GCC Power and Desalination Industry Overview
Description
Forming the foundation pillars upon which the economic development of the country is based, The Power and Water desalination Industry in the GCC nations is characterized by a limited source of supply struggling to cater to the escalating demand fuelled by increasing population and improved standards of living. Spurred by a buoyant economy and population growth, over US$ 300 billion will be invested in the GCC water and desalination projects, between 2012 – 2022 periods. Subsequent to its revolutionary discovery of hydrocarbons about three decades back, the GCC economies have come a long way into establishing themselves as a fast developing region boasting modern amenities and facilitating high standards of living. In an ardent quest to remove the tarnished image of an impoverished desert with limited prospects for economic development, the governments across the GCC have increased spending on job creation and infrastructure expansion and are opening up utilities to greater private sector involvement.
Whilst Privatization occupies centre stage in the overhauling process of the Power and Water sector, the initiatives towards alternative energy sources in the form of Solar and Nuclear power, as alternatives to the heavy dependence on the hydrocarbons sector, particularly to replace natural gas as a primary fuel in power generation, has been considered a highlight of the regional power reforms. The emergence of alternative power sources will enable GCC nations to successfully diversify their economic growth from a predominantly oil based economy thus bracing themselves against future adversities arising from oil fluctuations.
Renewable energies are about to capture a considerable segment of the global energy mix. This segment is only likely to grow given rising demand for energy, supply worries with regard to fossil fuels and environmental concerns. In particular solar energy offer huge potential for the GCC countries. Rising domestic energy needs for power generation and desalination, favourable conditions for solar energy production and interest in acquiring technological know-how make a perfect argument for renewable energy in the Gulf. In spite of their heavy dependence on hydrocarbon fuels, the GCC countries have access to one of the world’s most abundant solar resources. All six nations of the GCC have either embarked upon or committed to investments in solar projects, with projects split between solar photovoltaic and solar thermal applications.
The GCC region also has considerable wind resources, even though these vary widely across the countries and wind installations are at a less developed stage than their solar counterparts. Other potential sources of alternative energy include bio fuels, geothermal, and nuclear power. Through initiatives like the UAE’s biodiesel plant in Al Ain Industrial City and the Qatar Advanced Bio fuel Platform (QABP), the GCC countries are looking to the prospective of biomass-derived alternatives to fossil transportation fuels. While the region boasts substantial geothermal potential, this resource has been comparatively unexploited; the drilling of two geothermal wells in the United Arab Emirates’ (UAE) Masdar city represents the principal progress in this field. Following approval of the civilian nuclear cooperation between the United States and the UAE, and the latter’s award of contracts for the construction of four nuclear reactors to a South Korean consortium, the UAE looks likely become the first country in the Middle East with a civilian nuclear energy program of significant scale. However, several other countries in the region have expressed serious interest in nuclear power to meet growing electricity demand and to initiate their transition to low-carbon development.
Renewable energies can extend the lifeline of the GCC’s oil and gas exports, and in some decades from now, they even have the potential to expand into a major pillar of the economy. Energy created from renewable could gradually substitute oil as the GCC’s major export item. An essential precondition for this would be a wholehearted grip of the renewable energy trend by the GCC countries and their development into technological leaders in the field. They should consider renewable not as unwanted competition to their oil and gas production, but rather as a welcome addition to tight global energy markets.
The fervent efforts of the GCC Governments in enforcing legislations to conserve water in addition to their avid focus on desalination and waste water treatment, highlights the significance given by these economies to meet the demand for water. Faced with the inherent disadvantage of extreme scarcity of ground water, the GCC nations are doing everything within their power to conserve and improve the supply of water through desalination and waste water treatments. As part of its overhauling measures, the regional governments are also educating the masses on conserving this valuable resource in addition to plans on introducing marginal pricing relative to the increasing usage to deter increase in demand as well as to manage the costs of production.
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.
Forming the foundation pillars upon which the economic development of the country is based, The Power and Water desalination Industry in the GCC nations is characterized by a limited source of supply struggling to cater to the escalating demand fuelled by increasing population and improved standards of living. Spurred by a buoyant economy and population growth, over US$ 300 billion will be invested in the GCC water and desalination projects, between 2012 – 2022 periods. Subsequent to its revolutionary discovery of hydrocarbons about three decades back, the GCC economies have come a long way into establishing themselves as a fast developing region boasting modern amenities and facilitating high standards of living. In an ardent quest to remove the tarnished image of an impoverished desert with limited prospects for economic development, the governments across the GCC have increased spending on job creation and infrastructure expansion and are opening up utilities to greater private sector involvement.
Whilst Privatization occupies centre stage in the overhauling process of the Power and Water sector, the initiatives towards alternative energy sources in the form of Solar and Nuclear power, as alternatives to the heavy dependence on the hydrocarbons sector, particularly to replace natural gas as a primary fuel in power generation, has been considered a highlight of the regional power reforms. The emergence of alternative power sources will enable GCC nations to successfully diversify their economic growth from a predominantly oil based economy thus bracing themselves against future adversities arising from oil fluctuations.
