MENA Power Investment Report Chapter Summaries
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Chapter 1 - OVERVIEW
Chapter 2 - POWER INVESTMENT IN MENA
Electricity investment in MENA compared with other major countries and the world average.
Tables of power sector capex forecast by country 2017 to 2022,
Power and distribution equipment purchases by category of equipment at sales price and installed cost in
MENA, forecast 2017 to 2022.
- Generation - mechanical generating equipment, solar, wind power.
- Generation, Transmission & Distribution - transformers, switchgear, insulators & bushings.
- Transmission & Distribution - cable, towers, poles, meters & smart grid.
- Analysis by country from 2017 to 2022 for power and distribution transformers.
Chapter 3 - MENA ENERGY TRENDS
Chapter 4 - MENA INTERCONNECTIONS-++
The three interconnector systems in the MENA region, their development, current coverage and use, and
future plans.
Chapter 5 - MENA ELECTRICITY SECTOR STRUCTURES: BASIC FEATURES OF THE ELECTRICITY SECTOR
The electricity systems and markets in MENA countries are at various stages of development. These are
outlined and compared.
Chapter 6 - GULF COOPERATION COUNCIL, GCC
Overview of the GCC, oil and non-oil industrial development and investment. Detailed profiles of the
electrical sectors with operational and market analysis.
Detailed country profiles in four regions: Electricity sector, Generation, Renewables, Investment in the
power sector, Investment in the non-oil sector, Transmission, Distribution & Supply, Wholesale Markets,
Regulation, Interconnections.
1. GCC - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates
2. Rest of Middle East - Iran, Iraq, Jordan, Israel, Lebanon, Syria, Yemen
3. Turkey
4. North Africa – Algeria, Egypt, Libya, Morocco, Tunisia
89 pages
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Table of Contents
1.OVERVIEW ............................................................................................................................................................... 10
2.POWER INVESTMENT IN MENA ............................................................................................................................... 11
Electricity investment in MENA compared with the world ................................................................................ 11
3.MENA ENERGY TRENDS ........................................................................................................................................... 16
4.MENA INTERCONNECTIONS .................................................................................................................................... 17
The Maghreb regional energy interconnection. ................................................................................................ 17
The Eight Countries [EIJLLPST] regional energy interconnection. ...................................................................... 18
Gulf Cooperation Council (GCC) regional energy interconnection. ................................................................... 18
5.MENA ELECTRICITY SECTOR STRUCTURES: BASIC FEATURES OF THE ELECTRICITY SECTOR ................................... 19
A tradition of monopolies................................................................................................................................... 20
Power sector reform. ......................................................................................................................................... 20
Renewables activity. ........................................................................................................................................... 20
Renewables auctions. ......................................................................................................................................... 20
Tariff subsidies. ................................................................................................................................................... 21
Revenue deficits. ................................................................................................................................................ 21
Distortion of consumption. ................................................................................................................................ 21
State dominance of the power sector. ............................................................................................................... 21
6.GULF COOPERATION COUNCIL, GCC ....................................................................................................................... 23
Bahrain - Kingdom. ............................................................................................................................................. 23
Kuwait - Emirate. ................................................................................................................................................ 23
Oman - Sultanate. ............................................................................................................................................... 23
Qatar - Emirate. .................................................................................................................................................. 23
Saudi Arabia - Kingdom (KSA). ............................................................................................................................ 23
UAE - United Arab Emirates. .............................................................................................................................. 23
The Parallel Economies of the GCC .................................................................................................................... 24
Power sector investment in the GCC countries ................................................................................................. 25
Population .......................................................................................................................................................... 27
Private sector development in the GCC ............................................................................................................. 27
Banking ............................................................................................................................................................... 27
Assets under Management ................................................................................................................................ 28
Dubai International Financial Centre (DIFC) ....................................................................................................... 28
Abu Dhabi Global Market (ADGM) ..................................................................................................................... 29
Diversification from hydrocarbons ..................................................................................................................... 29
Other minerals .................................................................................................................................................... 30
Water .................................................................................................................................................................. 31
Food .................................................................................................................................................................... 31
Real estate .......................................................................................................................................................... 31
BAHRAIN ............................................................................................................................................................. 33
Electricity sector ................................................................................................................................................. 33
Generation .......................................................................................................................................................... 33
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Renewables......................................................................................................................................................... 33
Investment in the power sector ......................................................................................................................... 34
Investment in the non-oil sector ........................................................................................................................ 34
Transmission ....................................................................................................................................................... 35
Distribution & Supply.......................................................................................................................................... 35
Wholesale Markets ............................................................................................................................................. 35
Regulation ........................................................................................................................................................... 35
Interconnections ................................................................................................................................................. 35
KUWAIT ............................................................................................................................................................... 36
Generation .......................................................................................................................................................... 36
Renewables......................................................................................................................................................... 36
Investment in the power sector ......................................................................................................................... 37
Investment in the non-oil sector ........................................................................................................................ 37
Transmission, Distribution & Supply .................................................................................................................. 37
Wholesale Markets ............................................................................................................................................. 37
Regulation ........................................................................................................................................................... 37
Interconnections ................................................................................................................................................. 38
OMAN ................................................................................................................................................................. 39
