DOHA: Due to a rapid expansion in its generation capacity, Qatar is sitting on a high 40 percent reserves in the power sector. The country’s power capacity has doubled in just two years – from 2009-2011.
“Qatar currently enjoys very high reserve margin of almost 40 percent. Hence, Qatar General Electricity and Water Corporation (Kahramaa) has announced no further capacity building plans till 2014 but focus will be in the transmission and distribution sector. Over a dozen of projects are under execution in transmission and distribution sector, with a gross investment of $4bn,” Kuwait Financial Centre (Markaz) said in its latest research note.
Qatar is one of the few countries in the Gulf, where power generation has grown considerably in the last decade.
Because of high GDP growth rates and population explosion, power consumption in Qatar has increased by a CAGR (Compound Annual Growth Rate) of 9.3 percent between 2001 and 2011.
To keep pace with the demand, Qatar saw its installed power capacity getting doubled in just two years, from 2009 to 2011. Qatar’s per capita power consumption is expected to remain as one of the highest in the GCC, Markaz said.
Qatar, being one of the largest per capita greenhouse emitters in the world, is committed to reducing the levels. Qatar National Vision 2030 has stated its ambition to use non-hydrocarbon mechanisms for power generation.
Recently, Qatar announced plans to utilise solar power for cooling the 2022 FIFA World Cup stadia. Because of high reserve margins, Qatar could look forward to electricity exports through the Gulf Cooperation Council Interconnection Authority (GCCIA) power grid. Bahrain and Kuwait have reportedly shown interest in purchasing electricity from Qatar.
Natural gas is the only source fuelling power plants in Qatar and the country does not have any major alternative energy projects. Going forward, creating opportunities and making investments in the alternate energy space will be important for Qatar, the report said. The Peninsula
