MENA Power Sector To Kick 7% Higher By 2014-2018

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Kuwait’s financial centre, Markaz, forecasted that the power demand in the MiddleMENA Power Sector To Kick 7% Higher By 2014-2018East and North African countries will escalate at 7% rate between 2014-2018. This growth is expected to put an investment worth $283billion.
The forecast highlighted the demand, supply, resources, utilization and investment trends in the MENA region, covering both hydrocarbons exporting and importing.
The report also emphasizes that factors such as technological and infrastructural limitations as well as political and economic instabilities positively affect the underutilization of natural resources in eco-rich MENA countries.
Like in Egypt, the political instability plagues the country, whose domestic oil consumption has grown by over 30% over the last decade with government investment budgets of around a $100 billion.
The report underlined the steps taken by the Moroccan government to tap into its hydro and solar resources for power generation in an attempt to meet rising power demands, the growth steadily rising at an average rate of 7%.
Natural gas demand (225 million cubic feet per day) outstrips supply (255 million cubic feet) in Jordan who is dependent on neighboring Egypt for all its gas supplies.
Iran also emerges as the leader in natural gas and oil reserves in the MENA region and these resources being key source of foreign exchange income and fiscal revenues. It has also underutilized solar energy that could possibly be used for power generation.
Political infrastructural instability haunts Iraq that has announced $28 billion of investments in power sector.
The report emphasizes the prominent position of the MENA region in the world’s oil and natural gas reserves: 57% collective oil and 41% natural gas reserves collectively but population and economic growth putting added pressure on power generation in the sector.