Generation .......................................................................................................................................................... 39
Renewables......................................................................................................................................................... 39
Investment in the power sector ......................................................................................................................... 39
Investment in the non-oil sector ........................................................................................................................ 40
Transmission ....................................................................................................................................................... 40
Distribution & Supply.......................................................................................................................................... 40
Wholesale Markets ............................................................................................................................................. 40
Regulation ........................................................................................................................................................... 40
Interconnections ................................................................................................................................................. 41
QATAR ................................................................................................................................................................. 42
Generation .......................................................................................................................................................... 42
Renewables......................................................................................................................................................... 42
Smart cities ......................................................................................................................................................... 42
Investment in the power sector ......................................................................................................................... 43
Investment in the non-oil sector ........................................................................................................................ 43
Transmission ....................................................................................................................................................... 43
Distribution & Supply.......................................................................................................................................... 43
Wholesale Markets ............................................................................................................................................. 43
Regulation ........................................................................................................................................................... 43
Interconnections ................................................................................................................................................. 44
SAUDI ARABIA ..................................................................................................................................................... 45
Generation .......................................................................................................................................................... 45
Renewables......................................................................................................................................................... 46
Smart cities ......................................................................................................................................................... 46
Table 26: Tunisia transmission and distribution ................................................................................ 89
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Investment in the power sector ......................................................................................................................... 46
Investment in the non-oil sector ........................................................................................................................ 47
Transmission ...................................................................................................................................................... 48
Distribution & Supply ......................................................................................................................................... 48
Wholesale Markets ............................................................................................................................................ 48
Regulation .......................................................................................................................................................... 48
Interconnections ................................................................................................................................................ 49
UNITED ARAB EMIRATES .................................................................................................................................... 50
UAE generation .................................................................................................................................................. 51
Dubai generation ............................................................................................................................................... 51
Abu Dhabi generation ........................................................................................................................................ 51
Northern Emirates generation ........................................................................................................................... 52
Desalination ....................................................................................................................................................... 52
Renewables ........................................................................................................................................................ 52
Abu Dhabi renewables ....................................................................................................................................... 52
Dubai renewables .............................................................................................................................................. 53
Sharjah renewables ............................................................................................................................................ 54
Northern emirates renewables .......................................................................................................................... 55
Smart cities......................................................................................................................................................... 55
Investment in the power sector ......................................................................................................................... 55
Abu Dhabi investment in the power sector ....................................................................................................... 55
Dubai investment in the power sector .............................................................................................................. 55
Northern emirates investment in the power sector .......................................................................................... 56
Investment in the non-oil sector ........................................................................................................................ 56
Transmission ...................................................................................................................................................... 57
Emirates National Grid, ENG .............................................................................................................................. 57
Distribution & Supply ......................................................................................................................................... 57
Wholesale Markets ............................................................................................................................................ 57
Regulation .......................................................................................................................................................... 58
Abu Dhabi regulation ......................................................................................................................................... 58
Dubai regulation ................................................................................................................................................ 58
Northern emirates regulation ............................................................................................................................ 58
Sharjah regulation .............................................................................................................................................. 58
Ras Al Khaymah regulation ................................................................................................................................ 58
Interconnections ................................................................................................................................................ 58
7.MIDDLE EAST, NON-GCC ......................................................................................................................................... 60
IRAN ................................................................................................................................................................... 60
Generation ......................................................................................................................................................... 60
Transmission ...................................................................................................................................................... 60
Distribution & Supply ......................................................................................................................................... 60
Wholesale Markets ............................................................................................................................................ 61
Regulation .......................................................................................................................................................... 61
Interconnections ................................................................................................................................................ 62
