Demand for electric energy in the GCC will rise by 43 per cent during the next five years due to the huge residential and industrial investments that are expected to reach $283 billion, an expert said.
Investment in energy projects in the Gulf will grow at around 8.3 per cent annually, requiring that the GCC increase electricity production by 156 GW (gigawatts) during the next five years, adding to the current energy production of 234 GW, said Nigel Blackaby, director, Power-Gen Middle East 2014 conference & exhibition.
He was speaking ahead of the event to be held from October 12-14 at the Abu Dhabi National Exhibition Centre (Adnec).
The event will review the most significant energy developments in the UAE and other Gulf states.
Power-Gen, which hosts delegates and international experts in the fields of electricity and water from more than 65 countries will discuss energy challenges, future projects and the high demand for energy in the next stage, he said.
Blackaby emphasised that GCC is still among the worlds most attractive areas for global investments in energy industry.
In addition, he said this region is considered the most important for the energy industry, and more capital will flow in order to participate in constructing huge projects because of the state of the stability witnessed.
He mentioned that the huge economic growth and the rise of demand for energy projects in Gulf area will attract more investors.
He predicted that renewable and alternative energy in Middle East and North Africa market will witness a growth from 0.64 per cent to 9-11 per cent by 2020, based on estimations from energy analysts Frost & Sullivan.
He added: “Solar energy and wind energy witnessed remarkable growth that reached 9 per cent annually in Middle East, which proves that countries in the region are serious about finding new power sources.”
Blackaby also explained that the world interest in the Middle East is associated with the rise of demand in the future of the electricity sector, which is estimated at 7 per cent annually, and which is likely to require an investment of $283 billion in the overall power sector in the region from 2014 to 2019.