Renewable energies are about to capture a considerable segment of the global energy mix. This segment is only likely to grow given rising demand for energy, supply worries with regard to fossil fuels and environmental concerns. In particular solar energy offer huge potential for the GCC countries. Rising domestic energy needs for power generation and desalination, favourable conditions for solar energy production and interest in acquiring technological know-how make a perfect argument for renewable energy in the Gulf. In spite of their heavy dependence on hydrocarbon fuels, the GCC countries have access to one of the world’s most abundant solar resources. All six nations of the GCC have either embarked upon or committed to investments in solar projects, with projects split between solar photovoltaic and solar thermal applications.
The GCC region also has considerable wind resources, even though these vary widely across the countries and wind installations are at a less developed stage than their solar counterparts. Other potential sources of alternative energy include bio fuels, geothermal, and nuclear power. Through initiatives like the UAE’s biodiesel plant in Al Ain Industrial City and the Qatar Advanced Bio fuel Platform (QABP), the GCC countries are looking to the prospective of biomass-derived alternatives to fossil transportation fuels. While the region boasts substantial geothermal potential, this resource has been comparatively unexploited; the drilling of two geothermal wells in the United Arab Emirates’ (UAE) Masdar city represents the principal progress in this field. Following approval of the civilian nuclear cooperation between the United States and the UAE, and the latter’s award of contracts for the construction of four nuclear reactors to a South Korean consortium, the UAE looks likely become the first country in the Middle East with a civilian nuclear energy program of significant scale. However, several other countries in the region have expressed serious interest in nuclear power to meet growing electricity demand and to initiate their transition to low-carbon development.
Renewable energies can extend the lifeline of the GCC’s oil and gas exports, and in some decades from now, they even have the potential to expand into a major pillar of the economy. Energy created from renewable could gradually substitute oil as the GCC’s major export item. An essential precondition for this would be a wholehearted grip of the renewable energy trend by the GCC countries and their development into technological leaders in the field. They should consider renewable not as unwanted competition to their oil and gas production, but rather as a welcome addition to tight global energy markets.
The fervent efforts of the GCC Governments in enforcing legislations to conserve water in addition to their avid focus on desalination and waste water treatment, highlights the significance given by these economies to meet the demand for water. Faced with the inherent disadvantage of extreme scarcity of ground water, the GCC nations are doing everything within their power to conserve and improve the supply of water through desalination and waste water treatments. As part of its overhauling measures, the regional governments are also educating the masses on conserving this valuable resource in addition to plans on introducing marginal pricing relative to the increasing usage to deter increase in demand as well as to manage the costs of production.
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
CHAPTER1. THE GCC POWER AND WATER DESALINATION INDUSTRY OVERVIEW 2012
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
Private Sector Key to Power & Water Sector Growth
Economic Trends
Population Growth
Improving Economic scenario
Social Trends
Tourism & Transit Population Spirals Utility Demand
Legislative 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 (2010 -2013)
Major Clients
Major Consultants
Major Contractors
Major Power & Water Projects in GCC
CHAPTER2.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 3.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 (2010 -2013)
Major Power and Water Projects in UAE
CHAPTER4. 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 (2010 -2013)
Major Power and Water Projects in Qatar
CHAPTER5. BAHRAIN POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Construction Contract Awards For Power and Water Sector in Bahrain (2010 - 2013)
Major Power and Water Projects in Bahrain
CHAPTER5. OMAN POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Oman Power and Water Sector Market Size and Forecasts
Construction Contract Awards For Power and Water Sector in Oman (2010 -2013)
Major Power and Water Projects in Oman
CHAPTER6. 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 (2010 -2013)
Major Power and Water Projects in Kuwait
CHAPTER7. FUTURE OUTLOOK FOR THE GCC POWER AND WATER DESALINATION INDUSTRY
METHODOLOGY
CODE OF ETHICS
VENTURES ONSITE MENA PROJECTS DATABASE
LIST OF FIGURES
Figure 1: GCC Installed Power Capacity (MW), as of 2009
Figure 2: GCC Desalination Capacity (Million Gallons Per Day), 2009
Figure 3: PESTLE Analysis GCC Utilities Sector