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IRAQ .................................................................................................................................................................... 63
Generation .......................................................................................................................................................... 63
Renewable energy .............................................................................................................................................. 64
Transmission, Distribution & Supply ................................................................................................................... 64
Investment .......................................................................................................................................................... 64
Wholesale Markets ............................................................................................................................................. 64
Regulation ........................................................................................................................................................... 64
Interconnections ................................................................................................................................................. 65
ISRAEL ................................................................................................................................................................. 66
Generation .......................................................................................................................................................... 66
Transmission, Distribution & Supply ................................................................................................................... 66
Wholesale Markets ............................................................................................................................................. 66
Regulation ........................................................................................................................................................... 66
Interconnections ................................................................................................................................................. 67
JORDAN ............................................................................................................................................................... 68
Generation .......................................................................................................................................................... 68
Transmission ....................................................................................................................................................... 68
Distribution & Supply .......................................................................................................................................... 68
Wholesale Markets ............................................................................................................................................. 68
Regulation ........................................................................................................................................................... 68
LEBANON ............................................................................................................................................................ 70
Generation .......................................................................................................................................................... 70
Transmission ....................................................................................................................................................... 70
Distribution & Supply .......................................................................................................................................... 70
Wholesale Markets ............................................................................................................................................. 70
Regulation ........................................................................................................................................................... 70
Interconnections ................................................................................................................................................. 70
SYRIA ................................................................................................................................................................... 71
Generation .......................................................................................................................................................... 71
Renewables ......................................................................................................................................................... 71
Transmission, Distribution & Supply ................................................................................................................... 71
Wholesale Markets ............................................................................................................................................. 71
Regulation ........................................................................................................................................................... 71
Interconnections ................................................................................................................................................. 71
YEMEN ................................................................................................................................................................ 73
Generation .......................................................................................................................................................... 73
Transmission, Distribution & Supply ................................................................................................................... 73
Wholesale Markets ............................................................................................................................................. 73
Regulation ........................................................................................................................................................... 73
8.TURKEY..................................................................................................................................................................... 74
Generation .......................................................................................................................................................... 74
Renewables ......................................................................................................................................................... 74
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Investment in the power sector ......................................................................................................................... 75
Transmission ...................................................................................................................................................... 75
Distribution & Supply ......................................................................................................................................... 75
Wholesale Markets ............................................................................................................................................ 75
Regulation .......................................................................................................................................................... 76
Interconnections ................................................................................................................................................ 76
9.NORTH AFRICA ........................................................................................................................................................ 77
ALGERIA.............................................................................................................................................................. 77
Generation ......................................................................................................................................................... 77
Renewables ........................................................................................................................................................ 77
Investment in the power sector ......................................................................................................................... 77
Transmission ...................................................................................................................................................... 77
Distribution & Supply ......................................................................................................................................... 77
Wholesale Markets ............................................................................................................................................ 77
Regulation .......................................................................................................................................................... 78
Interconnections ................................................................................................................................................ 78
EGYPT ................................................................................................................................................................. 79
Generation ......................................................................................................................................................... 79
Renewables ........................................................................................................................................................ 79
Investment in the power sector ......................................................................................................................... 79
Finance ............................................................................................................................................................... 80
Transmission ...................................................................................................................................................... 80
Distribution & Supply ......................................................................................................................................... 80
Wholesale Markets ............................................................................................................................................ 81
