the growing domestic demand.
This was disclosed by the organizers of the 11th Power-Gen Middle East conference which will be held in Doha, Qatar.
“Significant energy-related projects as part of the 200 planned and announced ventures valued between $100m and $20bn will be major points of discussion at Power-Gen in Doha,” said the British PennWell Corporation, which is organizing the event.
“A total of $250bn is expected to be pumped into the power sector in the MENA region over the next five years to meet regional electricity demand growth.”
According to APICORP, the Gulf Cooperation Council (GCC) countries are expected to pump more than $63bn into electricity projects over the next five years to expand their power generation capacity to meet growing domestic demand.
The six GCC countries, which control 40% of the world’s recoverable oil resources, will add nearly half the expected additional power generation capacity in the region, the report said.
It estimated the total capital in power generation in MENA at $147.5bn during 2013-2017 to add about 123.9 GW of electricity while the rest could cover water projects.
“A regional breakdown shows that about 43% of that expansion in MENA is expected in the GCC, which remains the fastest growing area. This should come as no surprise, taking into account its record rates of urbanization and the massive requirements for water desalination and air conditioning.”
The study put investments in power projects at around $63.1bn in the GCC, $36.8bn in Mashreq (east) Arab nations, $21.4bn in Iran, $14.6bn in Maghreb Arab countries and nearly $2.3bn in other Arab nations.
It said that as a result of high population growth, record levels of urbanization, sustained economic growth and pressing needs for air conditioning and sea water desalination, many countries in the region have been struggling to meet demand.
In a separate study, APICORP said the GCC is projected to record the highest power demand growth of around 8.5% in the region in the medium term.
It put growth at 7.6% in Mashreq (Egypt, Iraq, Jordan, Lebanon and Syria), 7.2% in other Arab states, 7% in Iran and 6.5% in Maghreb (Algeria, Libya, Mauritania, Morocco and Tunisia).