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Strong Growth in Electricity Demand and Supply Security Drive the Industry While Decarbonization and Expanding Markets Propel Power Investments
11-Apr-2022
South Asia, Middle East & North Africa
Market Outlook
PCBE-01-00-00-00
EG02225-SA-MO_26413
Globally, the Middle East (ME) is one of the regions most vulnerable to climate change. Nearly every ME country has been subjected to some of the lowest precipitation levels historically, and hotter climatic conditions will lead to a surge in demand for electricity to power regional cooling requirements. In fact, cooling already accounts for 70% of residential power demand. An increase in temperature will exacerbate the ME’s desalination and cooling requirements. Energy-efficiency needs are equally strong across the region where citizens have thrived on energy subsidies and some of the lowest electricity prices in the world. These issues coupled with volatile hydrocarbon prices have led to what is now being called the Energy Transition era in the Middle East.
Economic diversification features on most vision agendas of Gulf Cooperation Council countries to insulate themselves from volatile oil prices and to transition to an industrial economy that will achieve growth from non-oil exports. Further, the onus to reduce carbon emissions has fallen on the region; therefore, ME countries have ambitious targets to promote renewable sources of power. Decarbonization represents a subject gaining unparalleled levels of attention and importance in the ME.
Another trend is the major shift towards natural gas-fired power plants, a move away from other fossil fuel-based power generation sources, and phenomenal growth in capacity additions of renewable power generation assets, with solar PV dominating.
Opportunities abound with net capacity additions of more than 185.46 GW in the pipeline, easy access to financing renewable projects, and several incentives earmarked to attract foreign investments.
Research Highlights
This outlook captures key highlights of 2021 and what Frost & Sullivan expects from the sector in 2022, based on major industry trends observed in the past few years those that will continue going forward. The report also explores avenues for investment available for industry participants in the ME that result from this major effort towards decarbonization and managing evolving power demand.
Key Issues Addressed
- What is the installed capacity of power generation assets in the region, and what is the total market revenue potential?
- What are the major trends impacting the regional energy industry?
- What are the growth opportunities available for new entrants and existing players?
- What is the market revenue potential in prominent countries of the region?
Highlights of the Power and Energy Industry, 2021
Predictions for 2022
Why is it Increasingly Difficult To Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the ME Power & Energy Industry
Growth Opportunities Fuel The Growth Pipeline EngineTM
Research Scope
What Does the Power Sector Outlook Report Cover?
ME Power & Energy Industry, Key Market Trends
ME Power & Energy Industry, Key Market Trends (continued)
ME Power & Energy Industry, Key Market Trends (continued)
Trend 1—Gas Remains King
Trend 2—Solar Dominates New Investment
Trend 3—Nuclear on the Rise
Trend 4—Strong Investment Growth for Decentralized Power Generation
Trend 5—Energy Security and Grid Stability Drive Storage Investment
Trend 6—Higher Power Demand Drives Grid Investment
Trend 6—Higher Power Demand Drives Grid Investment (continued)
Trend 7—Large-scale High-voltage (HV) Projects to Improve Regional Interconnectivity
Trend 7—Large-scale HV Projects to Improve Regional Interconnectivity (continued)
Trend 8—Energy Efficiency Path to Net Zero
Trend 8—Energy Efficiency Path to Net Zero (continued)
Trend 9—ME Bets on a Hydrogen Future
Trend 9—ME Bets on a Hydrogen Future (continued)
Trend 10—The Drive for Local Manufacturing
Trend 11—Waste to Energy (WTE)
Trend 12—Carbon Sequestration, Storage, and Utilization
Trend 13—Biofuels
Trend 14—Electrification of Transport
Trend 15—Sustainable DC
Trend 16—Decarbonized Desalination
Annual Power Generation Investment Forecast
Installed Power Generation Capacity Forecast
Annual Power Generation Capacity Additions
Annual Power Generation Investment by Country
Total Annual Power Investment Forecast
Power Generation Investment Outlook
Power Generation Investment Outlook (continued)
Egypt Power and Energy Outlook
KSA Power and Energy Outlook
UAE Power and Energy Outlook
Kuwait Power and Energy Outlook
Qatar Power and Energy Outlook
Israel Power and Energy Outlook
Growth Opportunity 1—Energy Consumption Management
Growth Opportunity 1—Energy Consumption Management (continued)
Growth Opportunity 2—RE Investments
Growth Opportunity 2—RE Investments (continued)
Growth Opportunity 3—T&D
Growth Opportunity 3—T&D (continued)
Growth Opportunity 4—O&M Opportunities in Renewables
Growth Opportunity 4—O&M Opportunities in Renewables (continued)
Growth Opportunity 5—Retrofit Gas Turbines
Growth Opportunity 5—Retrofit Gas Turbines (continued)