Regulation .......................................................................................................................................................... 81
Interconnections ................................................................................................................................................ 81
LIBYA .................................................................................................................................................................. 82
Generation ......................................................................................................................................................... 82
Renewables ........................................................................................................................................................ 82
Investment in the power sector ......................................................................................................................... 82
Transmission, Distribution & Supply ................................................................................................................. 82
Regulation .......................................................................................................................................................... 83
Interconnections ................................................................................................................................................ 83
MOROCCO .......................................................................................................................................................... 85
Generation ......................................................................................................................................................... 85
Renewables ........................................................................................................................................................ 86
Investment in the power sector ......................................................................................................................... 86
Transmission ...................................................................................................................................................... 86
Distribution & Supply ......................................................................................................................................... 86
Wholesale Markets ............................................................................................................................................ 86
Regulation .......................................................................................................................................................... 86
Interconnections ................................................................................................................................................ 86
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TUNISIA .............................................................................................................................................................. 88
Generation ......................................................................................................................................................... 88
Renewables ........................................................................................................................................................ 88
Investment in the power sector ......................................................................................................................... 88
Transmission ...................................................................................................................................................... 89
Distribution & Supply ......................................................................................................................................... 89
Wholesale Markets ............................................................................................................................................ 89
Regulation .......................................................................................................................................................... 89
Interconnections ................................................................................................................................................ 89
Figures Figure 1: Comparison of electricity sector investment, MENA, GCC and the World ................................................. 11 Figure 2: Capital expenditure, equipment cost and installed cost of all power investments in MENA, 2017 to 2022. 12 Figure 3: MENA oil and gas reserves .......................................................................................................................... 16 Figure 4: Electricity interconnections in MENA ......................................................................................................... 17 Figure 5: Shares of oil and non-oil GDP ..................................................................................................................... 24 Figure 6: Dubai in 1990 and 2013, Sheik Zaid Road ................................................................................................... 26 Figure 7: The development of the GCC ...................................................................................................................... 32 Figure 8: Share of Bahrain’s non-oil GDP by industry ................................................................................................ 34 Figure 9: Tehran regional electric company .............................................................................................................. 61 Figure 10: Jordan interconnections ........................................................................................................................... 69 Figure 11: Yemen transmission and distribution ....................................................................................................... 73 Figure 12: Areas of excess and short supply in Libya due to isolation of systems .................................................... 83
Tables Table 1: MENA purchases of power equipment at selling price by country, 2017 to 2022………………...............……..13 Table 2: Capex, and all power and distribution equipment purchases at sales price and installed cost in MENA ... 13 Table 3: Generation and transmission equipment purchases in MENA .................................................................... 14 Table 4: Distribution equipment purchases in MENA ............................................................................................... 14 Table 5: Annual transformer sales in MENA in MVA by country ............................................................................... 14 Table 6: Annual power transformer sales in MENA in MVA by country .................................................................... 15 Table 7: Annual distribution transformer sales in MENA in MVA by country ........................................................... 15 Table 8: Oil and Non-oil CGP growth in real terms in the GCC, 2013 to 2018 ........................................................... 24 Table 9: Bahrain transmission and distribution ......................................................................................................... 35 Table 10: Kuwait transmission and distribution ........................................................................................................ 38 Table 11: Oman transmission and distribution .......................................................................................................... 41 Table 12: Qatar transmission and distribution .......................................................................................................... 44 Table 13: Saudi Arabia transmission and distribution ............................................................................................... 49 Table 14: UAE transmission and distribution ............................................................................................................. 59 Table 15: Iran transmission and distribution ............................................................................................................. 62 Table 16: Iraq transmission and distribution ............................................................................................................. 65 Table 17: Israel transmission and distribution ........................................................................................................... 67 Table 18: Jordan transmission and distribution ......................................................................................................... 69
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Table 19: Lebanon transmission and distribution ..................................................................................................... 70 Table 20: Syria transmission and distribution............................................................................................................ 72 Table 21: Turkey transmission and distribution ........................................................................................................ 76 Table 22: Algeria transmission and distribution ........................................................................................................ 78 Table 23: Egypt transmission and distribution .......................................................................................................... 81 Table 24: Libya transmission and distribution ........................................................................................................... 84 Table 25: Morocco transmission and distribution ..................................................................................................... 87 Table 26: Tunisia transmission and distribution ........................................................................................................ 89
MENA Power Investment Report Sample Pages
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1. POWER INVESTMENT IN MENA
Electricity investment in MENA compared with the world
Investment in electricity in MENA is driven by the price of oil in the public sector and by private finance
and economic development in the non-oil sector and amounts to 2.5% of GDP. The two sectors operate
almost independently, and while the price of oil is subject to large fluctuations up and down, private
investment and economic development in MENA and especially in the GCC countries has maintained a
more stable upwards trend for two decades. In Figure 1, investment in electricity is expressed as a fraction
of GDP. The comparison shows that investment in electricity, including public utility supply and private
developments in GCC and MENA is two and a half times higher than the global average investment. Only
China approaches this level but does not reach it.
