Middle East electricity synopsis

Electricity consumption is growing by up to 10 per cent a year in some countries, at a time when new supplies of gas to fuel power stations are becoming harder to secure and ageing assets are having to be taken out of service. Governments are increasingly turning to alternative sources of energy to resolve the problem, while also launching initiatives to curb wasteful usage of electricity.

On 2 March, MEED publishes its Middle East Electricity supplement, analysing the size of the challenge facing the government and the solutions available to them. The supplement will be published along with MEED magazine and will also be distributed at the Arabian Power & Water Summit, which takes place on 6-7 March in Abu Dhabi.

CONTENT SYNOPSIS

Demand outlook

Across the region as a whole, there are more than $200bn-worth of power generation and transmission projects planned and under way as governments look to grow installed capacity in line with demand. The supplement will open with analysis of demand forecasts for electricity usage in the Middle East and the amount of new capacity that needs to be built.

Nuclear energy

One of the solutions governments have identified to deal with rapidly rising power demand is nuclear energy. Over the past decade, each of the GCC states have signalled their intention to develop nuclear power stations as a substitute for additional gas-fired facilities. The supplement will provide an update on these plans and the progress being made with the UAE’s nuclear power facility, which is already under construction.

Renewables

Until recently, the Middle East largely ignored the potential for renewable energy. The reasons for this are clear – with 56 per cent of the world’s oil reserves and 40 per cent of global natural gas deposits, countries had little incentive to consider alternative options for power generation. But spurred on by growing domestic demand for power and water, depleting gas reserves and the desire to continue exporting hydrocarbons, the region’s governments are now taking major steps towards green energy. The supplement will include a focus on the potential for solar and wind projects in the Middle East.

Curbing demand

Encouraging consumers to use electricity more wisely can greatly help to reduce peak power demand and slow the need to invest in new capacity. In 2007, a major public awareness campaign cut peak usage in Kuwait by 700MW and help the country avoid another summer of blackouts. There are a range of other tools that governments can use to manage demand including tariffs increases and metering systems. The supplement will look at how these can help reduce consumption.