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MENA Needs $260 Billion in Power Investment

MENA Needs $260 Billion in Power InvestmentMENA Needs $260 Billion in Power Investment

Middle East and North African countries need to invest $260 billion over the next five years for electricity production to meet rising demand, a report said on Tuesday.

The region, which includes oil heavyweights Saudi Arabia, Iran and Iraq, must make investments to add 117 gigawatts of power generation by 2022, Arab Petroleum Investment Corp. (APICORP) said, Arab News reported.

The Dammam-based energy development bank said $152 billion are needed for electricity generation and the rest for transmission and distribution projects.

It estimated that power capacity in the Middle East and North Africa, currently standing at 321 GW, needs to expand by 6.4% on average annually by 2022 to meet growing demand.

The six nations belonging to the (Persian) Gulf Cooperation Council — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE — need to spend $89 billion to add 43 GW over the next five years, according to APICORP estimates.

The UAE and Saudi Arabia lead the way with investments projected to reach $33 billion and $21 billion respectively, it said.

Iran needs to add 25 GW of power to its current capacity of 77 GW with an estimated investment of $50 billion, according to the report.

Iraq, another oil-rich country, is required to invest $39 billion to add 12 GW of electricity by 2022, it said.

Egypt, the most populous country in the region, is estimated to need $46 billion of investments to add 22 GW of power to raise its capacity to 60 GW in 2022.

APICORP said countries in the region are increasingly resorting to clean energy sources like solar and nuclear to produce electricity.

 

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