GCC Power and Water Desalination Industry Overview March 2013
Faced with the dual challenges of rising oil prices and the increasing domestic requirement for power and water as a result of diversification and economic development along with a growing, affluent population, the GCC countries are investing heavily in upgrading capacities across their power and water sectors and in alternative source of energy to fuel these power and water desalination plants. As the task is enormous and governments cannot undertake it single-handedly, most of the GCC economies have also undertaken a rocky road to privatization, as state entities begin to encourage private participation in the form of Public Private Partnerships (PPPs) and tap into the latest technologies with the help of such partnerships across their power and water sectors.
Investments across the power sector are estimated at US$ 63 billion over the next five years and installed capacity is likely to reach 170,000 Mega Watts (MW) by 2019. Though power capacity across the GCC operates with a clear margin of 19 percent, primarily owing to the surplus offered by Qatar and Abu Dhabi of the UAE, that supply to the common GCC interconnection grid, and with a number of power projects completed across the region in anticipation of growing demand beginning operation since 2011, power capacity across the region nearly doubled from 53,823MW in 2002 to 112,722MW in 2011 at a Compound Annual Growth Rate (CAGR) of 9 percent though demand continues to grow at an average rate of 8 percent across the GCC, requiring greater and faster capacity additions over the future.
As the largest consumer of water in the world, GCC is also the largest producer of desalinated water globally. Of the total global desalination capacity, UAE contributes 35 percent, Saudi Arabia 34 percent, Kuwait 14 percent, Qatar 8 percent, Bahrain 5 percent, and Oman 4 percent. Similar to power, demand for water is growing at accelerated pace and low tariffs have been encouraging wastage and extensive use. Consequently, the countries are expected to invest close to US$ 100 billion over the next five years to combat the serious problem of water shortage. Water desalination capacities increased from 3000 million cubic meters per year in 2000 to 5000 million cubic metres per year by 2012 and likely to grow by another 1800 million cubic metres per year in 2013 and with continuing steady investments in Integrated Power and Water Projects (IWPPs) and desalination plants across the region, capacities are likely to reach 9000 cubic meters per year by 2030.
Construction contracts worth close to US$ 25 billion were awarded across the GCC power and water desalination industry in 2012 and likely to grow to US$ 30 billion in 2013.
Moreover, GCC countries are also beginning to realize the need for conservation of scarce resource such as hydrocarbons, water and power and concentrate on alternative sources of energy such as solar, nuclear and wind power as an important future component of their energy mix while introducing demand management aspects such as power and water conservation and beginning to debate tariff rationalization plans to usher in reforms and achieve progress in augmenting capacities with the help of the private sector at a faster pace.
On the basis of years of tracking both power and water sector development, and maintenance projects, the team at Ventures Middle East aims to explore the dynamics surrounding the GCC power and water desalination industry in this study. The study in particular provides a regional perspective on the size and value of Power and Water sector covering the vital statistics on the installed capacity, production and demand for power and water besides providing an analysis of the contractor awards and construction spends in the power and water sector. The study also provides a strategic assessment of the Industry landscape by providing an analysis of the Political, Economic, Social, Technological, Legislative and the Environmental trends impacting this high growth Industry.
This study provides a comprehensive understanding of the complete market dynamics of the Power and Water sector to assist players interested in assessing the market opportunities in this robust and dynamic market.
Investments across the power sector are estimated at US$ 63 billion over the next five years and installed capacity is likely to reach 170,000 Mega Watts (MW) by 2019. Though power capacity across the GCC operates with a clear margin of 19 percent, primarily owing to the surplus offered by Qatar and Abu Dhabi of the UAE, that supply to the common GCC interconnection grid, and with a number of power projects completed across the region in anticipation of growing demand beginning operation since 2011, power capacity across the region nearly doubled from 53,823MW in 2002 to 112,722MW in 2011 at a Compound Annual Growth Rate (CAGR) of 9 percent though demand continues to grow at an average rate of 8 percent across the GCC, requiring greater and faster capacity additions over the future.
As the largest consumer of water in the world, GCC is also the largest producer of desalinated water globally. Of the total global desalination capacity, UAE contributes 35 percent, Saudi Arabia 34 percent, Kuwait 14 percent, Qatar 8 percent, Bahrain 5 percent, and Oman 4 percent. Similar to power, demand for water is growing at accelerated pace and low tariffs have been encouraging wastage and extensive use. Consequently, the countries are expected to invest close to US$ 100 billion over the next five years to combat the serious problem of water shortage. Water desalination capacities increased from 3000 million cubic meters per year in 2000 to 5000 million cubic metres per year by 2012 and likely to grow by another 1800 million cubic metres per year in 2013 and with continuing steady investments in Integrated Power and Water Projects (IWPPs) and desalination plants across the region, capacities are likely to reach 9000 cubic meters per year by 2030.
Construction contracts worth close to US$ 25 billion were awarded across the GCC power and water desalination industry in 2012 and likely to grow to US$ 30 billion in 2013.
