Dubai, UAE, 15 January, 2012: Increased energy efficiency will help ease energy demand arising from population and GDP growth over the coming decades in the Middle East, an energy expert said today, with nuclear and renewable energy to play an increasingly important role.
Steve Griffiths, Executive Director of Institute Initiatives at the Masdar Institute said that the extent to which nuclear and renewable energy is used, however, depends on government policies toward the energy alternatives, and the future availability of natural gas and oil.
“Energy demand in the Middle East will be significant by 2030, and likely met by oil and natural gas along with increasing amounts of nuclear and renewable energy,” said Griffiths, who will be speaking at the Middle East Electricity’s Power & Utilities Infrastructure Conference, taking place at the Dubai International Convention and Exhibition Centre from 8 to 9 February, 2012.
“The amount of nuclear and renewable energy used to meet energy demands will depend on availability of cost effective supplies of natural gas, and renewable energy policies and targets set by individual Middle East countries. Also impacting the degree of alternative energy deployment will be the extent to which subsidies of fossil energy are reduced or eliminated.”
Griffiths will be part of an expert panel discussing what the Middle East’s energy landscape will look like in 2030 at the Power & Utilities Infrastructure Conference. He said that although the Middle East region has more than one third of the world’s proven natural gas reserves, much of it contains impurities or is reliant on joint extraction with oil.
“It is not true that all of the abundant natural gas reserves in the Middle East are readily available for power and industrial use,” added Griffiths. “In countries such as Saudi and the UAE, natural gas is either associated (extracted in conjunction with oil and partially required for field reinjection), or sour (significant hydrogen sulfide content).
“Associated and sour gas is not as economically attractive as non-associated, sweet gas due to dependence on oil extraction in the case of associated gas, and expensive processing in the case of sour gas. It is often surprising when people learn that many countries in the Middle East, such as the UAE, are facing a shortage of inexpensive natural gas for electricity over the coming years.”
The Power & Utilities Infrastructure Conference is a new feature of Middle East Electricity 2012, the world’s leading power event that focuses on power, lighting, renewable, nuclear and water sectors, taking place from 7 to 9 February, 2012.
The nuclear power sector is continuing to make inroads in the region, headed by the US$20 billion Nuclear Power Plant in Abu Dhabi, which commences construction this year, and is expected to be operational by 2017, making it the first civilian nuclear power plant in an Arab Gulf state. Construction on Saudi Arabia’s US$100 billion King Abdullah City of Atomic and Renewable Energy Fleet of 16 Nuclear Reactors is slated to begin in 2013.
Griffiths said that nuclear energy is one way to meet the increasing demand of energy in the region, though not the ideal option. He continued: “The major benefits of nuclear energy is that it is capable of supplying base load power and it is cost competitive with fossil power on a levelized cost basis.
“But it has potential security risks, and a negative perception, particularly in light of the recent Fukashima accident in Japan. A lack of renewable fuel source, high capital costs and long lead time for implementation means it has its drawbacks also.”
Energy demand in the UAE is forecast to grow about 9 per cent annually over the next decade, with an estimated 41,000 megawatts per year required by 2020. According to the Arab Petroleum Investment Corporation, an additional 106.4 gigawatts of electricity is planned for the MENA region between 2012 and 2016. Griffiths states that renewable energy is an essential element of the future Middle East energy mix.
He concluded: “Inexpensive sources of natural gas are not sufficient to meet projected demand and the burning of crude oil that could otherwise be exported is not economical or satisfactory for environmental considerations. Nuclear energy has safety and security issues that could jeopardize its use.
“Given the uncertainties of fossil and nuclear energy supplies, renewables should be considered a vital component of the future Middle East energy mix. Strategies for renewables deployment should be pursued with consideration of how to ramp up their operations as soon as possible.”
Held under the patronage of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Middle East Electricity will feature more than 1000 exhibitors looking to capitalise on the region’s booming energy sector. Another new addition to the event is the Smart Power 2012 conference, which will discuss the development and future of smart energy policies.
Organised by Informa Exhibitions, Middle East Electricity 2012 is the sister event to Power + Water Middle East in Abu Dhabi and Africa Electricity in Johannesburg. To become an exhibitor, sponsor, or delegate, contact the Middle East Electricity team at +971 4 336 5161 or email: info@meelectricity.com
Caption: Steve Griffiths, Executive Director of Institute Initiatives at Masdar Institute – assessing what the Middle East energy landscape will look like by 2030