Middle East Electricity & Solar 2017

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INDUSTRY NEWS
Outlook for Middle
East Power Generation
This outlook comprises
KSA, UAE, Egypt, Qatar,
Oman, Kuwait, Bahrain,
Iraq, Jordan, Lebanon,
Syria and Yemen
Middle East to add 66% Power Generation
Capacity by 2030, expert says
Middle East to require additional power generation capacity of 267 GW by 2030
Natural gas to become top source for power generation
Renewables to play greater role in energy mix, with focus on solar
This is a report from Siemens outlook
for the energy landscape in the
Middle East until 2030. Siemens
maps out the region’s current power
generation scenario, upcoming
challenges, allocation of energy
sources and the role digitalization
will play in the future energy mix.
Siemens found today’s power
generation challenges to be
affordability, sustainability,
efficiency and energy security. To
overcome these, power generation
needs to allow for fuel diversity, and
to become more affordable, reliable,
highly efficient with lower
emissions, and flexible enough to
complement renewables.
The Middle East will require
additional power capacity of 267
gigawatts (GW) by 2030. This will
take the region’s capacity to 509 GW,
from 307 GW today, resulting in an
increase of 66 percent. The next 15
years will also see 66 GW of capacity
retired.
By 2030, highly efficient combinedcycle
power plants (CCPPs) will
dominate the market, as their share of
thermal power generation reaches 65
percent. This trend will be underpinned
by the growing importance of natural
gas as the No. 1 source of fuel for power
generation. Demand for gas is expected
to grow by 4.3 percent annually until
2030. CCPPs can increase fuel
efficiency in power plants by around 50
percent. Besides building new power
plants, the region has a 45 GW potential
for efficiency improvements by
upgrading facilities which are older
than 30 years.
Dietmar Siersdorfer, CEO of Siemens
Middle East and UAE commented “The
Middle East’s growing population
increasingly requires reliable and
efficient power supply. While the share
of renewables in the region’s energy
mix is set to increase, we also see
natural gas as the main source of power
generation by 2030, with energy
efficient
United Arab Emirates
Nuclear Power Plant
Photo: venturesonsite
combined-cycle power plants leading
in new capacity additions” “We also see
digitalization as an essential part of the
future energy landscape, harnessing
value out of data, improving
productivity and creating new business
opportunities.”
By 2020, the amount of data globally is
expected to reach 44 zettabytes –
equivalent to 5 million laptops worth of
data added every day- representing a
ten-fold increase from 2013, according
to the International Data Corporation.
As the number of devices in power grids
grows, complexity and data increase.
This requires better interconnectivity
and flexibility to integrate new
technologies and secure assets from
cyber attacks. Companies can use
digitalization to protect valuable assets,
reduce cost, improve optimization and
flexibility, and boost operational
efficiency.
The Middle East will also see a
g r o w i n g m i x b e t w e e n
centralized and distributed
power systems, while energy
storage will gain importance as
the share of renewables – solar
and wind – increases and
requires better integration into
the grid. The growing role of
renewables in the Middle East
is in line with regional
countries’ emissions reduction
targets and climate change
action plans. Power generation
f r o m s o l a r i s g a i n i n g
momentum, with around 16
GW of capacity additions
expected by 2030.
In the United Arab Emirates,
holder of about 6 percent of
global oil reserves, the growth
in power demand is among the
highest in the region. By 2030,
the country’s installed power
generation capacity is expected
to reach 60 GW, comprising of
44 GW from CCPPs, and the
remaining 20 GW from simplec
y c l e p o w e r p l a n t s ,
renewables, nuclear and other.
Siemens has been a long-term
technology partner to the
region. In the UAE, Siemens
turbines account for 40 percent
of the country’s power
generation capacity.
In Dubai, Siemens has been
supplying the emirate with
power solutions since 1992,
including technology for the
protection and automation of
its power infrastructure for the
digital age.
In Qatar, Siemens’ solutions
are responsible for transmitting
and distributing over 60
percent of power generated in
the country. The company is
also building a total of three
natural gas-fired CCPPs with a
total capacity of 14.4 GW in
Egypt. The power plants will
increase current generation
capacity by up to one third by
2020.