GCC Power Construction Contracts to Soar by Percent 41% in 2018: Report
The value of power construction contracts awarded throughout the GCC in 2018 will reach US $23.6 billion, according to a report by Middle East Electricity (MEE), the region’s leading annual international trade event for the power industry.
The impressive figure, quoted in the show’s report by Ventures Onsite, represents a substantial 41 per cent increase on 2017. The report highlights that Saudi Arabia will lead the awards ranking, accounting for 59 per cent of contract value, followed by the UAE and Kuwait.
“This upsurge in the value of contracts reflects the vibrancy of the region’s power sector where governments are looking to meet spiraling demand - between 7 to 8 per cent a year,” explained Anita Mathews, Group Director – Industrial Portfolio at Informa Exhibitions, which organises the event.
Citing research by the multilateral development bank APICORP, the report - ‘GCC Power Market Report ’ - says the GCC will require a spend of approximately US $81 billion for generating capacity, transmission and distribution over the next five years with that investment likely to be prioritised despite any prevailing economic headwinds.
“While GCC governments have registered budget deficits and tightened expenditure due to fluctuating oil prices, power sector investments are expected to remain unaffected and given importance,” says the report.
The massive surge in investment has piqued interest in MEE 2018, which will run at Dubai World Trade Centre (DWTC) from March 6-8, with Informa expanding the event to cater to shifting sector dynamics. The 2018 show will feature a new dedicated Energy Storage & Management Solutions sector, while Informa will also debut the thought-leading Global Smart Energy Summit (GSES) alongside the mega exhibition.
“We are experiencing strong demand for the show’s 2018 edition with more than 1,000 companies from 66 countries already committed to exhibiting,” said Mathews. “These will be supported by 24 dedicated country pavilions. This strong commitment appears to be a resounding vote of confidence in the sector and in the ongoing short and medium-term commitment of GCC governments to invest in this segment and seek alternative financing vehicles. This interest covers the entire value chain of products, systems and services, which has led us to create five specific sectors, each devoted to a critical area of the power eco-system.”
Energy Storage & Management Solutions joins four other specialised sectors at the show including the Transmission & Distribution, Power Generation and Lighting stalwarts, as well as Solar, which joins the MEE line-up as a dedicated sector after six years as a co-located event.
As the GCC power contract investment pipeline readies for 2018 growth, the MEE report forecasts the renewables sector is on the rise as the region pursues economic diversification policies.
“GCC countries are shifting towards renewable resources for energy generation to preserve their oil wealth. Currently, renewables form the fastest growing energy source for electricity generation. GCC countries are investing heavily in renewable energy to achieve significant targets by 2030-2040,” states the report.
The drive towards renewables is just one emerging trend in a region where the power sector is, according to Mathews, witnessing tectonic transformation.
“Change is the name of the game with the region being driven by a new economic impetus and proving more responsive to changing fundamentals, including falls in the price of solar, storage and wind power,” said Mathews. “This transformation is impacting all, at every level. Technology advances now see buildings serving as thermal batteries. This seismic shift is seeing new businesses and astounding innovation enter the industry as it moves from a highly-regulated sector into a fiercely competitive one.
“Consequently, there are a host of amazing opportunities in new technology and systems optimisation, and the global industry has acknowledged the regional prospects. They have chosen to make their market and advanced product entries at Middle East Electricity, which itself is morphing into a beacon of change, signaling what we can expect in the short, medium and even long-term from the power sector and how it will impact all our lives,” added Mathews.
And as the show deals with the physical and technological innovations that will alter the industry and daily routines, deep insights into the sector’s future will be unearthed at the co-located GSES.
“Global Smart Energy Summit (GSES) will be a knowledge-sharing, dialogue-forming and networking forum designed to deliver the most comprehensive forecasting, planning and analytics on the way forward for the industry; from reforms, policy and incentives to development in smart grids,” said Ryan O’Donnell, Programme Director at GSES.
“Exclusive keynote addresses from the US and Europe will highlight truly innovative ideas, world-class technologies and international case studies from some of the globe’s biggest and most recognised companies, brands and universities. Content streams will focus on the latest in Smart transmission and distribution, energy storage and management, renewable energy and energy efficiency – ensuring every attendee leaves with practical and implementable strategies and solutions.”
Informa has secured an impressive speaker platform for the summit which includes: Jeffrey Brian Straubel, Tesla Inc’s Co-Founder and Chief Technical Officer and board member of the transformative SolarCity; Andy Karsner, former Assistant Secretary for Energy Efficiency at the US Department of Energy, who led the implementation of the Twenty-In-Ten Advanced Energy Initiative and, internationally-acclaimed Big Data guru Kirk Borne, the astrophysicist and data scientist who, for two decades, supported NASA projects including the Hubble Space Telescope research phenomenon.
“This is an unparalleled regional opportunity to hear from the giants of innovation who are upending the way power is generated, distributed and used and are behind the transformative advances of the 4th industrial revolution we are now living through,” added O’Donnell.
MEE 2018 is held under the patronage of HH Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Dubai Deputy Ruler, and is hosted by the UAE Ministry of Energy.
For more information, please visit - www.middleeastelectricity.com
Middle East Electricity
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