Figure 4: Share of GCC Power and Construction Contractor Awards by Country, 2011
Figure 5: Construction Contractor Awards for Power & Water Projects in the GCC (US$ Million), 2010 -2013
Figure 6: UAE Power and Water Structure
Figure 7: Trends in Contract Awards in UAE Power and Water Desalination Market, 2010 - 2013
Figure 8: Trends in Contract Awards in Qatar Power and Water Desalination Market, 2010 to 2013
Figure 9: Bahrain Power and Water Contractor Awards (US$ million), 2010 - 2013
Figure 10: Oman Power and Water Contractor Awards (US$ Million), 2010 - 2013
Figure 11: Kuwait Electricity Production vs. Consumption in Billion Kilowatts, 2003 - 2010
Figure 12: Kuwait Power and Water Contractor Awards (US$ Million), 2010 - 2013
CHAPTER1. THE GCC POWER AND WATER DESALINATION INDUSTRY OVERVIEW 2012
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
Private Sector Key to Power & Water Sector Growth
Economic Trends
Population Growth
Improving Economic scenario
Social Trends
Tourism & Transit Population Spirals Utility Demand
Legislative 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 (2010 -2013)
Major Clients
Major Consultants
Major Contractors
Major Power & Water Projects in GCC
CHAPTER2.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 3.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 (2010 -2013)
Major Power and Water Projects in UAE
CHAPTER4. 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 (2010 -2013)
Major Power and Water Projects in Qatar
CHAPTER5. BAHRAIN POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Construction Contract Awards For Power and Water Sector in Bahrain (2010 - 2013)
Major Power and Water Projects in Bahrain
CHAPTER5. OMAN POWER AND WATER DESALINATION INDUSTRY OVERVIEW
Oman Power and Water Sector Market Size and Forecasts
Construction Contract Awards For Power and Water Sector in Oman (2010 -2013)
Major Power and Water Projects in Oman
CHAPTER6. 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 (2010 -2013)
Major Power and Water Projects in Kuwait
CHAPTER7. FUTURE OUTLOOK FOR THE GCC POWER AND WATER DESALINATION INDUSTRY
METHODOLOGY
CODE OF ETHICS
VENTURES ONSITE MENA PROJECTS DATABASE
LIST OF FIGURES
Figure 1: GCC Installed Power Capacity (MW), as of 2009
Figure 2: GCC Desalination Capacity (Million Gallons Per Day), 2009
Figure 3: PESTLE Analysis GCC Utilities Sector
Figure 4: Share of GCC Power and Construction Contractor Awards by Country, 2011
Figure 5: Construction Contractor Awards for Power & Water Projects in the GCC (US$ Million), 2010 -2013
Figure 6: UAE Power and Water Structure
Figure 7: Trends in Contract Awards in UAE Power and Water Desalination Market, 2010 - 2013
Figure 8: Trends in Contract Awards in Qatar Power and Water Desalination Market, 2010 to 2013
Figure 9: Bahrain Power and Water Contractor Awards (US$ million), 2010 - 2013
Figure 10: Oman Power and Water Contractor Awards (US$ Million), 2010 - 2013
Figure 11: Kuwait Electricity Production vs. Consumption in Billion Kilowatts, 2003 - 2010
Figure 12: Kuwait Power and Water Contractor Awards (US$ Million), 2010 - 2013
LIST OF TABLES
Table 1: GCC Macroeconomic Indicators, 2011
Table 2: GCC Main Economic Indicators, 2007-2011
Table 3: GCC Electricity Consumption Statistics (2000 - 2010)
Table 4: Major Power & Water Clients in the GCC
Table 5: Major Power & Water Consultants in the GCC
Table 6: Major Power & Water Contractors in the GCC
Table 7: Major Power & Water Projects in the GCC by Project Value (US$ million), February 2012
Table 8: Major Power & Water Projects in the KSA by Project Value (US$ million), February 2012
Table 9: Major Power Projects in UAE by Project Value (US$ million), February 2012
Table 10: Major Power & Water Projects in Qatar by Project Value (US$ million), February 2012
Table 11: Major Power & Water Projects in Bahrain by Project Value (US$ million), February 2012
Table 12: Oman Electricity and Water Sector Market Structure
Table 13: Major Power & Water Projects in Oman by Project Value (US$ million), February 2012
Table 14: Major Power & Water Projects in Kuwait by Project Value (US$ million), February 2012
Table 1: GCC Macroeconomic Indicators, 2011
Table 2: GCC Main Economic Indicators, 2007-2011
Table 3: GCC Electricity Consumption Statistics (2000 - 2010)
Table 4: Major Power & Water Clients in the GCC
Table 5: Major Power & Water Consultants in the GCC
Table 6: Major Power & Water Contractors in the GCC
Table 7: Major Power & Water Projects in the GCC by Project Value (US$ million), February 2012
Table 8: Major Power & Water Projects in the KSA by Project Value (US$ million), February 2012
Table 9: Major Power Projects in UAE by Project Value (US$ million), February 2012
Table 10: Major Power & Water Projects in Qatar by Project Value (US$ million), February 2012
Table 11: Major Power & Water Projects in Bahrain by Project Value (US$ million), February 2012
Table 12: Oman Electricity and Water Sector Market Structure
Table 13: Major Power & Water Projects in Oman by Project Value (US$ million), February 2012
Table 14: Major Power & Water Projects in Kuwait by Project Value (US$ million), February 2012
