Arab Today, arab today mena needs 250bn for power sector
Last Updated : GMT 05:41:15
Arab Today, arab today
Arab Today, arab today

Mena needs $250bn for power sector

Arab Today, arab today

Arab Today, arab today Mena needs $250bn for power sector

Abu Dhabi - Arabstoday

Gulf oil producers and other countries in the Middle East and North Africa (MENA) need to pump nearly $250 billion in the next five years to expand their power sector and face a rapid growth in domestic demand. According to an official Arab report, nearly $148 billion will have to be invested in raising generation capacity while the rest will cover transmission and distribution (T&D) of electricity supplies. The study by the Saudi-based Arab Petroleum Investment Corporation (Apicorp), an affiliate of the Organization of Arab Petroleum Exporting Countries (OAPEC), said growth in MENA’s power sector would far overtake GDP growth during 2013-2017, with the first projected at around 7.8 per cent against real GDP growth of 4.5 per cent. “This would require an investment in MENA power sector of about $250 billion, nearly 59 per cent for new generation capacity and the remaining 41 per cent for T&D,” said the study sent to Emirates 24/7 on Saturday. It said the growth rate of 7.8 per cent translates into a five-year power capacity increment of about 124 GW above the 2012 level, partly through combined power/water desalination plants. “Therefore, with current reference costs – reflecting prevailing prices of engineering, procurement and construction (EPC) and country investment climates – the resulting capital requirements will be in the order of $148 billion for power generation during the forecast period.” The study by Apicorp senior consultant Ali Aissaoui showed the six-nation Gulf Cooperation Council (GCC), which controls over 40 per cent of the world’s proven crude deposits, accounts for 43 per cent of MENA total and 53 per cent of the Arab world total, noting that expenditures for nuclear power generation is implicit in the case of the UAE and Iran. “As for investment in T&D, it derives from the need to develop adequate transmission networks to supply electricity to industries, businesses and households in the region. These networks are differentiated between transmission and distribution grids.” A breakdown showed investment requirement in the GCC would total around $104.7 billion, including $63.1 billion in power general and $41.6 billion in T&D. The report estimated the required total capital at around $61.1 billion in Arab Mashreq, $31.2 billion in Arab Maghreb (North Africa), nearly $4.1 billion in the rest of the Arab world, and $49.2 billion in Iran. Aissaoui said investment on this scale would not occur without addressing current challenges, prominent among which are fuel and funding. He said these challenges, are considered far beyond the scope and resources of any public utility or private developer. “The fact that the power generation sector is the single most important industrial user of natural gas in key countries in the region, raises the extent proven reserves can meet long-term fuel demand. Indeed, although most MENA countries are endowed with substantial gas reserves, supply sustainability should not be taken for granted,” he said. “As for funding constraints, they should be considered in the context of the restructuring and liberalization that has been taking place in the region. While these reforms have key features in common, they differ somewhat in terms of institutional design and application.” He said that as a result of high population growth, fast expanding urban and industrial sectors, increasing needs for air conditioning, and heavily subsidized electricity tariffs, many countries within MENA have been struggling to meet fast-growing demand for electricity. With ongoing turmoil, catching up with unmet demand may be perceived as socially and politically more desirable, he added. “Investment of this scale will face many challenges, prominent among which are fuel and funding. The first stems from the scarcity of natural gas in key countries in the region and the opportunity cost of generating electricity using high-value export oil products instead,” he said. “The second results from the inadequacy of internal and external financing and the reluctance of many MENA governments to support cash-strapped public utilities, which are committed to continuing to invest should the private sector be not forthcoming. Both fuel and funding challenges involve significant policy dilemmas that need to be addressed quickly and effectively.”

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today mena needs 250bn for power sector Arab Today, arab today mena needs 250bn for power sector

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today mena needs 250bn for power sector Arab Today, arab today mena needs 250bn for power sector

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iran tests new medium-range missile

GMT 21:24 2017 Saturday ,23 September

Iran tests new medium-range missile
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 08:39 2017 Friday ,22 September

New Hurdles as Republicans Rush

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday