GCC power consumption seen rising 2.5 percent
Electricity consumption in the GCC is likely to experience an annual per capita increase of 2.5 percent a year until 2030, said a report. At this level of annual increase, GCC residents may well emerge soon as world leaders in per capita residential electricity consumption, according to a Deloitte white paper on energy and resources in the Middle East entitled 'Energy on Demand: The Future of GCC Energy Efficiency'. This was the fourth in a series of 'Managing Scarcity for the Future' monthly white papers. A large part of this increase is attributed to the needs of a growing population throughout the GCC and a significant 47 percent of energy consumption diverted into residential use.
'The residents of GCC countries use more electricity domestically than their counterparts in the US,' said energy and resource leader and Deloitte partner in the Middle East Kenneth McKellar. 'Given this scenario, we would expect effective demand management to play a key role in the energy balance of GCC countries, and this is already happening.
As the role of demand management increases, energy efficiency policies and measures will also be inevitably streamlined and reassessed,' he said. According to the white paper, since GCC countries are not as industrialised or service-based as other economies, their residential use of electric power will form a greater proportion of overall electricity consumption. GCC countries put only 10.5 percent of their electricity to use in industry compared with 37.7 percent globally. 'GCC countries have embarked on economic diversification plans, with industrialisation as a key component of the long-term strategies they are pursuing,' McKellar added.
'Based on the existing electricity consumption patterns of other industrialised and industrialising countries, the success of this strategy may, alongside other measures, require a rebalancing in electricity consumption from residential to industrial sectors in the long term,' he added.