‘GCC power sector awaits $132bn spend over next 6 years’

By Santhosh V Perumal/Business Reporter

 Rising oil and gas prices coupled with increasing domestic demand are prompting governments across the Gulf region to enhance investments in the power and water sector as well as alternative sources of energy.

The installed generating capacity in the GCC (Gulf Co-operation Council) region is forecast to reach 170,000MW by 2019, according to the latest data from Meed Insight.

The cost of the new building requirement alone will be an estimated $66bn, with at least the same amount needed to be invested in transmission and distribution (T&D) infrastructure in the next six years.

Given the massive demand, governments across the GCC are now channelising money into power and water projects with investments reaching $25bn last year.

In 2012, Saudi Arabia led the GCC with a total of 148 projects in the power and water sector, investing more than $8bn; Kuwait followed with 68 projects valued at about $3bn. The UAE had 62 projects worth a little more than $3bn; while Oman announced 49 projects worth $1.2bn.

Qatar’s portfolio comprises 35 projects worth $1.8bn; and Bahrain has only 15 projects but the total value of those investments estimated to be $7.3bn.

“As increased investments in the power and water sector create new opportunities for contractors and project developers, the more we need to ensure that the projects being developed adhere to the highest standards of excellence, especially because they play a role in the progress of the GCC as a whole,” Becky Crayman, head of awards, Meed Events, said.

The Meed Quality Awards for Projects 2013, in association with Ernst & Young, is all set to recognise the completed power and water projects.