Construction of the Emirates national grid will begin by the end of 2003, take two years to complete and cost $159 million, UAE Minister of Electricity and Water Humaid Bin Nasser Al Owais said at the opening of Middle East Electricity 2003, the region's leading power generation and electricity industry exhibition and conference, at the Dubai International Exhibition Centre.
"We anticipate we will need 8,000 MW of additional capacity within 10 years," Al Owais said. The show featured nine national pavilions and more than 600 exhibitors from 34 countries.
"After the country has been linked together, the UAE grid will become part of the wider GCC power network and later be connected to systems in the Levant, Egypt and Turkey," said the minister.
Studies have shown that GCC states will need to invest between $130 million and $150 million over the next 20 years in power generation, to meet rapidly expanding demand for electricity. Saudi Arabia, which has seen an 18-fold increase in energy demand since 1974, will, alone, require investments totalling more than $115 billion.
Arab Gulf states will have to build 100 gigawatts of power generation capacity before 2020, at a cost of $150 billion, to meet rapidly expanding demand for electricity, according to Hisham Khatib, vice chairman of the World Energy Council.
Addressing the Middle East Electricity Ministers' Summit, Khatib said regional power needs were growing faster than previously forecast, at three times the world average. "In order to meet the huge demand for electricity, GCC countries will have to invest an average of $8 billion every year, more than half of which, $4.5billion, will have to be spent by Saudi Arabia alone," said Khatib.
"The big question is where will the money come from? Only a few Arab electricity utilities can attract reasonable foreign investment, as international investors consider the Middle East too risky." Khatib said there was an urgent need for the region's governments to look at other ways to meet the cost of new energy projects, including accessing local stock markets and utilising financial instruments, such as bonds.
"Self-financing, on its own, will not be enough to pay for expansion,' Khatib said. "Most Arab utilities collect less than half their bills. This is a financial disaster. Other sources of funding are needed."
Organised by IIR Exhibitions, the first annual showing of Middle East Electricity had national pavilions from Germany, the UK, Switzerland, Italy, France, Turkey, Iran, Spain, andfor the first time, Taiwan.
Many of the world's biggest power industry names were among the exhibitors, including Tyco Electronics of the US, French industry giants Electricité de France, Schneider Electric and Alstom, Germany's Osram amd Siteco, the UK's Hawker Siddeley Power Transformers and FG Wilson; Larsen & Toubro of India and Kema of Holland.
Middle East Electricity 2003 also had a large regional presence in addition to a host of exhibitors representing the international small to medium enterprise (SME) sector, many of which made their Middle East debut.
New to the 2003 event was the Middle East Electricity Ministers' Summit bringing together government decision-makers, leading regional and international power companies and respected industry advisors to discuss how new strategies and technologies could meet rapidly expanding energy needs.
In addition, a dedicated seminar programme was held. The 10 seminars examined key issues including renewable energy, energy management and conservation, power system protection maintenance, pollution controls and counterfeiting. Middle East Electricity 2003 also included for the first time a dedicated lighting arena, showcasing world leaders in commercial lighting and associated products.
The exhibition was sponsored by Novar and Lucy Switchgear and was supported by the UAE Ministry of Electricity and Water and the Federal Electricity and Water Authority.
