Investment in power generation in the Middle east over the next 20 years is expected to top eight billion dollars per annum, much of it coming from the private sector, predicts Deputy Managing Director of Abu Dhabi’s Umm Al-Nar Power Company, Allen Conroy.
Privatization is forecasted to bring drastic change to the Middle East’s power and water industry over the next two decades, as government’s strive to meet year on year energy demand growth rates of six percent, twice the world average.
“This represents five percent of the Arab World GNP and 20 percent of total recorded investment,” said Conroy, who completed the first privatization of government assets in the United Arab Emirates (UAE), with the sale of Taweelah A1 Power Station to Gulf Total Tractebel Fina.
He added that privatization would have political as well as economic dimensions. “Socio-economic factors in the region are changing the way individuals perceive power and water. Many are now realizing that these utilities need to be treated as commercial commodities, rather than social benefits,” he said.
“We are also aware of the prospects of the depletion of fossil fuels and the impact this will have on the region’s businesses and economy. It is, therefore, incumbent on us to make the most of what we have. We need to utilize the remaining fuel stocks efficiently and effectively whilst still developing the economy.”
Conroy says that as existing fossil fuel supplies disappear, Gulf states will be forced to find alternatives to sustain energy demands, including nuclear fuel. Another option would be linking the planned trans-Arabian national electricity grid to Europe’s International grid. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