Moreover, GCC countries are also beginning to realize the need for conservation of scarce resource such as hydrocarbons, water and power and concentrate on alternative sources of energy such as solar, nuclear and wind power as an important future component of their energy mix while introducing demand management aspects such as power and water conservation and beginning to debate tariff rationalization plans to usher in reforms and achieve progress in augmenting capacities with the help of the private sector at a faster pace.
On the basis of years of tracking both power and water sector development, and maintenance projects, the team at Ventures Middle East aims to explore the dynamics surrounding the GCC power and water desalination industry in this study. The study in particular provides a regional perspective on the size and value of Power and Water sector covering the vital statistics on the installed capacity, production and demand for power and water besides providing an analysis of the contractor awards and construction spends in the power and water sector. The study also provides a strategic assessment of the Industry landscape by providing an analysis of the Political, Economic, Social, Technological, Legislative and the Environmental trends impacting this high growth Industry.
This study provides a comprehensive understanding of the complete market dynamics of the Power and Water sector to assist players interested in assessing the market opportunities in this robust and dynamic market.
EXECUTIVE SUMMARY
CHAPTER 1. THE GCC POWER AND WATER DESALINATION INDUSTRY OVERVIEW 2013
Introduction and GCC Economic Overview
GCC Power & Water Desalination Industry Overview
GCC Power Sector Overview
GCC Water Sector Overview
GCC Power & Water - PESTLE Analysis
Political
Economic Trends
Social Trends
Legal and Regulatory Trends
Technological Trends
Environmental Trends
Market Drivers and Restraints and Probability Impact Matrix
Market Growth Drivers
Market Growth Restraints
Market Size and Forecasts for GCC Power & Water Sector
Construction Contract Awards For Power & Water Sector in GCC (2011 -2014)
Major Clients
Major Consultants
Major Contractors
Major Power & Water Projects in the GCC
CHAPTER 3.THE KSA POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Industry Structure
Market Size of KSA Power and Water Desalination Industry
Construction Contract Awards For Power and Water Sector in KSA (2010 -2013)
Major Power and Water Projects in KSA
CHAPTER 4.UAE POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Industry Structure
Market Size and Forecasts for UAE Power and Desalination Markets
Construction Contract Awards For Power and Water Desalination Sector in UAE (2011 -2014)
Major Power and Water Projects in UAE
CHAPTER 5. QATAR POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Industry Structure
Qatar Power and Water Sector Market Size and Forecasts
Construction Contract Awards For Power and Water Sector in Qatar (2011 -2014)
Major Power and Water Projects in Qatar
CHAPTER 6. BAHRAIN POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Construction Contract Awards For Power and Water Sector in Bahrain (2011 - 2014)
Major Power and Water Projects in Bahrain
CHAPTER 7. OMAN POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Industry Structure
Oman Power and Water Sector Market Size and Forecasts
Construction Contract Awards For Power and Water Sector in Oman (2011 -2014)
Major Power and Water Projects in Oman
CHAPTER 8. KUWAIT POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Kuwait Power and Water Sector Market Size and Forecasts
Construction Contract Awards For Power and Water Sector in Kuwait (2011 -2014)
Major Power and Water Projects in Kuwait
CHAPTER 9. FUTURE OUTLOOK FOR THE GCC POWER AND WATER DESALINATION INDUSTRY
Methodology
Code of Ethics
Ventures Onsite MENA Projects Database
CHAPTER 1. THE GCC POWER AND WATER DESALINATION INDUSTRY OVERVIEW 2013
Introduction and GCC Economic Overview
GCC Power & Water Desalination Industry Overview
GCC Power Sector Overview
GCC Water Sector Overview
GCC Power & Water - PESTLE Analysis
Political
Economic Trends
Social Trends
Legal and Regulatory Trends
Technological Trends
Environmental Trends
Market Drivers and Restraints and Probability Impact Matrix
Market Growth Drivers
Market Growth Restraints
Market Size and Forecasts for GCC Power & Water Sector
Construction Contract Awards For Power & Water Sector in GCC (2011 -2014)
Major Clients
Major Consultants
Major Contractors
Major Power & Water Projects in the GCC
CHAPTER 3.THE KSA POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Industry Structure
Market Size of KSA Power and Water Desalination Industry
Construction Contract Awards For Power and Water Sector in KSA (2010 -2013)
Major Power and Water Projects in KSA
CHAPTER 4.UAE POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Industry Structure
Market Size and Forecasts for UAE Power and Desalination Markets
Construction Contract Awards For Power and Water Desalination Sector in UAE (2011 -2014)
Major Power and Water Projects in UAE
CHAPTER 5. QATAR POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Industry Structure
