A new research report on the GCC power market, produced by Ventures Onsite for Middle East Electricity, estimates the total value of GCC power projects to be worth $247 billion.
According to the study, the GCC power sector will require about $50 billion of investment in new power generating capacity.
The total value of GCC power projects is estimated to be worth $247 billion, with Saudi Arabia registering the highest project value worth $118 billion, followed by the UAE and Kuwait.
Strong economic and demographic growth, driven in part by the GCC economies’ highly energy-intensive industrialization programmes, has led to a dramatic surge in power consumption. Simultaneously, the GCC countries are also experiencing significant requirements for power sector infrastructure development.
The Federal Electricity and Water Authority of the UAE is set to spend about $354 million on the development of new power distribution stations and expansion of key facilities in the Northern Emirates.
Saudi Arabia will need investments worth $133.3 billion in electricity projects over the next 10 years to cope with the rising power demand. Contracts to build an electricity grid to connect Saudi Arabia and Egypt were signed by mid-2016, and the project should operate at full capacity before mid-2019.
The GCC countries have also collaborated in developing a joint Gulf power grid in order to develop the region's electricity network and also help unify the six countries.
To read the detailed report, click here.
Source: Ventures Onsite