Figure 1: Comparison of electricity sector investment, MENA, GCC and the World
Source: IMF, StatPlan
In 2017 the combined installed generating capacity of the MENA countries (including Turkey) was XXX GW.
According to Siemens, MENA will need to construct XXX GW of new power plants by 2035, as well as
replacing ageing infrastructure. It is estimated …………………
……………………….
MENA Power Investment Report Sample Pages
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Table 1: MENA purchases of power equipment at selling price by country, 2017 to 2022
2017 2018 2019 2020 2021 2022
GCC
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
GCC
Iran
Israel
Rest of ME
Middle East
Turkey
North Africa
Algeria
Egypt
Morocco
Sudan
Tunisia
North Africa
MENA
The following tables itemise expenditure on different items of power equipment in MENA.
Table 2: Capex, and all power and distribution equipment purchases at sales price and installed cost
in MENA
$ million 2017 2018 2019 2020 2021 2022
Transformers
Switchgear
Insulators & Bushings
Cable
Towers
Poles
Mechanical
Meters & smart grid
Oher electrical
Solar & wind
Total purchases
Installed cost
MENA Capex
MENA Power Investment Report Sample Pages
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Table 3: Annual transformer sales in MENA in MVA by country
MVA 2017 2018 2019 2020 2021 2022
GCC
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
GCC
Iran
Israel
Rest of ME
MIDDLE EAST
Turkey
Algeria
Egypt
Morocco
Sudan
Tunisia
NORTH AFRICA
MENA
MENA Power Investment Report Sample Pages
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The Parallel Economies of the GCC
2017 was a bad year for the public finances of the GCC countries as the price of oil fell. GDP growth
dropped from XX% in 2015 to XX% in 2016 and then collapsed to XX% in 2017. However, the GCC countries
have two parallel economies, oil and non-oil and they are largely insulated from each other. According to
the IMF, the growth of the oil GDP of the six countries combined collapsed from 3.0% in 2016 to -2.3% in
2017, but growth of the non-oil GDP increased from XX% to XX%.
The non-oil economy has prospered for the last two decades, fuelled by industry, a growing financial sector
and private investment, spurred on by population growth, urbanisation and improved living standards.
The GCC countries, meanwhile, control XX% of the world’s known oil reserves and XX% of proven natural
gas reserves.
The development of the non-oil segments in the economies of the GCC countries vary with Kuwait still
having the largest share of oil at XX% and Bahrain the most diversified at XX% non-oil. These figures
fluctuate, depending on the performance of non-oil segments and the oil price. Nevertheless, the chart
demonstrates the progress being made in the GCC to developing an alternative economic basis.
Figure 2: Shares of oil and non-oil GDP
Source: Central banks
Table 4: Oil and Non-oil CGP growth in real terms in the GCC, 2013 to 2018
2013 2014 2015 2016 2017 2018
GDP
Oil GDP
Non-oil GDP
Source: IMF
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