Qatar Power and Water Sector Market Size and Forecasts
Construction Contract Awards For Power and Water Sector in Qatar (2011 -2014)
Major Power and Water Projects in Qatar
CHAPTER 6. BAHRAIN POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Construction Contract Awards For Power and Water Sector in Bahrain (2011 - 2014)
Major Power and Water Projects in Bahrain
CHAPTER 7. OMAN POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Industry Structure
Oman Power and Water Sector Market Size and Forecasts
Construction Contract Awards For Power and Water Sector in Oman (2011 -2014)
Major Power and Water Projects in Oman
CHAPTER 8. KUWAIT POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Kuwait Power and Water Sector Market Size and Forecasts
Construction Contract Awards For Power and Water Sector in Kuwait (2011 -2014)
Major Power and Water Projects in Kuwait
CHAPTER 9. FUTURE OUTLOOK FOR THE GCC POWER AND WATER DESALINATION INDUSTRY
Methodology
Code of Ethics
Ventures Onsite MENA Projects Database
LIST OF FIGURES
Figure 1: Historical and Forecast GCC Desalination Capacity (Million Cubic Meters per Day), 2000-2030
Figure 2: PESTLE Analysis GCC Utilities Sector
Figure 3: Share of GCC Power and Water Construction Contractor Awards by Country, 2012
Figure 4: Construction Contractor Awards for Power & Water Projects in the GCC (US$ Million), 2011 -2014
Figure 5: Construction Contractor Awards for Power & Water Projects in the KSA (US$ Million), 2011 -2014
Figure 6: UAE Power and Water Structure
Figure 7: Construction Contractor Awards for Power and Water Projects in the United Arab Emirates, 2011- 2014
Figure 8: Construction Contractor Awards (US$ Million) in Qatar Power and Water Desalination Market, 2011 - 2014
Figure 9: Construction Contractor Awards (US$ million) for Power and Water Projects in Bahrain, 2011 - 2014
Figure 10: Oman Power and Water Contractor Awards (US$ Million), 2011 - 2014
Figure 11: Kuwait Power and Water Contractor Awards (US$ Million), 2011 - 2014
Figure 1: Historical and Forecast GCC Desalination Capacity (Million Cubic Meters per Day), 2000-2030
Figure 2: PESTLE Analysis GCC Utilities Sector
Figure 3: Share of GCC Power and Water Construction Contractor Awards by Country, 2012
Figure 4: Construction Contractor Awards for Power & Water Projects in the GCC (US$ Million), 2011 -2014
Figure 5: Construction Contractor Awards for Power & Water Projects in the KSA (US$ Million), 2011 -2014
Figure 6: UAE Power and Water Structure
Figure 7: Construction Contractor Awards for Power and Water Projects in the United Arab Emirates, 2011- 2014
Figure 8: Construction Contractor Awards (US$ Million) in Qatar Power and Water Desalination Market, 2011 - 2014
Figure 9: Construction Contractor Awards (US$ million) for Power and Water Projects in Bahrain, 2011 - 2014
Figure 10: Oman Power and Water Contractor Awards (US$ Million), 2011 - 2014
Figure 11: Kuwait Power and Water Contractor Awards (US$ Million), 2011 - 2014
LIST OF TABLES
Table 1: GCC Macroeconomic Indicators, 2012
Table 2: GCC Main Economic Indicators, 2007-2011
Table 3: GCC Electricity Consumption Statistics (2000 - 2010)
Table 4: GCCC Installed Capacities (MW), Growth and Future Investments (US$ Million), 2011-2015
Table 5: Major Power & Water Clients in the GCC
Table 6: Major Power & Water Consultants in the GCC
Table 7: Major Power & Water Contractors in the GCC
Table 8: Major Power & Water Projects in the GCC by Project Value (US$ million), February 2013
Table 9: Major Power & Water Projects in the KSA by Project Value (US$ million), February 2013
Table 10: Major Power Projects in UAE by Project Value (US$ million), February 2013
Table 11: Major Power & Water Projects in Qatar by Project Value (US$ million), February 2013
Table 12: Major Power & Water Projects in Bahrain by Project Value (US$ million), February 2013
Table 13: Oman Electricity and Water Sector Market Structure
Table 14: Major Power & Water Projects in Oman by Project Value (US$ million), February 2013
Table 15: Major Power & Water Projects in Kuwait by Project Value (US$ million), February 2013
Table 1: GCC Macroeconomic Indicators, 2012
Table 2: GCC Main Economic Indicators, 2007-2011
Table 3: GCC Electricity Consumption Statistics (2000 - 2010)
Table 4: GCCC Installed Capacities (MW), Growth and Future Investments (US$ Million), 2011-2015
Table 5: Major Power & Water Clients in the GCC
Table 6: Major Power & Water Consultants in the GCC
Table 7: Major Power & Water Contractors in the GCC
Table 8: Major Power & Water Projects in the GCC by Project Value (US$ million), February 2013
Table 9: Major Power & Water Projects in the KSA by Project Value (US$ million), February 2013
Table 10: Major Power Projects in UAE by Project Value (US$ million), February 2013
Table 11: Major Power & Water Projects in Qatar by Project Value (US$ million), February 2013
Table 12: Major Power & Water Projects in Bahrain by Project Value (US$ million), February 2013
Table 13: Oman Electricity and Water Sector Market Structure
Table 14: Major Power & Water Projects in Oman by Project Value (US$ million), February 2013
Table 15: Major Power & Water Projects in Kuwait by Project Value (US$ million), February 2013
