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    Home > Chemicals Industry > International Chemical > The demand for electricity investment in the Middle East and North Africa will reach US$180 billion by 2021

    The demand for electricity investment in the Middle East and North Africa will reach US$180 billion by 2021

    • Last Update: 2022-12-26
    • Source: Internet
    • Author: User
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    Arab oil investment company Apicorp recently released a report that by 2021, the power investment demand in the Middle East and North Africa region will be close to 180 billion US dollars to meet the growing demand
    for electricity.

    "Governments continue to address the challenge of accelerating new projects and upgrading infrastructure to meet growing demand, while encouraging private sector and financial institutions to participate in power sector investments," Apicorp said in
    the report.
    According
    to the report, electricity trade in the MENA region is now far behind the international market, but there is huge potential
    .

    Since 1980, the demand for electricity in the Arab world has continued to grow rapidly, with its consumption increasing tenfold
    .
    This surge can be attributed to several factors, including population growth, urbanization, industrialization, and artificially lowered electricity prices
    through government subsidies.

    The report suggests that governments could work with neighbouring countries to further explore the potential of power trading as a complement
    to their capacity increases.
    Although some national grids in the MENA region are now interconnected, transactions remain low, often only during emergencies and grid outages
    .
    GCC member states have been trading regional electricity through the GCCIA since 2011, which can enhance energy security and improve the economic benefits
    of efficiency.

    According to the World Bank, electricity trade could save the Arab world $17-25 billion, reducing the required capacity by 2,000-3,000 MW
    through better mutual use of existing capacity.
    The GCCIA estimates that the GCC's electricity trade could save up to $24 billion
    by 2038.
    At the same time, long-term technical, institutional and political barriers are major barriers to trade in the region, and the region's
    networks are expected to remain the least utilized in the world.

    At the same time, at a time when oil prices are falling and GCC government revenues are falling, electricity trading can bring significant economic gains
    .

    According to the GCCIA, the economic benefits of interconnected grids exceeded $400 million in 2016, with most of the benefits coming from installed capacity
    savings.
    At the same time, grid interconnection will also help to make more efficient use of existing power infrastructure
    .
    The World Bank estimates that the region's capacity utilization (capacity factor) is only 42 percent, compared to about 10 percent
    of existing grid interconnectivity.

    Despite the desire to strengthen cooperation and improve regional power trading, many challenges hinder progress
    such as energy security.
    Other challenges include the lack of strong institutional capacity and a clear regulatory framework, as well as limited idle capacity, especially during peak demand periods
    .

    "The MENA region will need to continue to invest heavily in power generation capacity and transmission infrastructure to meet growing demand and energy reforms, and diversification of fuel mix is an issue
    that has not yet been fully addressed in the region," the report concludes.

    Arab oil investment company Apicorp recently released a report that by 2021, the power investment demand in the Middle East and North Africa region will be close to 180 billion US dollars to meet the growing demand
    for electricity.

    electricity

    "Governments continue to address the challenge of accelerating new projects and upgrading infrastructure to meet growing demand, while encouraging private sector and financial institutions to participate in power sector investments," Apicorp said in
    the report.
    According
    to the report, electricity trade in the MENA region is now far behind the international market, but there is huge potential
    .


    Since 1980, the demand for electricity in the Arab world has continued to grow rapidly, with its consumption increasing tenfold
    .
    This surge can be attributed to several factors, including population growth, urbanization, industrialization, and artificially lowered electricity prices
    through government subsidies.

    The report suggests that governments could work with neighbouring countries to further explore the potential of power trading as a complement
    to their capacity increases.
    Although some national grids in the MENA region are now interconnected, transactions remain low, often only during emergencies and grid outages
    .
    GCC member states have been trading regional electricity through the GCCIA since 2011, which can enhance energy security and improve the economic benefits
    of efficiency.

    According to the World Bank, electricity trade could save the Arab world $17-25 billion, reducing the required capacity by 2,000-3,000 MW
    through better mutual use of existing capacity.
    The GCCIA estimates that the GCC's electricity trade could save up to $24 billion
    by 2038.
    At the same time, long-term technical, institutional and political barriers are major barriers to trade in the region, and the region's
    networks are expected to remain the least utilized in the world.

    At the same time, at a time when oil prices are falling and GCC government revenues are falling, electricity trading can bring significant economic gains
    .

    According to the GCCIA, the economic benefits of interconnected grids exceeded $400 million in 2016, with most of the benefits coming from installed capacity
    savings.
    At the same time, grid interconnection will also help to make more efficient use of existing power infrastructure
    .
    The World Bank estimates that the region's capacity utilization (capacity factor) is only 42 percent, compared to about 10 percent
    of existing grid interconnectivity.

    Despite the desire to strengthen cooperation and improve regional power trading, many challenges hinder progress
    such as energy security.
    Other challenges include the lack of strong institutional capacity and a clear regulatory framework, as well as limited idle capacity, especially during peak demand periods
    .

    "The MENA region will need to continue to invest heavily in power generation capacity and transmission infrastructure to meet growing demand and energy reforms, and diversification of fuel mix is an issue
    that has not yet been fully addressed in the region," the report concludes.

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