Thanks for the Heads Up, this is a keeper if only to illustrate that certain oil centric economies are diversifying their economic bases, and the first step is electricity. The link to the post, has a nice chart which didnt copy, printable piece.
From Big Dogs thread, ElMatador the contributor;
Message 24165895
The Middle East's Struggle for Electrical Power
The energy-rich countries of the Gulf share a worrying paradox: providing sufficient electricity for their booming economies. In 2006, the Middle East’s 5.7 percent economic growth rate was almost twice that of the world’s advanced economies. But powering that growth is placing an enormous strain on its electricity infrastructure. According to BP’s 2007 Statistical Review of World Energy, electricity production in the Middle East grew 8.9 percent between 2005 and 2006 – that’s faster than the growth recorded in any other region, including Asia Pacific, which grew by 8.5 percent.
More important from the global perspective: as Mideast power production rises to meet surging demand, more hydrocarbons that might once have been exported are instead being burned to create electricity for local consumption. And that means less oil and natural gas will reach the global market.
The demand for power in the region has led to massive investment programs. The World Energy Council estimates that the six countries of the Gulf Cooperation Council (GCC) – Bahrain, Saudi Arabia, Qatar, Oman, Kuwait, and the U.A.E. – will require 100,000 megawatts of additional power over the next 10 years to meet demand. And the GCC countries have already committed investments of some $100 billion to the power sector.
The race is on to keep the lights across the Middle East burning, economically and literally. Here is a rundown of what’s happening.
United Arab Emirates
- Demand rose by nearly 9 percent a year between 1996 and 2001.
- The electricity sector requires $8 billion in investment over the next eight years to meet demand.
- The government plans to expand its 9,500 MW of installed capacity by over 50 percent over the next 10 years.
- The Dubai Electricity and Water Authority (DEWA) has just unveiled Jebel Ali, the $1.7 billion, 1,300 MW power and desalination plant.
- South Korea’s Doosan Heavy Industries and Construction has recently won a $1.14 billion contract to build a thermal power plant for DEWA.
Kuwait
- Kuwait has one of the world’s highest per capita rates for electricity consumption.
- Electricity demand is expected to rise at around 7 to 9 percent per year over coming years.
- Investment of $4 billion is required to expand capacity over the next 10 years.
- Two major new power plants are planned: the 2,400 MW Al-Zour North plant, and the 1,000 MW Al-Zour South II plant.
Bahrain
- Capacity is struggling to meet demand, as Bahrain awaits a $26 billion upgrade of its power grid.
- The eastern power station project is expected to double Bahrain’s current capacity between 2009 and 2020. Meanwhile, the emirate has stated its readiness to buy electricity from Saudi Arabia to meet anticipated shortfalls.
Oman
- Power consumption is increasing at 5 percent per year, and the government estimates electricity demand in 2015 will be 75 percent higher than it is today.
- Oman has just opened three power plants: Al Kamil Power, AES Barka, and Dhofar Power. They are part of the effort that will boost the country’s capacity from 2,544 MW in 2006 to 4,634 MW by 2013.
Qatar
- Qatar Petroleum is currently seeking $2.5 billion to finance construction of the vital new 2,600 MW Ras Laffan C power plant.
Other major investment will be poured into national and regional power grid expansion. Work began in September on the most important, the GCC Power Grid, a multi-billion-dollar project that will link the six GCC countries with an integrated electricity grid by 2010. The other major project is the Saudi-Egyptian Power Grid. In September, Egypt confirmed the technical feasibility of the electrical interconnectivity of the Saudi and Egyptian power grids.
These two grids are seen as the nucleus of a Middle East pan-Arab power grid that will eventually link to the world’s largest electrical interconnection scheme, the Mediterranean Ring. |
