KUWAIT CITY, Nov 3: Major power contracts worth over $65bn were awarded throughout the MENA region between September 2014 and September 2015, according to MENA Power 2016 — the latest market intelligence report from MEED Insight. More than 22 per cent of these contracts are represented by the Gulf Cooperation Council (GCC) states.
To meet projected demand, Kuwait government has drawn up a programme to install about 17,100MW of new capacity by 2030.
About 4,500MW of this will be procured directly by the MEW, and some 8,400MW through partnerships with the private sector. Author of report, Andrew Roscoe, MEED’s Power & Water Editor explained: “While several governments have taken steps to reform subsidies in an attempt to curb consumption in the wake of lower oil prices and rising subsidy bills, there can be no let-up in the drive to build new capacity to cope with the additional demand and restore reserve margins to at least 15 per cent.” The report estimates that installed generating capacity across the 14 countries analyzed needs to rise by 143,221MW by 2020, an increase of about 50 per cent on the current level, to meet demand forecasts.
Key factors driving up the demand for power include robust industrial growth, rise in population and increase in housing and essential infrastructure investments across various sectors. In the GCC, peak demand growth averaged 8.4 per cent in 2014, while for the entire MENA it was slightly higher at more than 9 per cent.
While Saudi Arabia and Kuwait will require additional capacity of 20,239MW and 5,758MW respectively, the actual new build requirement will be much higher because of the need to replace or upgrade existing units on account of age.