Conclusions
Abbreviations and Acronyms
List of Exhibits
List of Exhibits (continued)
Legal Disclaimer
List of Figures
- Power and Energy Outlook: Power Generation Cumulative Installed Capacity Forecast by Energy Type, ME, 2021 and 2030
- Power and Energy Outlook: Solar Power Generation Cumulative Installed Capacity Forecast by Type, ME, 2021–2030
- Power and Energy Outlook: Total Solar Capacity Additions, ME, 2022–2030
- ME Power and Energy Market: Proposed Nuclear Capacity, KSA and UAE, 2020–2030
- Power and Energy Outlook: Nuclear Capacity Under Construction, UAE, 2020–2030
- Power and Energy Outlook: Distributed Energy Market Revenue Forecast, GCC, 2020–2030
- Power and Energy Outlook: Residential Electricity AMI Metering Forecasts, GCC, 2020–2030
- Power and Energy Outlook: Energy Efficiency Measures, ME, 2021–2030
- Power and Energy Outlook: Hydrogen Export and Import Potential, Global, 2022–2030
- Power and Energy Outlook: Solar PV LCOE, ME, 2018–2020
- Power and Energy Outlook: WTE Plant Proposals and Developments, ME, 2022
- Power and Energy Outlook: Estimated CO2 Emissions GCC, 2025
- Power and Energy Outlook: Investment by Fuel, ME, 2021 and 2030
- Power and Energy Outlook: Installed Capacity by Fuel, ME, 2021 and 2030
- Power and Energy Outlook: Annual Capacity Addition by Fuel Type, ME, 2020–2030
- Power and Energy Outlook: Investment by Country, ME, 2020–2030
- Power and Energy Outlook: Total Power Investments, ME, 2020–2030
- Power and Energy Market: Power Generation Investment by Fuel Type, Egypt, 2021, 2022, 2025, 2030
- Power and Energy Market: Power Generation Investment by Fuel Type, KSA, 2021, 2022, 2025, 2030
- Power and Energy Market: Power Generation Investment by Fuel Type, UAE, 2021, 2022, 2025, 2030
- Power and Energy Market: Power Generation Investment by Fuel Type, Kuwait, 2021, 2022, 2025, 2030
- Power and Energy Market: Power Generation Investment by Fuel Type, Qatar, 2021, 2022, 2025, 2030
- Power and Energy Market: Power Generation Investment by Fuel Type, Israel, 2021, 2022, 2025, 2030
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Research Highlights
This outlook captures key highlights of 2021 and what Frost & Sullivan expects from the sector in 2022, based on major industry trends observed in the past few years those that will continue going forward. The report also explores avenues for investment available for industry participants in the ME that result from this major effort towards decarbonization and managing evolving power demand.
Key Issues Addressed
- What is the installed capacity of power generation assets in the region, and what is the total market revenue potential
- What are the major trends impacting the regional energy industry
- What are the growth opportunities available for new entrants and existing players
- What is the market revenue potential in prominent countries of the region
| Deliverable Type | Market Outlook |
|---|---|
| Author | Saraswathi Venkatesan |
| Industries | Energy |
| No Index | No |
| Is Prebook | No |
| List of Charts and Figures | Power and Energy Outlook: Power Generation Cumulative Installed Capacity Forecast by Energy Type, ME, 2021 and 2030~ Power and Energy Outlook: Solar Power Generation Cumulative Installed Capacity Forecast by Type, ME, 2021–2030~ Power and Energy Outlook: Total Solar Capacity Additions, ME, 2022–2030~ ME Power and Energy Market: Proposed Nuclear Capacity, KSA and UAE, 2020–2030~ Power and Energy Outlook: Nuclear Capacity Under Construction, UAE, 2020–2030~ Power and Energy Outlook: Distributed Energy Market Revenue Forecast, GCC, 2020–2030~ Power and Energy Outlook: Residential Electricity AMI Metering Forecasts, GCC, 2020–2030~ Power and Energy Outlook: Energy Efficiency Measures, ME, 2021–2030~ Power and Energy Outlook: Hydrogen Export and Import Potential, Global, 2022–2030~ Power and Energy Outlook: Solar PV LCOE, ME, 2018–2020~ Power and Energy Outlook: WTE Plant Proposals and Developments, ME, 2022~ Power and Energy Outlook: Estimated CO2 Emissions GCC, 2025~ Power and Energy Outlook: Investment by Fuel, ME, 2021 and 2030~ Power and Energy Outlook: Installed Capacity by Fuel, ME, 2021 and 2030~ Power and Energy Outlook: Annual Capacity Addition by Fuel Type, ME, 2020–2030~ Power and Energy Outlook: Investment by Country, ME, 2020–2030~ Power and Energy Outlook: Total Power Investments, ME, 2020–2030~ Power and Energy Market: Power Generation Investment by Fuel Type, Egypt, 2021, 2022, 2025, 2030~ Power and Energy Market: Power Generation Investment by Fuel Type, KSA, 2021, 2022, 2025, 2030~ Power and Energy Market: Power Generation Investment by Fuel Type, UAE, 2021, 2022, 2025, 2030~ Power and Energy Market: Power Generation Investment by Fuel Type, Kuwait, 2021, 2022, 2025, 2030~ Power and Energy Market: Power Generation Investment by Fuel Type, Qatar, 2021, 2022, 2025, 2030~ Power and Energy Market: Power Generation Investment by Fuel Type, Israel, 2021, 2022, 2025, 2030~ |
| Podcast | No |
| WIP Number | PCBE-01-00-00-00 |
Middle East Power & Energy Outlook, 2022
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