Mubasher: Arab Petroleum Investments Corporation (APICORP) said that the private sector will be responsible for adding more than 20GW of generating capacity in the GCC over the next five years.
In a report released on Monday, APICORP suggested that the reliance on independent power producers (IPPs) is set to increase as GCC governments face increasing deficits and lower budgets due to lower oil revenues.
The report noted that demand on electricity in the GCC rose sharply, driven by factors such as population growth, urbanisation, improvements in income levels, industrialisation, and low electricity prices, adding that these factors will continue to place greater demand on power-generation capacities.
In Qatar, most power generation comes from independent water and power projects (IWPPs) and IPPs but with the Qatar Electricity and Water Company (QEWC) holding majority shares.
APICORP believes that, in the medium term, Qatar will rely on IWPPs to add capacity and has recently approved two new projects that will add nearly 4.5GW.
While in Kuwait, Al-Zour North gas-fired power plant is the first project to be built under the government’s Public-Private Partnership (PPP) with a capacity of 1.5 gig watt.
The plant is led by a consortium of Engie (17.5%), Japan’s Sumito (17.5%), AH Al Sagar and Brothers (5%), while the Kuwaiti government owns 60% of the project.
APICORP said that three projects are expected to be awarded in 2017: the 1.5GW Al-Zour North 2 IWPP, the 1.5GW Al-Khiran IWPP and the 280MW Al-Abdaliya ISCC.
