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Dubai: A 35 per cent energy shortfall is expected to hit the UAE's economy, which is currently enjoying a massive economic boom, according to industry insiders.
The power generation capacity of the present facilities in the Middle East, North Africa and South Asia (Menasa) region is inadequate and investments of at least $155 billion will be required over the next decade to meet growing consumption, according to research by UAE-based infrastructure specialists Septech Emirates.
"Water and power shortages of approximately 35 per cent are expected in Kuwait, Qatar and Saudi Arabia by 2010, while the UAE and Bahrain will face similar problems by 2012 and 2013 respectively.
"This figure was reached after taking into account the current power capacity across the region and adding the projected 24 per cent growth in capacity, which is under construction," said a latest report.
"There is a growing concern among the Menasa governments on how to combat the shortfalls projected in both water and power to support the developments," said Ashruf Kamel, vice-president of corporate development at Septech Emirates.
With oil production expected to dwindle over the years, the search for alternative energy sources is becoming essential, experts say.
Shell, for example, is looking for project financing in Menasa to meet the energy challenge and to safeguard profitability in the face of rising engineering, procurement and construction (EPC) costs, securing finance for high-risk large-scale projects, future trends for oil and gas investment and successful project finance structuring.
The UAE recently set up a wind power plant on Sir Baniyas Island, the first wind project in the GCC.
Abu Dhabi's $15 billion future energy initiative, Masdar City, is the world's first carbon-neutral, waste-free, car-free city that will depend completely on renewable energy and reused water. These projects are only the beginning for future energy solutions.
With Abu Dhabi aiming to become the leader, the other UAE emirates and Gulf countries must follow suit, experts said.
"We are making bold but strategic investments; applying scale and capital to drive down the cost of renewable energy, accelerating innovation, sponsoring research and building human capital," Dr Sultan Al Jaber, chief executive of Masdar, said recently.
The UAE has the capacity to generate an estimated 1,000 megawatts of electricity every year from wind energy, if utilised properly, experts said.
Fast facts
In the pipeline
- In mid-2007, the installed capacity for electricity production in the UAE was estimated at 19,220 megawatts (MW) compared to 9,600 MW in 2001. This capacity is set to increase to 26,000 MW by 2010, according to industry estimates.
- The Lighthouse will be the first low-carbon commercial tower that could reduce total energy consumption by up to 65 per cent and water consumption by up to 40 per cent. The tower's design has three 225 KV wind turbines and 4,000 photovoltaic panels.
- The S2.2 million Zayed Future Energy Prize is awarded annually to individuals for sustainable energy solutions.
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