The GCC countries are currently witnessing burgeoning power demand and the sector is growing at the rate of 8% to 10% annually, according to industry experts. The power sector in the GCC region has seen exponential growth, and demand for power is expected to triple over the next 25 years. Global Investments House said that notwithstanding the effects of the global recession, huge investments are being planned in the GCC especially in 'mega energy' projects and industrial sectors. Expanding population and social developments are other major drivers for utilities demand to grow at such high rates.
According to the World Energy Council, the GCC will require 100 GW of additional power over the next 10 years to meet demand. The power sector will require USD 50 billion worth of investments in new power generating capacity and USD 20 billion in desalination.
The Global Investments House in its forecast for 2030 sees a compound annual growth rate of 7% per annum. This forecast compares to a global rate of 1.8% per annum, placing the GCC countries with one of the highest power demand growth rates in the world.
There are 44 power and water projects in the GCC valued at USD 31.9 billion already under way or due to begin in 2012. The UAE leads the way with 11 projects valued at USD 10 billion, including the USD 800 million Hassyan 1 IPP, on which construction is scheduled to begin in 2012. Saudi Arabia also has 11 new projects under way or due to start in 2012, valued at USD 8.6 billion and including the USD 2 billion Al Qurrayah Independent Power Plant.
In Kuwait, ten projects are under way valued at USD 3.4 billion, seven of which will begin construction in 2012. Bahrain has three projects valued at USD 4.1 billion including the independent water and power plant in Al Dur, which has been ongoing since 2008. Qatar has three projects valued at USD 3.3 billion while Oman has six projects valued at USD 2.5 billion, all of which will begin construction in 2012.
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