Post - Articles
UAE’s expected power investment outlined in BMI report
- 12 years ago (2012-11-06)
- Junior Isles
The UAE is expected to spend over $8 billion on electricity generation over the next eight years, increasing annual generation to more than over 53 TWh by end-2021, according to Business Monitor International (BMI).
More info
E-World 2025
“Expansion is the name of the game in the UAE’s electricity market. With more than $8 billion expected to be invested in the period up to 2020, covering thermal, renewable, coal and nuclear generating capabilities, the market will remain highly attractive to international developers; however, the tight time frames for some ambitious new projects, intended to hike output by more than 50 per cent, will present logistical challenges,” BMI said in a press release.
Total power generation in the UAE for 2012 is forecast at 90.48 TWh, a year-on-year increase of around four per cent.
BMI anticipates an uptick in generation with much new generating capacity coming online in Abu Dhabi in the next few years. Annual production will reach more than 123 TWh by 2017, with nuclear pushing that figure to 144.2 TWh by end-2021.
BMI estimates natural gas-fired generation will grow by a mere 3.6 per cent between 2012 and 2021. Nuclear is expected to account for 13.6 per cent of the total generating mix by the end of this period.
By 2030, Dubai aims to generate at least 5 per cent of its electricity from renewables, 12 per cent from clean coal and 12 per cent from nuclear power. Emirates Nuclear Electricity Corporation (ENEC) has been awarded a construction licence for two of four planned nuclear units in the west of Abu Dhabi. The Federal Authority for Nuclear Regulation (FANR) granted the licence in mid-July 2012 and gave the green light for the building of two advanced pressurised water reactors (APRs), each with a capacity of 1400 MW.
BMI forecasts a sharp increase in annual power demand over the 2012-2021 period, with an anticipated average annual increase in consumption of 5.6 per cent. Consumption of 81 TWh will rise to 133.5 TWh by 2021, under its forecasted scenario. Much of this growth is underpinned by population growth, with UAE population rising from 8.1 million in 2012 to 9.3 million by the end of 2021.